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.
| 251. |
In income statement of merchandising costs, period cost includes all costs which are not related to |
| A. | ost of resale goods |
| B. | ost of manufacturing goods |
| C. | imed resale of goods |
| D. | ost of purchased goods |
| Answer» E. | |
| 252. |
An overtime is considered in cost accounting as |
| A. | ndirect costs |
| B. | verhead costs |
| C. | remium costs |
| D. | oth a and b |
| Answer» E. | |
| 253. |
Cost which remains unchanged, in proportion to level total volume of production is classified as |
| A. | otal cost |
| B. | nfeasible cost |
| C. | ixed cost |
| D. | ariable cost |
| Answer» D. ariable cost | |
| 254. |
Process of tracing direct costs and allocation of indirect costs is known as |
| A. | ost assignment |
| B. | irect assignment |
| C. | ndirect assignment |
| D. | conomic assignment |
| Answer» B. irect assignment | |
| 255. |
Costs are classified as fixed or variable on basis of |
| A. | pecific activity |
| B. | iven time period |
| C. | ommon activity |
| D. | oth a and b |
| Answer» E. | |
| 256. |
Cost which is changed in proportion to level total volume is |
| A. | ixed cost |
| B. | ariable cost |
| C. | otal cost |
| D. | nfeasible cost |
| Answer» C. otal cost | |
| 257. |
If direct material cost is $85000 and direct manufacturing labour is $25000, then prime cost would be |
| A. | 13,500 |
| B. | 55,600 |
| C. | 60,000 |
| D. | 110,000 |
| Answer» E. | |
| 258. |
Direct manufacturing labour costs is $40000 and manufacturing overhead cost is $7000, then conversion cost would be |
| A. | 47,000 |
| B. | 33,000 |
| C. | 57,000 |
| D. | 18,000 |
| Answer» B. 33,000 | |
| 259. |
If direct material cost is $5500 and prime cost is $25000, then direct manufacturing labour would be |
| A. | 19,500 |
| B. | 30,500 |
| C. | 45,500 |
| D. | 22,500 |
| Answer» B. 30,500 | |
| 260. |
All costs, which are assigned to manufactured products for specific calculations are classified as |
| A. | ontracting costs |
| B. | roduct cost |
| C. | overnment costs |
| D. | arketing costs |
| Answer» C. overnment costs | |
| 261. |
Costs which are considered as expenses in accounting period are also known as |
| A. | nventory costs |
| B. | eriod costs |
| C. | imed costs |
| D. | abour overheads |
| Answer» C. imed costs | |
| 262. |
Inventory of final goods that are not yet sold is called |
| A. | inished goods inventory |
| B. | ndirect material inventory |
| C. | irect materials inventory |
| D. | ork in process inventory |
| Answer» B. ndirect material inventory | |
| 263. |
Labour which works as forklift truck, plant guards and rework labour is classified as |
| A. | rime overhead |
| B. | onversion overhead |
| C. | actory overhead |
| D. | anufacturing overhead |
| Answer» E. | |
| 264. |
Conversion cost is subtracted from manufacturing overhead cost is to calculate the |
| A. | anufacturing labour costs |
| B. | irect labour costs |
| C. | irect manufacturing labour costs |
| D. | ndirect manufacturing labour costs |
| Answer» D. ndirect manufacturing labour costs | |
| 265. |
Prime cost is $50000 and direct manufacturing labour is $10000, then direct material cost will be |
| A. | 40,000 |
| B. | 60,000 |
| C. | 52,000 |
| D. | 20,000 |
| Answer» B. 60,000 | |
| 266. |
Calculation of product cost, gathering information for planning and analyzing information for decisions making are features of |
| A. | nformation accounting |
| B. | ost accounting |
| C. | nalyzing accounts |
| D. | arketing costs |
| Answer» C. nalyzing accounts | |
| 267. |
In an income statement, when costs become cost of sold goods and manufactured products are sold, such costs are |
| A. | nventoriable costs |
| B. | inished costs |
| C. | actory overhead costs |
| D. | anufacturing overhead costs |
| Answer» B. inished costs | |
| 268. |
Direct service labour is $5000, idle time wages are $1000 and overtime premium is $450, then total figure would be |
