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.
| 351. |
If the actual loss is more than the estimated normal loss, then it is _________. |
| A. | bnormal loss |
| B. | ormal loss |
| C. | easonal loss |
| D. | bnormal gain |
| Answer» B. ormal loss | |
| 352. |
The type of process loss that should not affect the cost of inventory value is _________. |
| A. | bnormal loss |
| B. | ormal loss |
| C. | easonal loss |
| D. | tandard loss |
| Answer» B. ormal loss | |
| 353. |
When cash is received from contractee which a/c should be credited. |
| A. | ash a/c |
| B. | ontract a/c |
| C. | ontractor a/c |
| D. | ontractee a/c |
| Answer» E. | |
| 354. |
Which method of costing is best suited for interior decoration. |
| A. | ontract accounting |
| B. | perating costing |
| C. | rocess costing |
| D. | ob costing |
| Answer» E. | |
| 355. |
Cost accounting differs from financial accounting in respect of ________. |
| A. | eporting of cost |
| B. | scertainment of cost |
| C. | ontrol of cost |
| D. | ecording of cost |
| Answer» C. ontrol of cost | |
| 356. |
The term cost refers to ________. |
| A. | he present value of future benefits |
| B. | he value of sacrifice made to acquire goods or services |
| C. | n asset that has given benefit but now expired |
| D. | he price of products sold or services rendered |
| Answer» C. n asset that has given benefit but now expired | |
| 357. |
"Calculate EOQ (approx) from the following details:Annual Consumption: 24000 unitsOrdering cost: Rs 10 per orderPurchase price: Rs 100 per unitCarrying cost: 5%" |
| A. | 10 |
| B. | 00 |
| C. | 90 |
| D. | 00 |
| Answer» B. 00 | |
| 358. |
"Calculate Re-order level from the following:Consumption per week: 100-200 unitsDelivery period: 14-28 days" |
| A. | 600 units |
| B. | 00 units |
| C. | 400 units |
| D. | 00 units |
| Answer» C. 400 units | |
| 359. |
In case of rising prices (inflation), LIFO will: |
| A. | rovide lowest value of closing stock and profit |
| B. | rovide highest value of closing stock and profit |
| C. | rovide highest value of closing stock but lowest value of profit |
| D. | rovide highest value of profit but lowest value of closing stock |
| Answer» B. rovide highest value of closing stock and profit | |
| 360. |
In case of rising prices (inflation), FIFO method will: |
| A. | rovide lowest value of closing stock and profit |
| B. | rovide highest value of closing stock and profit |
| C. | rovide highest value of closing stock but lowest value of profit |
| D. | rovide highest value of profit but lowest value of closing stock |
| Answer» C. rovide highest value of closing stock but lowest value of profit | |
| 361. |
Insurance and garage rent is ________. |
| A. | ixed charges |
| B. | aintenance charges |
| C. | perating charges |
| D. | unning charges |
| Answer» B. aintenance charges | |
| 362. |
The physical distance covered by a vehicle is measured in terms of ________. |
| A. | on kilometers |
| B. | assenger kilometers |
| C. | ehicle days |
| D. | unning kilometers or miles |
| Answer» E. | |
| 363. |
Operating cost is usually ascertained through ________. |
| A. | ledger account |
| B. | rofit and loss a/c |
| C. | alance sheet |
| D. | statement |
| Answer» E. | |
| 364. |
Profit to be transferred to profit and loss a/c, if the contract is complete to the extent of only 20% is ________. |
| A. | il |
| B. | 0% |
| C. | 5% |
| D. | 5% |
| Answer» B. 0% | |
| 365. |
In case of complete contract, the whole amount of profit is transferred to ________. |
| A. | ontract a/c |
| B. | ork in progress a/c |
| C. | rofit and loss a/c |
| D. | ontractee a/c |
| Answer» D. ontractee a/c | |
| 366. |
Work uncertified is ________. |
| A. | ebited to contract a/c |
| B. | redited to contract a/c |
| C. | ebited to contractor a/c |
| D. | ebited to profit and loss a/c |
| Answer» C. ebited to contractor a/c | |
| 367. |
The amount paid to sub-contractor is ________. |
| A. | ubtracted from the contract price |
| B. | ebited to contract a/c |
| C. | redited to contract a/c |
| D. | dded with the contract price |
| Answer» C. redited to contract a/c | |
| 368. |
The basis for determining profit to be taken into account on incomplete contract is ________. |
| A. | ost of contract |
| B. | ontract price |
