Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Indirect Tax Laws and Practice 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 GST, which of the following is treated as "supply of goods"? Renting of immovable property Transfer of title in goods Transfer of right to use goods Temporary transfer of intellectual property rights None 2. Which of the following services is exempt from GST? Services by an educational institution up to higher secondary Legal services provided by senior advocates Supply of motor vehicles for personal use Renting of residential property for commercial use None 3. The threshold turnover limit for GST registration in services is: ₹10 lakhs ₹20 lakhs ₹40 lakhs ₹75 lakhs None 4. Under customs law, which duty is levied to protect domestic industries from imports at subsidized prices? Basic Customs Duty Countervailing Duty Safeguard Duty Anti-Dumping Duty None 5. What is the maximum penalty for fraudulently availing input tax credit under GST? 50% of tax due 100% of tax due 10% of tax due 25% of tax due None 6. Which of the following goods is subject to the highest GST rate of 28%? Gold jewelry Aerated drinks Packaged food items Footwear None 7. In the case of reverse charge mechanism under GST, who is liable to pay the tax? Supplier of goods Recipient of goods or services GST department Freight forwarder None 8. Under which schedule of the GST Act are the activities deemed as neither supply of goods nor supply of services? Schedule I Schedule II Schedule III Schedule IV None 9. The validity of an e-way bill is determined by the: Type of goods transported Mode of transportation used Distance covered Value of goods transported None 10. What is the time limit for claiming input tax credit under GST? One year from the date of invoice Before the filing of the annual return or September of the next financial year, whichever is earlier Six months from the date of supply Two years from the date of invoice None 11. GST is levied on the supply of: Goods only Services only Both goods and services Goods and services only for export None 12. What type of tax is GST? Direct tax Indirect tax Capital gains tax Income tax None 13. What is the GST rate applicable on basic food grains? 0% 5% 12% 18% None 14. GST compensation cess is levied on: Alcohol Tobacco products and luxury items Agricultural products Educational services None 15. GST is governed by which constitutional amendment? 100th 101st 102nd 103rd None 16. Which of the following is ineligible for claiming ITC under GST? Goods used for personal consumption Raw materials used in production Machinery used for manufacturing Services for business purposes None 17. ITC can be claimed on: Goods purchased for resale Goods given as gifts to employees Motor vehicles for personal use Membership fees for clubs None 18. The time limit to avail ITC is: One year from the date of invoice Six months from the date of invoice Before the due date for filing the annual return or September of the next financial year, whichever is earlier Two years from the date of invoice None 19. ITC can be utilized in which order? IGST → SGST → CGST IGST → CGST → SGST ASGST → CGST → IGST CGST → SGST → IGST None 20. ITC is not available for which of the following? Goods destroyed by fire Goods sold to another state Goods used in production Goods supplied on a consignment basis None 21. Registration under GST is mandatory if the turnover exceeds: ₹10 lakhs ₹20 lakhs ₹40 lakhs ₹50 lakhs None 22. Composition scheme under GST is not available for: Manufacturers Restaurants Service providers (other than restaurant services) Dealers of goods None 23. Casual taxable persons need to register for GST: Only if turnover exceeds ₹40 lakhs Compulsorily, irrespective of turnover Only for interstate sales Only for export supplies None 24. GST registration number (GSTIN) consists of how many digits? 10 12 15 20 None 25. A person is required to register for GST within how many days of becoming liable? 7 days 15 days 30 days 60 days None 26. The value for customs duty is determined based on: Maximum retail price Transaction value Production cost CIF value None 27. The duty levied to counteract subsidies provided by exporting countries is called: Safeguard duty Anti-dumping duty Countervailing duty Basic customs duty None 28. Which of the following is not included in assessable value for customs duty? Insurance charges Packing charges Freight charges Post-importation expenses None 29. IWhich form is used for filing a bill of entry? Form GSTR-1 Form GSTR-3B Form ITR-1 Bill of Entry Form I, II, II None 30. Duty-free goods brought by passengers within permissible limits are classified as: Restricted goods Dutiable goods Baggage Export goods None 31. GSTR-1 is used for: Monthly summary returns Reporting outward supplies Reporting inward supplies Annual return None 32. Which return is filed to claim the refund of GST? GSTR-1 GSTR-3B RFD-01 GSTR-9 None 33. Late fees for delayed filing of GST returns is: ₹50 per day for CGST and SGST each ₹20 per day for