Costing MCQs (11-20)

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

(a) Cost of goods sold

(b) Profit and loss account

(c) Manufacturing 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

(c) Position statement

(d) Statement of financial condition

Correct! Wrong!

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

(a) Prime cost

(b) FOH cost

(c) Direct labor 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

(c) Purchases 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

(c) Pricing and inventory valuation decisions

(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

(c) Freight-out

(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

(c) Cost of goods sold + closing stock – opening stock = Purchases

(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

(c) Financial statistics

(d) Financial management

Correct! Wrong!

19. Profit is the difference between?

(a) Assets and liabilities

(b) Assets and equities

(c) The assets purchased with cash contributed by the owner and the cash spent to operate the business

(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

(c) Finished goods

(d) Raw material

Correct! Wrong!

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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