Costing MCQs

Question 1

Operating costing is suitable for _______.

Accepted Answer

service industries

Answer

job order business

Answer

contractors

Answer

sugar industries

Question 2

Prime cost plus variable overheads is known as________.

Accepted Answer

Marginal cost

Answer

Cost of sales

Answer

Production Cost

Answer

Total Cost

Question 3

Wages paid to a labour who was engaged in production activities can be termed as _______.

Accepted Answer

direct cost

Answer

indirect cost

Answer

sunk cost

Answer

imputed cost

Question 4

Classification of cost is useful ________.

Accepted Answer

to identify costs

Answer

to find gross profit

Answer

to find net profit

Answer

to identify efficiency

Question 5

The purpose of financial accounting is to provide information for ________.

Accepted Answer

assessing the profitability and financial position of the firm

Answer

fixing prices

Answer

controlling cost

Answer

locating factors leading to wastages and losses

Question 6

Defectives ________.

Accepted Answer

can be rectified and mad made into good units

Answer

cannot be rectified and made into good units

Answer

can be a part of finished product

Answer

can be termed as spoilage

Question 7

The stores keeper should initiate a purchase requisition when stock reaches ________.

Accepted Answer

Re-order level

Answer

Average stock level

Answer

Minimum stock level

Answer

Maximum stock level

Question 8

Direct cost incurred can be identified with ________.

Accepted Answer

each unit of output

Answer

each department

Answer

each month

Answer

each executive

Question 9

Costing refers to the techniques and processes of ________.

Accepted Answer

ascertainment of costs

Answer

allocation of costs

Answer

apportion of costs

Answer

distribution of costs