Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Operations Management & Strategic Management 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 inventory system aims to reduce inventory levels by producing only what is needed? JIT (Just-in-Time) EOQ (Economic Order Quantity) ABC analysis Perpetual inventory system None 2. What is the primary goal of capacity planning? Maximize profits Align production capacity with demand Reduce operational costs Increase workforce productivity None 3. In lean manufacturing, 'Muda' refers to: Flexibility in operations Waste elimination Increasing productivity Optimizing workflows None 4. What is the primary objective of line-of-balance scheduling? Maximize resource allocation Optimize project scheduling Ensure smooth workflow in repetitive tasks Minimize costs None 5. Which chart is used to monitor process variation over time? Gantt chart Histogram Control chart Pareto chart None 6. What does the term "lead time" represent in supply chain management? Time between order placement and delivery Production time for a unit Time required for inventory turnover Employee training duration None 7. Which method is most effective for forecasting short-term demand? Regression analysis Moving average Delphi method Market surveys None 8. In operations, a "bottleneck" is A task with excessive resources The slowest process in the system An unnecessary process A task that requires no supervision None 9. The primary goal of TPM (Total Productive Maintenance) is to: Maximize machine uptime Improve marketing strategies Optimize financial management Streamline recruitment processes None 10. Which layout is best for high-variety, low-volume production? Product layout Process layout Fixed-position layout Hybrid layout None 11. Which strategy involves increasing sales in existing markets? Market penetration Product development Market development Diversification None 12. What does the 'S' in SWOT analysis stand for? Stability Strengths Strategies Systems None 13. Which of the following is an external factor in a PESTLE analysis? Corporate culture Supplier power Political regulations Employee skills None 14. What is a “dog” in the BCG matrix? High market share, high growth Low market share, low growth Low market share, high growth High market share, low growth None 15. A growth strategy focusing on unrelated markets is called: Concentric diversification Conglomerate diversification Market penetration Product development None 16. Which analysis identifies how a company creates value for its customers? PESTLE analysis Porter’s Five Forces Value chain analysis Benchmarking None 17. Strategic objectives are primarily aimed at: Increasing daily operational efficiency Enhancing long-term organizational goals Reducing short-term costs Improving recruitment strategies None 18. What does "first-mover advantage" imply? Entering a market early and gaining a competitive edge Being the first to implement cost control measures Leading in employee retention Innovating internal processes None 19. Which of the following is NOT part of strategic management? Strategy formulation Strategy implementation Strategy evaluation Day-to-day operational decisions None 20. In Porter’s Five Forces model, high buyer power exists when: Buyers are few and purchase in bulk Suppliers are large and dominant Buyers incur high switching costs Substitute products are unavailable None 21. Which inventory classification method is based on consumption value? FIFO ABC analysis LIFO JIT None 22. What does EOQ minimize? Total inventory cost Stockout risk Order lead time Employee workload None 23. Which strategy involves maintaining current operations without expansion? Retrenchment Stability strategy Diversification Market penetration None 24. What is the purpose of "benchmarking"? Compare performance with competitors or best practices Measure inventory levels Improve employee satisfaction Forecast customer demand None 25. Which tool identifies potential risks in a process? Histogram Fishbone diagram Gantt chart Scatter plot None 26. What is the focus of TQM (Total Quality Management)? Financial performance Customer satisfaction and continuous improvement Market expansion Employee recruitment None 27. Which growth strategy involves entering a new market with existing products? Market penetration Market development Product development Diversification None 28. The balanced scorecard framework includes: Financial, operational, and market metrics Financial, customer, internal processes, and learning & growth perspectives Employee satisfaction and customer loyalty Market trends and SWOT analysis None 29. What is the focus of a differentiation strategy? Low-cost production Unique value creation Increasing workforce Inventory management None 30. Kaizen focuses on: Rapid changes Continuous small improvements Financial restructuring Marketing expansion None 31. Which layout is used for projects like shipbuilding? Process layout Product layout Fixed-position layout Cellular layout None 32. The purpose of capacity utilization measurement is to: Maximize output Determine production efficiency Increase workforce engagement Eliminate bottlenecks None 33. Which analysis is focused on external opportunities and threats? SWOT analysis PESTLE analysis Gap analysis Cost-benefit analysis None 34. A retrenchment strategy is aimed at: Business expansion Reducing business scope Diversification of operations Increasing market penetration None 35. What does the critical path in project management determine? Maximum cost Minimum time to complete the project Equipment requirements Staff efficiency None 36. Which factor increases supplier power in Porter's model? High competition among suppliers High dependence on suppliers Low switching costs for buyers High number of suppliers None 37. The primary purpose of strategic alignment is to: Match daily activities with corporate strategy Expand into global markets Reduce employee turnover Minimize operational risks None 38. Which method is used for forecasting in uncertain environments? Moving averages Delphi method Regression analysis Linear programming None 39. The concept of "core competency" focuses on: Unique capabilities giving a competitive edge Low-cost leadership strategies Short-term financial goals Expansion into new markets None 40. In operations, takt time is calculated as: Available time ÷ Customer demand Customer demand ÷ Available time Units produced ÷ Production time Total inventory ÷ Lead time 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!
Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Operations Management & Strategic Management 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 production system is suitable for highly customized products? Mass production Job shop production Continuous production Batch production None 2. Which method is used to establish the time required to complete a job? Motion study Time study Quality study Process study None 3. Which of the following is an inventory management technique? EOQ Break-even analysis Line balancing PERT None 4. What is the purpose of a Gantt chart? Measure inventory turnover Schedule and track project tasks Perform quality checks Analyze market trends None 5. The 'critical path' in a project is: The shortest path The path with zero slack The least expensive path The path with the highest inventory None 6. Which layout is designed for repetitive tasks? Fixed position layout Process layout Product layout Cellular layout None 7. Which scheduling technique focuses on starting activities as late as possible? Forward scheduling Backward scheduling Continuous scheduling Preventive scheduling None 8. The primary objective of plant maintenance is: Increase inventory levels Reduce downtime Enhance marketing efforts Improve employee satisfaction None 9. Which system minimizes idle time in production? Kanban ERP Lean manufacturing Just-in-Time None 10. The concept of Takt time is related to: Production efficiency Aligning production rate with demand rate Reducing machine downtime Inventory turnover None 11. Which strategy focuses on developing new products for existing markets? Market penetration Product development Diversification Market development None 12. In a SWOT analysis, opportunities and threats are: Internal factors External factors Both internal and external factors Financial factors None 13. Which of the following is an example of backward integration? Opening new retail outlets Acquiring a supplier Launching a new product Merging with a competitor None 14. The "value chain" concept focuses on: Distribution networks Activities creating value for customers External market conditions Financial investments None 15. What is the main purpose of scenario planning? Evaluate internal strengths Prepare for uncertainties Reduce operational costs Forecast financial performance None 16. Which of the following is NOT a corporate strategy? Divestment Market segmentation Stability strategy Expansion strategy None 17. Which strategy involves selling off a part of the company? Retrenchment Divestment Conglomerate diversification Market penetration None 18. A "question mark" in the BCG matrix represents: High market growth and low market share High market growth and high market share Low market growth and high market share Low market growth and low market share None 19. Which of the following is a primary activity in the value chain? Technology development Human resource management Operations Procurement None 20. The mission statement of an organization defines its: Financial goals Core purpose and values Marketing strategies Expansion plans None 21. Which maintenance strategy is reactive in nature? Preventive maintenance Predictive maintenance Corrective maintenance Total productive maintenance None 22. Which analysis focuses on political, economic, social, technological, legal, and environmental factors? SWOT analysis PESTLE analysis Porter’s Five Forces Value chain analysis None 23. What is the primary focus of lean manufacturing? Improving quality Reducing waste Increasing customer satisfaction Expanding product lines None 24. What is the primary purpose of operational efficiency? Reduce costs and maximize outputs Increase employee satisfaction Develop new markets Improve supplier relationships None 25. Which tool is used to identify the root cause of a problem? Pareto chart Ishikawa diagram Histogram Scatter plot None 26. Which type of strategy involves entering new markets with new products? Market development Product development Diversification Market penetration None 27. Which of the following is NOT a step in the strategic management process? Strategy formulation Strategy implementation Performance appraisal Product testing None 28. What is the focus of a differentiation strategy? Cost leadership Offering unique products or services Expanding market reach Reducing production time None 29. Which term refers to aligning operational activities with strategic objectives? Operational alignment Strategic alignment Tactical alignment Resource alignment None 30. A balanced scorecard evaluates performance in: Only financial metrics Both financial and non-financial metrics Historical financial performance Employee satisfaction levels None 31. What is the key feature of business process reengineering (BPR)? Incremental improvements Fundamental redesign of processes Market expansion Financial analysis None 32. Which of the following best defines the critical path in project management? Shortest path through the project Sequence of tasks with zero slack Tasks with the lowest cost Sequence of optional activities None 33. Benchmarking is a technique for: Forecasting demand Comparing with industry leaders Analyzing financial performance Developing marketing strategies None 34. The Delphi method is used for: Group decision-making Inventory management Financial forecasting Quality control None 35. What is the main objective of PERT analysis? Increase project resources Manage uncertainties in project scheduling Reduce project costs Monitor employee performance None 36. A "focus strategy" targets: A specific market niche Broad markets Cost reduction Increasing employee retention None 37. Kaizen refers to: Continuous improvement Waste elimination Innovation Team management None 38. The "star" in the BCG matrix is characterized by: High growth, high market share High growth, low market share Low growth, high market share Low growth, low market share None 39. The primary goal of strategic management is to: Optimize daily operations Achieve competitive advantage Reduce costs Improve quality control None 40. Which tool helps in prioritizing quality problems? Scatter diagram Pareto chart Gantt chart Fishbone diagram 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. 