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 State 1. Which of the following is not an element of cost? Material Labour Overheads Sales Revenue None 2. Which costing method is used to ascertain the cost of a specific job or order? Process costing Job costing Marginal costing Batch costing None 3. Fixed costs per unit decrease when: Production increases Production decreases Material cost decreases Labour cost increases None 4. Which of the following is an example of indirect material? Steel in a car Glue used in furniture manufacturing Leather in shoes Cotton in garments None 5. Prime cost is equal to: a Direct Material + Direct Labour + Direct Expenses Direct Material + Indirect Labour Indirect Material + Direct Labour Direct Labour + Factory Overheads None 6. Which of the following is an example of variable cost? Depreciation Direct labour Insurance None 7. Contribution is calculated as: Sales - Variable Cost Sales - Fixed Cost Fixed Cost - Variable Cost Sales - Total Cost None 8. Break-even point is where: Total Revenue = Total Cost Total Revenue > Total Cost Fixed Cost = Variable Cost Profit = Fixed Cost None 9. Absorption costing includes which of the following costs? Only variable costs Only fixed costs Both variable and fixed costs Only prime costs None 10. In marginal costing, which of the following is considered for decision-making? Fixed Cost Variable Cost Sunk Cost Absorbed Cost None 11. The difference between standard cost and actual cost is called: Loss Profit Variance Contribution None 12. Which of the following is not a method of costing? Job costing Process costing Batch costing Profit costing None 13. Which statement is true regarding direct costs? They cannot be traced to a cost unit They are always fixed They can be traced directly to a cost unit They are always variable None 14. Factory overheads are also known as: Direct costs Indirect production costs Variable costs Prime costs None 15. Which of the following costs change in total with a change in the level of activity? Fixed costs Sunk costs Variable costs Semi-variable cost None 16. Direct expenses are also known as: Overheads Chargeable expenses Prime costs Fixed costs None 17. A budget that is prepared for a single level of activity is called a: Flexible budget Fixed budget Master budget Cash budget None 18. Operating costing is suitable for: Construction companies Transport services Chemical industries Furniture manufacturing None 19. Idle time variance is a part of: Material cost variance Labour cost variance Overhead variance Sales variance None 20. Which cost is incurred to maintain a certain level of production capacity? Fixed cost Variable cost Semi-variable cost Sunk cost None 21. Which costing technique is used to ascertain the marginal cost of a product? Absorption costing Marginal costing Job costing Batch costing None 22. Cost accounting aims to: Ascertain profits only Control costs Maintain financial records Calculate tax liability None 23. Which of the following is a semi-variable cost? Rent Direct material Maintenance cost Depreciation None 24. Which of the following best describes over-absorption of overheads? Overheads incurred are less than absorbed Overheads incurred are more than absorbed Overheads incurred are equal to absorbed Overheads are irrelevant to costing None 25. Which of the following is an avoidable cost? Sunk cost Opportunity cost Fixed cost Variable cost None 26. In which type of costing is the cost divided into fixed and variable portions? Marginal costing Process costing Absorption costing Standard costing None 27. Which of the following describes conversion cost? Direct Material + Direct Labour Direct Labour + Overheads Prime Cost + Fixed Cost Indirect Material + Indirect Labour None 28. Normal loss in process costing is: Unavoidable Avoidable Equal to abnormal loss Due to inefficiencies None 29. When overheads are under-absorbed, it means: Actual overheads are less than absorbed Actual overheads are more than absorbed Overheads are fully absorbed There are no overheads None 30. Sunk costs are: Relevant for decision-making Irrelevant for decision-making Future costs Opportunity costs None 31. Which cost is used for managerial decision-making? Historical cost Marginal cost Sunk cost Fixed cost None 32. Which of the following costs is not relevant for decision-making? Sunk costs Opportunity costs Marginal costs Variable costs None 33. The allocation of overheads to various cost centers is called: Cost allocation Cost apportionment Cost absorption Cost aggregation None 34. Which of the following is a feature of process costing? Costs are accumulated for individual jobs Costs are accumulated by processes Costs are determined after the sale of products Costs are accumulated for each order None 35. Under marginal costing, fixed costs are treated as: Product costs Period costs Variable costs Prime costs None 36. Which of the following methods is used for inventory valuation under marginal costing? FIFO LIFO Weighted average Only variable costs are considered None 37. Labour turnover is calculated as: (Number of workers leaving / Average number of workers) x 100 (Number of workers joining / Total workers) x 100 (Total hours worked / Number of workers) x 100 (Number of new workers / Number of old workers) x 100 None 38. A cost unit in a hospital is typically: A patient treated A bed A medicine A doctor None 39. Standard costing is used primarily for: Cost control Product pricing Job evaluation Sales analysis None 40. Which of the following is an abnormal cost? Cost incurred due to normal inefficiency Cost incurred due to abnormal wastage Direct material cost Indirect labour 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!
