Costing MCQs

Question 1

Cost accounting was developed because of the _________.

Accepted Answer

limitations of the financial accounting

Answer

limitations of the management accounting

Answer

limitations of the human resource accounting

Answer

limitations of the double entry accounting

Question 2

Multiple costing is a technique of using two or more costing methods for ascertainment of cost by _______.

Accepted Answer

the same firm

Answer

the several firms

Answer

the same industry

Answer

the several industries

Question 3

Which one of the following is not considered for preparation of cost sheet?

Accepted Answer

Goodwill written off

Answer

Factory cost

Answer

Labour cost

Answer

Selling cost

Question 4

Sale of defectives is reduced from ________.

Accepted Answer

cost of production

Answer

prime cost

Answer

works cost

Answer

cost of sales

Question 5

Cost of sales plus profit is _______.

Accepted Answer

selling price

Answer

value of finished product

Answer

value of goods produced

Answer

value of stocks

Question 6

Prime cost includes _______.

Accepted Answer

direct materials, direct wages and direct expenses

Answer

direct materials, direct wages and indirect expenses

Answer

indirect materials and indirect labour and indirect expenses

Answer

direct materials, indirect wages and indirect expenses

Question 7

Depreciation of plant and machinery is a part of ________.

Accepted Answer

factory overhead

Answer

selling overhead

Answer

distribution overhead

Answer

administration overhead

Question 8

Factory overhead can be charged on the basis of _______.

Accepted Answer

prime cost

Answer

material cost

Answer

labour cost

Answer

direct expenses

Question 9

Office and administrative expenses can be charged on the basis of _______.

Accepted Answer

prime cost

Answer

material cost

Answer

labour cost

Answer

factory cost