CGST and SGST each ₹100 per day for CGST and SGST each ₹10 per day for CGST and SGST each None 34. The due date for filing GSTR-9 (Annual Return) is: 31st March of the next financial year 31st December of the next financial year 30th September of the next financial year 30th June of the next financial year None 35. Which return is filed for TDS under GST? GSTR-2 GSTR-7 GSTR-9 GSTR-8 None 36. The tax on inter-state supply is: SGST CGST IGST None of the above None 37. Which is the highest GST slab rate? 18% 28% 40% 50% None 38. Place of supply for services related to immovable property is determined as: Location of supplier Location of recipient Location of immovable property Place of agreement None 39. Which authority resolves disputes under GST? GST Council Advance Ruling Authority National Company Law Tribunal Income Tax Appellate Tribunal None 40. The penalty for non-registration under GST is: ₹5,000 10% of tax due or ₹10,000, whichever is higher ₹10,000 No penalty 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 ! 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 a characteristic of a mixed economy? Private ownership only Public ownership only Both public and private ownership None of the above None 2. What is the primary objective of fiscal policy in India? Control inflation Economic growth Employment generation All of the above None 3. Which of these measures is considered a part of monetary policy? Taxation Open market operations Subsidies Public expenditure None 4. What does GDP measure? Total value of goods and services produced in a year Total exports minus imports Per capita income None of the above None 5. Which of the following is a direct tax? Goods and Services Tax (GST) Excise duty Corporate tax Customs duty None 6. What is the focus of the "Make in India" initiative? Promoting agriculture b) c) d) Boosting manufacturing and innovation Increasing exports of services Enhancing foreign remittances None 7. Which is the largest contributor to India's GDP? Agriculture Industry Services Mining None 8. The New Industrial Policy of 1991 is primarily associated with which of the following? Nationalization of industries Liberalization and privatization Restrictions on FDI Increase in tariff rates None 9. Who regulates the money supply in India? Ministry of Finance Reserve Bank of India State Bank of India Planning Commission None 10. What is the primary aim of MGNREGA? Providing rural housing Promoting self-employment Guaranteeing wage employment in rural areas Increasing urban employment None 11. What does FRBM Act stand for? Fiscal Responsibility and Budget Management Act Financial Reporting and Banking Mechanism Act Financial Reforms and Budgeting Management Act Fiscal Regulation and Business Management Act None 12. What is a primary deficit? Total fiscal deficit minus capital expenditure Total fiscal deficit minus interest payments Revenue deficit minus interest payments Budget deficit minus tax revenue None 13. What does disinvestment in public sector units (PSUs) mean? Increasing government stake in PSUs Reducing government stake in PSUs Complete privatization of PSUs None of the above None 14. Which of the following is NOT a type of budget in India? Revenue budget Capital budget Consolidated budget Zero-based budget None 15. Which institution calculates the Wholesale Price Index (WPI) in India? Ministry of Finance Reserve Bank of India Office of the Economic Adviser NITI Aayog None 16. Which scheme aims to provide universal healthcare in India? Ayushman Bharat PM Fasal Bima Yojana PM Jan Dhan Yojana Atal Pension Yojana None 17. What is the purpose of GST? Double taxation Uniform tax across the country High tax rates None of the above None 18. Which of the following is an indirect tax? Income tax Corporate tax Excise duty Wealth tax None 19. What is the aim of the Pradhan Mantri Jan Dhan Yojana? Promoting agricultural exports Providing financial inclusion Boosting industrial growth Encouraging self-employment None 20. Which policy governs foreign investments in India? Fiscal policy FDI policy Monetary policy Export-import policy None 21. What does SDR stand for in international economics? Special Dollar Reserves Special Drawing Rights Specific Development Rights Sustainable Development Revenue None 22. Which organization publishes the World Development Report? IMF World Bank WTO UNDP None 23. What is a trade deficit? Exports are greater than imports Imports are greater than exports Revenue exceeds expenditure Expenditure exceeds revenue None 24. Which country is India’s largest trading partner (as of 2024) USA China UAE EU None 25. What is the main purpose of the IMF? Financing large infrastructure projects Stabilizing international exchange rates and payments Regulating international trade disputes Controlling inflation None 26. What is the role of SEBI? Regulating banks Regulating capital markets Printing currency notes Setting interest rates None 27. What is CRR in banking? Credit Reserve Ratio Cash Reserve Ratio Current Repayment Ratio Cash Retention Ratio Answer: None 28. Which bank is responsible for providing rural credit in India? SBI NABARD RBI ICICI None 29. What is an NBFC? Nationalized Bank and Finance Corporation Non-Banking Financial Compan National Bank for Farmers and Credit Non-Banking Federal Corporation None 30. What is the purpose of a repo rate? Borrowing rate between banks Rate at which RBI lends to commercial banks Interest rate for savings accounts Tax on financial transactions None 31. Which organization sets the Sustainable Development Goals (SDGs)? IMF World Bank United Nations WTO None 32. Which country recently launched its own digital currency? USA China India Germany None 33. What is India’s target for achieving net-zero carbon emissions? 