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. Cost incurred to maintain an asset in working condition is classified as: Capital expenditure Maintenance cost Fixed cost Variable cost None 2. A budget that is continuously updated is called: Zero-based budget Rolling budget Fixed budget Flexible budget None 3. What is the treatment of abnormal gain in process costing? Transferred to the next process Credited to Profit and Loss Account Deducted from total cost Ignored None 4. Variable cost per unit: Changes with the level of activity Remains constant Increases with production Decreases with production None 5. The cost classification that is most useful for decision-making Historical cost Sunk cost Relevant cost Fixed cost None 6. The most suitable costing method for shipbuilding is: Job costing Process costing Batch costing Contract costing None 7. In absorption costing, over-absorption occurs when: Budgeted overheads are higher than actual overheads Actual overheads are higher than budgeted overheads Overhead recovery is more than incurred overheads Costs are under-applied None 8. Which of the following is a characteristic of by-products? Main product with low value Joint product with equal importance Product of negligible value All of the above None 9. Labor turnover is a measure of: Employee efficiency The rate of employee replacement Total labor cost Productivity None 10. Overhead absorption is calculated using: Direct costs only A predetermined rate Actual overheads None of the above None 11. Opportunity cost is most relevant for: Financial reporting Decision-making Historical analysis Periodic budgeting None 12. A flexible budget adjusts for: Inflation Changes in production levels Fixed costs Variable costs only None 13. Prime cost is the sum of: Direct material and direct expenses Direct material and direct labor Direct labor, material, and expenses Direct and indirect costs None 14. Contribution is calculated as: Sales - Variable Cost Sales - Fixed Cost Fixed Cost - Variable Cost Sales - Total Cost None 15. What type of variance arises due to the difference in the rate of direct labor? Efficiency variance Rate variance Volume variance Mix variance None 16. The term "equivalent units" is used in: Job costing Process costing Contract costing Marginal costing None 17. In marginal costing, break-even sales volume is calculated as: Fixed cost ÷ Contribution per unit Fixed cost ÷ Variable cost Total cost ÷ Contribution per unit Contribution ÷ Sales None 18. The process of spreading overhead costs among departments is: Absorption Allocation Apportionment Classification None 19. A system that aims to eliminate non-value-adding activities is: Target costing Lean costing Activity-based costing Marginal costing None 20. Sunk costs are: Relevant for decision-making Irrelevant for decision-making Costs incurred in the future Always variable costs None 21. In batch costing, cost per unit is calculated by dividing: Total batch cost by number of units in the batch Fixed cost by total batch cost Variable cost by number of batches Contribution by number of units in the batch None 22. Which of the following is considered a non-monetary cost? Opportunity cost Fixed cost Variable cost Conversion cost None 23. The purpose of reconciliation of cost and financial accounts is to: Determine profit Match cost and financial results Identify non-operating expenses Allocate direct costs None 24. The key objective of cost control is: Minimize variable costs Minimize fixed costs Reduce overall costs Eliminate irrelevant costs None 25. If selling price increases, the margin of safety will: Decrease Increase Remain unchanged Become irrelevant None 26. Semi-variable costs are also called: Mixed costs Variable costs Incremental costs Relevant costs None 27. In a cost sheet, closing work-in-progress is: Added to opening stock Deducted from cost of production Ignored Added to factory cost None 28. What is the key characteristic of differential costs? Always fixed Does not vary with decisions Changes based on alternatives chosen Always sunk None 29. Overhead under-absorption leads to: Overstatement of profit Understatement of profit Balanced financial results Reduction in fixed costs None 30. The most suitable costing system for a catering business is: Job costing Batch costing Operating costing Process costing None 31. The cost accounting technique used for resource allocation is: Marginal costing Standard costing Activity-based costing Absorption costing None 32. A cost that does not change in total with changes in activity level is: Fixed cost Variable cost Semi-variable cost Imputed cost None 33. Transfer pricing is relevant for: Inter-departmental transactions External transactions Sunk costs allocation Budget preparation None 34. The main purpose of performance budgeting is to: Compare financial results Measure efficiency and effectiveness Identify sunk costs Reduce fixed costs None 35. Which cost accounting system provides the highest accuracy in overhead allocation? Marginal costing Absorption costing Activity-based costing Batch costing None 36. Which of the following costs is not considered part of inventory valuation under absorption costing? Fixed overheads Variable overheads Direct costs Administrative overheads None 37. Labor efficiency variance arises due to: Idle time Rate change Productivity changes Variable overheads None 38. Which costing method uses equivalent production units for valuation? Job costing Process costing Operating costing Contract costing None 39. The budget that includes all functional budgets is: Master budget Flexible budget Fixed budget Cash budget None 40. Cost-volume-profit analysis helps in determining: Maximum sales Break-even sales Inventory turnover Absorption rate 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!