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Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Operations Management & Strategic Management 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 tools is most commonly used for bottleneck analysis? Pareto Chart Gantt Chart Process Flow Diagram Ishikawa Diagram None 2. What is the main objective of line balancing in production? Minimize defects Equalize workload among stations Reduce inventory levels Increase equipment utilization None 3. What is the key feature of cellular manufacturing? Production in functional layouts Machines grouped by similar processes Machines organized into cells for a product family Linear flow of production None 4. What does OEE stand for in operations management? Overall Efficiency Evaluation Operational Equipment Effectiveness Overall Equipment Effectiveness Operational Efficiency Evaluation None 5. Which of the following inventory management techniques focuses on high-cost items? EOQ ABC analysis JIT Perpetual inventory system None 6. What does the term "buffer stock" mean? Overstocked inventory Extra inventory to avoid stockouts Minimum inventory level Safety stock for emergencies None 7. Which of the following is a quantitative approach to forecasting? Expert opinion Time series analysis Market research Focus group discussion None 8. Kanban systems are primarily used for: Quality control Production scheduling Demand forecasting Inventory replenishment None 9. Which maintenance strategy is based on predicting failures before they occur? Preventive maintenance Predictive maintenance Corrective maintenance Reactive maintenance None 10. The primary goal of Total Productive Maintenance (TPM) is to: Reduce employee turnover Eliminate equipment downtime Increase production speed Improve material handling None 11. The process of breaking a business strategy into functional activities is known as: Strategic planning Functional strategy formulation Strategy implementation Tactical management None 12. The term “organizational fit” refers to: Compatibility of strategy with resources and capabilities Alignment between employees and management Relationship between departments Synchronization of organizational goals None 13. Which strategy is characterized by offering products at a lower price than competitors? Differentiation strategy Cost leadership strategy Focus strategy Diversification strategy None 14. What is a “cash cow” in the BCG matrix? High market share, low growth product High market share, high growth product Low market share, high growth product Low market share, low growth None 15. The purpose of strategic intent is to: Focus on short-term goals Set a clear vision for long-term direction Improve operational efficiency Achieve maximum profitability None 16. Porter’s Five Forces model does NOT include: Threat of new entrants Bargaining power of suppliers Organizational culture Threat of substitutes None 17. Which type of diversification involves entry into unrelated businesses? Horizontal diversification Vertical diversification Concentric diversification Conglomerate diversification None 18. Strategic control involves: Monitoring operational tasks Evaluating strategic plans and performance Assigning daily responsibilities Developing short-term goals None 19. Which of the following is a corporate strategy? Market penetration Product differentiation Business diversification Cost reduction None 20. What is the main goal of the PESTLE analysis? Assess internal strengths Evaluate external environmental factors Analyze industry competition Determine financial performance None 21. What is the primary focus of "lean thinking"? Improving customer service Reducing waste in processes Increasing profitability Expanding market share None 22. What is a "lagging indicator" in performance measurement? A metric that predicts future trends A measure of past performance A short-term operational measure A measure of employee morale None 23. Which strategy involves cutting back on unprofitable operations? Growth strategy Retrenchment strategy Stability strategy Expansion strategy None 24. In value chain analysis, which activity is NOT a primary activity? Inbound logistics Marketing and sales Procurement Operations None 25. The “Blue Ocean” strategy focuses on: Competing in an existing market Creating uncontested market space Reducing operational costs Expanding existing markets None 26. In operations, which of the following is NOT an input? Raw materials Labor Finished goods Machinery None 27. Which decision is considered strategic? Daily staffing schedules Market entry for a new product Monthly sales targets Routine supplier payments None 28. Operational excellence is achieved by focusing on: Customer satisfaction Product diversification Efficiency and cost control Market expansion None 29. Which metric is most important for assessing supply chain performance? Profit margin Inventory turnover Customer reviews Employee satisfaction None 30. What is the primary purpose of critical path analysis? Reduce project costs Identify project risks Determine the longest sequence of tasks Increase resource utilization None 31. Which of the following is NOT a feature of Total Quality Management (TQM)? Customer focus Continuous improvement Reduced employee involvement Process-based approach None 32. What is the role of "feedback" in the strategic management process? Monitoring performance and making adjustments Identifying short-term goals Determining operational tasks Forecasting market trends None 33. A hybrid strategy combines: Cost leadership and focus strategy Differentiation and cost leadership strategy Market penetration and product development Horizontal and vertical integration None 34. What is the key feature of business process reengineering (BPR)? Incremental improvements Fundamental redesign