Top 50+ Solved Costing MCQ Questions Answer
Q. When amount deposited in a bank is withdrawn for financing a project, the losses of interest on bank deposits will be refered to as________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
Q. 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
Q. Normal Ideal time______________
a. can not be avoided
b. can be controlled
c. can be minimised
d. can be avoided
Q. 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
Q. Prime cost + Over heads = __________
a. cost of sales
b. works cost
c. total cost
d. cost of production
Q. 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
Q. 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
Q. Material controls involves control over _____________
a. issue of material
b. consumption of material
c. purchase, storage and issue of materials
d. purchase of material
Q. 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
Q. 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
Q. The variables production overheads shall be absorbed in production cost based on ______________ capacity
a. normal
b. current
c. super normal
d. actual
Q. 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
Q. The three major elements of product costs are all except____________
a. factory overhead
b. indirect labour
c. direct material
d. direct labour
Q. Material requisition is meant for _____________
a. purchase of material
b. sales of material
c. storage of material
d. supply of materials from stores
Q. Halsey premium plan is ____________
a. individual incentive scheme
b. group incentive scheme
c. differential piece wage system
d. time and piece wage system