Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Cost Accounting Total Number of Question: 40 Time: 41 Minutes Please check your email after completion of test for result. All the best... Name Phone No Email Area Pin Code 1. The costing method best suited for assembly-line production is: Process costing Job costing Batch costing Operating costing None 2. What does the term "idle capacity" mean in cost accounting? Unused production capacity Excess inventory Full utilization of resources Maximum output achieved None 3. Which of the following is not considered a direct expense? Direct material cost Direct labor cost Power consumption for production Salaries of office staff None 4. The primary objective of cost audit is: Detecting fraud Verifying financial accounts Improving cost efficiency Preparing budgets None 5. In marginal costing, fixed costs are treated as: Product costs Period costs Incremental costs Avoidable costs None 6. The treatment of scrap value in process costing is: Deducted from total costs Added to profits Considered as a fixed cost Ignored in costing None 7. Which of the following is not a method of costing? Job costing Process costing Marginal costing Fixed costing None 8. A cost center is: A unit within a business for which costs can be allocated The primary production unit A revenue-generating unit The main administrative office None 9. Normal loss in a production process is considered as: Cost of production An abnormal loss A credit to process account A credit to Profit & Loss account None 10. Which variance measures the effect of actual production on overheads? Overhead expenditure variance Overhead efficiency variance Overhead volume variance Material variance None 11. In job costing, costs are accumulated: By department By product line By individual job By time period None 12. Marginal costing assumes that: Fixed costs remain constant Variable costs vary per unit Selling price remains constant All of the above None 13. What is the term for splitting overhead costs among multiple cost centers? Absorption Apportionment Allocation Reconciliation None 14. In a flexible budget, variable costs: Stay constant per unit Increase with production Decrease with production Remain fixed None 15. What is the meaning of "margin of safety"? Profit divided by sales Sales above break-even point Contribution divided by profit Break-even sales minus fixed costs None 16. Which of the following costs is irrelevant for pricing decisions? Sunk cost Variable cost Opportunity cost Incremental cost None 17. Which cost accounting tool helps allocate costs to activities? Process costing Job costing Activity-based costing Marginal costing None 18. What is the break-even point in terms of profit? Maximum profit Zero profit Minimum profit Fixed profit None 19. The cost sheet provides details about: Selling price only Total costs incurred Profitability ratio Tax liabilities None 20. A company with fluctuating production levels should prepare: Fixed budget Master budget Flexible budget Zero-based budget None 21. Which cost is considered in make-or-buy decisions? Sunk cost Opportunity cost Historical cost Notional cost None 22. Conversion cost includes: Direct materials and direct wages Direct wages and factory overheads Direct materials and factory overheads All direct and indirect costs None 23. Overhead recovery rate is usually expressed as: Percentage of labor cost Percentage of material cost Percentage of prime cost Any of the above, depending on the basis chosen None 24. In absorption costing, fixed overheads are: Excluded from product cost Allocated to production Charged to Profit & Loss account Treated as sunk costs None 25. In process costing, by-products are: Ignored in costing Allocated a portion of joint costs Treated as abnormal gains Credited to process account None 26. The budget prepared first in a budgeting process is: Master budget Cash budget Sales budget Production budget None 27. Which of the following is a limitation of absorption costing? Ignores fixed costs Ignores variable costs Fails to analyze contribution margin Treats fixed costs as period costs None 28. Uniform costing is a system of: Cost reduction Cost comparison among firms Profit maximization Standard costing None 29. Which costing system is used for public utility services? Job costing Process costing Operating costing Marginal costing None 30. In marginal costing, inventory valuation includes: Fixed costs only Variable costs only Total costs Direct costs only None 31. Which of the following methods is used to allocate service department costs? Direct method Step-ladder method Reciprocal method All of the above None 32. A pre-determined cost, based on technical estimates, is called: Historical cost Standard cost Marginal cost Variable cost None 33. A variance that arises due to difference in budgeted and actual hours worked is: Efficiency variance Capacity variance Volume variance Spending variance None 34. What type of costing is appropriate for the cement industry? Job costing Process costing Batch costing Contract costing None 35. The cost incurred in transportation of raw materials is treated as: Direct material cost Direct labor cost Factory overhead Indirect cost None 36. Over-absorption of overheads occurs when: Overheads charged are more than actual Fixed costs decrease Overheads charged are less than actual Prime costs increase None 37. Imputed costs are generally: Avoidable costs Historical costs Opportunity costs Marginal costs None 38. A cost that can be avoided by discontinuing an activity is: Fixed cost Sunk cost Relevant cost Avoidable cost None 39. Under job costing, each job is assigned a: Standard cost Separate account Marginal cost Contribution margin None 40. When sales revenue equals total costs, it is referred to as: Profit margin Break-even point Contribution margin Marginal cost None 1 out of 4 Great job on taking the INCOC Test! We appreciate your interest in test. Look out for results and future opportunities. Stay Connected !! Your quiz time is about to finish. Few seconds left. Time's upYou cannot switch tabs while taking this quiz!You are not allowed to switch tabs violation has been recorded.you cannot minimize full screen mode!You are not allowed to minimize full screen while taking this quiz, violation has been recorded.Access denied! To begin the quiz, please grant this quiz access to your camera.Time is Up!Time is Up!
