Quiz 2 Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Cost AccountingTotal Number of Question: 40Time: 41 MinutesPlease check your email after completion of test for result.All the best... Name Phone No Email State 1. Which of the following items are not included in Cost Sheet? Bank Interest Cash Discount Donations All of the above None 2. Prime cost may be correctly termed as: The sum of direct material and labour cost with all other cost excluded. The total of all cost items which can directly charge to product items The total cost incurred in producing a finished unit The sum of the large costs in a product cost None 3. Sales, Opening Stock and Closing Stock are ₹ 2,40,000, ₹ 36,000 and ₹ 45,000 respectively. If the rate of G.P on cost of goods sold is 25%, then the amount of purchases will be: 1,83,000 ₹ 1,92,000 ₹ 2,01,000 ₹ 1,89,000 None 4. From the following information, find out purchases of raw material when raw material consumed is ₹ 26,500; closing stock ₹ 4,500 and opening stock ₹ 3,000 a) ₹ 29,500 ₹ 31,000 ₹ 28,000 ₹ 34,000 None 5. Direct Material and Direct Wages are ₹ 2,32,000 and ₹ 2,05,000 respectively. If the ratio of direct wages and factory overhead is 5:3 then Factory Cost will be: ₹ 4,37,000 ₹ 5,60,000 ₹ 7,78,667 ₹ 5,46,667 None 6. Prime cost-plus factory overheads is known as - Marginal Cost Conversion Cost Commercial Cost Factory Cost None 7. Which costing method is used by Spare-parts manufacturing industry? Process Costing Job Costing Batch Costing Absorption Costing None 8. Which of the following is not a relevant cost? Replacement Cost Sunk Cost Marginal Cost Opportunity Cost None 9. Cost of rectification of defective articles are treated as: Production Overhead Distribution Overhead. Selling Overhead. Administrative Overhead None 10. Which of the following would be classified as indirect labour? Assembly workers in a company manufacturing unit Stores assistant in a factory store An audit clerk in a auditors' firm Masons in a construction company None 11. Cost of free samples and gifts are included in: Prime Cost Factory Overhead Office and Administrative Overheads Selling & Distribution Overheads None 12. Which one is False? Fixed costs per unit increase with increase in output Out of pocket costs involve payment to outsiders Rent on own building is imputed cost Tender is an estimation of selling price None 13. CAS-16 is related to: Cost Accounting Standard on Depreciation and Amortisation Cost Accounting Standard on Joint Costs Cost Accounting Standard on Quality Control Cost Accounting Standard on Overburden Removal Cost None 14. Wages for abnormal idle time are charged to: Production Cost Job Cost Abnormal Overhead Costing Profit and Loss Account None 15. Which statement is not True? Replacement cost is the current market cost of replacing an asset or a material Cost accounts provide information for determination of profit or loss Bad debts, legal charges for recovery of debts are considered as selling & distribution expenses. Imputed costs are hypothetical cost None 16. The manufacturing account is prepared: To ascertain gross profit To ascertain the cost of goods manufactured To ascertain profit or loss on the goods manufactured To ascertain the cost of sales None 17. Which of the following term is excluded from the cost accounts? Income tax Interest on debenture Cash discount All of the above None 18. Prime cost may be correctly termed as The sum of direct material and labour cost with all other cost exclude The total of all cost items which can be directly charged to production units The total costs incurred in producing a finished unit. The sum of the large costs there in a product cost None 19. Which of the following is a part of both Prime cost and Conversion cost? Direct Material Indirect Labour Direct Labour All of the above None 20. Indirect material cost is a part of Prime Cost Factory Overhead Chargeable Expenses None of the above None 21. Direct labour is an element of: Prime cost Conversion cost Total production cost All of the given options None 22. The cost of goods sold is equal to Total Purchases - Total Sales Opening Stock + Total Purchase Opening Stock - Total Purchases + Closing Stock + Direct Costs Opening Stock + Total Purchases - Closing Stock + Direct Costs None 23. Prime cost and factory cost are ₹ 6,10,000 and respectively. If the factory overhead is absorbed @ 60 percent of the direct wages then amount of direct wages would be ₹ 1,86,000 ₹ 31,000 ₹ 4,84,000 ₹ 1,00,000 None 24. Statement showing break up of costs is known as Cost sheet Tender Production account Statement of profit None 25. Prime cost may he correctly termed as The total of all cost items which can be directly charged to product units The sums of all direct materials and labour cost excluding all other cost The total costs incurred in producing a finished unit The sum of the large cost there in product cost None 26. Which one is included in financial accounts but not in cost accounts? Royalty Dividend paid Excise duty Carriage and freight None 27. Which of the following term is excluded from the cost accounts? Income tax Interest on debenture Cash discount All of the above None 28. 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 will be ₹ 2,32,000 ₹ 3,50,000 ₹ 3,41,667 ₹ 2,24,000 None 29. The works cost plus administration expenses represents Total cost Cost of production Cost of sales Factory cost None 30. Prime cost may be correctly termed as The sum of direct material and labour cost with all other cost exclude The total of all cost items which can be directly charged to production units The total costs incurred in producing a finished unit. The sum of the large costs there in a product cost None 31. From the following information, find out purchases when raw material consumed is ₹ 26,500, closing stock ₹ 4,500 and opening stock ₹ 3,000: ₹ 26,500 ₹ 25,000 ₹ 28,000 ₹ 34,000 None 32. Prime cost plus factory overheads is known as Marginal Costing Conversion Cost Commercial Cost Factory Cost None 33. Cost of free samples and gifts are included in Prime Cost Factory Overhead Office and Administrative Overheads Selling & Distribution Overheads None 34. Which of the following is a part of both Prime cost and Conversion cost? Direct Material Indirect Labour Direct Labour All of the above None 35. Prime Cost plus Factory Overheads is known as Factory on Cost Conversion Cost Factory Cost Marginal Cost None 36. Prime Cost may be correctly termed as The sum of direct material and labour cost with all other costs excluded The total of all cost items which can be directly charged to product units The total costs incurred in producing a finished unit The sum of the large cost there in a product cost None 37. Indirect material cost is a part of Prime Cost Factory Overhead Chargeable Expenses None of the above None 38. The Works Cost plus Administration Expenses is known as Total Cost Cost of Production Cost of Sales Factory Cost None 39. Cost of sales is: Total costs incurred in production, administration and marketing functions Works cost put administration overheads Aggregate of works, administration and marketing overheads Prime cost plus marketing overheads None 40. Which of the following cost is used in the calculation of cost per unit? Total production cost Cost of goods available for sales Cost of goods manufactured Cost of goods sold 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 !! Time's upTime is Up!