2030 2040 2050 2070 None 34. What is the GST compensation cess used for? Promoting exports Compensating states for revenue losses c Rural infrastructure developmenties Industrial subsidies None 35. Which global index measures ease of doing business? World Competitiveness Index Human Development Index Ease of Doing Business Index Global Innovation Index None 36. What is the purpose of NITI Aayog? Financial regulation National policy formulation Controlling inflation Distributing resources None 37. Which ministry oversees the Pradhan Mantri Gram Sadak Yojana? Ministry of Urban Development Ministry of Rural Development Ministry of Transport Ministry of Finance None 38. What is a fiscal surplus? Revenue exceeds expenditure Expenditure exceeds revenue Revenue equals expenditure None of the above None 39. What is India’s rank in global GDP (nominal terms) as of 2024? 3rd 5th 7th 10th None 40. Which of the following sectors is regulated by TRAI? Banking Telecom Pharmaceuticals Insurance 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!
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 company manufactures 500 units of a product, and the fixed costs are $10,000. What will be the fixed cost per unit if production is increased to 1,000 units? $20 $10 $50 $15 None 2. Which of the following statements is true regarding absorption costing? Absorption costing is only concerned with variable costs Absorption costing includes both fixed and variable manufacturing costs in product cost Absorption costing is not suitable for financial reporting Absorption costing does not consider overheads None 3. A company has budgeted to produce 5,000 units, with direct material cost per unit of $4 and direct labour cost per unit of $3. If 5,500 units are produced, what is the total prime cost? $35,000 $38,500 $40,000 $45,500 None 4. The cost per unit of a variable cost changes when Production level changes Total variable cost changes Selling price changes The cost per unit of a variable cost remains constant None 5. Which of the following is considered a step to calculate the overhead absorption rate? Calculating total production cost Dividing total overhead by the number of cost drivers Adding direct material to overhead Estimating the selling price None 6. A process costing system is used when: Production is carried out in a single process Each product is individually identifiable Products are identical and pass through different processes Products are made in batches None 7. The break-even point (BEP) in units can be calculated as Fixed Costs / (Selling Price per Unit - Variable Cost per Unit) Total Sales / Variable Costs Total Costs / Contribution per Unit Fixed Costs / Total Sales None 8. A company uses a cost driver rate of $20 per machine hour. If a job requires 15 machine hours, what is the overhead cost allocated to the job? $200 $300 $400 $500 None 9. In which costing method are costs first assigned to departments and then allocated to products? Activity-based costing Process costing Departmental costing Job costing None 10. A company has an overhead absorption rate of $8 per labour hour. If a job requires 120 labour hours, what will be the overhead absorbed for the job? $800 $960 $1,000 $1,200 None 11. If the margin of safety is $15,000 and the contribution margin ratio is 40%, what is the profit? $3,000 $6,000 $9,000 $12,000 None 12. A company incurred actual overheads of $50,000 but absorbed overheads of $48,000. What type of variance does this indicate? Over-absorption of $2,000 Under-absorption of $2,000 Overhead efficiency variance No variance None 13. If a job requires $5,000 in direct materials, $3,000 in direct labour, and $1,500 in overheads, what is the total cost of the job? $8,000 $9,500 $10,500 $11,000 None 14. Which of the following is a characteristic of job costing? Costs are accumulated for each department Costs are assigned to batches of identical products Costs are traced to each specific job or project Costs are always variable None 15. If a company budgets $30,000 for overhead and allocates it based on 5,000 machine hours, what is the overhead rate per machine hour? $5 $6 $7 $8 None 16. A company has fixed costs of $24,000, a contribution margin of $12 per unit, and needs to achieve a profit of $6,000. How many units must be sold? 2,000 