MCQOPTIONS
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MCQOPTIONS
This section includes 1375 Mcqs, each offering curated multiple-choice questions to sharpen your Commerce knowledge and support exam preparation. Choose a topic below to get started.
| 701. |
*$_Situation in which cost object has any job, customer or product is known as? |
| A. | cost application base |
| B. | sale application base |
| C. | price application base |
| D. | direct application base |
| Answer» B. sale application base | |
| 702. |
*$_If units of normal spoilage are 150 and total good units manufactured are 1500, then normal spoilage rate would be? |
| A. | 14.00% |
| B. | 15.00% |
| C. | 10.00% |
| D. | 12.00% |
| Answer» D. 12.00% | |
| 703. |
*$_Production units that do not meet customer specification, but can be sold to other customers as finished goods are classified as? |
| A. | reduced work |
| B. | spoilage |
| C. | rework |
| D. | scrap |
| Answer» D. scrap | |
| 704. |
*$_If beginning work in process inventory units are 2600, units started are 9000, ending work in process units are 2300 and completed good units are 8000 then total spoilage will be? |
| A. | 1200 units |
| B. | 990 units |
| C. | 1100 units |
| D. | 1000 units |
| Answer» D. 1000 units | |
| 705. |
*$_If net realizable value is $20000 and separable costs are $18000, then final sales will be? |
| A. | $20,000 |
| B. | $18,000 |
| C. | $2,000 |
| D. | $38,000 |
| Answer» E. | |
| 706. |
*$_Which one of following is an example of spoilage?? |
| A. | short lengths from wood work |
| B. | defective aluminium cans recycled by manufacturer |
| C. | detection of defective pieces before shipment |
| D. | all of above |
| Answer» C. detection of defective pieces before shipment | |
| 707. |
*$_Point in joint production process, in which two or more products are separately identifiable is termed as? |
| A. | step down point |
| B. | incremental point |
| C. | split off point |
| D. | inseparability point |
| Answer» D. inseparability point | |
| 708. |
*$_Approaches used to allocate joint costs include? |
| A. | sales value at split off method |
| B. | net realizable value method |
| C. | constant gross margin percentage NRV method |
| D. | all of above |
| Answer» E. | |
| 709. |
*$_An expected future revenue, which diverges in unconventional course of action is classified as? |
| A. | partial revenue |
| B. | total revenue |
| C. | relevant revenues |
| D. | irrelevant revenues |
| Answer» D. irrelevant revenues | |
| 710. |
*$_If number of units are 3000 and per unit price is $500, then flexible budget variable will be? |
| A. | $1,500,000 |
| B. | $2,500,000 |
| C. | $3,500,000 |
| D. | $4,500,000 |
| Answer» B. $2,500,000 | |
| 711. |
*$_Sales budget variance is subtracted from flexible budget amount to calculate? |
| A. | static budget amount |
| B. | unstated amount |
| C. | constant amount |
| D. | variable amount |
| Answer» B. unstated amount | |
| 712. |
*$_If sales budget variance is $57000 and flexible budget amount is $97000, then static budget amount will be? |
| A. | $40,000 |
| B. | $154,000 |
| C. | $164,000 |
| D. | $124,000 |
| Answer» B. $154,000 | |
| 713. |
*$_Type of costs that cannot be traced for individual products but help in supporting an organization are classified as? |
| A. | individual sustaining costs |
| B. | facility sustaining costs |
| C. | sustained tracing |
| D. | support tracing |
| Answer» C. sustained tracing | |
| 714. |
*$_Costs of all activities for individual products or services can be called? |
| A. | purpose level costs |
| B. | output-unit level costs |
| C. | input-unit level costs |
| D. | activity level costs |
| Answer» C. input-unit level costs | |
| 715. |
*$_In activity based costing system, description of activity can be classified as? |
| A. | activity list |
| B. | activity dictionary |
| C. | active purpose |
| D. | both a and b |
| Answer» E. | |
| 716. |
*$_An arrangement of line of authority within company is classified as? |
| A. | company structure |
| B. | organization structure |
| C. | line of authority |
| D. | line of responsibility |
| Answer» C. line of authority | |
| 717. |
*$_Budgeting method, which incorporates an improvement anticipated in budgeting period into budget numbers can be classified as? |
