Costing MCQ

Below Costing quiz are Multiple Choice Questions (MCQs) type Quiz. These Costing MCQ Questions helps you to refresh your Costing, you can see the correct option by clicking on it. .
  • 1. The loss which arises due to abnormal circumstances is _____ loss.

    • Normal
    • abnormal
    • net
    • gross
  • 2. Normal Output is calculated as __________.

    • Input less Abnormal Loss
    • Input less Normal Loss
    • Input less Abnormal Gain
    • Input add Abnormal Loss
  • 3. Work certified is valued in term of ________ .

    • contract price
    • degree of completion
    • retention amount
    • cash paid by contractee.
  • 4. The cost incurred prior to the point of separation of the joint or by-products are termed as _______.

    • process cost
    • joint cost
    • main cost
    • separable cost
  • 5. Contribution margin is also known as

    • Marginal income
    • Gross Profit
    • Net Profit
    • All of the above
  • 6. Scrap value of normal loss is _____ to process account.

    • debited
    • credited
    • ignored
    • not recorded
  • 7. Sale of scrap is _____ to contract A/c.

    • debited
    • credited
    • omitted
    • recorded
  • 8. According to CIMA, England, “the technique and process of ascertaining cost” is called

    • Costing
    • Cost Accounting
    • Cost Accountancy
    • Cost
  • 9. The main function of cost accounting is _______ reporting

    • Internal
    • External
  • 10. A manager can be blamed for _____ adverse variance.

    • controllable
    • non controllable
    • improvement in quality
    • reduction in cost
  • 11. In Contract Costing, work uncertified is valued at _____.

    • contract price
    • sale price
    • residual price
    • cost price
  • 12. P/V Ratio is an indicator of

    • the measurement of rate at which goods and services are bought and sold
    • the measurement of change in profit due to change in volume of sales
    • the measurement of volume of profit to be earned
    • None of the above
  • 13. Object of _____ is to protect the interest of contractor.

    • contract
    • escalation
    • de-escalation
    • retention
  • 14. When fixed cost is Rs.20,000 and P/V Ratio is 40%, the breakeven point will be

    • 75,000
    • 40,000
    • 20,000
    • 50,000