Marginal costing and costing methods

Question 1 of 10

Under marginal costing, closing inventory is valued at

A. variable production cost B. full cost C. selling price D. fixed cost only

Question 2 of 10

In process costing, normal loss is

A. expected loss absorbed by good output B. charged to the income statement as abnormal C. always zero D. added to profit

Question 3 of 10

Sales 5,000 units at GH¢20; variable cost GH¢12/unit; fixed costs GH¢25,000. Profit is

A. GH¢15,000 B. GH¢40,000 C. GH¢75,000 D. GH¢25,000

Question 4 of 10

The contribution/sales ratio for price GH¢50 and variable cost GH¢30 is

A. 40% B. 60% C. 20% D. 30%

Question 5 of 10

Process costing is used where

A. production is continuous and identical B. each job is unique C. services are rendered once D. contracts are long

Question 6 of 10

Fixed costs GH¢30,000; contribution per unit GH¢6; target profit GH¢12,000. Units required are

A. 7,000 B. 5,000 C. 2,000 D. 42,000

Question 7 of 10

Contribution is

A. profit plus tax B. sales minus fixed costs C. fixed costs minus variable costs D. sales minus variable costs

Question 8 of 10

Process costing is used in industries where

A. production is continuous through stages, such as oil refining B. each job is unique C. only services are sold D. there is no production

Question 9 of 10

In process costing, a loss expected under normal conditions is

A. normal loss B. abnormal loss C. abnormal gain D. scrap value only

Question 10 of 10

A predetermined cost used to measure performance by comparison with actual cost is a

A. sunk cost B. historical cost C. standard cost D. opportunity cost

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New set of questions

Questions written by OtisamLMS in the style of the WASSCE. They are not WAEC past questions.

Past questions, worked solutions and curriculum-mapped study material for JHS and SHS students and teachers in Ghana.

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