All Courses
Get the App Signup / Login
Sign in Open App
B Com Exam  >  B Com Tests  >  Cost Management  >  Test: Methods of Cost Determination - 2 - B Com MCQ

Test: Methods of Cost Determination - 2 - B Com MCQ


Test Description

10 Questions MCQ Test Cost Management - Test: Methods of Cost Determination - 2

Test: Methods of Cost Determination - 2 for B Com 2024 is part of Cost Management preparation. The Test: Methods of Cost Determination - 2 questions and answers have been prepared according to the B Com exam syllabus.The Test: Methods of Cost Determination - 2 MCQs are made for B Com 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Methods of Cost Determination - 2 below.
Solutions of Test: Methods of Cost Determination - 2 questions in English are available as part of our Cost Management for B Com & Test: Methods of Cost Determination - 2 solutions in Hindi for Cost Management course. Download more important topics, notes, lectures and mock test series for B Com Exam by signing up for free. Attempt Test: Methods of Cost Determination - 2 | 10 questions in 10 minutes | Mock test for B Com preparation | Free important questions MCQ to study Cost Management for B Com Exam | Download free PDF with solutions
Test: Methods of Cost Determination - 2 - Question 1
Save

What is the primary costing method used when a manufacturing concern produces homogeneous products like sugar, cloth, or cement?

Detailed Solution for Test: Methods of Cost Determination - 2 - Question 1
In a manufacturing concern that produces homogeneous products like sugar, cloth, or cement, process costing is the primary costing method used. Process costing is suitable for industries where products are mass-produced, and the costs associated with individual units cannot be differentiated from each other. It helps determine the unit cost of production for such products.
Test: Methods of Cost Determination - 2 - Question 2
Save

Which of the following elements is NOT included in the prime cost of a product?

Detailed Solution for Test: Methods of Cost Determination - 2 - Question 2
The prime cost of a product includes direct labor, direct materials, and direct expenses. Factory overhead, also known as indirect costs, is not part of the prime cost but is included in the total cost of production.
1 Crore+ students have signed up on EduRev. Have you? Download the App
Test: Methods of Cost Determination - 2 - Question 3
Save

What is the purpose of adjusting the stock of raw materials in the preparation of a cost sheet?

Detailed Solution for Test: Methods of Cost Determination - 2 - Question 3
Adjusting the stock of raw materials in the preparation of a cost sheet is done to calculate the total cost of production accurately. By accounting for changes in raw material quantities, the cost sheet reflects the actual cost incurred in production.
Test: Methods of Cost Determination - 2 - Question 4
Save
What is the primary purpose of a manufacturing account in a business?
Detailed Solution for Test: Methods of Cost Determination - 2 - Question 4
A manufacturing account in a business is primarily used to determine the cost of goods manufactured during a specific period. It helps calculate the production costs and manufacturing profit or loss.
Test: Methods of Cost Determination - 2 - Question 5
Save
Which of the following components is NOT included in the cost of production?
Detailed Solution for Test: Methods of Cost Determination - 2 - Question 5
The cost of production includes factory cost, prime cost, and office and administrative overheads. Selling and distribution overheads are not part of the cost of production but are considered when calculating the total cost.
Test: Methods of Cost Determination - 2 - Question 6
Save
When preparing a tender or quotation price, what basis is commonly used for estimating overhead costs?
Detailed Solution for Test: Methods of Cost Determination - 2 - Question 6
In the preparation of a tender or quotation price, overhead costs are commonly estimated based on machine hours or labor hours. This basis helps allocate overhead costs to products more accurately.
Test: Methods of Cost Determination - 2 - Question 7
Save
What is the purpose of absorbing factory overhead costs in the cost sheet?
Detailed Solution for Test: Methods of Cost Determination - 2 - Question 7
Absorbing factory overhead costs in the cost sheet is done to allocate these overhead costs to production units. It helps determine the total cost of production for each unit.
Test: Methods of Cost Determination - 2 - Question 8
Save
Which costing method is primarily used when a manufacturing concern produces heterogeneous products?
Detailed Solution for Test: Methods of Cost Determination - 2 - Question 8
Job costing is primarily used when a manufacturing concern produces heterogeneous (different) products. It allows for the tracking of costs for each unique job or project.
Test: Methods of Cost Determination - 2 - Question 9
Save
In the preparation of a manufacturing account, what is the purpose of not recording the opening and closing stock of finished goods?
Detailed Solution for Test: Methods of Cost Determination - 2 - Question 9
The opening and closing stock of finished goods are not recorded in the manufacturing account to accurately determine the manufacturing profit or loss during the specified period. This omission allows for a clear calculation of profit or loss related to production activities.
Test: Methods of Cost Determination - 2 - Question 10
Save
What is the main purpose of preparing a cost sheet in a manufacturing concern?
Detailed Solution for Test: Methods of Cost Determination - 2 - Question 10
The primary purpose of preparing a cost sheet in a manufacturing concern is to determine the selling price of a product. By calculating all the costs associated with production, a company can set an appropriate selling price that covers its costs and allows for a profit margin.
48 videos|51 docs|17 tests
Join Course
Information about Test: Methods of Cost Determination - 2 Page
In this test you can find the Exam questions for Test: Methods of Cost Determination - 2 solved & explained in the simplest way possible. Besides giving Questions and answers for Test: Methods of Cost Determination - 2, EduRev gives you an ample number of Online tests for practice
48 videos|51 docs|17 tests
Join Course
Download as PDF

Important Questions for Methods of Cost Determination - 2

Find all the important questions for Methods of Cost Determination - 2 at EduRev.Get fully prepared for Methods of Cost Determination - 2 with EduRev's comprehensive question bank and test resources. Our platform offers a diverse range of question papers covering various topics within the Methods of Cost Determination - 2 syllabus. Whether you need to review specific subjects or assess your overall readiness, EduRev has you covered. The questions are designed to challenge you and help you gain confidence in tackling the actual exam. Maximize your chances of success by utilizing EduRev's extensive collection of Methods of Cost Determination - 2 resources.

Methods of Cost Determination - 2 MCQs with Answers

Prepare for the Methods of Cost Determination - 2 within the B Com exam with comprehensive MCQs and answers at EduRev. Our platform offers a wide range of practice papers, question papers, and mock tests to familiarize you with the exam pattern and syllabus. Access the best books, study materials, and notes curated by toppers to enhance your preparation. Stay updated with the exam date and receive expert preparation tips and paper analysis. Visit EduRev's official website today and access a wealth of videos and coaching resources to excel in your exam.

Online Tests for Methods of Cost Determination - 2 Cost Management

Practice with a wide array of question papers that follow the exam pattern and syllabus. Our platform offers a user-friendly interface, allowing you to track your progress and identify areas for improvement. Access detailed solutions and explanations for each test to enhance your understanding of concepts. With EduRev's Online Tests, you can build confidence, boost your performance, and ace Methods of Cost Determination - 2 with ease. Join thousands of successful students who have benefited from our trusted online resources.
© EduRev
Education Revolution
Follow Us
Signup to see your scores go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup