1. …………………..does not deal with the accumulation, classification, analysis, allocation,
summarization, interpretation, reporting and control of current and perspective costs.
Correct : B. Financial Accounting
2. The amount of expenditure incurred on, or attributable to, a specified thing or an activity or
cost unit is known as
Correct : B. Cost
3. The aggregate amount of all the items of expenses paid or payable for the particular product
or service is called as
Correct : C. Total Cost
4. …………..cost represents the increase or decrease in total cost which occurs with change in
output.
Correct : B. Marginal cost
5. The expenses which can be directly charged to jobs, products, processes, cost centers or cost
units is termed as
Correct : A. Direct Cost
6. The Technique and ………….of ascertaining the cost is known as Costing.
Correct : C. Process
7. ………….is applied where production is carried out as per specific order and customer
specifications.
Correct : B. Job costing
8. Marginal costing is also known as ………………….. costing
Correct : A. Variable
9. …………..is the system of costing under which costs are determined after they
have been incurred.
Correct : B. Historical costing
10. The branch of accounting dealing with the classification, recording, allocation,
summarization and reporting of current and prospective costs is known as
Correct : C. Cost Accounting
11. The term…………………. is comprehensively used to include various aspects such as
costing, cost accounting, cost control, cost audit and budgetary control.
Correct : A. Cost Accountancy
12. ……………….is concerned with ascertainment of cost.
Correct : B. Costing
13. ……………… is concerned with accounting and recording of costs.
Correct : C. Cost Accounting
14. ………………………..is concerned with formulation and / or application of principles, methods
and techniques of costing.
Correct : A. Cost Accountancy
15. The evolution of cost accounting took place because of…………………….of financial
accounting.
Correct : B. Limitations
16. …………………helps the management to eliminate inefficiencies caused by material
wastage, use of obsolete machinery, improper planning etc.
Correct : B. Cost Accounting
17. ……………….covers accounts of whole business relating to all commercial transactions.
Correct : B. Financial Accounting
18. A unit of quantity of product, service or time, in relation to which cost may be ascertained
or expressed is known as .
Correct : C. Cost Unit
19. A location, person or item of equipment for which costs may be ascertained and used for
the purposes of cost control is known as .
Correct : A. Cost Centre
20. The cost unit for the Gas Industry is…………….
Correct : C. Cubic Meter
21. Costing is a technique of……….
Correct : A. Inventory control
22. Cost accounting has been developed because of………………financial accounting.
Correct : B. Expenditure
23. Cost accountancy is the science, art and of cost accountant.
Correct : D. Practice
24. In automobile industry cost unit is…………
Correct : B. Automobile quality
25. Cost unit in a college may be…………
Correct : C. Student
26. costing is suitable for mines, quarries, cement works etc.
Correct : D. Operation
27. …………is an extension of job costing.
Correct : B. Batch costing
28. When job is very big and spread over long periods of time the method of costing adopted
is……
Correct : C. Contract
29. Continuous costing is also called
Correct : B. Process costing
30. The methods of job evaluation include:
Correct : D. All of the above
31. Cost accounting is based on……………..figures.
Correct : B. Estimated
32. costing is used in transport undertaking.
Correct : D. Service
33. In………………costing the cost of a group of products is ascertained.
Correct : C. Batch
34. The total of all direct expenses is known as ………
Correct : C. Prime cost
35. An opportunity cost is a………..
Correct : A. Direct expense
36. The term………… is the one which is identifiable as belonging exclusively to a particular
process, product, and unit.
Correct : A. Direct Cost
37. Every……………of cost is divided into direct cost and indirect cost.
Correct : B. Element
38. Direct …………….are those which can be identified in the product and can be measured.
Correct : C. Material
39. The cost of direct material is termed as…………..
Correct : B. Direct material cost
40. All workers who are directly engaged in manufacturing activity are known as
……………labour.
Correct : A. Direct
41. Wages paid to direct workers are known as ………….
Correct : A. Direct labour cost
42. Wages paid to direct labour are also known as………………wages.
Correct : A. Productive
43. Wages paid to carpenter is the example of direct…………...
Correct : C. Labour
44. Cost of leather used in shoe making is the example of direct………….
Correct : C. Material
45. The ………………include all types of expenses other than direct materials and direct labour
which are incurred for a particular product or job.
Correct : B. Direct expenses
46. Direct expenses are also known as ……………..expenses.
Correct : C. Chargeable
47. The expenses which can be identified with and allocated to cost centers and cost units are
termed as……………..
Correct : C. Direct expenses
48. Fees paid to Architect is the example of…………...
Correct : B. Direct expenses
49. The total of direct material, direct labour and direct expenses is known as………..
Correct : B. Prime Cost
50. Direct…………..enter the product and form a part of finished product.
Correct : C. Materials
51. Material, Labour and Expenses are the three important…………. of cost.
Correct : B. Elements
52. ……………..cost is the cost of commodities supplied to an undertaking.
