Rs 489
Rs 606
Rs 996
Rs 1300
✅ The correct answer is A.
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.
272. In cost terms, direct manufacturing labour cost is included in
manufacturing costs
prime costs
conversion costs
both B and C
✅ The correct answer is D.
In cost terms, direct manufacturing labour cost is included in prime costs and conversion costs. Direct labor cost is the total cost of employing workers that work directly on a manufacturing product.
In cost terms, direct manufacturing labour cost is included in prime costs and conversion costs. Direct labor cost is the total cost of employing workers that work directly on a manufacturing product.
273. Piece workers are paid on the basis of ________.
output sold
output produced
output in stock
input received
✅ The correct answer is B.
Piece workers are paid on the basis of output produced. Piece rate system is the method of remunerating the workers according to the number of unit produced or job completed. It is also known as payment by result or output.
Piece workers are paid on the basis of output produced. Piece rate system is the method of remunerating the workers according to the number of unit produced or job completed. It is also known as payment by result or output.
274. Which of the following methods of stock control aims at concentrating efforts on selected items of material?
Perpetual inventory system
Material turnover ratio
Level setting
ABC analysis
✅ The correct answer is D.
ABC analysis methods of stock control aims at concentrating efforts on selected items of material. ABC method of inventory control involves a system that controls inventory and is used for materials and throughout the distribution management.
ABC analysis methods of stock control aims at concentrating efforts on selected items of material. ABC method of inventory control involves a system that controls inventory and is used for materials and throughout the distribution management.
275. If budgeted indirect cost arte is $225 and budgeted cost allocation base is $750 per hour, then annual indirect cost (budgeted) would be
$168,750
$148,570
$186,750
$125,680
✅ The correct answer is A.
Annual indirect cost (budgeted) = Budgeted indirect cost × Budgeted cost allocation
= $225 × $750 = $168,750
Annual indirect cost (budgeted) = Budgeted indirect cost × Budgeted cost allocation
= $225 × $750 = $168,750
276. “After inviting tenders for supply of raw materials, two quotations are received as follows— Supplier P Rs 2.20 per unit, Supplier Q Rs 2.10 per unit plus Rs 2,000 fixed charges irrespective of the units ordered. The order quantity for which the purchase price per unit will be the same—”
22,000 units
20,000 units
21,000 units
None of the above.
✅ The correct answer is B.
277. If any by-product is produced and sold it is credited to ________.
profit and loss a/c
by-product a/c
process a/c
abnormal gain a/c
✅ The correct answer is C.
If any by-product is produced and sold it is credited to process a/c.
If any by-product is produced and sold it is credited to process a/c.
278. Contract costing is most appropriate method of costing for ________.
construction industry
banking industry
textile mills
cement industry
✅ The correct answer is A.
Contract costing is most appropriate method of costing for construction industry. Contract costing is the tracking of costs associated with a specific contract with a customer.
Contract costing is most appropriate method of costing for construction industry. Contract costing is the tracking of costs associated with a specific contract with a customer.
279. Budgeted total cost in indirect cost pool is divided by budgeted total quantity of cost allocation base is to calculate by
budgeted direct cost rate
budgeted indirect cost rate
expected indirect cost rate
direct budget percentage
✅ The correct answer is B.
Budgeted total cost in indirect cost pool is divided by budgeted total quantity of cost allocation base is to calculate by budgeted indirect cost rate. The budgeted indirect cost rate formula is calculated by dividing the budgeted annual indirect costs by the budgeted annual quantity of the cost allocation base.
Budgeted total cost in indirect cost pool is divided by budgeted total quantity of cost allocation base is to calculate by budgeted indirect cost rate. The budgeted indirect cost rate formula is calculated by dividing the budgeted annual indirect costs by the budgeted annual quantity of the cost allocation base.
280. Calculation of product cost, gathering information for planning and analyzing information for decisions making are features of
information accounting
cost accounting
analyzing accounts
marketing costs
✅ The correct answer is B.
Calculation of product cost, gathering information for planning and analyzing information for decisions making are features of cost accounting. Cost accounting is an accounting method that aims to capture a company’s costs of production by assessing the input costs of each step of production as well as fixed costs, such as depreciation of capital equipment.
Calculation of product cost, gathering information for planning and analyzing information for decisions making are features of cost accounting. Cost accounting is an accounting method that aims to capture a company’s costs of production by assessing the input costs of each step of production as well as fixed costs, such as depreciation of capital equipment.