Standard cost the planned unit cost of the product, component or service produced in a period. This is very useful for all kind of competitive examinations. Activitybased costing and cost management systems multiple choice questions. The main source s of generally accepted accounting principles gaap isare. For multiplechoice and truefalse questions, simply press or click on what you think is the correct answer. Dec 20, 2016 civil engineering objective questions and answers pdf welcome to you. Standard costing and variance analysis quizzes about this quiz.
Requiring the skill levels of knowledge, comprehension, application and analysis. Just click the start quiz button and start material costing methods mcqs quiz. The budget sales and prime costs for april 20x1 for component l63a are as follows. Estimation and costing standard books pdf free download. Standard costing and variance analysis topic gateway. A team of management consultants and company executives concluded that a standard cost installation was desirable vehicle for accomplishing the objectives of a progressive management. We have prepared this mcqs quiz for standard costing so that students can assess who much they learned about this topic. This page you will find civil engineering mcq question study materials in pdf format. Further we have highlighted the concept of activity based costing, cost records, different costing systems. Cost accounting multiple choice questions and answers pdf mcqs.
Cost accounting quiz questions and answers pdf with practice tests for online exam prep and job interview prep. What does the direct labor efficiency variance tell us. Cost accounting multiple choice questions and answers mcqs pdf is a revision guide with a collection of trivia quiz questions and answers pdf on topics. Marginal costing and break even analysis 259304 study note budgets and budgetary control 305348 study note 14 standard costing 349396 study note 15 uniform costing and inter firm comparison 397406 study note 16 activity based costing 407416 study note 17 transfer pricing 417428 sets of objective questions cost and management accounting. Commerce provides you all type of quantitative and competitive aptitude mcq. Standard costing finance mcq questions and answers. Strategic choice multiple choice questions with answers on standard costing and variance analysis. Variance analysis finance mcq questions and answers. Standard costing system discussion questions and answers. Pdf estimation and costing books collection free download. Cima, london, defines standard costing as the predetermined cost based on technical estimates of materials, labour and overheads for selected period of time and for the prescribed set of working conditions. Cost accounting study guide with questions and answers about accounting concepts, activity based costing and management, balanced scorecard and strategic profitability. Commerce provides you all type of quantitative and competitive aptitude mcq questions with easy and logical explanations. Costing mcq questions and solutions with explanations commerce.
In august actual material used amounted to 5,650 kg, budgeted output was 1,000 units and standard material usage was 5 kg per unit. Standard costing mcqs quiz with answers play accounting. Standard costing involves the setting of predetermined cost estimates in order to provide a basis for comparison with actual costs. Costing mcq is important for exams like ca, cs, cma, cpa, cfa, upsc, net, banking and other accounts department exam. Cs executive costing revised syllabus for june 2018 exam are given below. Standard costing and variance analysis topic gateway series 4 a standard costing system consists of the following four elements. Costing mcqs consists of types of cost, types of profit, cgs related multiple choice questions and suitable available in list of answers. Which of the following variances values would change if the company switched from standard marginal costing. Standard costing is universally accepted as an effective instrument for cost control in industries. This is a sample pdf of our managerial and cost accounting exam you can view the entire exam 81 pages. According to icma, london, standard costing is the preparation and use of standard costs, their comparison with actual cost and the.
Overheads are assumed to be related to direct labour hours of active working. The institute of cost and works accountants of india has recently issued cost accounting standard cas 1 to 4 also to understand the subject in a better manner as follows. Estimating and costing multiple choice questions with answers pdf free download for civil engineering students. Standard costing is a control system that enables any variances from standard cost or budget to be analysed in some detail. The use of absorption costing produces a lower net income than the use of variable costing. Management use standard costing and variance analysis as a measurement tool to see whether the business is performing better or worse than the original budget standards. Understand the cost accounting standards cas apply marginal costing in decision making apply the concept of standard costing for variance analysis skill set required level b. Financial accounting is primarily concerned with record keeping directed towards the preparation of profit and loss account and balance sheet. Introduction to cost and management accounting cost accounting. The basic objective of cost accounting is a recording of cost b reporting of cost c cost control d earningprofit 2. Home category finance mcq questions and answers standard costing. Standard costing and variance analysis double entry.
Standard costs imply a predetermined cost for a period b incurred cost c conversion cost d incremental cost 3. Standard costing is used to ascertain the standard cost under each element of cost, i. In this article we will discuss about top seven problems on standard costing with their relevant solutions. The use of absorption costing causes inventory value to increase more than. When standard relating to each element of cost is fixed or established, it becomes necessary to maintain a standard cost sheet or a standard cost card in order to show the standard quantity and price of each type of material, labour time and rates, as also hours and rates of fixed and variable overheads. Actual, normal, and standard costing b a 521 should a job in january be costed at the same amount as a job in july. A profit centre is a centre a where the manager has the responsibility of. The essence of standard costing is to set objectives and targets to achieve them, to compare the actual costs with these targets. Standard costing standard direct labor cost is the product of the direct labor rate standard and the direct labor time standard. Unit 6 module 10 standard costing information and library. A marginal costing i meaning of marginal cost and marginal costing ii absorption costing vs. Compare actual costs with standard costs at the actual level of output.
