5. Statement showing break up of costs is known as
Correct : A. Cost sheet
6. Prime cost may be correctly termed as 24
Correct : A. the total of all cost items which can be directly charged to product units.
7. Which one is included in financial accounts but not in cost accounts?
Correct : B. Dividend paid
8. Which of the following term is excluded from the cost accounts?
Correct : D. All of the above
9. Variable costs are fixed
Correct : C. per unit
10. Costs are classified into fixed costs, variable costs and semi-variable costs, it is known as
Correct : A. Behavioural classification
11. The main purpose of cost accounting is to
Correct : C. provide information for decision making.
12. Process cost is very much applicable in
Correct : B. Pharmaceutical industry
13. All indirect costs are termed as
Correct : D. Overheads
14. CAS-21 is related to
Correct : D. Cost Accounting Standard on Quality Control
15. On the basis of “Relationship with accounting period” costs are classified as
Correct : C. Capital Costs and Revenue Costs.
16. Cost of staff services is an example of
Correct : B. Policy and Managed Costs
17. Which of the following is not a method of costing?
Correct : C. Direct Costing
18. The written down value of the abandoned plant less its salvage value is
Correct : B. Sunk cost
19. The costs are differentiated between fixed and variable costs under
Correct : A. Marginal Costing
20. Which of the following is a suitable cost unit for the BPO Services/Call Centers?
Correct : C. Cost per account handled
21. Interest on own capital is
Correct : B. Notional Cost
22. Advertisement costs are termed as
Correct : C. Selling Overhead
23. Direct Wages 2,05,000 and Factory Cost 5,60,000. If the ratio of direct wages and factory
overhead is 5 : 3 then Direct Material Cost will be
Correct : A. 2,32,000
24. A technique and process of ascertaining costs is known as
Correct : B. Costing
25. The branch of the accounting dealing with the classification, recording, allocation,
summarizing and reporting of current and prospective costs, is known as
Correct : C. Cost Accounting
26. Which of the following is not a function of Cost Accountancy?
Correct : C. Cost Analysis
27. Which of the following ‘CAS’ is related to “Pollution Cost”?
Correct : C. CAS - 14
28. Costs are classified between direct and indirect costs according to method of classification
by
Correct : C. Degree of traceability to product
29. Depreciation on building is an example of
Correct : A. Committed Costs
30. When the volume of output is increased then the per unit fixed cost will be
Correct : B. decrease in the reverse proportion of output
31. Which of the following costing method is suitable for Toy Making Industry?
Correct : B. Process Costing
32. Which of the following is not a technique of costing?
Correct : D. Budgetary Costing
33. Excise duty is an example of
Correct : A. Chargeable expense
34. Over which the following costs, management is likely to have least control?
Correct : C. Machinery Breakdown cost
35. The works cost plus administration expenses represents 27
Correct : B. Cost of Production
36. Opportunity cost is the best example of
Correct : C. Relevant cost
37. Which method of costing is used for determination of costs for printing industry?
Correct : D. Job costing
38. Prime cost plus factory overheads is known as
Correct : D. Factory Cost
39. From the following information, find out purchases when raw material consumed is 26,500;
Closing stock 4,500 and opening stock 3,000.
Correct : C. 28,000
40. Bad debts are included as
Correct : D. Selling overhead
41. When re-ordering level is 200 units, minimum usage is 20 units, minimum lead time is 5 days,
maximum stock is 400 units then re-ordering quantity will be:
Correct : C. 300 units
42. In the situation of increasing prices, the valuation of closing stock is more under:
Correct : C. FIFO
43. Payment of Royalties is
Correct : A. Direct Expenses
44. Which one of the following statement is true?
Correct : D. Primary packing is an item of prime cost.
45. Costing is a technique of
Correct : B. Ascertaining Cost
46. Which of following is appropriate Cost Unit for timber industry?
Correct : D. Per foot
47. Which of the following is a Cost Control Technique?
Correct : C. Standard Costing
48. Cost of free samples and gifts are included in
Correct : D. Selling & Distribution Overheads
49. In behavioural analysis, costs are divided into
Correct : D. Fixed and Variable costs
50. Which of the following is a part of both Prime cost and Conversion cost?
Correct : C. Direct Labour
51. Which of the following is not a Relevant Cost?