of processes Expanding product lines Market analysis None 35. SWOT analysis includes: Systems, Weaknesses, Objectives, Technology Strengths, Weaknesses, Opportunities, Threats Strategies, Workforce, Opportunities, Techniques Sustainability, Worth, Objectives, Tactics None 36. Scenario planning helps organizations: Handle future uncertainties Increase operational efficiency Reduce inventory costs Improve employee performance None 37. Which term refers to a company's ability to sustain its competitive edge? Core competency Sustainable competitive advantage Operational efficiency Market dominance None 38. Which activity involves identifying threats and opportunities in the environment? Internal analysis Environmental scanning Benchmarking Gap analysis None 39. A strategy focusing on increasing market share in existing markets is called: Market penetration Market development Product development Diversification None 40. Which concept involves aligning resources with strategic goals? Operational planning Strategic alignment Cost reduction Core competency 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. 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Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Operations Management & Strategic Management 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 a characteristic of mass production? High volume High variety Low flexibility Low cost per unit None 2. What is the main objective of production planning? Minimize costs Maximize production output Align resources with demand Reduce workforce None 3. The formula for Economic Order Quantity (EOQ) is: (2DS/H)\sqrt{(2DS/H)} (DS/2H)(DS/2H) (2HS/D)\sqrt{(2HS/D)} (2DH/S)\sqrt{(2DH/S)} None 4. Which of the following is a qualitative forecasting method? Moving average Delphi technique Time series analysis Regression analysis None 5. Cycle stock refers to: Stock held for emergencies Stock required to meet average demand Stock reserved for specific projects Overstocked inventory None 6. The primary objective of Just-in-Time (JIT) is: Reduce lead time Eliminate waste Increase production capacity Improve supplier relationships None 7. The main purpose of work-study is to: Increase employee morale Improve methods and productivity Provide employee training Enhance market competitiveness None 8. Which of the following is NOT a component of Material Requirements Planning (MRP)? Master Production Schedule Bill of Materials Inventory Records Financial Statement Analysis None 9. Which layout is most suitable for assembling a product like a car? Fixed position layout Process layout Product layout Hybrid layout None 10. What does "throughput time" measure? Time taken for one unit to move through the process Total production time in a day Time required for inventory replenishment Time taken to complete a sales transaction None 11. Strategic management primarily focuses on: Operational goals Short-term objectives Long-term goals and competitive advantage Tactical decisions None 12. Which of the following is NOT a feature of a strategic decision? Irreversible High resource commitment Low risk Long-term impact None 13. What does the term "value proposition" refer to? A company's cost structure A product's unique benefit to customers The financial goals of a company A company’s market share None 14. Which strategy involves targeting a specific group of customers? Differentiation strategy Focus strategy Cost leadership strategy Retrenchment strategy None 15. The three levels of strategy are: Corporate, Business, Functional Tactical, Operational, Strategic National, Regional, Global Short-term, Medium-term, Long-term None 16. Which analysis is used to evaluate the external environment? PESTLE analysis SWOT analysis Value chain analysis Five Forces analysis None 17. What is a "star" in the BCG matrix? High growth, high market share product High growth, low market share product Low growth, high market share product Low growth, low market share product None 18. What does "diversification" mean in strategic management? Expanding product lines into related markets Introducing existing products in new markets Entering new markets with unrelated products Reducing existing market operations None 19. In Porter's Five Forces model, supplier power increases when: Suppliers are few and concentrated Alternative products are readily available Suppliers have low switching costs Buyers are large in number None 20. The primary purpose of a vision statement is to: Define immediate objectives Describe the future aspirations of a company Outline daily tasks Detail employee responsibilities None 21. Which inventory system triggers orders when stock falls below a set level? Pull system Push system Reorder point system ABC analysis None 22. The Ishikawa diagram is used to: Identify root causes of a problem Measure financial performance Plan project activities Compare competitor performance None 23. What does a Gantt chart represent? Budget allocation Project timeline and tasks Employee productivity Customer satisfaction levels None 24. Which of the following is NOT a competitive force in Porter's Five Forces model? Threat of new entrants Bargaining power of employees Bargaining power of buyers Threat of substitutes None 25. What is the primary focus of operational efficiency? Reducing costs while maintaining output Increasing brand value Enhancing customer loyalty Expanding market share None 26. Which of the following is an offensive strategy? Retrenchment strategy Market penetration Liquidation Cost reduction None 27. The Delphi technique is most useful for: Solving operational issues Forecasting and group decision-making Strategic analysis Improving inventory levels None 28. The balanced scorecard evaluates performance across: Financial metrics only Operational metrics only Both financial and non-financial Historical performance metrics None 29. Critical Path Method (CPM) is used for: Short-term inventory management Determining project duration Forecasting demand Scheduling equipment maintenance None 30. A differentiation strategy focuses on: Low-cost production Creating unique value Niche marketing Mergers and acquisitions None 31. What is the primary objective of