In standard costing, how is the purchase price variance reclassified to arrive at actual cost. The maintenance of cost accounting records became mandatory since 1965, after the addition of sec. Chapter 9 standard costing, flexible budgeting and variance. The next 3 questions refer to the following information. The following accounting mcqs are from basics of accounting, financial accounting, and cost accounting. We have created an important links for only study purposes mainly those who are eagerly want to get jobs in government. Standard costing and variance analysis multiple choice questions. A profit centre is a centre a where the manager has the responsibility of generating and maximising profits. Multiple choice questions with answers on standard costing. Find answers to the questions at the bottom of the page. The standard selling price and variable costs for one unit of the product are as follows. Standard costing can also simplifying cost bookkeeping see chapter 11. Standard cost sheet with specimen standard costing.
Process costing mcqs is a collection of multiple choice questions of one or more department for preparing cost of production report. Introduction a standard cost is based on the expected price and usage of material, labour and overheads. Jan 20, 2019 we have prepared this mcqs quiz for standard costing so that students can assess who much they learned about this topic. When calculating cost variances under a standard costing system we must. Chapter 9 standard costing, flexible budgeting and variance analysis questions 1.
Let us make an indepth study of the meaning, objectives, development, advantages and disadvantages of standard costing. Estimating and costing is a core subject in civil engineering courses. Accounting concepts, activity based costing and management, balanced scorecard and strategic profitability analysis, balanced scorecard, quality, time and theory of constraints, accounting. Students need a clear understanding of this subject as it teaches. Cost accounting multiple choice questions has 1083 mcqs. Standard costing and variance analysis multiple choice.
Cost accounting multiple choice questions and answers mcqs. The main difference or differences between how traditional costing and activity based costing treat indirect manufacturing costs is are that. Cost accounting page 5 module i introduction cost accounting is a branch of accounting and has been developed due to limitations of financial accounting. For fillintheblank questions press or click on the blank space provided.
Material costing methods short questions material costing methods fill in the blanks related. Multiple choice questions on basic accounting q1 which accounting concept satisfy the valuation criteria a going concern, realisation, cost b going concern, cost, dual aspect c cost, dual aspect, conservatism d realisation, conservatism, going concern. Standard costing and variance analysis topic gateway series 3. The most advantageous time to recognize a variance in the standard cost of a.
It is a method of costing by which standard costs are employed. Standard costing manufacturing overhead 47 answers 306 340 51. If you have difficulty answering the following questions, learn more about this topic by reading our standard costing explanation. The use of absorption costing causes inventory value to increase more than they would through the use of. Which variances are calculated and shown in the variance report depends on how useful the information will be in controlling the business. Discuss the essentials of an effective standard costing. Strategic choice is a key step within the strategic planning process. Costing mcq questions and solutions with explanations. Take a quick multiple choice questions mcqs test about material costing methods. A standard cost is a planned cost for a unit of product or service rendered. Cost accounting multiple choice questions and answers. Cs executive costing mcq pdf for december 2018 exam cakart. Nov 23, 2018 take a quick multiple choice questions mcqs test about material costing methods.
Ca final indirect direct tax summary book pdf may 2020. Standard costing overview standard costing is the practice of substituting an expected cost for an actual cost in the accounting records. If you have difficulty answering the following questions, learn more about this topic by reading our standard. This approach represents a simplified alternative to co. Chapter 7 standard costing and variance analysis learning. The standard cost may be determined on a number of bases. A standard costing system is a method of cost accounting in which standard costs are used in recording certain transaction and the actual costs are compared with the standard cost to learn the amount and. Its objective is to recommend the management on one of the most proper course of action based. Costing mcq questions and answers with easy and logical explanations. Accounting mcq multiple choice question with answer accounting mcq with detailed explanation for interview, entrance and competitive exams. Cost accounting quiz questions and answers pdf, mcqs on basic accounting concepts, standards, accounting principles, balanced scorecard, strategic financial analysis, strategic management, activity based costing, financial accounting, management accounting mcqs with answers, basic variance analysis, pricing, customer profitability. Accounting basics mcqs are designed for testing your knowledge for basic concepts like users of accounting, types of accounting and purpose of accounting. In the first week of january 2003 it was ascertained that 2,000 units were produced despite 20% idle time due to power failure and actual rate of wages was rs.
Standard costing in a standard costing system, costs are entered into the materials, work in process, and finished goods inventory accounts and the cost of goods sold account at standard cost. Process costing mcqs i cost of production report mcqs. Costing mcqs i basic costing i accountancy knowledge. Cost accounting quiz questions and answers pdf, mcqs on basic accounting concepts, standards, accounting principles, balanced scorecard, strategic financial analysis, strategic management, a. Jan 08, 2014 standard costing is developed due to the shortcomings of historical costing. These mcqs can help you to prepare for your exams, interviews and different tests. Which of these is not an objective of cost accounting. Student should know about cs executive syllabus while preparing cs executive exam. If so, does this lead to e cient resource allocation. Sample test paper this test paper is for practice and self study only and not to be sent to the institute. The standard cost of direct materials is the cost the manufacturer should have used to.
Standard costing is less suited to organisations that produce nonhomogenous products or where the level of human intervention is high. Standard costing standard direct materials cost is the product of the direct materials price standard and the direct materials quantity standard. Chapter 9 standard costing, flexible budgeting and. For multiple choice questions, you need only write the subquestion number and the letter of the. Subsequently, variances are recorded to show the difference between the expected and actual costs. Chapter 7 standard costing and variance analysis learning objectives after reading and studying chapter 7, you. Priory pegamoid limited produces a range of parts for industrial weaving machines.
1215 1559 531 379 513 567 162 1367 1210 63 1528 1069 1261 153 1652 93 826 211 1451 1577 1328 577 1352 392 363 1062 228 1188 273 915 742