Costing mcqs

✅ The correct answer is A.
Abnormal process loss can be transferred to costing profit and loss a/c. Process account is to be credited by abnormal loss account with cost of material, labour and overhead equivalent to good units and the loss due to abnormal is transferred to Costing Profit and Loss Account.

✅ The correct answer is D.
Budgeted sales 18000
Budgeted reduction in finished goods (3600) = 15000-11400
Budgeted production of completed units 14400
Allowance for defective units
(10%of output=1/9 of Input) 1600

Production budget 16000

✅ The correct answer is B.
Rs. 540000 divided by Rs. 90,000 = 6 times per year. Since there were 365 days during the recent year, the average collection period is 365 days divided by the turnover ratio of 6 = 60.8333 days or 61 days.

✅ The correct answer is D.
The following that would explain an adverse variable production overhead efficiency variance are Employees were of a lower skill level than specified in the standard and Poor Quality material was difficult to process.

✅ The correct answer is A.

✅ The correct answer is A.
Sales department is an example of revenue center. A revenue center is a distinct operating unit of a business that is responsible for generating sales.

✅ The correct answer is B.
Abnormal cost is the cost not normally incurred at a given level of output. These costs are not normally incurred at a given level of output in conditions in which normal levels of output occur.

✅ The correct answer is C.
Wage sheet is prepared by payroll department. The payroll or wage sheet is a consolidated list of workers, which shows the gross deductions and net wages payable to them.

✅ The correct answer is D.
Prime cost = Direct material cost + Manufacturing labour
= $85000 + $25000 = $110,000

✅ The correct answer is D.
Operating cost is usually ascertained through a statement. Operating costs are expenses associated with the maintenance and administration of a business on a day-to-day basis.