Kaizen? Introduce large-scale changes Continuous small improvements Reduce financial risks Increase employee turnover None 32. Backward integration refers to: Acquiring suppliers Expanding product lines Entering new markets Merging with competitors None 33. Which of the following is a stability strategy? Consolidation Retrenchment Diversification Expansion None 34. The main goal of ERP systems is to: Improve overall efficiency Increase market share Diversify operations Reduce staff levels None 35. Which tool is commonly used to analyze internal strengths and weaknesses? PESTLE analysis SWOT analysis Industry analysis Benchmarking None 36. The concept of "core competency" was introduced by: Michael Porter C.K. Prahalad and Gary Hamel Peter Drucker Henry Mintzberg None 37. What is the main purpose of strategic control? Increase operational efficiency Ensure successful strategy implementation Manage daily activities Maximize market share None 38. Ansoff Matrix helps companies: Analyze growth strategies Determine profitability Reduce operational costs Identify threats None 39. A retrenchment strategy includes: Market expansion Divestment of non-core assets Increased R&D spending Product diversification None 40. In operations, takt time is calculated as: Available time ÷ Customer demand Customer demand ÷ Available time Inventory ÷ Production time Production time ÷ Units produced 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!
Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Operations Management & Strategic Management 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. What is the primary objective of operations management? Reduce costs Improve productivity Deliver customer value Increase market share None 2. Which of the following is a key function of inventory management? Marketing Forecasting Procurement Storage None 3. Which inventory model assumes a constant demand rate? ABC model EOQ model JIT model MRP model None 4. Which layout is best suited for mass production? Process layout Product layout Cellular layout Fixed-position layout None 5. What does the ‘P’ in PDCA Cycle stand for? Plan Process Prepare Perform None 6. Kaizen is a Japanese term meaning: Just-in-Time Continuous Improvement Problem Solving Elimination of Waste None 7. Which of the following tools is used for quality control? Gantt Chart Pareto Chart Fishbone Diagram Both b and c None 8. What is the critical path in project management? The shortest path The path with maximum slack The longest path with zero slack None of the above None 9. The term "Six Sigma" represents: A production method A quality control method to reduce defects A type of layout An inventory technique None 10. The vision of a company defines: Goals for the next year The future aspirations The product mix None of the above None 11. Porter's Five Forces model is used to analyze: Industry competition Product development Organizational structure Marketing strategies None 12. SWOT analysis stands for: Strengths, Weaknesses, Opportunities, Threats Strategy, Work, Objectives, Timelines Skills, Workforce, Outputs, Training Systematic, Wide, Objective, Tactics None 13. What is a core competency? A unique resource or capability A financial strategy A marketing campaign A type of competition None 14. A growth strategy involving entry into a new market is known as: Market penetration Market development Diversification Product development None 15. The BCG matrix classifies products based on: Revenue and profits Market growth and market share Costs and benefits Risks and returns None 16. A cost leadership strategy focuses on: High-quality products Low-cost production Customer service Innovation None 17. Which of the following is an example of backward integration? Acquiring a distributor Acquiring a supplier Expanding product lines Increasing production None 18. The balanced scorecard focuses on: Financial metrics only Non-financial metrics only Both financial and non-financial metrics Historical data None 19. Which strategy involves creating a unique product or service? Differentiation strategy Focus strategy Cost leadership strategy Retrenchment strategy None 20. In operations, takt time refers to: Total production time Customer demand rate Equipment utilization rate Maintenance schedules None 21. What does ERP stand for in operations management? Enterprise Resource Planning Employee Retention Program Economic Resource Projection Enterprise Risk Prevention None 22. Strategic alliances are formed to: Acquire competitors Increase market share Share resources and capabilities Avoid competition None 23. A Gantt chart is used for: Forecasting demand Managing budgets Scheduling projects Measuring performance None 24. In strategic management, 'blue ocean' strategy refers to: Competing in an existing market Creating a new market space Reducing competition Focused cost leadership None 25. Which of the following is NOT a competitive advantage? Lower production costs Superior quality Limited market presence Strong brand loyalty None 26. What is a key feature of lean manufacturing? High inventory levels Waste elimination Long production cycles Extensive rework None 27. Scenario planning is a tool for: Forecasting future demand Evaluating financial performance Preparing for uncertainties Designing operational layouts None 28. The process of comparing performance with industry leaders is known as: Outsourcing Benchmarking Competitor analysis Gap analysis None 29. Which strategy involves reducing the scope of operations? Expansion strategy Retrenchment strategy Stability strategy Diversification strategy None 30. Kanban system is used in: Project management Just-in-Time production Financial planning Marketing strategy None 31. PESTLE analysis does NOT include: Political factors Environmental factors Technological factors Leadership factors None 32. Which of the following is a financial strategy? Cost leadership Dividend policy Core competency Differentiation None 33. Operational efficiency aims to: Improve employee morale Minimize input for desired output Increase marketing efforts Expand geographical reach None 34. The primary focus of strategic management is: Short-term goals Long-term objectives Operational