Costing mcqs

✅ The correct answer is A.
Operating Costing to be applied in case of Nursing Home. Operating costing is an extension and refined form of process costing. It is also more or less very similar to single or output costing.

✅ The correct answer is B.
Statutory cost audit are applicable only to Company. A statutory audit is a legally required review of the accuracy of a company’s or government’s financial statements and records.

✅ The correct answer is A.
Under ABC method of material control, the material are classified according to its value. The ABC analysis suggests that inventories of an organization are not of equal value. Thus, the inventory is grouped into three categories (A, B, and C) in order of their estimated importance.

✅ The correct answer is D.
Packing cost is distribution cost. Packaging cost is a significant factor in pricing a product.

✅ The correct answer is A.
Uncontrollable costs are the costs which can not be influenced by the action of a specified member of an undertaking. For example: a foreman incharge of a tool room can only control costs pertaining to the same department and the matters which come directly under his control, not the costs apportioned to other department. The expenditure which is controllable by an individual may be uncontrollable by another individual.

✅ The correct answer is C.
Within relevant range, cost function which cost does not change in narrow ranges of activity is called step variable cost function. A step variable cost is a cost that generally varies with the level of activity, but which tends to be incurred at certain discrete points and to involve large changes in amounts when such a point is reached.

✅ The correct answer is C.
Actual result = Flexible budget amount + Flexible budget variance
= $27000 + $12000 = $39,000

✅ The correct answer is C.

✅ The correct answer is B.

✅ The correct answer is A.
Graphical representation of cost driver data and costs is considered as plotting data.