Costing mcqs

✅ The correct answer is A.
Disturbance term = Observed cost value ÷ Predicted cost value
= 62 – 29 = 33

✅ The correct answer is A.

✅ The correct answer is D.
Material control involves purchase, storage and issue of material. Materials control is the systematic control over the materials at all its stages procurement, storage and usage so as to help in maintaining regular and uninterrupted flow of the materials in the production pipeline.

✅ The correct answer is C.
Relevant opportunity cost of capital = Cost of units purchased × Rate of return
= $35 × 12% = $4.20

✅ The correct answer is B.
In quantitative analysis of estimating cost function, last and foremost step is to evaluate evaluate cost driver. A cost driver is the unit of an activity that causes the change in activity’s cost.

✅ The correct answer is D.
Difference between flexible budget amount and corresponding static budget amount is classified as sales volume variance. The sales volume variance is the difference between the actual and expected number of units sold, multiplied by the budgeted price per unit.

✅ The correct answer is B.
Cash receipts is added in to beginning cash balance to calculate total cash available. A cash receipt is a printed statement of the amount of cash received in a cash sale transaction.

✅ The correct answer is B.
Forth step in process costing system is to compute cost for each equivalent unit. Process costing is a term used in cost accounting to describe one method for collecting and assigning manufacturing costs to the units produced.

✅ The correct answer is D.
Balance of abnormal gain a/c is transferred to costing profit and loss a/c. Abnormal loss is transferred to the costing P&L.

✅ The correct answer is C.
In process and job costing system, normal spoilage cost is considered as inventoriable costs. Inventoriable costs are included in the cost of a product