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.

52. Budget sales, plus target ending finished goods inventory, minus beginning finished goods inventory is equal to

by
budget production
planned production
setup production
stand by production
✅ The correct answer is A.
Budget sales, plus target ending finished goods inventory, minus beginning finished goods inventory is equal to budget production. The production budget contains details of the number of units that are intended to be produced by a business in a particular period.

53. If budgeted annual manufacturing indirect cost is $2250000 and cost allocation base is 2800 labour hour, then budgeted manufacturing overhead rate will be

by
$803.571 per labour hour
$805 per labour hour
$905 per labour hour
$802 per labour hour
✅ The correct answer is A.
Manufacturing overhead = Manufacturing indirect cost ÷ Cost allocation base
= $2250000 ÷ 2800 = $803.571 per labour hour

57. Method of revenue allocation, which ranks products included in bundle according to predetermined criteria of management is known as

by
step down allocation method
stand-alone revenue allocation method
incremental revenue allocation method
revenue mix allocation method
✅ The correct answer is C.
Method of revenue allocation, which ranks products included in bundle according to predetermined criteria of management is known as incremental revenue allocation method. The ranking of the individual products in the suite determines the revenues allocated to them.

58. An estimation of relationship between two or more independent variables and dependent variable is classified as

by
One variable series
multiple regression
simple regression
Two way regression
✅ The correct answer is B.
An estimation of relationship between two or more independent variables and dependent variable is classified as multiple regression. Multiple regression is an extension of simple linear regression. It is used when we want to predict the value of a variable based on the value of two or more other variables.