Costing MCQs

Question 1

Job costing used in ________.

Accepted Answer

printing works

Answer

paper mills

Answer

chemical works

Answer

textile mill

Question 2

A document which provides for the detailed cost centre and cost unit is _______.

Accepted Answer

cost sheet

Answer

tender

Answer

invoice

Answer

profit statement

Question 3

Direct material is a _______.

Accepted Answer

variable cost

Answer

fixed cost

Answer

semi variable cost

Answer

semi fixed cost

Question 4

The most important element of cost in manufacturing industries is _________.

Accepted Answer

material

Answer

labour

Answer

direct costs

Answer

indirect costs

Question 5

According to which method of pricing issues is close to current economic values?

Accepted Answer

Last In First Out

Answer

First In First Out

Answer

Highest In First Out

Answer

weighted average price

Question 6

Continuous stock taking is a part of ________.

Accepted Answer

perpetual inventory

Answer

annual stock taking

Answer

ABC analysis

Answer

VED analysis

Question 7

Which of the following methods of stock control aims at concentrating efforts on selected items of material?

Accepted Answer

ABC analysis

Answer

Perpetual inventory system

Answer

Material turnover ratio

Answer

Level setting

Question 8

Material control involves ________.

Accepted Answer

purchase, storage and issue of material

Answer

consumption of material

Answer

issue of material

Answer

purchase of material

Question 9

Material requisition is meant for ________.

Accepted Answer

supply of material from stores

Answer

purchase of material

Answer

sale of material

Answer

storage of material