units 2,500 units 3,000 units 4,000 units None 17. Which of the following statements is true about activity-based costing (ABC)? ABC is used to allocate only direct costs ABC allocates overheads based on activities that drive costs ABC is not suitable for manufacturing industries ABC only allocates variable costs None 18. Which variance shows the difference between actual hours worked and standard hours allowed? Labour rate variance Labour efficiency variance Overhead volume variance Material usage variance None 19. If the standard labour rate is $15 per hour, actual hours worked are 1,200, and the actual rate is $16 per hour, what is the labour rate variance? $1,200 Favourable $1,200 Adverse $1,800 Favourable $1,800 Adverse None 20. A company manufactures 10,000 units with a total variable cost of $50,000. If production is increased to 15,000 units, what is the new total variable cost? $50,000 $60,000 $70,000 $75,000 None 21. The predetermined overhead rate is calculated by dividing: Total fixed costs by number of units produced Estimated overhead costs by estimated activity base Actual overhead costs by actual activity level Total costs by total sales revenue None 22. If a company has a contribution margin of $40 per unit and fixed costs of $80,000, how many units must be sold to break even? 2,000 units 2,000 units 3,000 units 4,000 units None 23. Which of the following best defines an opportunity cost? The cost recorded in the financial statements The benefit foregone by choosing one alternative over another The direct material cost incurred in production The cost that remains fixed regardless of activity level None 24. In a flexible budget, the budgeted cost for each cost item: Remains fixed irrespective of activity levels Changes based on the actual level of activity Is set based on total production costs Is unrelated to production volume None 25. A company absorbs overheads based on machine hours. If budgeted overheads are $90,000 and budgeted machine hours are 10,000, what is the absorption rate per machine hour? $9 $10 $11 $12 None 26. Which of the following best describes variable cost behaviour? Total variable cost changes with activity level, but cost per unit remains constant Total variable cost remains constant, but cost per unit changes with activity level Total variable cost and cost per unit both remain constant Total variable cost decreases as production increases None 27. If actual material cost is $25,000 and the standard material cost is $22,000, what is the material cost variance? $3,000 Favourable $3,000 Adverse $4,000 Favourable $4,000 Adverse None 28. The break-even point in sales dollars can be calculated as: Fixed Costs / Contribution Margin Ratio b Total Sales / Total Variable Costs Contribution Margin / Fixed Costs Fixed Costs / Total Sales None 29. Which of the following statements about under-absorbed overheads is true? Actual overheads are less than absorbed overheads b Absorbed overheads are greater than actual overhead Actual overheads are more than absorbed overheads It leads to an overestimation of profit None 30. If a factory has normal capacity of 20,000 machine hours and actual machine hours used are 18,000, which variance arises? Idle capacity variance Fixed overhead volume variance Labour rate variance Sales volume variance None 31. In process costing, equivalent units of production are calculated to: Assign costs to partially completed units Calculate cost of completed units only Determine the selling price None 32. Which costing method involves calculating costs for each stage of the production process? Job costing Batch costing Process costing Activity-based costing None 33. If sales revenue is $200,000, variable costs are $120,000, and fixed costs are $50,000, what is the contribution margin ratio? 30% 40% 60% 75% None 34. Which of the following is the correct formula for calculating the predetermined overhead rate? Budgeted Overheads / Budgeted Units Produced b) Budgeted Budgeted Overheads / Budgeted Activity Level Actual Overheads / Actual Labour Hours Budgeted Sales / Budgeted Variable Costs None 35. If the standard hours for actual production are 1,500 and the actual hours worked are 1,400, what is the labour efficiency variance if the standard rate is $20 per hour? $1,000 Favourable $2,000 Favourable $1,000 Adverse $2,000 Adverse None 36. A company has a contribution margin of $25 per unit and fixed costs of $50,000. How many units must be sold to achieve a profit of $25,000? 