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100+ Free WBCHSE Costing & Taxation Practice Questions

Prepare for the West Bengal Council of Higher Secondary Education Higher Secondary Costing and Taxation exam with instant access — no signup required.

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Key Facts: WBCHSE Costing & Taxation Exam

CSTX

Official WBCHSE subject code

https://wbchse.wb.gov.in/subjects/

30%

Minimum pass in theory and practical/project independently

https://wbchse.wb.gov.in/frequently-asked-questions-examination

INR 215

Class XII semester enrolment total (INR 190 to Council)

WBCHSE Memo L/PR/305/2025

bn+en

Non-language elective paper media (Bengali and English)

WBCHSE examination regulations

Sem I–IV

Higher Secondary semester system across Classes XI–XII

https://wbchse.wb.gov.in/annual-working-plan

Essential for WBCHSE commerce students, this exam evaluates knowledge of cost accounting methods, income tax computation, and foundational GST principles. English-language MCQ study adaptation for WBCHSE HS—not an official board paper.

Sample WBCHSE Costing & Taxation Practice Questions

Try these sample questions to test your WBCHSE Costing & Taxation exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which formula is used to calculate Economic Order Quantity (EOQ)?
A.√(2 × Annual Consumption × Ordering Cost / Carrying Cost per unit per annum)
B.√(2 × Reorder Level × Carrying Cost / Ordering Cost)
C.√(Annual Consumption × Ordering Cost × Carrying Cost)
D.(2 × Annual Consumption × Ordering Cost) / Carrying Cost
Explanation: Economic Order Quantity (EOQ) minimizes the total ordering and holding costs. The standard formula derived under Wilson's model is √[(2 × A × O) / C], where A is annual consumption, O is ordering cost per order, and C is annual inventory carrying cost per unit.
2A firm consumes 10,000 units of raw material annually. The ordering cost is ₹50 per order and the carrying cost is ₹1 per unit per annum. What is the Economic Order Quantity (EOQ)?
A.1,000 units
B.500 units
C.2,000 units
D.100 units
Explanation: Using EOQ = √[(2 × A × O) / C], substitute A = 10,000, O = 50, and C = 1. EOQ = √[(2 × 10,000 × 50) / 1] = √[1,000,000] = 1,000 units.
3What is the primary objective of inventory control in cost accounting?
A.To maintain optimum inventory levels so that production is uninterrupted while minimizing carrying and ordering costs
B.To store maximum possible raw materials to guard against any future price increases regardless of holding cost
C.To completely eliminate storage space and bin card record-keeping in the factory
D.To purchase materials only when stocks reach absolute zero to avoid storage costs
Explanation: Inventory control ensures adequate supply of raw materials for continuous production without excessive capital lock-up or high holding and ordering costs.
4If maximum consumption is 300 units/day and maximum reorder period is 15 days, what is the Reorder Level (ROL)?
A.4,500 units
B.3,000 units
C.2,000 units
D.1,500 units
Explanation: Reorder Level is calculated as Maximum Consumption × Maximum Reorder Period. Here, 300 units/day × 15 days = 4,500 units.
5The Reorder Level is 4,500 units, normal consumption is 200 units/day, and normal reorder period is 10 days. What is the Minimum Stock Level?
A.2,500 units
B.2,000 units
C.4,500 units
D.6,500 units
Explanation: Minimum Stock Level = Reorder Level - (Normal Consumption × Normal Reorder Period). Substituting values: 4,500 - (200 × 10) = 4,500 - 2,000 = 2,500 units.
6Reorder Level is 4,500 units, Reorder Quantity (ROQ) is 3,000 units, minimum consumption is 100 units/day, and minimum reorder period is 5 days. What is the Maximum Stock Level?
A.7,000 units
B.7,500 units
C.500 units
D.6,500 units
Explanation: Maximum Stock Level = Reorder Level + Reorder Quantity - (Minimum Consumption × Minimum Reorder Period). Calculation: 4,500 + 3,000 - (100 × 5) = 7,500 - 500 = 7,000 units.
7Under inflationary conditions (rising prices), which material pricing method reports higher closing inventory valuation?
A.First-In, First-Out (FIFO)
B.Last-In, First-Out (LIFO)
C.Simple Average Method
D.Weighted Average Method
Explanation: Under FIFO, older cheaper materials are issued first to production, leaving recent higher-priced materials in closing stock, resulting in a higher valuation of closing inventory.
8Which document is maintained by the storekeeper in the warehouse solely to record quantitative details of material receipts, issues, and balances?
A.Bin Card
B.Stores Ledger
C.Purchase Requisition
D.Material Issue Note
Explanation: A Bin Card is attached to each bin or rack in the storehouse and maintained by the storekeeper to record physical quantities of items received, issued, and on hand.
9How is normal spoilage in material handling treated in cost accounting?
A.Absorbed into production cost by increasing the unit cost of good units produced
B.Debited directly to the Costing Profit and Loss Account as an abnormal loss
C.Charged entirely to the storekeeper's personal account
D.Ignored completely in cost records and financial books
Explanation: Normal spoilage is unavoidable and inherent to manufacturing process; its net cost is absorbed by good units, raising their cost per unit.
10Three lots of materials were purchased: 100 units @ ₹10, 200 units @ ₹12, and 300 units @ ₹15. Under the Weighted Average Method, what is the issue price per unit?
A.₹13.17
B.₹12.33
C.₹12.00
D.₹15.00
Explanation: Total Cost = (100 × 10) + (200 × 12) + (300 × 15) = 1,000 + 2,400 + 4,500 = ₹7,900. Total Units = 600. Weighted Average Price = 7,900 / 600 = ₹13.1667 ≈ ₹13.17.

