Costing Objective Questions and Answers

806. Cost accounting disclose . . . . . . . .

807. If direct service labour is $7000, idle time wages are $2000 and overtime premium is $950, then total figure would be

A. $5,850

808. Inventory turnover in days = Days during the period ÷ . . . . . . . .

A. inventory turnover ratio

B. material consumed during the period

C. cost of average stock during the period

D. None of these

Discussion

809. The amount at any given volume of output by which aggregate costs are changed if the volume of output is increased or decreased by one unit, can be otherwise termed as:

A. Abnormal Cost

B. Marginal Cost

C. Fixed Cost

D. Semi Variable Cost

Discussion

810. Average cost method of valuing material issues is suitable when . . . . . . . .

A. prices rise

B. prices fall

C. prices fluctuate considerably

D. None of these

Discussion

811. What is the average collection period when the debt turnover ratio is 4?

812. Which of the following is a non-operating expense?

A. Salary of managing director

B. Depreciation

C. Advertisement expenditure

D. Interest on a loan

Discussion

Costing MCQs