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 4 of 17

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Q31.
The process of making long term decisions, for capital investment in the projects is called
Discuss
Answer: (c).capital budgeting
Discuss
Answer: (d).both a and c
Q33.
The capital budgeting method to analyze information of financials include
Discuss
Answer: (d).all of above
Q34.
The payback period is multiplied for constant increase in yearly future cash flows to calculate
Discuss
Answer: (b).net initial investment
Q35.
The rate of return, which is made up of risk free and business risk element is known as
Discuss
Answer: (c).real rate of return
Q36.
The sum of returned working capital and net initial investment is divided by 2 to calculate
Discuss
Answer: (b).average investment over five years
Q37.
The project's expected monetary loss or gain by discounting all cash outflows and inflows, using required rate of return is classified as
Discuss
Answer: (a).net present value
Q38.
The rate of required return to cover the risk of investment, in absence of inflation is classified as
Discuss
Answer: (a).real rate of return
Q39.
Annual earned income is divided from a project by capital invested to calculate
Discuss
Answer: (a).accrual accounting rate of return
Q40.
The horizontally across dimension of cost analysis is also called
Discuss
Answer: (a).project dimension