| A. | anticipated budgeting |
| B. | number budgeting |
| C. | predict budgeting |
| D. | kaizen budgeting |
| Answer» E. | |
| 718. |
*$_Difference between budgeted amounts and actual results is classified as? |
| A. | standard deviation |
| B. | variances |
| C. | mean average |
| D. | weighted average |
| Answer» C. mean average | |
| 719. |
*$_Manager who is responsible for investments of company, its costs and revenues is known as? |
| A. | profit center |
| B. | investment center |
| C. | cost center |
| D. | revenue center |
| Answer» C. cost center | |
| 720. |
*$_If actual result is $26000, flexible budget amount is $13000, then flexible budget amount will be? |
| A. | $39,000 |
| B. | $49,000 |
| C. | $13,000 |
| D. | $15,000 |
| Answer» D. $15,000 | |
| 721. |
*$_Capital gearing ratio is ___________.? |
| A. | Market test ratio |
| B. | Long-term solvency ratio |
| C. | Liquid ratio |
| D. | Turnover ratio |
| Answer» C. Liquid ratio | |
| 722. |
*$_"A company manufactures a single product for which cost and selling price data are as follows:Selling price per unit - Rs 12Variable cost per unit - Rs 8Fixed cost for a period - Rs 98,000Budgeted sales for a period - 30,000 unitsThe margin of safety, expressed as a percentage of budgeted sales,is:"? |
| A. | 0.2 |
| B. | 0.25 |
| C. | 0.73 |
| D. | 1.25 |
| Answer» B. 0.25 | |
| 723. |
*$_"Following information is available of XYZ Limited for quarter ended June, 20XXFixed cost Rs 5,00,000Variable cost Rs 10 per unitSelling price Rs 15 per unitOutput level 1,50,000 unitsWhat will be amount of profit earned during the quarter using the marginal costing technique?"? |
| A. | Rs 2,50,000 |
| B. | Rs 10,00,000 |
| C. | Rs 5,00,000 |
| D. | Rs 17,50,000 |
| Answer» B. Rs 10,00,000 | |
| 724. |
*$_Statutory cost audit are applicable only to:? |
| A. | Firm |
| B. | Company |
| C. | Individual |
| D. | Society |
| Answer» C. Individual | |
| 725. |
*$_In ‘make or buy’ decision, it is profitable to buy from outside only when the supplier’s price is below the firm’s own ______________.? |
| A. | Fixed Cost |
| B. | Variable Cost |
| C. | Total Cost |
| D. | Prime Cost |
| Answer» C. Total Cost | |
| 726. |
*$_Focus on budget cost of all activities necessary to sell and produce market offerings is known as? |
| A. | cost based budgeting |
| B. | activity based budgeting |
| C. | production based budgeting |
| D. | raw material budgeting |
| Answer» C. production based budgeting | |
| 727. |
*$_Value, which measures that how large is value of standard error in relevance to value of estimated coefficient is termed as? |
| A. | t-value |
| B. | b-value |
| C. | d-value |
| D. | c-value |
| Answer» B. b-value | |
| 728. |
*$_Individual activities such as machine setups, material handling, customer service and distribution of products are a part of? |
| A. | activity based costing |
| B. | margin based costing |
| C. | goodness of costing |
| D. | handling based costing |
| Answer» B. margin based costing | |
| 729. |
*$_Labour related to manufacturing of product can be classified under? |
| A. | direct manufacturing labour costs |
| B. | indirect manufacturing labour costs |
| C. | work in process cost |
| D. | finished costs |
| Answer» B. indirect manufacturing labour costs | |
| 730. |
*$_"Calculate EOQ (approx) from the following details:Annual Consumption: 24000 unitsOrdering cost: Rs 10 per orderPurchase price: Rs 100 per unitCarrying cost: 5%"? |
| A. | 310 |
| B. | 400 |
| C. | 290 |
| D. | 300 |
| Answer» B. 400 | |
| 731. |
*$_Works overhead is Rs 40,000, total machine hours is 8500 hours and time allowed for machine setting is 500 houRs What is the machine rate?? |
| A. | Rs. 2 per hour |
| B. | Rs. 3 per hour |
| C. | Rs. 4 per hour |
| D. | Rs. 5 per hour |
| Answer» E. | |
| 732. |
*$_Direct material is a _______.? |
| A. | fixed cost |
| B. | variable cost |
| C. | semi variable cost |
| D. | semi fixed cost |
| Answer» C. semi variable cost | |
| 733. |
*$_A document which contains information about materials of specific product, in specific department comes under? |
| A. | costing method |
| B. | selling method |
| C. | material acquisition method |