| C. | ercentage of work certified as done |
| D. | ncertified work |
| Answer» D. ncertified work | |
| 369. |
Contract costing is most appropriate method of costing for ________. |
| A. | onstruction industry |
| B. | anking industry |
| C. | extile mills |
| D. | ement industry |
| Answer» B. anking industry | |
| 370. |
Which method of costing can be used in furniture manufacture industry? |
| A. | ob costing |
| B. | ontract costing |
| C. | rocess costing |
| D. | pecific order costing |
| Answer» B. ontract costing | |
| 371. |
Job costing method is the most suitable method for ________. |
| A. | il process units |
| B. | ransport companies |
| C. | ugar industries |
| D. | epair shops |
| Answer» E. | |
| 372. |
Cost of process Rs1,60,000 and profit to be charged on the transfer price is 20% What is the inter process profit? |
| A. | s 32,000 |
| B. | s 40,000 |
| C. | s 48,000 |
| D. | s 54,000 |
| Answer» C. s 48,000 | |
| 373. |
Inter process profits are ________. |
| A. | redited to each process a/c |
| B. | ebited to respective process a/c |
| C. | hown only in the finished stock a/c |
| D. | hown in the balance sheet |
| Answer» C. hown only in the finished stock a/c | |
| 374. |
Balance of abnormal gain a/c is transferred to ________. |
| A. | alance sheet |
| B. | ebit side of profit and loss a/c |
| C. | redit side of profit and loss a/c |
| D. | osting profit and loss a/c |
| Answer» E. | |
| 375. |
If any by-product is produced and sold it is credited to ________. |
| A. | rofit and loss a/c |
| B. | y-product a/c |
| C. | rocess a/c |
| D. | bnormal gain a/c |
| Answer» D. bnormal gain a/c | |
| 376. |
When two products are simultaneously produced in a process and one of them has comparatively high value and other is of low value , the low value product is called __________. |
| A. | oint products |
| B. | y products |
| C. | easonal products |
| D. | conomic products |
| Answer» C. easonal products | |
| 377. |
50 units are processed at a cost of Rs 80, normal loss is 10%, each unit carries a scrap value of 25 paise If output is 40 units, the value of abnormal loss will be _________. |
| A. | s. 1.25 |
| B. | s. 8.00 |
| C. | s. 8.75 |
| D. | s. 8.88 |
| Answer» D. s. 8.88 | |
| 378. |
100 units are introduced in a process in which normal loss is 5% of input If actual output is 97 then there is ________. |
| A. | o abnormal loss and normal gain |
| B. | units of abnormal gain |
| C. | units of abnormal gain |
| D. | units of normal loss |
| Answer» C. units of abnormal gain | |
| 379. |
When output of earlier process is transferred at a profit to the subsequent process, it is ________. |
| A. | nter departmental profit |
| B. | bnormal gain |
| C. | nter process profit |
| D. | anufacturing profit |
| Answer» D. anufacturing profit | |
| 380. |
Actual loss is less than the predetermined normal loss, it is ________. |
| A. | ormal loss |
| B. | bnormal loss |
| C. | easonal loss |
| D. | bnormal gain |
| Answer» E. | |
| 381. |
Value of normal loss is charged to ________. |
| A. | ther good product |
| B. | rading a/c |
| C. | rofit and loss a/c |
| D. | osting profit and loss a/c |
| Answer» B. rading a/c | |
| 382. |
The costing method which can be used in industry where the product pass through different processes is known as ________. |
| A. | ob costing |
| B. | perating costing |
| C. | atch costing |
| D. | rocess costing |
| Answer» E. | |
| 383. |
Most appropriate basis for the apportionment of power is ________. |
| A. | oof labour |
| B. | o of output |
| C. | o of machines |
| D. | orse power of machines |
| Answer» E. | |
| 384. |
In a machine dominated industry which method of overhead absorption is suitable? |
| A. | irect material cost method |
| B. | rime cost method |
| C. | abour hour method |
| D. | achine hour method |
| Answer» E. | |
| 385. |
ABC analysis is an inventory control technique in which: |
| A. | nventory levels are maintained |
| B. | nventory is classified into A, B and C category with A being the highest quantity, lowest value |
| C. | nventory is classified into A, B and C Category with A being the lowest quantity, highest value |
| D. | ither b or c |
| Answer» D. ither b or c | |
| 386. |
Economic order quantity is that quantity at which cost of holding and carrying inventory is: |
