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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.
| 1351. |
Line which uses to join observations with lower and highest values of cost driver is called |
| A. | straight line |
| B. | curved line |
| C. | horizontal line |
| D. | vertical line |
| Answer» B. curved line | |
| 1352. |
Higher level of production leads to |
| A. | higher repair cost |
| B. | higher setup cost |
| C. | lower repair cost |
| D. | higher setup cost |
| Answer» B. higher setup cost | |
| 1353. |
If coefficients are similar for two accounting periods, then single cost relationship is estimated with help of |
| A. | data of fixed cost |
| B. | cost driver of data |
| C. | pool of data |
| D. | cost object of data |
| Answer» D. cost object of data | |
| 1354. |
In Regression Analysis, testing of assumptions if these are true or not is classified as |
| A. | weighted analysis |
| B. | average analysis |
| C. | significance analysis |
| D. | specification analysis |
| Answer» E. | |
| 1355. |
In quantitative analysis of estimating cost function, last and foremost step is to |
| A. | evaluate variable driver |
| B. | evaluate cost driver |
| C. | evaluate price driver |
| D. | evaluate demand driver |
| Answer» C. evaluate price driver | |
| 1356. |
An amount by which total cost changes with respect to change in level of activity is classified as |
| A. | activity coefficient |
| B. | cost coefficient |
| C. | change coefficient |
| D. | slope coefficient |
| Answer» E. | |
| 1357. |
If beginning work in process equivalent units is 2500 units, work done in current period equivalent units is 3800 units and units completed in current period are 4000, then ending work in process equivalent units will be |
| A. | 1800 units |
| B. | 2300 units |
| C. | 10300 units |
| D. | 1500 units |
| Answer» C. 10300 units | |
| 1358. |
Forth step in process costing system is to |
| A. | summarize total costs |
| B. | compute cost for each equivalent unit |
| C. | summarize flow of output |
| D. | compute output in units |
| Answer» C. summarize flow of output | |
| 1359. |
If cost incurred for work in process inventory is $350000 and total equivalent units completed till date are 3500, then weighted average cost will be |
| A. | $10 |
| B. | $100 |
| C. | $1,000 |
| D. | $1,200 |
| Answer» C. $1,000 | |
| 1360. |
If an allocated indirect cost is $1500 and actual incurred indirect cost is $1200, then this is classified as |
| A. | applied indirect cost |
| B. | applied direct cost |
| C. | incurred indirect cost |
| D. | over allocated indirect cost |
| Answer» E. | |
| 1361. |
Costing system, which is a combination of process costing and job costing system is classified as |
| A. | weighted costing system |
| B. | average costing system |
| C. | hybrid costing system |
| D. | double costing system |
| Answer» D. double costing system | |
| 1362. |
Basic objective of cost accounting is ________ |
| A. | tax compliance. |
| B. | financial audit. |
| C. | cost ascertainment. |
| D. | profit analysis. |
| Answer» D. profit analysis. | |
| 1363. |
In process costing, if an abnormal loss arises, the process account is generally. |
| A. | Debited with the scrap value of the abnormal loss units |
| B. | Debited with the full production cost of the abnormal loss units |
| C. | Credited with the scrap value of the abnormal loss units |
| D. | Credited with the full production cost of the abnormal loss units |
| Answer» E. | |
| 1364. |
"A ltd is a manufacturing company that has no production resource limitations for the foreseeable future. The Managing Director has asked the company mangers to coordinate the preparation of their budgets for the next financial year. In what order should the following budgets be prepared?(1) Sales budget(2) Cash budget(3) Production budget(4) Purchase budget(5) Finished goods inventory budget" |
| A. | (2), (3), (4), (5), (1) |
| B. | (1), (5), (3), (4), (2) |
| C. | (1), (4), (5), (3), (2) |
| D. | (4), (5), (3), (1), (2) |
| Answer» C. (1), (4), (5), (3), (2) | |
| 1365. |
Budgeted sales of X for March are 18000 units. At the end of the production process for X, 10% of production units are scrapped as defective. Opening inventories of X for March are budgeted to be 15000 units and closing inventories will be 11,400 units. All inventories of finished goods must have successfully passed the quality control check. The production budget for X for March, in units is: |
| A. | 12960 |
| B. | 14400 |
| C. | 15840 |
| D. | 16000 |
| Answer» E. | |
| 1366. |
Most suitable basis for apportioning insurance of machine would be: |
| A. | Floor Area |
| B. | Value of Machines |
| C. | No of Workers |
| D. | No of Machines |
| Answer» C. No of Workers | |
| 1367. |
A worker is allowed 60 hours to complete the job on a guaranteed wage of Rs 10 per hour Under the Rowan Plan, he gets an hourly wage of Rs 12 per hour For the same saving in time, how much he will get under the Halsey Plan? |
| A. | Rs. 720 |
| B. | Rs. 540 |
| C. | Rs. 600 |
| D. | Rs. 900 |
| Answer» C. Rs. 600 | |
| 1368. |
Costs associated with the labour turnover can be categorised into: |
| A. | Preventive Costs only |
| B. | Replacement costs only |
| C. | Both of the above |
| D. | Machine costs |
| Answer» D. Machine costs | |
| 1369. |
"From the following information, calculate the extra cost of material by following EOQ:Annual consumption = 45000 unitsOrdering cost per order = Rs 10Carrying cost per unit per annum = Rs 10Purchase price per unit = Rs 50Re-order quantity at present = 45000 unitsThere is discount of 10% per unit in case of purchase of 45000 units in bulk" |
| A. | No saving |
| B. | Rs. 2,00,000 |
| C. | Rs. 2,22,010 |
| D. | Rs. 2,990 |
| Answer» E. | |
| 1370. |
"Calculate the value of closing stock from the following according to FIFO method:1st January, 20XX: Opening balance: 50 units @ Rs 4Receipts:5th January, 20XX: 100 units @ Rs 512th January, 20XX: 200 units @ Rs 450Issues:2nd January, 20XX: 30 units18th January, 20XX: 150 units" |
| A. | Rs. 765 |
| B. | Rs. 805 |
| C. | Rs. 786 |
| D. | Rs. 700 |
| Answer» B. Rs. 805 | |
| 1371. |
In incremental cost allocation method, cost object user who is ranked third in ranking order is classified as |
| A. | First incremental user |
| B. | primary user |
| C. | secondary user |
| D. | second incremental user |
| Answer» E. | |
| 1372. |
In stand-alone revenue-allocation method, type of weights available for this method is |
| A. | selling prices as weight |
| B. | unit costs as weights |
| C. | physical units as weights |
| D. | all of above |
| Answer» E. | |
| 1373. |
Second ranked product in incremental revenue allocation method is termed as |
| A. | primary product |
| B. | First incremental product |
| C. | Second incremental product |
| D. | Third incremental product |
| Answer» C. Second incremental product | |
| 1374. |
Department which provides assisting services to internal departments is classified as |
| A. | supply department |
| B. | support department |
| C. | production department |
| D. | allocation base department |
| Answer» C. production department | |
| 1375. |
Method, which allocates cost of support department for operating departments by recognizing all mutual services provided is classified as |
| A. | indirect method |
| B. | direct method |
| C. | step down method |
| D. | reciprocal method |
| Answer» E. | |