About the WBCHSE Costing & Taxation Exam

The WBCHSE Costing and Taxation exam covers the fundamental principles of cost accounting, including material and labor costing, as well as the essentials of the Income Tax Act 1961 and GST. It is a critical subject for commerce students pursuing further studies in accounting and finance. This OpenExamPrep bank is an English-language four-option MCQ study aid for WBCHSE Higher Secondary; it does not replace official Bengali/English board papers, descriptive answers, or required practical/project/performance evidence.

Assessment

WBCHSE Higher Secondary subject CSTX: Semesters I–IV across Classes XI–XII; theory examinations plus practical/project/performance where the syllabus requires them.

Time Limit

As per semester notification (typically 2–3 hours for theory sittings)

Passing Score

30% minimum in theory and in practical/project independently (WBCHSE examination FAQ)

Exam Fee

Semester enrolment fee structure (Council): Sem III/IV student total INR 215 (155 enrolment + 30 processing + 30 convenience), with INR 190 to Council and INR 25 centre grant; supplementary often INR 50/paper. Separately, the public Fees page lists Class XII examination fees (within schedule) about INR 205 lab / INR 195 non-lab / INR 135 special. Confirm the applicable circular for the sitting. (West Bengal Council of Higher Secondary Education (WBCHSE))

WBCHSE Costing & Taxation Exam Content Outline

core

Section 1: Core Concepts

Topics include Economic Order Quantity (EOQ), re-order level, minimum and maximum stock levels, danger level, and methods of pricing material issues (FIFO, LIFO, Simple Average, Weighted Average).

core

Section 2: Core Concepts

Covers time-keeping and time-booking, methods of remuneration (Time Rate, Piece Rate), and premium bonus plans such as Halsey and Rowan.

core

Section 3: Core Concepts

Includes fundamental concepts of the Income Tax Act 1961, determination of residential status of individuals, and incidence of tax.

core

Section 4: Core Concepts

Detailed study of Income from Salaries, Income from House Property, and basics of other heads, along with deductions under section 80C to 80U.

core

Section 5: Core Concepts

Basic concepts of GST, its need, dual GST model, CGST, SGST, IGST, and basic definitions.

How to Pass the WBCHSE Costing & Taxation Exam

What You Need to Know

  • Passing score: 30% minimum in theory and in practical/project independently (WBCHSE examination FAQ)
  • Assessment: WBCHSE Higher Secondary subject CSTX: Semesters I–IV across Classes XI–XII; theory examinations plus practical/project/performance where the syllabus requires them.
  • Time limit: As per semester notification (typically 2–3 hours for theory sittings)
  • Exam fee: Semester enrolment fee structure (Council): Sem III/IV student total INR 215 (155 enrolment + 30 processing + 30 convenience), with INR 190 to Council and INR 25 centre grant; supplementary often INR 50/paper. Separately, the public Fees page lists Class XII examination fees (within schedule) about INR 205 lab / INR 195 non-lab / INR 135 special. Confirm the applicable circular for the sitting.

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

WBCHSE Costing & Taxation Study Tips from Top Performers

1Master the formats for calculating Income from Salaries and House Property.
2Practice numerical problems on EOQ and stock levels daily.
3Understand the formulas and logic behind the Halsey and Rowan premium plans.
4Keep track of the basic limits and standard deductions applicable for the current assessment year as per the syllabus.
5Prepare short notes for theory questions in GST and basic cost concepts.

Frequently Asked Questions

What is the passing criteria for WBCHSE Costing and Taxation?

Students must secure at least 30% in theory and in practical/project independently for the mandatory best-of-five subjects (two languages and three electives), per the Council examination FAQ.

Are there numerical questions in the exam?

Yes, significant portions of the exam involve numerical problems from EOQ, stock levels, labor remuneration, and income tax computation.

Which premium bonus plans are most important for labour costing?

The Halsey Premium Plan and the Rowan Premium Plan are highly important and frequently tested.

Does the taxation part include corporate tax?

No, the syllabus primarily focuses on taxation for individuals, particularly Income from Salaries and House Property.

Are deductions under Chapter VI-A included?

Yes, basic deductions, especially 80C, 80D, etc., relevant to individuals are included in the syllabus.

What topics are covered under GST?

Only the basics of GST, including its introduction, advantages, CGST, SGST, IGST, and basic definitions, are covered.

Are these MCQs identical to the official WBCHSE CSTX question paper?

No. Official non-language elective papers are set in Bengali and English under the semester system and may include descriptive and practical/project components. These items are an English MCQ study adaptation only.