| D. | none of above |
| Answer» D. none of above | |
| 734. |
*$_Manufacturing, distribution and marketing costs incur after split off point is classified under? |
| A. | separable costs |
| B. | joint costs |
| C. | main costs |
| D. | split off costs |
| Answer» B. joint costs | |
| 735. |
*/*_Comparing Rowan plan and Halsey plan, it is seen that when the time saved is less than 50% of the standard time ________._? |
| A. | Rowan plan allows more wages to a worker than Halsey plan |
| B. | Rowan plan allows less wages to a worker than Halsey plan |
| C. | Rowan and Halsey plan allow equal wages to a worker |
| D. | Rowan plan and Halsey plan are equal to ordinary time wage |
| Answer» B. Rowan plan allows less wages to a worker than Halsey plan | |
| 736. |
*/*_Generally types of stores are classified into ________.? |
| A. | two types |
| B. | three types |
| C. | four types |
| D. | five types |
| Answer» C. four types | |
| 737. |
*/*_Total of all direct costs is termed as ________.? |
| A. | prime cost |
| B. | works cost |
| C. | cost of sales |
| D. | cost of production |
| Answer» B. works cost | |
| 738. |
*/*_The ascertainment of costs after they have been incurred is known as _________.? |
| A. | marginal costing |
| B. | historical costing |
| C. | sunk cost |
| D. | notional cost |
| Answer» C. sunk cost | |
| 739. |
*/*_In labour oriented manufacturing industry which method of overhead absorption is suitable?? |
| A. | Direct material cost method |
| B. | Prime cost method |
| C. | Labour hour method |
| D. | Machine hour method |
| Answer» D. Machine hour method | |
| 740. |
*/*_Actual loss is more than the predetermined normal loss, it is ________.? |
| A. | normal loss |
| B. | abnormal loss |
| C. | seasonal loss |
| D. | standard loss |
| Answer» C. seasonal loss | |
| 741. |
*/*_Idle capacity of a plant refers to the difference between ________.? |
| A. | maximum capacity and practical capacity |
| B. | practical capacity and normal capacity |
| C. | practical capacity and capacity based on sales expectancy |
| D. | maximum capacity and actual capacity |
| Answer» E. | |
| 742. |
*/*_Fire insurance of stock can be apportioned on the basis of ________.? |
| A. | value of stock |
| B. | volume of stock |
| C. | number of stores requisition |
| D. | material used |
| Answer» B. volume of stock | |
| 743. |
*/*_Products, divisions and customers are examples of? |
| A. | revenue increment |
| B. | reciprocal revenue |
| C. | revenue allocation |
| D. | revenue object |
| Answer» E. | |
| 744. |
*/*_If budget sales units are 8000, ending inventory is 2000 units and beginning inventory is 3000, then budget production would be? |
| A. | 11000 units |
| B. | 13000 units |
| C. | 10000 units |
| D. | 7000 units |
| Answer» E. | |
| 745. |
*/*_First step in developing an operating budget is to? |
| A. | identify product |
| B. | identify problem |
| C. | identify quartiles |
| D. | identify percentiles |
| Answer» C. identify quartiles | |
| 746. |
*/*_Model which refers possibility for management to conduct sensitivity analysis can be categorized under? |
| A. | investment planning models |
| B. | financial planning models |
| C. | cost planning models |
| D. | revenues forecast models |
| Answer» C. cost planning models | |
| 747. |
*/*_Type of accounting, which focuses on whom should be asked for information and whom not will be categorized as? |
| A. | focused accounting |
| B. | responsibility accounting |
| C. | information accounting |
| D. | blame accounting |
| Answer» C. information accounting | |
| 748. |
*/*_Planning of financial aid to coordinate; what is to be done for implementation of plan is classified as? |
| A. | budget |
| B. | batching |
| C. | complexity |
| D. | process |
| Answer» B. batching | |
| 749. |
*/*_Type of plan of a company, which quantities expectations of cash flows, income and financial position is known as? |
| A. | budget |
| B. | batching |
| C. | complexity |
| D. | process |
| Answer» B. batching | |
| 750. |
*/*_Higher and accurate budgeted profit forecast of managers lead to? |
| A. | high incentive bonus |
| B. | low incentive bonus |
| C. | influence bonus |
| D. | revenue bonus |
| Answer» B. low incentive bonus | |