1,500 units 2,000 units 2,500 units 3,000 units None 37. In a cost sheet, the allocation of factory rent to various production departments is an example of: Cost absorption Cost apportionment Cost reallocation Cost budgeting None 38. If actual output is greater than budgeted output, the fixed overhead volume variance will be: Favourable Adverse Zero Equal to the efficiency variance None 39. Which of the following costs is treated as a period cost under marginal costing? Direct materials Direct labour Fixed manufacturing overheads Variable manufacturing overheads None 40. If a company has sales of $300,000, variable costs of $180,000, and fixed costs of $70,000, what is the net profit? $50,000 $60,000 $70,000 $80,000 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. Which of the following best describes semi-variable costs? Costs that do not change with production levels Costs that vary directly with production levels Costs that have both fixed and variable components Costs that are always fixed per unit None 2. Which costing method is most suitable for the construction of roads? Job costing Batch costing Contract costing Process costing None 3. In marginal costing, fixed costs are treated as: Product costs Period costs Opportunity costs Direct costs None 4. Which of the following costs is considered an indirect expense? Direct material Supervisor's salary Direct labour Machine operator wages None 5. The formula for break-even sales in units is: Fixed Costs / Contribution per Unit Fixed Costs / Variable Cost per Unit Total Costs / Sales Volume Contribution Margin / Fixed Costs None 6. Which of the following is an example of a non-cost item in cost accounting? Direct labour Depreciation Income tax Indirect material None 7. Standard costing is mainly used to: Prepare financial statements Evaluate managerial performance Determine selling price Allocate indirect costs None 8. Which of the following is considered a controllable cost? Rent of factory building Direct labour Depreciation Interest on loans None 9. Prime cost includes: irect material, direct labour, and indirect costs Direct material, direct labour, and direct expenses Factory overheads and selling expenses Indirect expenses and variable costs None 10. Which costing method is most suitable for industries with mass production of identical units? Job costing Batch costing Process costing Contract costing None 11. The purpose of calculating variances in standard costing is to: Determine tax liabilit Prepare cash flow statements Control costs by analyzing differences between actual and standard costs Allocate direct costs to products None 12. Which of the following is a feature of absorption costing? Only fixed costs are included in product cost All manufacturing costs are included in product cost Only direct costs are included Variable costs are excluded None 13. The difference between standard hours for actual production and actual hours worked is called: Labour rate variance Labour efficiency variance Labour mix variance Labour yield variance None 14. Which of the following describes the concept of a cost center? A unit that generates revenue A unit where costs are incurred but no revenue is generated A unit responsible for investment decisions A unit that produces finished goods None 15. Fixed cost per unit decreases when Production increases Production decreases Variable cost decrease Sales revenue decreases None 16. Which of the following is an avoidable cost? Fixed cost Opportunity cost Direct labour Sunk cost None 17. Which of the following statements is true about marginal costing? It treats all costs as product costs It is not useful for decision-making It classifies costs as variable and fixed It allocates fixed costs to products None 18. In contract costing, profit on incomplete contracts is usually: Ignored until the contract is complete Estimated based on work certified Added to the next contract Deducted from direct costs None 19. The process of spreading the cost of a non-production department to production departments is known as: Allocation Absorption Apportionment Reallocation None 20. Which of the following costs is not considered while calculating the contribution margin? Direct material Direct labour Variable overheads Fixed overheads None 21. Which of the following methods is used to analyze the cost behaviour in relation to activity levels? Marginal costing Absorption costing Job costing Break-even analysis None 22. In which of the following industries is job costing most likely used? Oil refining Custom furniture manufacturing Cement production Textile weaving None 23. Which type of budget is prepared for a particular level of activity and does not change with actual levels? Fixed budget Flexible budget Zero-based budget Master budget None 24. Which of the following statements about direct costs is true? They cannot be directly traced to a cost object They include indirect material and labour They can be directly traced to a specific cost object They are always fixed None 25. The key difference between absorption costing and marginal costing is: Treatment of fixed costs Treatment of variable costs Treatment of direct costs Treatment of selling expenses None 26. The variance that arises due to the difference between budgeted and actual fixed overheads is called: Fixed overhead expenditure variance Fixed overhead efficiency variance Sales variance Material variance None 27. Which of the following is an abnormal loss? Scrap generated during normal production Loss due to machine breakdown Wastage considered normal in production