(A) Contribution approach
(B) Absorption costing approach
(C) Decision making approach
(D) Marginal costing approach
Category: Accounting Mcqs
Users will find here Accounting Mcqs for NTS, CSS, PMS, PPSC, FPSC, KPPSC, AJKPSC, BPSC, PTS, SPSC, Lecturer Commerce and all other types of Commerce related, Competitive Exams and Interviews. Commerce students can prepare their Accounting Portion for all test from here.
Which of the following is not true about differential costs?
(A) It is a broader concept than variable cost as it takes into account additional fixed costs caused by management decisions
(B) With the passage of time and change in situation, differential costs will vary
(C) The difference in cost between buying them from outside or make them in the company is differential cost, irrelevant for decisions
(D) They are extra or incremental costs caused by a particular decision
Which of the following is a process by which managers analyze options available to set courses of action by the organization?
(A) Heuristics method
(B) Decision making
(C) The Delphi technique
(D) Systematic error
Which of the following is NOT true? A small company’s breakeven point?
(A) Occurs where its revenue equals its expenses
(B) Shows entrepreneurs‘ minimum level of activity required to keep the company in operation
(C) Is the point at which a company neither earns a profit nor incurs a loss
(D) Total contribution margin equals total variable expenses
When closing stock is over valuate, what would its effect on profit?
(A) Cannot determined with given statement
(B) It will Increase the profit
(C) It will decrease the profit
(D) No effect on profit
EOQ is a point where?
(A) Ordering cost is equal to carrying cost
(B) Ordering cost is higher than carrying cost
(C) Ordering cost is lesser than the carrying cost
(D) Total cost is maximum
Average consumption x Emergency time is a formula for the calculation of?
(A) Lead time
(B) Re-order level
(C) Maximum consumption
(D) Danger level
The salary of factory clerk is treated as?
(A) Direct labor cost
(B) Indirect labor cost
(C) Conversion cost
(D) Prime cost