BCom Second Year (Sem 3 & 4) Cost Accounting – Daily Revision MCQ (English Medium)
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A cost that stays the same in total even when the level of output changes (within a range) is called:
Chapter 1: Cost Concepts and Classification
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Answer: D. Fixed cost
Fixed costs such as factory rent do not change in total with output, though cost per unit falls as output rises.Direct materials ₹40,000, direct labour ₹25,000, direct expenses ₹5,000 and factory overheads ₹15,000. What is the works (factory) cost?
Chapter 2: Cost Sheet
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Answer: B. ₹85,000
Prime cost = 40,000 + 25,000 + 5,000 = ₹70,000; works cost = 70,000 + 15,000 = ₹85,000.Annual requirement is 1,600 units, ordering cost is ₹50 per order and carrying cost is ₹4 per unit per year. The Economic Order Quantity (EOQ) is:
Chapter 3: Material Control and Pricing of Issues
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Answer: A. 200 units
EOQ = √(2AO/C) = √(2 × 1,600 × 50 ÷ 4) = √40,000 = 200 units.Under the FIFO method of pricing material issues, materials are issued at the price of:
Chapter 3: Material Control and Pricing of Issues
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Answer: C. the earliest lot still in stock
First In, First Out charges issues at the price of the oldest stock first, so closing stock is valued at recent prices.Standard time 10 hours, actual time 8 hours, wage rate ₹20 per hour. Under the Halsey premium plan (50% of time saved), the worker's total earnings are:
Chapter 4: Labour Cost and Incentive Plans
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Answer: B. ₹180
Earnings = 8 × 20 + 50% × (10 − 8) × 20 = 160 + 20 = ₹180.Sharing factory rent among production departments on the basis of floor area is called:
Chapter 5: Overheads: Allocation, Apportionment and Absorption
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Answer: A. Apportionment
When one overhead item is shared among several cost centres on a fair basis, it is apportionment; allocation charges a whole item to one centre.Machine overheads are ₹60,000 and the machine works 4,000 hours. The machine hour rate is:
Chapter 5: Overheads: Allocation, Apportionment and Absorption
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Answer: D. ₹15 per hour
Machine hour rate = overheads ÷ machine hours = 60,000 ÷ 4,000 = ₹15 per hour.Job costing is most suitable where:
Chapter 6: Job and Contract Costing
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Answer: C. work is done against specific customer orders
Job costing finds the cost of each separate order (e.g. printing, repair work); continuous identical output uses process costing.In process costing, the cost of abnormal loss is transferred to:
Chapter 7: Process Costing
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Answer: A. Costing Profit and Loss Account
Abnormal loss is avoidable, so it is kept out of the cost of good units and written off to Costing P&L A/c.Which item appears only in financial accounts and not in cost accounts, making reconciliation necessary?
Chapter 8: Reconciliation of Cost and Financial Accounts
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Answer: B. Dividend received
Dividend received is a purely financial income, so it is not recorded in cost accounts; the other three appear in both.
BCom Second Year (Sem 3 & 4): MCQ in other subjects
All questions are written by PadhaiNotes in our own words from the common syllabus of Maharashtra universities (NEP). Your own university's syllabus may differ a little.