Indirect material loss None 28. The purpose of a flexible budget is to: Provide a budget that remains unchanged irrespective of activity levels Help compare actual performance with budgeted performance at different levels of activity Allocate costs equally among cost centres Determine profit margins None 29. Which of the following statements is correct regarding opportunity cost? It is always a fixed cost It is the benefit foregone from the next best alternative It is a cost recorded in the books of accounts It has no relevance in decision-making None 30. In which costing method are costs accumulated by department or process? Job costing Batch costing Contract costing Process costing None 31. The margin of safety is the difference between: Fixed costs and variable costs Actual sales and break-even sales Contribution and fixed costs Sales and profit None 32. Which of the following is not part of prime cost? Direct materials Direct labour Factory overheads Direct expenses None 33. Which of the following costs is most likely to be classified as a committed fixed cost? Advertising expenses Depreciation of machinery Direct materials Temporary worker wages None 34. Which of the following describes a step-fixed cost? Costs that vary directly with activity Costs that remain fixed for a certain range of output and then increase by steps Costs that are always fixed per unit Costs that decrease as production volume increases None 35. The overhead rate based on direct labour hours is calculated by: Dividing total overheads by the number of units produced Dividing total overheads by direct labour hours Dividing direct costs by direct labour hours Dividing fixed costs by direct labour costs None 36. Which of the following is an example of an indirect labour cost? Wages paid to machine operators Salary of a factory supervisor Direct wages paid to assembly workers Payment to casual labour for specific jobs None 37. 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 38. Which of the following best defines a 'by-product'? The main product of a production process A secondary product obtained incidentally during the production of the main product A product produced by accident A product with a higher cost than the main product None 39. Which of the following statements about fixed costs is true? They remain fixed per unit as production increases They remain fixed in total as production levels increase They always increase with production They decrease per unit as production levels decrease None 40. The difference between actual sales and break-even sales is known as: Contribution margin Profit margin Margin of safety Gross margin 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 is a method for dealing with under-absorbed or overabsorbed overheads? Carrying forward to the next year Ignoring the difference Charging it to profit and loss account Allocating it among the customers None 2. Which of the following is the primary objective of cost accounting? Profit calculation Tax assessment Cost ascertainment and control Asset valuation None 3. Which variance occurs due to the difference between the actual and standard rate of wages? Labour efficiency variance Labour rate variance Material price variance Overhead volume variance None 4. Which type of costing method would be suitable for an oil refinery? Job costing Contract costing Process costing Batch costing None 5. Which of the following costs does not change with an increase or decrease in the level of activity? Variable cost Fixed cost Semi-variable cost Marginal cost None 6. Contribution margin is also known as: Gross profit Net profit Variable profit Answer: Marginal prof None 7. The formula for calculating profit-volume (P/V) ratio is: (Contribution / Sales) x 100 (Net Profit / Sales) x 100 (Fixed Cost / Sales) x 100 (Total Cost / Sales) x 100 None 8. Fixed overhead expenditure variance is calculated as the difference between: Actual overheads and absorbed overheads Budgeted overheads and actual overheads Actual costs and standard costs Variable costs and fixed costs None 9. Which of the following costs are considered when calculating the break-even point? Only fixed costs Only variable costs Fixed and variable costs Sunk costs None 10. Which costing system is used to assign costs to products that are similar but not identical? Process costing Job costing Batch costing Contract costing None 11. Which of the following is true regarding fixed costs? They increase with production volume They remain constant in total regardless of output They vary directly with sales volume They are irrelevant for break-even analysis None 12. Absorption costing treats fixed manufacturing overheads as Product costs Period costs Variable costs Sunk costs None 13. Which of the following describes conversion cost? Direct Material + Direct Labour Direct Labour + Overheads Prime Cost + Fixed Cost Indirect Material + Indirect Labour None 14. The cost of idle time caused by machinery breakdown should be treated as: Direct cost Indirect cost Sunk cost