| A. | aximum and equal |
| B. | inimum and equal |
| C. | t can be maximum or minimum depending upon case to case |
| D. | inimum and unequal |
| Answer» C. t can be maximum or minimum depending upon case to case | |
| 387. |
Re-order level is calculated as: |
| A. | aximum consumption x Maximum re-order period |
| B. | inimum consumption x Minimum re-order period |
| C. | /2 of (Minimum + Maximum consumption) |
| D. | aximum level - Minimum level |
| Answer» B. inimum consumption x Minimum re-order period | |
| 388. |
Stores Ledger is a: |
| A. | uantitative as well as value wise records of material received, issued and balance |
| B. | uantitative record of material received, issued and balance |
| C. | alue wise records of material received, issued and balance |
| D. | record of labour attendance |
| Answer» B. uantitative record of material received, issued and balance | |
| 389. |
Out of the following, what is not the work of purchase department: |
| A. | eceiving purchase requisition |
| B. | xploring the sources of material supply |
| C. | reparation and execution of purchase orders |
| D. | ccounting for material received |
| Answer» E. | |
| 390. |
Which of these is not a Material control technique: |
| A. | BC Analysis |
| B. | ixation of raw material levels |
| C. | aintaining stores ledger |
| D. | ontrol over slow moving and non moving items |
| Answer» D. ontrol over slow moving and non moving items | |
| 391. |
"Total cost of a product: Rs 10,000.Profit: 25% on Selling PriceProfit is:" |
| A. | s. 2,500 |
| B. | s. 3,000 |
| C. | s. 3,333 |
| D. | s. 2,000 |
| Answer» D. s. 2,000 | |
| 392. |
"Calculate the prime cost from the following information:Direct material purchased: Rs. 1,00,000.Direct material consumed: Rs. 90,000.Direct labour: Rs. 60,000.Direct expenses: Rs. 20,000.Manufacturing overheads: Rs. 30,000." |
| A. | s. 1,80,000 |
| B. | s. 2,00,000 |
| C. | s. 1,70,000 |
| D. | s. 2,10,000 |
| Answer» D. s. 2,10,000 | |
| 393. |
Describe the method of costing to be applied in case of Nursing Home: |
| A. | perating Costing |
| B. | rocess Costing |
| C. | ontract Costing |
| D. | ob Costing |
| Answer» B. rocess Costing | |
| 394. |
Sunk costs are: |
| A. | elevant for decision making |
| B. | ot relevant for decision making |
| C. | ost to be incurred in future |
| D. | uture costs |
| Answer» C. ost to be incurred in future | |
| 395. |
Conversion cost includes cost of converting……… into …… |
| A. | aw material, WIP |
| B. | aw material, Finished goods |
| C. | IP, Finished goods |
| D. | inished goods, Saleable goods |
| Answer» C. IP, Finished goods | |
| 396. |
Abnormal cost is the cost: |
| A. | ost normally incurred at a given level of output |
| B. | ost not normally incurred at a given level of output |
| C. | ost which is charged to customer |
| D. | ost which is included in the cost of the product |
| Answer» C. ost which is charged to customer | |
| 397. |
Uncontrollable costs are the costs which be influenced by the action of a specified member of an undertaking. |
| A. | an not |
| B. | an |
| C. | ay or may not |
| D. | ust |
| Answer» B. an | |
| 398. |
Fixed cost is a cost: |
| A. | hich changes in total in proportion to changes in output |
| B. | hich is partly fixed and partly variable in relation to output |
| C. | hich do not change in total during a given period despite changes in output |
| D. | hich remains same for each unit of output |
| Answer» D. hich remains same for each unit of output | |
| 399. |
Cost Unit is defined as: |
| A. | nit of quantity of product, service or time in relation to which costs may be ascertained or expressed |
| B. | location, person or an item of equipment or a group of these for which costs are ascertained and used for cost control |
| C. | entres having the responsibility of generating and maximising profits |
| D. | entres concerned with earning an adequate return on investment |
| Answer» B. location, person or an item of equipment or a group of these for which costs are ascertained and used for cost control | |
| 400. |
Responsibility Centre can be categorised into: |
| A. | ost Centres only |
| B. | rofit Centres only |
| C. | nvestment Centres only |
| D. | ost Centres, Profit Centres and Investment Centres |
| Answer» E. | |