efficiency Cost reduction None 35. Which of the following is NOT a factor in facility location selection? Proximity to suppliers Climate conditions Political stability Branding strategy None 36. Which production system is most suitable for custom products? Batch production Job shop production Mass production Continuous production None 37. What does TPM stand for in operations management? Total Performance Management Total Preventive Maintenance Total Productivity Management Total Productive Maintenance None 38. Which inventory classification method focuses on high-value items? FIFO LIFO ABC analysis EOQ None 39. The term ‘cycle time’ refers to: Total production time in a day Time taken to complete one unit Time required for equipment maintenance Time spent in scheduling production None 40. In a Gantt chart, the horizontal axis represents: Cost Time Resources Processes 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!
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 costs does not vary with the level of production? Direct material cost Fixed cost Variable cost Semi-variable cost None 2. Which costing method is most suitable for a sugar mill? Job costing Process costing Batch costing Contract costing None 3. The break-even point is the point where: Total revenue equals fixed costs Contribution margin equals fixed costs Total costs are greater than total revenue Profit is maximized None 4. Labor efficiency variance measures: Difference in actual and standard labor rates Difference in hours worked versus hours budgeted Wastage of materials None of the above None 5. Overhead apportionment is the process of: Allocating overheads to a single cost center Spreading overheads among multiple cost centers Distributing direct costs Absorbing indirect costs None 6. Which of the following is a relevant cost for decision-making? Fixed cost Sunk cost Opportunity cost Historical cost None 7. Variable costs are also known as: Product costs Marginal costs Prime costs Period costs None 8. A flexible budget: Adjusts based on production levels Remains fixed regardless of production levels Focuses on non-variable costs Is prepared only for fixed costs None 9. In process costing, abnormal loss is: Charged to the process account Treated as part of normal production cost Credited to the Profit and Loss account Ignored in cost calculation None 10. The margin of safety is calculated as: Contribution ÷ Sales Fixed costs ÷ Contribution margin Actual sales – Break-even sales Sales ÷ Fixed costs None 11. The fixed cost per unit decreases when: Production decreases Production increases Variable costs increase Selling price increases None 12. An example of controllable cost is: Rent Advertising expenditure Depreciation Salaries of permanent staff None 13. In marginal costing, inventory is valued at: Fixed cost Total cost Variable cost Marginal cost only None 14. An increase in fixed costs will: Decrease the break-even point Increase the break-even point Have no effect on the break-even point Decrease contribution per unit None 15. Under standard costing, variance analysis helps in: Budget preparation Identifying deviations from expected performance Financial reporting Inventory management None 16. Direct costs can be traced directly to: Products Cost centers Period costs Financial statements None 17. An abnormal gain occurs when: Actual loss is more than expected Actual loss is less than expected Process cost increases Scrap value decreases None 18. Which of the following is not included in prime cost? Direct material cost Direct labor cost Factory overheads Direct expenses None 19. In absorption costing, under-absorption of overheads occurs when: Overhead absorbed is less than actual overhead incurred Overhead absorbed is more than actual overhead incurred All overheads are absorbed Overheads are ignored in costing None 20. Which of the following best defines "cost center"? A production unit incurring direct costs A location or department incurring costs but not generating revenue A center responsible for generating sales A cost recovery unit None 21. Joint costs are: Costs incurred for producing by-products Costs incurred up to the split-off point in joint production Marginal costs Fixed costs only None 22. The break-even analysis is used to determine: Maximum profit Minimum cost No profit, no loss point Total revenue None 23. The cost accounting method used for software development projects is: Batch costing Job costing Process costing Operating costing None 24. A budget prepared for a specific level of activity is called: Fixed budget Flexible budget Zero-based budget Rolling budget None 25. In contract costing, retention money is: Deducted from contract price until completion Added to profit immediately Ignored in cost accounting Treated as direct income None 26. Imputed costs are most relevant in: Tax accounting Decision-making Inventory management Budget preparation None 27. Which of the following costs is not a semi-variable cost? Telephone bill Salaries with incentives Rent Maintenance cost None 28. Which costing method uses the concept of equivalent units? Process costing Job costing Batch costing Marginal costing None 29. Activity-based costing focuses on: Cost centers Activities that drive costs Reducing sales price Eliminating fixed costs None 30. Fixed costs are also called: Marginal costs Period costs Direct costs Relevant costs None 31. Variable cost per unit: Changes with the level of activity Remains constant Increases with production Decreases with production None 32. The margin of safety is: Break-even Sales - Actual Sales Actual Sales - Break-even Sales Fixed Costs ÷ Contribution Variable Costs ÷ Contribution None 33. Which of the following is not part of conversion costs? Direct labor Factory overheads Direct material Depreciation of machinery None 34. A cost that does not involve cash outflow is: Opportunity cost Fixed cost Sunk cost Imputed cost None 35. The most appropriate costing system for a repair workshop is: Job costing Process costing Operating costing Batch costing None 36. Contribution is the difference between: Sales and fixed costs Sales and total costs Sales and variable costs Fixed costs and profits None 37. A contract with a pre-determined profit margin is: Job contract Cost-plus contract Fixed-price contract Variable-cost contract None 38. Which of the following is not a feature of marginal costing? Focus on contribution Fixed costs are treated as product costs Variable costs are charged to product Profit is calculated after deducting fixed costs None 39. Over-absorption of overheads indicates: Under-applied costs Over-applied costs High production efficiency None of the above None 40. The cost accounting system used in public utility services is: Job costing Operating costing Process costing Batch costing 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. 