Top 80+ Solved Fundamentals of Costing MCQ Questions Answer
Q. Which of the following costing method is suitable for Toy Making Industry?
a. Contract Costing
b. Process Costing
c. Job Costing
d. Batch Costing
Q. Which of the following is not a technique of costing?
a. Managerial Costing
b. Process Costing
c. Standard Costing
d. Budgetary Costing
Q. Excise duty is an example of
a. Chargeable expense
b. Factory overhead
c. Administrative overhead
d. Non-cost item
Q. Over which the following costs, management is likely to have least control?
a. Wages cost
b. Building Insurance cost
c. Machinery Breakdown cost
d. Advertisement cost
Q. The works cost plus administration expenses represents 27
a. Total cost
b. Cost of Production
c. Cost of sales
d. Factory cost
Q. Opportunity cost is the best example of
a. Sunk cost
b. Standard cost
c. Relevant cost
d. Irrelevant cost
Q. Which method of costing is used for determination of costs for printing industry?
a. Process costing
b. Operating costing
c. Batch costing
d. Job costing
Q. Prime cost plus factory overheads is known as
a. Marginal Costing
b. Conversion Cost
c. Commercial Cost
d. Factory Cost
Q. From the following information, find out purchases when raw material consumed is 26,500;Closing stock 4,500 and opening stock 3,000.
a. 26,500
b. 25,000
c. 28,000
d. 34,000
Q. Bad debts are included as
a. Direct expenses
b. Distribution overhead
c. Cost of production
d. Selling overhead
Q. When re-ordering level is 200 units, minimum usage is 20 units, minimum lead time is 5 days,maximum stock is 400 units then re-ordering quantity will be:
a. 400 units
b. 200 units
c. 300 units
d. 100 units
Q. In the situation of increasing prices, the valuation of closing stock is more under:
a. Simple average
b. Weighted average
c. FIFO
d. LIFO
Q. Payment of Royalties is
a. Direct Expenses
b. Administrative Cost
c. Charged to Profit & Loss A/c
d. Factory Overheads
Q. Which one of the following statement is true?
a. Abnormal cost is not controllable
b. Financial Expenses are included in Cost Sheet
c. All overheads changes with the change in volume and in the same proportion. 28
d. Primary packing is an item of prime cost.
Q. Costing is a technique of
a. Recording of Cost transactions
b. Ascertaining Cost
c. Preparation of final accounts
d. Decision making