Costing

Costing MCQs with Answers and Explanations | Cost Accounting Objective Questions

Sharpen your understanding of Costing and Cost Accounting with our collection of MCQs with answers and detailed explanations. Covering key topics such as marginal costing, standard costing, process costing, job order costing, variance analysis, budgeting, cost control, and managerial decision-making, these objective questions are highly useful for students, teachers, and candidates preparing for professional and competitive exams (CA, ACCA, ICMA, MBA, CSS, PMS, NTS, FPSC, PPSC, UPSC, etc.). Each question includes a clear solution and explanation to strengthen concepts, improve problem-solving skills, and enhance exam preparation. Perfect for practice, self-assessment, and revision in the field of Cost Accounting.

12. Time and motion study is conducted by ________.

by
A) time keeping department
B) personnel department
C) payroll department
D) engineering department
✅ ANSWER: D
Time and motion study is conducted by engineering department. It is a major part of scientific management (Taylorism). After its first introduction, time study developed in the direction of establishing standard times, while motion study evolved into a technique for improving work methods.

13. Method, which considers cost and cost drivers of departments such as employee relations and process engineering is termed as

by
A) pricing method
B) manufacturing method
C) conference method
D) inference method
✅ ANSWER: C
Method, which considers cost and cost drivers of departments such as employee relations and process engineering is termed as conference method. The conference method is an approach to cost estimation that pools together data, analyses, and knowledge from expert sources in order to make decisions about costs.

14. Wages and other benefits, provided to assembly line workers and operators of machine are classified under

by
A) work in process costs
B) finished costs
C) direct manufacturing labour costs
D) indirect manufacturing labour costs
✅ ANSWER: D
Wages and other benefits, provided to assembly line workers and operators of machine are classified under indirect manufacturing labour costs. Indirect manufacturing costs are production costs that cannot be directly associated with a produced unit.

15. Mathematical relationships exist between operating and financing activities that affect master budget are called

by
A) math plan model
B) financial planning models
C) operating plan models
D) master plan models
✅ ANSWER: B
Mathematical relationships exist between operating and financing activities that affect master budget are called financial planning models. A financial planning model uses certain elements to create a future financial plan for a company.

19. Statistical method used to measure average change in dependent variable, with respect to change of one unit in independent variable is called

by
A) times series method
B) time horizon method
C) aggression method
D) regression method
✅ ANSWER: D
Statistical method used to measure average change in dependent variable, with respect to change of one unit in independent variable is called regression method. Regression analysis is a set of statistical processes for estimating the relationships among variables.