All Courses
Get the App Signup / Login
Sign in Open App
B Com Exam  >  B Com Tests  >  Test: Standard Costing - 1 - B Com MCQ

Test: Standard Costing - 1 - B Com MCQ


Test Description

10 Questions MCQ Test - Test: Standard Costing - 1

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

What is the primary purpose of setting up cost centers in a standard cost system?

Detailed Solution for Test: Standard Costing - 1 - Question 1
Setting up cost centers in a standard cost system serves the primary purpose of identifying responsibilities for cost control. Cost centers are specific locations, individuals, or equipment where costs can be ascertained and used for the purpose of cost control. By establishing clear cost centers, an organization can assign responsibility for cost management to specific individuals or departments, making it easier to monitor and control costs.
Test: Standard Costing - 1 - Question 2
Save

Which type of standard is established for use over a limited period and is based on expected performance with reasonable allowances for losses?

Detailed Solution for Test: Standard Costing - 1 - Question 2
The type of standard that is established for use over a limited period and is based on expected performance with reasonable allowances for losses is known as "Current standards." Current standards are practical and attainable standards that consider expected performance under current conditions, making them suitable for cost control.
1 Crore+ students have signed up on EduRev. Have you? Download the App
Test: Standard Costing - 1 - Question 3
Save

What is the main objective of instituting a control mechanism on all elements of costs in standard costing?

Detailed Solution for Test: Standard Costing - 1 - Question 3
The main objective of instituting a control mechanism on all elements of costs in standard costing is to achieve cost reduction and control. Standard costing helps organizations monitor and control costs effectively, leading to improved cost efficiency and ultimately reducing overall costs.
Test: Standard Costing - 1 - Question 4
Save
Why is standard costing considered an economical system for businesses?
Detailed Solution for Test: Standard Costing - 1 - Question 4
Standard costing is considered an economical system for businesses because it reduces the need for detailed records and minimizes paperwork. Unlike some other cost accounting methods that require extensive record-keeping, standard costing relies on predetermined standards for various cost elements, streamlining the accounting process and saving both time and money.
Test: Standard Costing - 1 - Question 5
Save
What type of standard is based on the average performance in the past and aims to eliminate variations in costs due to trade cycles?
Detailed Solution for Test: Standard Costing - 1 - Question 5
The type of standard that is based on the average performance in the past and aims to eliminate variations in costs due to trade cycles is known as "Normal standards." Normal standards provide a challenge to staff and help maintain consistency in cost management.
Test: Standard Costing - 1 - Question 6
Save
How does standard costing contribute to inventory control?
Detailed Solution for Test: Standard Costing - 1 - Question 6
Standard costing contributes to inventory control by ensuring uniform pricing of stocks. When standard costs are applied to materials, work-in-progress, and finished goods, it simplifies the valuation of inventory. This consistency in pricing helps organizations maintain better control over their inventory levels and costs.
Test: Standard Costing - 1 - Question 7
Save
What is the primary purpose of setting standards for labor in a standard cost system?
Detailed Solution for Test: Standard Costing - 1 - Question 7
The primary purpose of setting standards for labor in a standard cost system is to determine standard hours for different tasks. By establishing standard hours for each task, organizations can measure actual labor performance against these standards, helping to identify areas for improvement and cost control.
Test: Standard Costing - 1 - Question 8
Save
Why is setting standards for material prices considered a challenging task?
Detailed Solution for Test: Standard Costing - 1 - Question 8
Setting standards for material prices is considered a challenging task because material prices are influenced by external factors that are often beyond the control of a company's management. These external factors, such as market conditions and supply and demand, can lead to fluctuations in material prices, making it difficult to establish precise standard prices.
Test: Standard Costing - 1 - Question 9
Save
What is the purpose of basic standards in a standard cost system?
Detailed Solution for Test: Standard Costing - 1 - Question 9
The purpose of basic standards in a standard cost system is to provide a basis for calculating variances. Basic standards act as a reference point against which actual performance is compared, allowing organizations to identify and analyze variations in costs and efficiency.
Test: Standard Costing - 1 - Question 10
Save
How does standard costing promote cost-consciousness among employees?
Detailed Solution for Test: Standard Costing - 1 - Question 10
Standard costing promotes cost-consciousness among employees by providing incentives and motivation for better efficiency. When employees are aware that their performance is being measured against established standards, they are more likely to work with greater effort to meet or exceed those standards. This increased effort leads to improved efficiency and productivity.
Information about Test: Standard Costing - 1 Page
In this test you can find the Exam questions for Test: Standard Costing - 1 solved & explained in the simplest way possible. Besides giving Questions and answers for Test: Standard Costing - 1, EduRev gives you an ample number of Online tests for practice
Download as PDF

Important Questions for Standard Costing - 1

Find all the important questions for Standard Costing - 1 at EduRev.Get fully prepared for Standard Costing - 1 with EduRev's comprehensive question bank and test resources. Our platform offers a diverse range of question papers covering various topics within the Standard Costing - 1 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 Standard Costing - 1 resources.

Standard Costing - 1 MCQs with Answers

Prepare for the Standard Costing - 1 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 Standard Costing - 1

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 Standard Costing - 1 with ease. Join thousands of successful students who have benefited from our trusted online resources.
© EduRev
Education Revolution
Signup to see your scores go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup