Costing MCQs

Question 1

Comparison of the financial statements of the current year with the performance of previous years of the same firm is known as

Accepted Answer

All of the above

Answer

Trend analysis

Answer

Horizontal analysis

Answer

Intra-firm comparison

Question 2

. . . . . . . . is the cost which involves payment to outsiders.

Accepted Answer

Out of pocket cost

Answer

Imputed cost

Answer

Notional cost

Answer

None of these

Question 3

Calculating ratio for industry analysis implies all of the following except,

Accepted Answer

it is not possible to standardise the accounting data of various firms following varied accounting policies

Answer

it is difficult to assess and rely on the average of ratios of the strong and weak firms in the industry

Answer

it helps to assess the financial standing of the firm as compared to other firms in the same industry

Answer

comparison of average of the industry with those of the firm

Question 4

Match the following. List-I List-II a. Cost control purposes 1. . . . . . . . . is a predetermined cost b. Standard cost 2. Responsibility accounting fixes responsibility for . . . . . . . . c. Integrates 3. Cost accounting guides future . . . . . . . . d. Production policies 4. Budgeting system . . . . . . . . key managerial functions

Accepted Answer

a-2, b-1, c-4, d-3

Answer

a-4, b-3, c-2, d-1

Answer

a-2, b-3, c-4, d-1

Answer

a-3, b-2, c-4, d-1

Question 5

Taylor's differential piece work plan provides that

Accepted Answer

Those who produce above standard should receive higher wages than those producing below standard

Answer

All labourers should be assigned different amount of work

Answer

All labourers should be put in different time-period

Answer

Payment should be the same on a fixed standard

Question 6

Which method of costing is used in hospitals?

Accepted Answer

Operational cost determination

Answer

Unit cost determination

Answer

Sub work cost determination

Answer

Group cost determination

Question 7

. . . . . . . . is the value of a benefit where no actual cost is incurred.

Accepted Answer

Imputed

Answer

Sunk

Answer

Out of pocket

Answer

None of these

Question 8

If prime cost is Rs. 20,000; factory overheads are 25% of prime cost and office overheads are 80% of factory overheads then the office cost would be

Accepted Answer

Rs. 29,000

Answer

Rs. 25,000

Answer

Rs. 36,000

Answer

Rs. 45,000

Question 9

An input of 5000 kg of material introduced into the process and the expected loss is 8% and if the actual output from the process is 4300, the abnormal loss is . . . . . . . . kg.

Accepted Answer

300

Answer

400

Answer

500

Answer

600