Costing mcqs

✅ The correct answer is C.
Relevant incremental cost = Relevant carrying cost of inventory – Relevant opportunity cost of capital
= $6700 – $2950 = $3,750

✅ The correct answer is C.
Profit on C.P = 10000 × 25/100 = 2500
Profit on S.P = 2500/(10000-2500) × 10000 = Rs. 3,333.

✅ The correct answer is C.
If all conditions or assumptions of regression analysis simple regression can give reliable estimates. A measure is said to have a high reliability if it produces similar results under consistent conditions.

✅ The correct answer is D.
Loss on sale of fixed assets will not appear in cost accounting. Debit cash for the amount received, debit all accumulated depreciation, debit the loss on sale of asset account, and credit the fixed asset.

✅ The correct answer is A.
Cost of previous department is a part of transferred-in costs. Transferred-in costs are costs accumulated during the upstream production processes within a company. Transferred-in costs are the costs accumulated by the product at any given point in production.

✅ The correct answer is D.
Element/s of Cost of a product are Material, Labour and expenses.

✅ The correct answer is B.

✅ The correct answer is A.
Process a/c is nominal a/c. A process account which is similar to a ledger account in financial accounting is an equivalent of a nominal account.

✅ The correct answer is C.
Variance used by managers to check whether company has performed well and properly implemented strategies is considered as performance evaluation. Performance Evaluation is defined as a formal and productive procedure to measure an employee’s work and results based on their job responsibilities.

✅ The correct answer is D.
An overtime is considered in cost accounting as indirect costs and overhead costs. Work performed by an employee or worker in excess of a basic workday ( typically 8 hours a day, 5 days a week) is overtime.