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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. 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! 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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. 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!
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. Under marginal costing, contribution is: Profit before tax Sales minus variable costs Fixed costs plus profit Both b and c None 2. Which of the following is considered an implicit cost? Rent paid for a factory Salaries paid to workers Interest on own capital Depreciation of machinery None 3. Which of the following costing methods is best for construction projects? Job costing Contract costing Process costing Operating costing None 4. The term “cost unit” refers to: A unit of production or service Total cost incurred Cost of overheads None of the above None 5. A budget prepared for one level of activity is known as: Master budget Fixed budget Flexible budget Cash budget None 6. In process costing, work-in-progress is valued at: Cost per unit Market price Full cost Equivalent production units None 7. If selling price per unit increases, the break-even point: Decreases Increases Remains constant Becomes irrelevant None 8. What type of cost changes with the level of activity but not proportionally? Fixed cost Variable cost Semi-variable cost Imputed cost None 9. Contribution is used to cover: Fixed costs and profit Variable costs Sunk costs Opportunity costs None 10. The purpose of cost allocation is to: Separate fixed and variable costs Assign indirect costs to cost objects Calculate taxes Determine profit margins None 11. When overhead is under-absorbed, it means: Overheads charged are more than actual Overheads charged are less than actual No overheads were charged None of the above None 12. In target costing, the primary focus is on: Controlling costs Market-driven pricing Determining selling price Allocating indirect costs None 13. 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 14. What is the main purpose of key factor analysis? Budget preparation Prioritize resource allocation Control variable costs Determine cost per unit None 15. The difference between actual cost and standard cost is: Opportunity cost Variable cost Cost variance Marginal cost None 16. An abnormal gain occurs when: Actual loss is more than expected Actual loss is less than expected Process cost increases Scrap value decreases None 17. A key difference between marginal costing and absorption costing is: Allocation of fixed costs Allocation of variable costs Classification of direct costs Treatment of period costs None 18. If the margin of safety is high, it indicates: Low risk of loss High fixed costs Low contribution per unit High break-even sales None 19. Which type of costing is used in the transport industry? Job costing Process costing Operating costing Batch costing None 20. The primary purpose of variance analysis is to: Prepare financial accounts Calculate inventory values Identify deviations from standards Allocate costs accurately None 21. Which of the following is not included in prime cost? Direct materials Direct labor Factory overheads Direct expenses None 22. The main objective of inter-firm comparison is to: Reduce competition Improve operational efficiency Control variable costs Fix prices None 23. Profit volume ratio increases when: Fixed costs decrease Variable costs decrease Selling price decreases Contribution decreases None 24. An item of cost that does not involve cash expenditure is: Opportunity cost Notional cost Historical cost Differential cost None 25. Operating costing is also known as: Process costing Service costing Marginal costing Contract costing None 26. Process costing is most suitable for: Manufacturing steel Accounting services Custom-made furniture Consulting None 27. The cost incurred in the past and irrelevant for decision-making is called: Sunk cost Variable cost Relevant cost Fixed cost None 28. What does "cost apportionment" mean? Charging costs directly to a cost center Splitting costs among multiple cost centers Ignoring indirect costs Allocating fixed costs only None 29. Which of the following is a controllable cost? Salaries Rent Advertising expenditure Depreciation None 30. What is a relevant cost for decision-making? A past cost A cost that will not change A cost that changes with decisions A non-monetary cost None 31. In marginal costing, profit is determined by: Contribution – Fixed cost Sales – Variable cost Fixed cost – Contribution Prime cost – Overhead None 32. If actual overheads are greater than absorbed overheads, it leads to: Under-absorption Over-absorption Full absorption None of the above None 33. Abnormal loss units in process costing are valued at: Scrap value Cost per unit of normal production Market price Zero value None 34. Differential cost analysis helps in: Long-term decisions Short-term decisions Preparing financial statements Evaluating sunk costs None 35. Imputed costs are: Notional costs Direct costs Variable costs Unrecoverable costs None 36. Uniform costing is suitable for: Individual firms Firms in the same industry Small businesses only Government organizations None 37. In a cost sheet, closing stock of finished goods is: Deducted from works cost Added to works cost Deducted from cost of sales Added to prime cost None 38. Which is a feature of process costing? Separate cost records for each job Continuous production Costs accumulated by department Both b and c None 39. Break-even analysis is used to determine: Optimum production quantity Minimum number of products to cover costs Maximum profit margin Material wastage percentage None 40. In activity-based costing, cost drivers are used to: Allocate direct material costs Assign indirect costs to cost objects based on activities Determine the selling price of a product Allocate profits among departments 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!
