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. A budget that focuses on specific projects or programs is called: Functional budget Program budget Fixed budget Flexible budget None 2. The difference between sales and break-even sales is called: Contribution Margin of safety Break-even margin Profit margin None 3. Which cost is also known as unavoidable cost? Sunk cost Fixed cost Opportunity cost Variable cost None 4. Operating costing is also suitable for: Transport companies Hospitals Hotels All of the above None 5. What is a cost ledger? A ledger that records indirect costs only A ledger that integrates cost and financial accounts A ledger that tracks fixed costs A ledger for recording sunk costs None 6. Which of the following is an example of imputed cost? Interest on own capital Depreciation Variable cost Direct material None 7. The value of scrap in process costing is: Credited to the Profit and Loss Account Deducted from process cost Added to total cost Ignored in costing None 8. The most appropriate costing method for a garment factory is: Process costing Job costing Batch costing Operating costing None 9. Cost-volume-profit analysis assumes: Fixed costs change with activity levels Selling price per unit is constant Variable cost per unit decreases with production Sales mix is irrelevant None 10. Variable costs per unit: Decrease with increased production Increase with increased production Remain constant per unit Vary depending on management decisions None 11. Conversion cost includes: Direct materials and direct wages Direct wages and factory overheads Direct materials and factory overheads All direct and indirect costs None 12. When production increases, fixed cost per unit: Remains constant Increases Becomes variable Decreases None 13. In Activity-Based Costing, a "cost driver" is: A factor that causes a cost to increase A fixed cost component An unallocated overhead A profit margin contributor None 14. Abnormal loss in process costing is treated as: Part of normal production cost Transferred to Profit and Loss Account Ignored in costing Deducted from process cost None 15. Which cost is most useful for short-term decision-making? Sunk cost Fixed cost Variable cost Historical cost None 16. Which costing technique is used for continuous production systems? Job costing Batch costing Process costing Contract costing None 17. Semi-variable costs consist of: Fixed and variable components Fixed components only Variable components only Fixed and marginal components None 18. Contribution margin is defined as: Sales revenue - Fixed costs Sales revenue - Variable costs Variable costs - Fixed costs Fixed costs - Net profit None 19. Under standard costing, a favorable material variance indicates: Excessive material usage Efficient use of material Increased production cost Inefficient cost control None 20. A flexible budget is most suitable for: Static production levels Varying levels of activity Fixed expenses Non-manufacturing industries None 21. Labor turnover is classified into: Voluntary and involuntary separations Productive and unproductive labor Sunk and incremental labor Skilled and unskilled workers None 22. Uniform costing is suitable for: Individual firms Firms in the same industry Small businesses only Government organizations None 23. In absorption costing, fixed costs are: Ignored in inventory valuation Treated as a period cost Included in product cost Allocated to direct labor None 24. Break-even sales can be calculated as: Fixed cost ÷ Variable cost per unit Fixed cost ÷ Contribution per unit Fixed cost ÷ Sales per unit Variable cost ÷ Contribution per unit None 25. Which of the following is not a functional budget? Sales budget Cash budget Master budget Production budget None 26. A cost that can be traced to a specific cost object is: Indirect cost Variable cost Direct cost Imputed cost None 27. Abnormal gain is calculated as: Normal loss – Actual loss Actual loss – Normal loss Scrap value × Units gained Variable cost ÷ Fixed cost None 28. Differential cost is: The difference in cost between two alternatives The average cost of production An irrelevant cost Equal to the fixed cost None 29. Fixed costs remain constant: Per unit In total Per unit and in total Only when production is zero None 30. A by-product is: The main output of a production process An unplanned output of minimal value Always ignored in costing An additional joint product None 31. Which cost accounting tool is best for analyzing overhead costs? Marginal costing Activity-Based Costing Standard costing Absorption costing None 32. The term "normal loss" refers to: An unexpected loss A planned and anticipated loss A gain in the process A surplus of production None 33. Which method is most suitable for construction projects? Batch costing Process costing Job costing Contract costing None 34. The profit-volume ratio measures: Fixed costs as a percentage of sales Contribution as a percentage of sales Variable costs as a percentage of sales Sales as a percentage of profit None 35. Contribution margin can be defined as: Fixed costs – Variable costs Sales – Fixed costs Sales – Variable costs Profit ÷ Sales None 36. In a cost sheet, work-in-progress is: Added to factory cost Deducted from factory cost Ignored in cost calculation Added to profit None 37. Which of the following is not included in total production cost? Direct labor Factory overheads Administrative overheads Direct material None 38. The primary focus of variance analysis is: Budget preparation Performance evaluation Financial reporting Inventory management None 39. Marginal costing considers: Only variable costs for decision making Only fixed costs for decision making Both fixed and variable costs for decision making Only sunk costs None 40. The cost sheet is used to: Determine selling price Calculate total cost of production Evaluate profit Allocate direct costs 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!
