Costing Methods MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Costing Methods, a fundamental topic in the field of Cost Accounting. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Costing Methods MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Costing Methods mcq questions that explore various aspects of Costing Methods problems. Each MCQ is crafted to challenge your understanding of Costing Methods principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace Cost Accounting tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Costing Methods MCQs are your pathway to success in mastering this essential Cost Accounting topic.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of Costing Methods. You can click on an option to test your knowledge before viewing the solution for a MCQ. Happy learning!

So, are you ready to put your Costing Methods knowledge to the test? Let's get started with our carefully curated MCQs!

Costing Methods MCQs | Page 3 of 17

Answer: (d).all of above
If the net initial investment is $6850000 and the uniform increases yearly cash flows is $2050000, then payback period will be
Answer: (a).3.34 years
The net initial investment is divided by uniform increasing in future cash flows to calculate
Answer: (c).payback period
If the nominal rate is 26% and the inflation rate is 12%, then the real rate can be
Answer: (c).12.50%
A concept which explains a received money in present time, is more valuable than money received in future is called
Answer: (c).time value of money
If the payback period is 4 years and the uniform increases in cash flows per year is $2750000, then the net initial investment can be
Answer: (d).$11,000,000
If the real rate is 16% and an inflation rate is 8%, then the nominal rate of return will be
Answer: (b).25.28%
The method, which calculates the time to recoup initial investment of project in form of expected cash flows is known as
Answer: (b).payback method
The vertically upward dimension of cost analysis is also called
Answer: (b).accounting-period dimension
The rate of return to cover a risk of investment and decrease in purchasing power, as a result of inflation is known as
Answer: (a).nominal rate of return
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