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. The costing method best suited for assembly-line production is: Process costing Job costing Batch costing Operating costing None 2. What does the term "idle capacity" mean in cost accounting? Unused production capacity Excess inventory Full utilization of resources Maximum output achieved None 3. Which of the following is not considered a direct expense? Direct material cost Direct labor cost Power consumption for production Salaries of office staff None 4. The primary objective of cost audit is: Detecting fraud Verifying financial accounts Improving cost efficiency Preparing budgets None 5. In marginal costing, fixed costs are treated as: Product costs Period costs Incremental costs Avoidable costs None 6. The treatment of scrap value in process costing is: Deducted from total costs Added to profits Considered as a fixed cost Ignored in costing None 7. Which of the following is not a method of costing? Job costing Process costing Marginal costing Fixed costing None 8. A cost center is: A unit within a business for which costs can be allocated The primary production unit A revenue-generating unit The main administrative office None 9. Normal loss in a production process is considered as: Cost of production An abnormal loss A credit to process account A credit to Profit & Loss account None 10. Which variance measures the effect of actual production on overheads? Overhead expenditure variance Overhead efficiency variance Overhead volume variance Material variance None 11. In job costing, costs are accumulated: By department By product line By individual job By time period None 12. Marginal costing assumes that: Fixed costs remain constant Variable costs vary per unit Selling price remains constant All of the above None 13. What is the term for splitting overhead costs among multiple cost centers? Absorption Apportionment Allocation Reconciliation None 14. In a flexible budget, variable costs: Stay constant per unit Increase with production Decrease with production Remain fixed None 15. What is the meaning of "margin of safety"? Profit divided by sales Sales above break-even point Contribution divided by profit Break-even sales minus fixed costs None 16. Which of the following costs is irrelevant for pricing decisions? Sunk cost Variable cost Opportunity cost Incremental cost None 17. Which cost accounting tool helps allocate costs to activities? Process costing Job costing Activity-based costing Marginal costing None 18. What is the break-even point in terms of profit? Maximum profit Zero profit Minimum profit Fixed profit None 19. The cost sheet provides details about: Selling price only Total costs incurred Profitability ratio Tax liabilities None 20. A company with fluctuating production levels should prepare: Fixed budget Master budget Flexible budget Zero-based budget None 21. Which cost is considered in make-or-buy decisions? Sunk cost Opportunity cost Historical cost Notional cost None 22. Conversion cost includes: Direct materials and direct wages Direct wages and factory overheads Direct materials and factory overheads All direct and indirect costs None 23. Overhead recovery rate is usually expressed as: Percentage of labor cost Percentage of material cost Percentage of prime cost Any of the above, depending on the basis chosen None 24. In absorption costing, fixed overheads are: Excluded from product cost Allocated to production Charged to Profit & Loss account Treated as sunk costs None 25. In process costing, by-products are: Ignored in costing Allocated a portion of joint costs Treated as abnormal gains Credited to process account None 26. The budget prepared first in a budgeting process is: Master budget Cash budget Sales budget Production budget None 27. Which of the following is a limitation of absorption costing? Ignores fixed costs Ignores variable costs Fails to analyze contribution margin Treats fixed costs as period costs None 28. Uniform costing is a system of: Cost reduction Cost comparison among firms Profit maximization Standard costing None 29. Which costing system is used for public utility services? Job costing Process costing Operating costing Marginal costing None 30. In marginal costing, inventory valuation includes: Fixed costs only Variable costs only Total costs Direct costs only None 31. Which of the following methods is used to allocate service department costs? Direct method Step-ladder method Reciprocal method All of the above None 32. A pre-determined cost, based on technical estimates, is called: Historical cost Standard cost Marginal cost Variable cost None 33. A variance that arises due to difference in budgeted and actual hours worked is: Efficiency variance Capacity variance Volume variance Spending variance None 34. What type of costing is appropriate for the cement industry? Job costing Process costing Batch costing Contract costing None 35. The cost incurred in transportation of raw materials is treated as: Direct material cost Direct labor cost Factory overhead Indirect cost None 36. Over-absorption of overheads occurs when: Overheads charged are more than actual Fixed costs decrease Overheads charged are less than actual Prime costs increase None 37. Imputed costs are generally: Avoidable costs Historical costs Opportunity costs Marginal costs None 38. A cost that can be avoided by discontinuing an activity is: Fixed cost Sunk cost Relevant cost Avoidable cost None 39. Under job costing, each job is assigned a: Standard cost Separate account Marginal cost Contribution margin None 40. When sales revenue equals total costs, it is referred to as: Profit margin Break-even point Contribution margin Marginal 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!
