Costing Archives - MCQ and Quiz for Exams

1. If difference between costs linked to highest and lowest observation of cost driver is $36000 and observation of cost driver is 30 machine hours, then slope coefficient would be

$1,200

$1,400

$1,600

$1,800

Detailed SolutionIf difference between costs linked to highest and lowest observation of cost driver is $36000 and observation of cost driver is 30 machine hours, then slope coefficient would be

2. Liquid assets is determined by

Current assets - Stock - Prepaid expenses

Current assets + Stock + Prepaid expenses

Current assets + Prepaid expenses

None of the above

Detailed SolutionLiquid assets is determined by

3. Break-even point is also known as . . . . . . . . point.

total cost

total revenue

no profit no loss

contribution

Detailed SolutionBreak-even point is also known as . . . . . . . . point.

4. Match the items of List-I with the items of List-Il and indicate the correct answer. List-I List-II a. Debtors turnover ratio 1. Solvency ratio b. Proprietary ratio 2. Liquidity ratio c. Operating ratio 3. Activity ratio d. Acid test ratio 4. Profitability ratio

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

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

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

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

Detailed SolutionMatch the items of List-I with the items of List-Il and indicate the correct answer. List-I List-II a. Debtors turnover ratio 1. Solvency ratio b. Proprietary ratio 2. Liquidity ratio c. Operating ratio 3. Activity ratio d. Acid test ratio 4. Profitability ratio

5. FIFO and LIFO are valuation method of-

Fixed assets

Investments

Raw material to be issued

All of these

Detailed SolutionFIFO and LIFO are valuation method of-

6. Budget which calculates expected revenues and expected costs, based on actual output quantity is named as

flexible budget

fixed budget

variable budget

multiplied budget

Detailed SolutionBudget which calculates expected revenues and expected costs, based on actual output quantity is named as

7. ________ is a preventive function.

Costreduction

Costcontrol

Costunit

Costcentre

Detailed Solution________ is a preventive function.

8. On what basis are the selling and distribution overheads absorbed?

Percentage on selling cost

Percentage on factory cost

Per unit rate

None of these

Detailed SolutionOn what basis are the selling and distribution overheads absorbed?

9. What does a low proprietary ratio indicates?

Sound financial position

Weak financial position

Both A and B

None of these

Detailed SolutionWhat does a low proprietary ratio indicates?

10. During a period of rising prices, which of the following inventory pricing methods tends to produce higher cost of goods sold?

LIFO

FIFO

Simple Average Method

Inflated Price Method

Detailed SolutionDuring a period of rising prices, which of the following inventory pricing methods tends to produce higher cost of goods sold?

Page 1 Page 2 Page 3 Page 4 Page 5

Test 1 Test 2 Test 3 Test 4 Test 5 Test 6 Test 7 Test 8 Test 9 Test 10 Test 11 Test 12 Test 13 Test 14 Test 15 Test 16 Test 17 Test 18 Test 19 Test 20 Test 21 Test 22 Test 23 Test 24

Exit mobile version