MCQ for CA Intermediate COSTING - Chapter 14 - MARGINAL COSTING

Sample Multiple Choice Questions (MCQ's) for CA Intermediate - Paper 1 - COST AND MANAGEMENT ACCOUNTING Chapter 14: MARGINAL COSTING - For Practice relevant for May/November 23 Examinations

 

Q1. Under marginal costing the cost of product includes: 

  1. Prime costs only.
  2. Prime costs and variable overheads.
  3. Prime costs and fixed overheads.
  4. Prime costs and factory overheads. 

Answer: 2

Q2. Reporting under marginal costing is accomplished by:

  1. Treating all costs as period costs. 
  2. Eliminating the work-in-progress inventory account. 
  3. Matching variable costs against revenue and treating fixed costs as period costs. 
  4. Including only variable costs in income statement.

Answer: 3

Q3. Period costs are:  

  1. Variable costs.
  2. Fixed costs.
  3. Prime costs.
  4. Overheads costs.

Answer: 2

Q4. When sales and production (in units) are same then profit under:

  1. Marginal costing is higher than that of absorption costing.
  2. Marginal costing is lower than that of absorption costing.
  3. Marginal costing is equal to that of absorption costing.
  4. None of the above. 

Answer: 3

Q5. When sales exceed production (in units) then profit under:

  1. Marginal costing is higher than that of absorption costing.
  2. Marginal costing is lower than that of absorption costing. 
  3. Marginal costing is higher than that of absorption costing.
  4. Marginal costing is lower than that of absorption costing. 

Answer: 1

Q6. If P/V ratio is 40% of sales then what about the remaining 60% of sales: 

  1. Profit.
  2. Fixed cost.
  3. Variable cost.
  4. Margin of safety. 

Answer: 3

Q7. The P/V ratio of a product is 0.6 and profit is ₹ 9,000. The margin of safety is: 

  1. ₹ 5,400
  2. ₹ 15,000
  3. ₹ 22,500
  4. ₹ 3,600

Answer: 2

 

CA Intermediate COSTING - MCQ for Chapter 15 -   

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