Costing MCQs

Question 1

Cash from operation is equal to

Accepted Answer

net profit plus decrease in current assets

Answer

net profit plus increase in current assets

Answer

net profit minus decrease in current assets

Answer

None of the above

Question 2

The loss incurred on an incomplete contract is transferred to . . . . . . . . account.

Accepted Answer

profit and loss account

Answer

costing profit and loss account

Answer

trading account

Answer

deferred to next year

Question 3

BOGEY standard in Cost Accounting is also known as:

Accepted Answer

Ideal standard

Answer

Basic standard

Answer

Attainable standard

Answer

Abnormal loss standard

Question 4

Costing and cost accounting are . . . . . . . .

Accepted Answer

not the same

Answer

one and the same

Answer

not related at all

Answer

None of these

Question 5

The formula $$\frac{{	ext{Q}}}{2}$$ is used to compute the:

Accepted Answer

Total carrying cost

Answer

Total ordering cost

Answer

Opportunity cost

Answer

Re-order point

Question 6

Debt equity ratio is a test of

Accepted Answer

solvency

Answer

liquidity

Answer

profitability

Answer

turnover

Question 7

Inventory turnover ratio = Cost of . . . . . . . . during the period ÷ Cost of average inventory held during the period.

Accepted Answer

inventory consumed

Answer

minimum inventory

Answer

maximum inventory

Answer

None of these

Question 8

Bin card is maintained by the . . . . . . . .

Accepted Answer

Storekeeper

Answer

Cost accountant

Answer

Clerk

Answer

Branch accountant

Question 9

Opportunity cost of capital invested in inventory is included in:

Accepted Answer

Carrying cost

Answer

Ordering cost

Answer

Stock-out cost

Answer

Overheads