Costing Archives - MCQ and Quiz for Exams

1. Accounting Standard-6 is meant for

Accounting for fixed assets

Accounting treatment for goodwill

Depreciation accounting

Disclosure of accounting policies

Detailed SolutionAccounting Standard-6 is meant for

2. Higher level of production leads to

higher repair cost

higher setup cost

lower repair cost

higher setup cost

Detailed SolutionHigher level of production leads to

3. Number of worker employed is used as basis for the apportionment of ________.

rent

canteen expenses

PF contribution

rate and tax

Detailed SolutionNumber of worker employed is used as basis for the apportionment of ________.

4. A company proposes to introduce a new product in the market. The company wants to maintain P/V ratio at 25%. If variable cost of the product is Rs. 300, then what will be the selling price?

Rs. 100

Rs. 200

Rs. 300

Rs. 400

Detailed SolutionA company proposes to introduce a new product in the market. The company wants to maintain P/V ratio at 25%. If variable cost of the product is Rs. 300, then what will be the selling price?

5. In normal costing, manufacturing overhead allocated is also called

manufacturing overhead applied

labour overhead applied

cost overhead applied

budget overhead applied

Detailed SolutionIn normal costing, manufacturing overhead allocated is also called

6. Indirect materials can be apportioned on the basis of ________.

direct material

prime cost

direct labour hour

machine hour

Detailed SolutionIndirect materials can be apportioned on the basis of ________.

7. Allotment of overhead to cost unit is called

Cost Allocation

Cost Apportionment

Cost Absorption

Cost Classification

Detailed SolutionAllotment of overhead to cost unit is called

8. Cost Accounting has been developed because of . . . . . . . . of Financial Accounting.

Limitations

Advantages

Both A and B

None of these

Detailed SolutionCost Accounting has been developed because of . . . . . . . . of Financial Accounting.

9. Systematic flow of services, goods or information from buying material for product delivery to customers is known as

supply chain

value chain

material flow chain

manufacturing flow chain

Detailed SolutionSystematic flow of services, goods or information from buying material for product delivery to customers is known as

10. Cost of goods sold is calculated:

Cost of production + opening stock of finished goods - closing stock of finished goods

Prime cost + factory overhead cost + work in progress at the beginning - works in progress closing

Opening stock of raw materials + purchase of raw materials - closing stock of raw materials

Cost of production + administrative expenses + work in progress closing - work in progress beginning E. Opening stock of work in progress + opening stock of finished goods + works expenses - closing stock of finished goods

Detailed SolutionCost of goods sold is calculated:

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