| A. | 4,450 |
| B. | 6,450 |
| C. | 21,500 |
| D. | 14,300 |
| Answer» C. 21,500 | |
| 269. |
An acquisition cost of raw material is to be used in manufacturing, and becoming a component of cost object is classified as |
| A. | irect material costs |
| B. | ndirect material costs |
| C. | irect labour costs |
| D. | ndirect labour costs |
| Answer» B. ndirect material costs | |
| 270. |
Period cost, which consists income statement of manufacturing companies belongs to |
| A. | nventory costs |
| B. | roduct costs |
| C. | on-manufacturing costs |
| D. | anufacturing costs |
| Answer» D. anufacturing costs | |
| 271. |
Direct material cost is $75000 and direct manufacturing labour is $20000, then prime cost would be |
| A. | 55,000 |
| B. | 37,500 |
| C. | 95,000 |
| D. | 26,000 |
| Answer» D. 26,000 | |
| 272. |
Balance sheet, in which all costs of product that must be considered as its assets, is said to be |
| A. | actory overhead costs |
| B. | anufacturing overhead costs |
| C. | nventoriable costs |
| D. | inished costs |
| Answer» D. inished costs | |
| 273. |
If direct service labour is $7000, idle time wages are $2000 and overtime premium is $950, then total figure would be |
| A. | 5,850 |
| B. | 5,950 |
| C. | 9,950 |
| D. | 10,050 |
| Answer» D. 10,050 | |
| 274. |
Conversion cost is $20000 and manufacturing overhead cost is $7000, then direct manufacturing labour cost will be |
| A. | 27,000 |
| B. | 13,000 |
| C. | 130,000 |
| D. | 29,500 |
| Answer» C. 130,000 | |
| 275. |
In cost terms, direct manufacturing labour cost is included in |
| A. | anufacturing costs |
| B. | rime costs |
| C. | onversion costs |
| D. | oth B and C |
| Answer» E. | |
| 276. |
Direct manufacturing labour costs is added into manufacturing overhead cost to calculate |
| A. | ransaction costs |
| B. | onversion costs |
| C. | esale costs |
| D. | erchandise costs |
| Answer» C. esale costs | |
| 277. |
If demand in units is 18000, relevant ordering cost for each year is $150 and an order quantity is 1500, then annual relevant ordering cost would be |
| A. | 200 |
| B. | 190 |
| C. | 160 |
| D. | 180 |
| Answer» E. | |
| 278. |
Costs of goods acquired from suppliers is classified as |
| A. | tock-out costs |
| B. | rdering costs |
| C. | arrying costs |
| D. | urchasing costs |
| Answer» E. | |
| 279. |
Costs associated with storage of finished goods such as spoilage, obsolescence and insurance of goods are classified as |
| A. | arrying costs |
| B. | urchasing costs |
| C. | tock-out costs |
| D. | rdering costs |
| Answer» B. urchasing costs | |
| 280. |
Systematic flow of services, goods or information from buying material for product delivery to customers is known as |
| A. | upply chain |
| B. | alue chain |
| C. | aterial flow chain |
| D. | anufacturing flow chain |
| Answer» B. alue chain | |
| 281. |
An average inventory in units is multiplied with annual relevant carrying cost of each unit to calculate |
| A. | nnual irrelevant ordering costs |
| B. | nnual relevant carrying costs |
| C. | nnual relevant ordering costs |
| D. | nnual irrelevant carrying costs |
| Answer» C. nnual relevant ordering costs | |
| 282. |
If relevant incremental costs are $5000 and relevant opportunity cost of invested capital is $2500, then relevant inventory carrying costs would be |
| A. | 7,500 |
| B. | 7,000 |
| C. | 6,500 |
| D. | 6,000 |
| Answer» B. 7,000 | |
| 283. |
An example of shrinkage costs is |
| A. | ncoming freight |
| B. | torage costs |
| C. | nsurance |
| D. | lerical errors |
| Answer» E. | |
| 284. |
Profit forgone by capital investment in inventory rather than investment of capital to somewhere else is classified as |
| A. | elevant purchase order costs |
| B. | elevant inventory carrying costs |
| C. | rrelevant inventory carrying costs |
| D. | elevant opportunity cost of capital |
| Answer» E. | |
