Costing mcqs

✅ The correct answer is B.
Calculation of Closing Stock:
1st January, 20XX: Opening balance: 50 units @ Rs 4 = 50 × 4 = Rs. 200
Issue: 2nd January, 20XX: 30 units = 30 × 4 = Rs. 120
Remaining Stock = (50 – 30) × 4 = Rs. 80
Reciept: 5th January, 20XX: 100 units @ Rs 5 = 100 × 5 = Rs. 500
Reciept: 12th January, 20XX: 200 units @ Rs 4.50 = 200 × 4.5 = Rs. 900
Remaining Stock = Rs. 80 + Rs. 500 + Rs. 900 = Rs. 1480
Issue: 18th January, 20XX: 150 units = (150 × 4.5) = Rs. 675
Remaining Stock = (50 × 4.5) + (100 × 5) + (20 × 4) = Rs. 805.

✅ The correct answer is C.
Fixed Costs = Break-Even Point (Units) × (Revenue per Unit – Variable Cost per Unit)
= 6000 × ( 90 – 40) = Rs. 300000.

✅ The correct answer is C.
Centers such as revenue, cost, investment and profit all are known as responsibility center. A responsibility center is a functional entity within a business that has its own goals and objectives, dedicated staff, policies and procedures, and financial reports.

✅ The correct answer is B.
Flexible budget variable = Number of units × per unit price
= 5000 × $60 = $3,000,000

✅ The correct answer is B.
Overhead rate = Actual manufacturing overhead costs ÷ Actual total quantity of cost allocation
= $485000 ÷ 4500 = $107.78

✅ The correct answer is C.
Period cost, which consists income statement of manufacturing companies belongs to non-manufacturing costs. Non-manufacturing costs refer to those incurred outside the factory or production department. These are costs are not needed in transforming materials into finished goods.

✅ The correct answer is C.
In case of complete contract, the whole amount of profit is transferred to profit and loss a/c.

✅ The correct answer is B.
Function used to measure decline in labour hours per unit as units of production increases is called learning curve. A learning curve is a concept that graphically depicts the relationship between the cost and output over a defined period of time, normally to represent the repetitive task of an employee or worker.

✅ The correct answer is A.
Higher level of production leads to higher repair cost.

✅ The correct answer is A.
Health care premium for workers and pension costs are included in payroll fringe costs. A fringe benefit rate is a percentage that results from dividing the cost of an employee’s fringe benefits by the wages paid to the employee for the hours actually worked.