Costing MCQs

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Costing MCQs (1-10)

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1. Revenue minus all direct costing of making the goods or supplying the services is known as?

(a) Gross profit

(b) Cost of sales

(d) Net profit

Correct! Wrong!

2. During costing process, to arrive at the gross profit of a trading business, which one of the following formula is applied?

(a) Sales - (Opening Stock - Purchases - Closing Stock)

(b) Sales - (Opening Stock + Purchases + Closing Stock)

(d) Sales - (Opening Stock - Purchases + Closing Stock)

Correct! Wrong!

3. Direct expenses are?

(a) Carriage inward

(b) Carriage outward

(d) Both a & c

Correct! Wrong!

4. Net Purchases equal the invoice amount and?

(a) Plus freight-in, plus discounts

(b) Less purchase returns, plus purchase allowances

(d) Plus discounts, less purchase returns

Correct! Wrong!

5. Cost of Goods sold is classified as which type of account?

(a) Asset

(b) Liability

(d) Expense

Correct! Wrong!

6. Consider the following information for costing purpose?

(a) Rs. 10,000

(b) Rs. 15,000

(d) Rs. 25,000

Correct! Wrong!

7. Which of the following would not be considered a component of 'cost' of Goods Sold?

(a) Sales force Salaries

(b) Transportation for purchase

(d) Factory electricity expense

Correct! Wrong!

8. Which of the following is used to determine the cost of goods sold?

(a) Beginning inventory + Purchases

(b) Beginning inventory + Purchases – Sales

(d) Ending inventory + Purchases – Beginning inventory

Correct! Wrong!

9. Which of the following would not be considered as a component of 'cost' of stock?

(a) Salaries of selling staff

(b) Transportation inward costs

(d) Purchase price

Correct! Wrong!

10. As a costing team member, calculate the gross profit if; Sales Rs. 6000; cost of sales Rs. 5,000; opening stock Rs. 1,000; purchases Rs. 4,000; wages Rs. 2,000 and office rent Rs. 1,000?

(a) Loss Rs. 2,500

(b) Loss Rs. 1,500

(d) Profit Rs. 1,000

Correct! Wrong!

>> Read explanation, example of Costing…

Costing MCQs (11-20)

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11. Selling expenses are shown in which of the following statement?

(a) Cost of goods sold

(b) Profit and loss account

(d) Profit and loss appropriation account

Correct! Wrong!

12. Which one of the following could not be used to describe a summary of a company's assets, liabilities and capital at a specific date?

(a) Profit and loss account

(b) Balance sheet

(d) Statement of financial condition

Correct! Wrong!

13. All Indirect factory cost is record under costing head?

(a) Prime cost

(b) FOH cost

(d) None of the given options

Correct! Wrong!

14. If business purchases goods for resale purposes, such purchases are charged to?

(a) Expenses account

(b) Sales account

(d) None of the given options

Correct! Wrong!

15. Costing information can be used for?

(a) Budget control and evaluation

(b) Determining standard costs and variances

(d) All of these

Correct! Wrong!

16. Which one of the following types of costs is most likely to be included in determining the cost of inventory?

(a) Freight-in

(b) Interest cost for amounts borrowed to finance the purchase of inventory

(d) Marketing costs

Correct! Wrong!

17. Which of the following equation is correct and used in costing?

(a) Opening stock + purchases + closing stock = Cost of goods sold

(b) Cost of goods sold – closing stock – purchases = Opening stock

(d) Opening stock + cost of goods sold – purchases = Closing stock

Correct! Wrong!

18. The Synonyms of financial statements are?

(a) Financial analysis

(b) Financial reports

(d) Financial management

Correct! Wrong!

19. Profit is the difference between?

(a) Assets and liabilities

(b) Assets and equities

(d) The assets received for goods and services and the amounts used to provide the goods and services

Correct! Wrong!

20. Following are the inventories of Manufacturing Concern except?

(a) Fuel and Power

(b) Work in process

(d) Raw material

Correct! Wrong!

>>Practical Costing Problems and Solutions

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More Interest

Cost of Goods Sold

Cost of Goods Sold MCQs

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References

Cost Accounting For Dummies – By Kenneth W. Boyd

Fundamentals Of Cost Accounting – By William Lanen, Shannon Anderson Et.Al

Cost Accounting Fundamentals – By Steven M. Bragg

Cost Accounting Made Simple – By Mike Piper

Principles Of Cost Accounting – By Maria R. Mitchell

Fundamentals Of Cost Accounting 5^th Edition – By William Lanen, Shannon Anderson, And Michael Maher

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Reply
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Reply
Madison on October 7, 2022 at 11:13 am

Very interesting MCQs for accounting.
Reply
Nighat Kanwal on September 1, 2021 at 5:22 am

What about above mentioned mcqs answers
Reply
Rakesh Kumar on May 26, 2021 at 5:56 am

Mcqs करने के बाद कैसे पता करें कि सही हैor गलत है
Reply
Muhammad Arshad Akhtar on May 21, 2021 at 1:22 pm

Good work for better understanding of the students.
Reply
rosy on February 5, 2021 at 6:44 am

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Reply

Costing MCQs

Costing MCQs (1-10)

Click The Option and See Result

1. Revenue minus all direct costing of making the goods or supplying the services is known as?

2. During costing process, to arrive at the gross profit of a trading business, which one of the following formula is applied?

3. Direct expenses are?

4. Net Purchases equal the invoice amount and?

5. Cost of Goods sold is classified as which type of account?

6. Consider the following information for costing purpose?

7. Which of the following would not be considered a component of 'cost' of Goods Sold?

8. Which of the following is used to determine the cost of goods sold?

9. Which of the following would not be considered as a component of 'cost' of stock?

10. As a costing team member, calculate the gross profit if; Sales Rs. 6000; cost of sales Rs. 5,000; opening stock Rs. 1,000; purchases Rs. 4,000; wages Rs. 2,000 and office rent Rs. 1,000?

Costing MCQs (11-20)

Click The Option and See Result

11. Selling expenses are shown in which of the following statement?

12. Which one of the following could not be used to describe a summary of a company's assets, liabilities and capital at a specific date?

13. All Indirect factory cost is record under costing head?

14. If business purchases goods for resale purposes, such purchases are charged to?

15. Costing information can be used for?

16. Which one of the following types of costs is most likely to be included in determining the cost of inventory?

17. Which of the following equation is correct and used in costing?

18. The Synonyms of financial statements are?

19. Profit is the difference between?

20. Following are the inventories of Manufacturing Concern except?

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