| 285. |
In production, variables such as level of activity or volume of company activity are known as |
| A. | ost drivers |
| B. | imed drivers |
| C. | ariable drivers |
| D. | ixed drivers |
| Answer» B. imed drivers | |
| 286. |
In accounting, resources sacrifice for achieving or fulfil specific objective is known as |
| A. | ource cost |
| B. | acrifice cost |
| C. | reated cost |
| D. | ost |
| Answer» E. | |
| 287. |
Process of assigning indirect costs to any specific cost object is known as |
| A. | conomic cost |
| B. | ost tracing |
| C. | ost allocation |
| D. | on-economic costs |
| Answer» D. on-economic costs | |
| 288. |
Cost which is related to specific cost object and cannot be economically traceable is classified as |
| A. | ine cost |
| B. | taff cost |
| C. | irect cost |
| D. | ndirect cost |
| Answer» E. | |
| 289. |
Required rate of return, is multiplied per unit cost of purchased units to calculate |
| A. | rrelevant inventory carrying costs |
| B. | elevant opportunity cost of capital |
| C. | elevant purchase order costs |
| D. | elevant inventory carrying costs |
| Answer» C. elevant purchase order costs | |
| 290. |
Activities related to coordinating, controlling and planning flow of inventory are classified as |
| A. | ecisional management |
| B. | hroughput management |
| C. | nventory management |
| D. | anufacturing management |
| Answer» D. anufacturing management | |
| 291. |
Cost of product failure, error prevention and appraisals can be classified under |
| A. | tocking costs |
| B. | tock-out costs |
| C. | osts of quality |
| D. | hrinkage costs |
| Answer» D. hrinkage costs | |
| 292. |
If demand of one year is 25000 units, relevant ordering cost for each purchase order is $210, carrying cost of one unit of stock is $25 then economic order quantity will be |
| A. | 78 packages |
| B. | 48 packages |
| C. | 58 packages |
| D. | 68 packages |
| Answer» C. 58 packages | |
| 293. |
Which of following is an example of purchasing costs? |
| A. | ncoming freight |
| B. | torage costs |
| C. | nsurance |
| D. | poilage |
| Answer» D. poilage | |
| 294. |
Collection of cost data, according to accounting system in an organized way is classified as |
| A. | ystem accumulation |
| B. | ccumulated data |
| C. | ost accumulation |
| D. | rganized accumulation |
| Answer» D. rganized accumulation | |
| 295. |
In accounting, cost incurred in past or in historical financial statements is classified as |
| A. | ctual cost |
| B. | udgeted cost |
| C. | ast cost |
| D. | ncurred cost |
| Answer» B. udgeted cost | |
| 296. |
Direct cost assignment for specific cost object is classified as |
| A. | ost object line cost |
| B. | ost tracing |
| C. | ost object indirect cost |
| D. | ost object staff cost |
| Answer» C. ost object indirect cost | |
| 297. |
Labour related to manufacturing of product can be classified under |
| A. | irect manufacturing labour costs |
| B. | ndirect manufacturing labour costs |
| C. | ork in process cost |
| D. | inished costs |
| Answer» B. ndirect manufacturing labour costs | |
| 298. |
When the sales increase from Rs 40,000 to Rs 60,000 and profit increases by Rs 5,000, the P/V ratio is — |
| A. | 0.2 |
| B. | 0.3 |
| C. | 0.25 |
| D. | 0% |
| Answer» D. 0% | |
| 299. |
In element-wise classification of overheads, which one of the following is not included — |
| A. | ixed overheads |
| B. | ndirect labour |
| C. | ndirect materials |
| D. | ndirect expenditure |
| Answer» B. ndirect labour | |
| 300. |
Following information is available of PQR for year ended March, 20XX: 4,000 units in process, 3,800 units output, 10% of input is normal wastage, Rs 2.50 per unit is scrap value and Rs 46,000 incurred towards total process cost then amount on account of abnormal gain to be transferred to Costing P&L will be:- |
| A. | s 2,500 |
| B. | s 2,000 |
| C. | s 4,000 |
| D. | s 3,500 |
| Answer» B. s 2,000 | |