Costing Solved MCQs


When amount deposited in a bank is withdrawn for financing a project, the losses of interest on bank deposits will be refered to as________

A. replacement cost
B. pre production cost
C. opprotunity cost
D. sunk cost
Answer» C. opprotunity cost

If there is increase in the size of inventory orders, total annual ordering cost will ____________

A. increase
B. decrease
C. remain same
D. change depending on other factors
Answer» B. decrease

Normal Ideal time______________

A. can not be avoided
B. can be controlled
C. can be minimised
D. can be avoided
Answer» A. can not be avoided

The distribution of overheads alloted to particular department or cost center over the units produced is called _____________

A. absorption
B. allocation
C. departmentalisation
D. apportionment
Answer» A. absorption

Prime cost + Over heads = __________

A. cost of sales
B. works cost
C. total cost
D. cost of production
Answer» C. total cost

Notional interest charged to owner for drawings income credited only in _____________

A. debtors accounts
B. cost accounts
C. final accounts
D. profit and loss accounts
Answer» B. cost accounts

A cost unit is _____________

A. a major of work output in a standard hour
B. the cost per unit of electricity consumed
C. a unit of product or service in relation to which costs are ascertained
D. the costs per hour of operating a machine
Answer» C. a unit of product or service in relation to which costs are ascertained

Material controls involves control over _____________

A. issue of material
B. consumption of material
C. purchase, storage and issue of materials
D. purchase of material
Answer» C. purchase, storage and issue of materials

An employee is eligible for getting overtime wage if he/ she works for more than ____________

A. 6 hours a day
B. 12 hours a day
C. 9 hours a day
D. 8 hours a day
Answer» C. 9 hours a day

If an item of overhead expenditure is charges specifically to a single department this would be an example of ____________

A. absorption
B. apportionment
C. reapportionment
D. allocation
Answer» D. allocation

The variables production overheads shall be absorbed in production cost based on ______________ capacity

A. normal
B. current
C. super normal
D. actual
Answer» D. actual

The basic rule of preparing the reconciliation statement is _______________

A. do as all has done
B. do as i have done
C. do as the other has done
D. do as you had done
Answer» C. do as the other has done

The three major elements of product costs are all except____________

A. factory overhead
B. indirect labour
C. direct material
D. direct labour
Answer» B. indirect labour

Material requisition is meant for _____________

A. purchase of material
B. sales of material
C. storage of material
D. supply of materials from stores
Answer» D. supply of materials from stores

Halsey premium plan is ____________

A. individual incentive scheme
B. group incentive scheme
C. differential piece wage system
D. time and piece wage system
Answer» A. individual incentive scheme

Which of the following is not a means whereby factory overheads can be charged out to production ?

A. over time rate
B. blanket rate
C. machine hour rate
D. direct labour rate
Answer» C. machine hour rate

Subsidy receivable with respect to any material shall be __________cost of material

A. reduced from
B. added to
C. divided to
D. multiplied to
Answer» A. reduced from

____________ may be valued on a FIF basis in cost accouts and LIFO basis in financial accounts.

A. direct expenses
B. administrative expenses
C. raw materials
D. labour
Answer» C. raw materials

Indirect cost are known as ______

A. variable cost
B. overheads
C. none of the above
D. fixed cost
Answer» B. overheads

Material is issued by store keeper against _____________

A. material requisition
B. purchase requisition
C. material order
D. goods received notes
Answer» A. material requisition

Number of methods avaliable for calculation of labour turn over is ________________

A. forth
B. three
C. five
D. two
Answer» B. three

Which of the following bases is not a appropriate for apportionment of transport department cost ?

A. crane value
B. crane hours
C. truck milage
D. truch value
Answer» A. crane value

Labour costs __________Salaries and wages paid to temporary employees.

A. written
B. includes
C. mentioned
D. excludes
Answer» B. includes

Which of the following is not an example of marketing overheads ?

A. salaries of sales staff
B. secondary packing charges
C. salary of the foreman
D. publicity expenses
Answer» C. salary of the foreman

The document which is prepared after receiving and inspecting material _____________

A. goods received note
B. inventory record
C. material record note
D. bill of material
Answer» A. goods received note
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