Costing Archives - MCQ and Quiz for Exams

1. Which budget is prepared first of all?

Cash budget

Master budget

Budget for the key factor

Flexible budget

Detailed SolutionWhich budget is prepared first of all?

2. Labour turnover means:

Turnover generated by labour

Rate of change in composition of labour force during a specified period

Either of the above

Both of the above

Detailed SolutionLabour turnover means:

3. Contract costing is most appropriate method of costing for ________.

construction industry

banking industry

textile mills

cement industry

Detailed SolutionContract costing is most appropriate method of costing for ________.

4. Economic Batch Quantity is an important point to be determined in industries where . . . . . . . . costing is employed.

job

batch

operation

output

Detailed SolutionEconomic Batch Quantity is an important point to be determined in industries where . . . . . . . . costing is employed.

5. An average inventory in units is multiplied with annual relevant carrying cost of each unit to calculate

annual irrelevant ordering costs

annual relevant carrying costs

annual relevant ordering costs

annual irrelevant carrying costs

Detailed SolutionAn average inventory in units is multiplied with annual relevant carrying cost of each unit to calculate

6. In income statement of merchandising costs, period cost includes all costs which are not related to

cost of resale goods

cost of manufacturing goods

timed resale of goods

cost of purchased goods

Detailed SolutionIn income statement of merchandising costs, period cost includes all costs which are not related to

7. A manager who is responsible for only cost of company belongs to

cost center

revenue center

profit center

investment center

Detailed SolutionA manager who is responsible for only cost of company belongs to

8. The process of grouping of costs according to some common characteristics ________.

absorption

primary distribution

secondary distribution

classification

Detailed SolutionThe process of grouping of costs according to some common characteristics ________.

9. . . . . . . . . is the oldest branch of accounting.

Financial accounting

Cost accounting

Management accounting

None of these

Detailed Solution. . . . . . . . is the oldest branch of accounting.

10. Material abstract is also known as . . . . . . . .

material issue analysis sheet

bill of materials

stores ledger

None of the above

Detailed SolutionMaterial abstract is also known as . . . . . . . .

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