Costing Archives - MCQ and Quiz for Exams

1. Type of accounting, which focuses on whom should be asked for information and whom not will be categorized as

focused accounting

responsibility accounting

information accounting

blame accounting

Detailed SolutionType of accounting, which focuses on whom should be asked for information and whom not will be categorized as

2. The ordinary trading account is a locked storehouse of most valuable information to which cost system is the . . . . . . . .

key

lock

house

None of these

Detailed SolutionThe ordinary trading account is a locked storehouse of most valuable information to which cost system is the . . . . . . . .

3. When output of earlier process is transferred at a profit to the subsequent process, it is ________.

inter departmental profit

abnormal gain

inter process profit

manufacturing profit

Detailed SolutionWhen output of earlier process is transferred at a profit to the subsequent process, it is ________.

4. In electricity supply company uses . . . . . . . . as cost unit.

kilo watt hour

per household

voltage

None of these

Detailed SolutionIn electricity supply company uses . . . . . . . . as cost unit.

5. Method, which allocates cost of support department to operating and support departments is known as

indirect method

direct method

step down method

reciprocal method

Detailed SolutionMethod, which allocates cost of support department to operating and support departments is known as

6. Taylors differential piece rate system provides for higher rate to . . . . . . . . workers.

inefficient

efficient

Both A and B

lazy

Detailed SolutionTaylors differential piece rate system provides for higher rate to . . . . . . . . workers.

7. Normal spoilage is subtracted from total spoilage to calculate

abnormal spoilage

Gross weighted spoilage

inventoriable spoilage

partial spoilage

Detailed SolutionNormal spoilage is subtracted from total spoilage to calculate

8. In linear cost function, which is y = a + bx, y is classified as

predicted fixed cost

predicted variable cost

predicted cost

predicted price

Detailed SolutionIn linear cost function, which is y = a + bx, y is classified as

9. If slope coefficient is 0.60 and difference in machine hours is 50000, then difference in cost can be

$68,700

$58,700

$30,000

$83,333.34

Detailed SolutionIf slope coefficient is 0.60 and difference in machine hours is 50000, then difference in cost can be

10. Match the following. List-I List-II a. Debtor’s 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 following. List-I List-II a. Debtor’s turnover ratio 1. Solvency ratio b. Proprietary ratio 2. Liquidity ratio c. Operating ratio 3. Activity ratio d. Acid test ratio 4. Profitability ratio

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