Correct : B. Labour
53. Direct Labour Cost is also known as…………
Correct : C. Direct Wages
54. The expenses which cannot be directly identified with a particular unit or cost centre is
known as …………………...
Correct : C. Indirect expenses
55. ……………………..expenses are also called as chargeable expenses.
Correct : C. Direct
56. The aggregate of indirect material, indirect labour and indirect expenses in termed
as…………….
Correct : B. Overheads
57. The overhead cost incurred from the stage of procurement of raw material till the stage of
production of finished goods is known as…… .
Correct : B. Factory overheads
58. Office overheads are also known as …………….overheads.
Correct : C. Administrative
59. The cost of activities relating to create and stimulate demand for company’s products and to
secure orders is known as……….overheads.
Correct : C. Selling and Distribution
60. Non-cost items are those which are …………….. from the cost.
Correct : A. Excluded
61. Classification of cost into factory cost, administrative cost, selling & distribution cost and
research and development cost is done on the basis of…………...
Correct : B. Functions
62. The cost that remains unchanged in spite of change in volume of production is known
as………….
Correct : A. Fixed cost
63. ……………….cost is partly variable and partly fixed.
Correct : B. Semi-variable cost
64. ………………is a statement showing cost of production of a particular product.
Correct : C. Cost sheet
65. The total of works cost and administrative overheads is known as …
Correct : B. Cost of Production
66. …………………is the total of prime cost and factory overheads.
Correct : B. Works cost
67. Consumables are treated as……………overheads in cost sheet.
Correct : A. Factory
68. If the total cost of a product is Rs.25, 000/- and the sales figure is 47,000/-, then the product
is in…………by Rs.22, 000/-.
Correct : B. Profit
69. In cost sheet the expenses on discount allowed are considered under………………overheads.
Correct : C. Selling and Distribution
70. ………………cost is predetermined cost for each element of cost.
Correct : C. Standard
71. Which of the following is not used as a base for apportionment of administration
overheads?
Correct : A. Direct wages
72. In account ting for labour cost:
Correct : C. Direct labour cost is charged to prime cost and indirect labour cost is charged to overheads
73. Depreciation is a ………….. Expense
Correct : A. Fixed
74. ………………….. Cost per unit does not change with change in activity level
Correct : B. Variable
75. Telephone expense is a …………………. Expense
Correct : C. Semi – variable
76. Cost accounting is the art, science and …………… cost of accountant
Correct : A. Profession
77. ………………. May be a location, a person, or an item of equipment or group of there
Correct : B. Cost unit
78. …………………. Is defined on the guidance and regulation by executive action of cost operating
and under taking
Correct : A. Cost reduction
79. ………. is the cost incurred in the part has no effect on future decision making
Correct : A. Sunk cost
80. Machine hour rate in the cost of running a machine
Correct : B. Per day
81. Direct expense are also called ……………………. Expenses.
Correct : B. Chargeable
82. Cost of production is also called ………………..if there is no selling and distribution expense
Correct : B. Office cost
83. If cost of sales exceeds sales it will be
Correct : B. Loss
84. Statement prepared to show the different elements of cost
Correct : B. Cost sheet
85. Variable cost increases
Correct : B. As the production goes up
86. On the basis of ……………… cost can be classified into fixed and variable.
Correct : A. Behavior
87. Direct expense are also called ……………… expenses
Correct : B. Chargeable
88. Operating costing is applicable to
Correct : A. Transport
89. Rent on own building is a ………………..
Correct : B. Imputed cost
90. When material prices fluctuate widely the method of pricing that gives a best result in
Correct : B. Weighted average
91. ……….. is the first and most important element of cost.
Correct : C. Material
92. The term………..refers to all commodities that are consumed in the process of production,
assembly and fabricated parts
Correct : B. Material
93. The term……………..is defined as a system that ensures the provision of the required quantity
of material of the required quality at the required time with the minimum amount of capital.
Correct : A. Material Control
94. ………………..purchase procedure should be installed to ensure that the purchases are made
at favourable prices.
Correct : B. Standard
95. The term …………….may be defined as the systematic control over the procurement of
materials.
Correct : B. Purchase control
96. The organisation of the purchase department depends on the…………..of the organisation
and its likely quantum of purchase.
Correct : A. Size
97. ……………………is the head of the purchase department.
Correct : B. Purchase Manager
98. Purchase…………..is to be prepared to know what to buy, what should be the quantity,
quality and price.
Correct : C. budget
99. One of the objective of …………….is to avoid under and overstocking of material.
Correct : A. Scientific Purchasing
100. The…………….must maintain a proper classified record of all purchases, uses and stock of
materials.