Costing mcqs

✅ The correct answer is B.

✅ The correct answer is C.
If any by-product is produced and sold it is credited to process a/c.

✅ 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.

✅ 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.

✅ The correct answer is A.
Annual indirect cost (budgeted) = Budgeted indirect cost × Budgeted cost allocation
= $225 × $750 = $168,750

✅ The correct answer is D.
In a joint process of production, product which yields low volume of sales as compared to total sales of other products is known as by-product.

✅ The correct answer is A.

✅ 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.

✅ The correct answer is C.
Increase in total variable cost is due to increase in production. Variable costs increase or decrease depending on a company’s production volume; they rise as production increases and fall as production decreases.

✅ The correct answer is A.
Cost pattern, when production inputs are to be used in discrete functions, but quantities are fractional, will be categorized as continuously variable cost function. A variable cost is a corporate expense that changes in proportion to production output.