Costing MCQs

Question 1

Capacity Ratio =

Accepted Answer

$$\frac{{{	ext{Actual hours worked}}}}{{{	ext{Budgeted hours}}}} 	imes 100$$

Answer

$$\frac{{{	ext{Number of actual working days in a period}}}}{{{	ext{Number of working days in the budget period}}}} 	imes 100$$

Answer

$$\frac{{{	ext{Standard hours for actual production}}}}{{{	ext{Actual hours worked}}}} 	imes 100$$

Answer

$$\frac{{{	ext{Standard hours for actual production}}}}{{{	ext{Budgeted standard hours}}}} 	imes 100$$

Question 2

What is not included in quick assets?

Accepted Answer

Inventories

Answer

Cash

Answer

Gold

Answer

Advance for supply of raw materials

Question 3

If machine hours are 8000 and factory overhead absorption rate per machine hour is Rs. 8, then the absorbed factory overheads will be

Accepted Answer

Rs. 64,000

Answer

Rs. 1,000

Answer

Rs. 8,000

Answer

Rs. 7,992

Question 4

When prices are rising, the stock should be valued under:

Accepted Answer

LIFO method

Answer

FIFO method

Answer

General average method

Answer

Weighted average method

Question 5

Sunk costs are . . . . . . . . for decision-making

Accepted Answer

irrelevant

Answer

relevant

Answer

useful

Answer

None of these

Question 6

. . . . . . . . is an example of long-term budget.

Accepted Answer

Both B and C

Answer

Cash budget

Answer

Capital expenditure budget

Answer

Research and development budget

Question 7

Rowan premium plan reformed-

Accepted Answer

Halsey's interest method

Answer

Taylor method

Answer

Gant bonus scheme

Answer

Differential method

Question 8

Match the following. List-I List-II a. Leverage ratio 1. Short-term solvency b. Liquidity ratio 2. Earning capacity c. Turnover ratio 3. Relationship between debt and equity d. Profitability ratio 4. Efficiency of asset management

Accepted Answer

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

Answer

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

Answer

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

Answer

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

Question 9

Service costing is used in industries producing . . . . . . . .

Accepted Answer

service

Answer

products

Answer

Both A and B

Answer

None of these