Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Cost and Management 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. Job costing is suitable for which type of industry? Oil refining Construction Cement manufacturing Electricity generation None 2. Which of the following is not a method of costing? Job costing Process costing Batch costing Profit costing None 3. Which costing method is appropriate for industries producing homogeneous products? Job costing Contract costing Process costing Batch costing None 4. Contract costing is primarily used in which of the following industries? Food processing Engineering construction Textile manufacturing Retail None 5. Which of the following is a direct cost? Factory rent Wages of production workers Salaries of office staff Insurance of machinery None 6. Economic Order Quantity (EOQ) is a technique used for managing: Labor costs Material costs Overheads Selling expenses None 7. In the calculation of EOQ, which of the following costs is considered? Fixed cost Ordering cost and carrying cost Sunk cost Direct labor cost None 8. When materials are issued to production, the pricing method that charges the most recent cost is: FIFO LIFO Weighted average Simple average None 9. Time wage system is suitable for: Skilled labor Semi-skilled labor Research and development jobs High volume production jobs None 10. The bonus plan which provides a constant percentage of time saved as a bonus is: Halsey Plan Rowan Plan Taylor's Differential Piece Rate Emerson Efficiency Plan None 11. Idle time is classified as: Direct labor cost Indirect labor cost Fixed cost Overhead cost None 12. Which method of remuneration incentivizes employees based on performance? Piece rate system Time rate system Salary system Graded system None 13. Overheads are allocated to cost centers based on: Direct costs Apportionment Classification Absorption None 14. Which of the following is an example of a fixed overhead? Factory power Depreciation on machinery Indirect material cost Repairs and maintenance None 15. The process of recovering overhead costs in cost units is called: Allocation Apportionment Absorption Distribution None 16. Which of the following bases is most suitable for absorbing machine-related overheads? Machine hours Direct labor hours Number of workers Units produced None 17. In marginal costing, fixed costs are treated as: Product costs Period costs Variable costs Direct costs None 18. Break-even sales are achieved when: Contribution equals fixed cost ContributiContribution is zero Profit equals fixed costs Profit is maximized None 19. The formula for P/V ratio is: (Contribution / Sales) × 100 (Fixed cost / Sales) × 100 (Variable cost / Sales) × 100 (Profit / Sales) × 100 None 20. The term ‘Margin of Safety’ refers to: Sales above the break-even point Sales at the break-even point Sales below the break-even point Total fixed costs None 21. A budget is a: Long-term financial plan Short-term financial plan Statement of actual results None of the above None 22. The budget prepared first in the budgeting process is: Production budget Sales budget Cash budget Capital budget None 23. Variance analysis is a tool used in: Standard costing Marginal costing Absorption costing Contract costing None 24. Labor efficiency variance arises when: Standard time is greater than actual time Actual time exceeds standard time Direct material is wasted Overhead rates are incorrect None 25. Which of the following is not a component of total cost? Material cost Labor cost Opportunity cost Overheads None 26. Cost accounting is primarily used for: Preparing financial statements Internal decision-making Statutory compliance Filing tax returns None 27. Prime cost includes: Fixed costs only Direct costs only Variable costs only Indirect costs only None 28. Which cost is considered irrelevant in decision-making? Fixed cost Opportunity cost Sunk cost Variable cost None 29. The break-even point is defined as the level of sales at which: Profit is maximized Total costs are minimized Variable costs are equal to fixed costs Total revenue equals total cost None 30. Which of the following is a limitation of cost-volume-profit analysis? Assumes linear relationships between cost and output Does not account for fixed costs Assumes that all costs are variable Ignores the concept of contribution margin None 31. Which of the following statements is true under the assumption of cost-volumeprofit analysis? Fixed costs change with the level of production The contribution margin per unit remains constant Variable costs increase in total but decrease per unit The selling price per unit decreases with increased sales None 32. Which of the following is true about process costing? It is suitable for industries manufacturing a single product It is used when production involves continuous processes It is applicable in job order industries It requires detailed analysis of each job None 33. In process costing, the equivalent units of production are calculated for which of the following? Materials only Labor only Materials, labor, and overheads Direct costs None 34. Under process costing, the cost of normal loss is treated as: A cost of the period A part of the cost of good units produced A scrap cost An abnormal loss None 35. The transfer pricing method that is based on the market price is known as: Cost-based transfer pricing Negotiated transfer pricing Market-based transfer pricing Dual pricing None 36. Which of the following is an advantage of negotiated transfer pricing? It simplifies the pricing decision It encourages cooperation between departments It always ensures market-based pricing It eliminates the need for accounting records None 37. Transfer pricing is primarily used in transactions between: Different departments of the same company Different companies Companies and their shareholders Companies and government bodies None 38. Which of the following is a feature of Activity-Based Costing (ABC)? It assigns overheads based on volume-related factors It traces costs to specific activities rather than products It uses a single overhead rate for all products It is not suitable for service industries None 39. Under Activity-Based Costing, overhead costs are assigned to: Production units only Cost centers Activities Direct materials None 40. In a situation where there is excess capacity, a company may use which of the following pricing strategies for a special order? Cost-plus pricing Target pricing Penetration pricing Variable cost pricing 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. 1 2 3 4 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!
