Costing mcqs

✅ The correct answer is D.
Actual loss is less than the predetermined normal loss, it is abnormal gain. If the actual loss is more than normal loss, then it is abnormal loss.

✅ The correct answer is B.
Observed cost value = Residual error + Predicted cost value
= 51 + 37 = 88

✅ The correct answer is A.
Blanket overhead rate is one single overhead absorption rate for the whole factory. It is a common absorption rate used throughout a factory and for all jobs and units of output irrespective of the departments in which they were produced or processed. It is a one single overhead absorption rate for the whole of the factory.

✅ The correct answer is C.

✅ The correct answer is D.
Responsibility Centre can be categorised into Cost Centres, Profit Centres and Investment Centres. Responsibility centers are often categorized by the degree of authority and responsibility given to the manager.

✅ The correct answer is B.
Cost which is changed in proportion to level total volume is variable cost. Variable costs are costs that change as the quantity of the good or service that a business produces changes.

✅ The correct answer is B.
In a joint process of production, two or more products that yield high volume of sales as compared to total sales of other products are classified as joint product. A joint product is a product that results jointly with other products from processing a common input. A joint product can be the output of a process with fixed or variable proportions.

✅ The correct answer is D.
Most appropriate basis for the apportionment of power is horse power of machines.

✅ The correct answer is B.
Inter process profit
= (160000 / (100% – 20%) – 160000)
= 200000 – 160000 = Rs. 40000.

✅ The correct answer is D.
Evaluation criteria of regression equation must be considered as goodness of fit, economic plausibility and significance of independent variable.