MCQ Portal

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June 2018 Costing Paper

The Number of MCQs are limited as per ICMAI Past Paper in Syllabus 2016

1. Which industry is most suitable for batch costing?

Oil Industry Sugar Industry Chemical Industry Pharmaceutical Industry

2. Idle time refers to:

Time spent by workers in the office Time spent by workers in the factory Time spent by workers off their work Time spent by workers on their job

3. Warehouse expenses are classified as:

Production overhead Administration overhead Selling overhead Distribution overhead

4. The standard that defines principles and methods for determining depreciation and amortization cost is:

CAS-8 CAS-11 CAS-16 CAS-20

5. In a reconciliation statement, expenses recorded only in cost accounts are:

Added to financial profit Deducted from financial profit Ignored Deducted from costing profit

6. In a job costing system, costs are accumulated:

On a monthly basis By specific job By department or process By type of material used

7. In a process, 6,000 units are introduced during a period. Normal loss is 5% of input. Closing work-in-progress is 60% complete with 800 units. 4,900 units are completed and transferred. What is the equivalent production for the period?

6,800 units 5,700 units 5,680 units 5,380 units

8. Which statement best describes a fixed cost?

It may change in total even if unrelated to production changes It may change in total when related to production changes It remains constant per unit as production changes It changes in total based on production within the relevant range

9. Z Ltd. plans to sell 1,00,000 units of product A at ₹12 per unit. Fixed costs are ₹2,80,000, and the desired profit is ₹2,00,000. What should be the total variable cost?

₹4,80,000 ₹7,20,000 ₹9,00,000 ₹9,20,000

10. Sales budget is an example of:

Expenditure budget Functional budget Capital budget Master budget