Opportunity cost None 15. The difference between sales revenue and variable cost is called: Gross profit Contribution Net profit Overhead None 16. Which of the following is used to calculate the fixed overhead absorption rate? (Total Fixed Overheads / Direct Material Cost) (Total Fixed Overheads / Direct Labour Hours) (Total Fixed Overheads / Machine Hours) (Total Fixed Overheads / Units Produced) None 17. If a company has under-absorbed overheads, it means: Actual overheads are less than absorbed overheads Actual overheads are more than absorbed overheads Overheads have been fully absorbed No overheads have been absorbed None 18. Which type of cost will change as production levels change? Fixed cost Variable cost Sunk cost Committed cost None 19. In contract costing, which of the following is deducted from the contract price to determine the profit on incomplete contracts? Direct expenses Contract value Work certified Retention money None 20. Which of the following is an indirect material cost? Steel used in manufacturing Lubricant used for machines Timber used for furniture Cloth used for garments None 21. Which costing technique aims at reducing costs by improving efficiency? Absorption costing Marginal costing Standard costing Batch costing None 22. The cost of abnormal loss in process costing is: Charged to production overhead Added to the cost of normal production Transferred to a cost of profit and loss account Allocated to the next process None 23. Which of the following is true regarding job costing? It is suitable for identical units produced continuously Costs are accumulated for each job separately It cannot be used in construction projects Overheads are not allocated in job costing None 24. Fixed overhead efficiency variance arises due to: Difference in actual and budgeted overheads Difference between actual and standard output Change in rate of wages Variation in sales price None 25. A by-product is defined as: A primary product of a process An insignificant product obtained during the manufacture of the main product A major source of revenue A direct expense None 26. Which of the following best defines 'absorption'? Charging all costs to a profit and loss account Allocating direct costs to specific units Charging overheads to individual units of production Ignoring fixed costs in costing None 27. Break-even analysis helps to determine: Total profit Total cost The point where total revenue equals total cost Variable costs None 28. Which of the following costs is used to calculate the contribution margin? Fixed costs Variable costs Semi-variable costs Sunk costs None 29. Which of the following is a method of apportioning service department costs? Direct labour hour method Step-down method Sunk cost method Job costing method None 30. The margin of safety can be increased by: Increasing fixed costs Reducing the selling price Increasing sales volume Increasing variable costs None 31. Which of the following best describes controllable costs? Costs that cannot be influenced by any manager Costs that can be influenced by the action of a specified manager Fixed costs only Variable costs only None 32. Which of the following is not included in the cost of production? Direct materials Direct labour Selling and distribution expenses Factory overheads None 33. The total of direct materials, direct labour, and direct expenses is known as: Conversion cost Prime cost Factory cost Total cost None 34. Which of the following is true about process costing? It accumulates costs by individual jobs It is suitable for industries with continuous production It is only applicable for small-scale businesses It does not consider overheads None 35. The difference between actual fixed overhead and the amount that should have been absorbed is known as: Fixed overhead expenditure variance Fixed overhead volume variance Efficiency varianc Sales variance None 36. In absorption costing, closing inventory is valued using: Only fixed costs Only variable costs Both fixed and variable costs Contribution margin None 37. Which of the following methods can be used to value work in progress in process costing? FIFO LIFO Weighted average All of the above None 38. The purpose of calculating a cost of quality is to: Determine the direct costs of materials Minimize the overall costs of quality-related activities Allocate fixed overheads Establish selling price None 39. In cost accounting, a budget that is prepared for various levels of activity is called: Fixed budget Flexible budget Master budget Capital budget None 40. A cost that does not change with the level of production or sales is known as: Variable cost Fixed cost Marginal cost Direct 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. 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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. Which of the following costs is excluded when calculating marginal cost? Direct material Direct labour Variable overheads Fixed overheads None 2. Which of the following costs can be classified as a sunk cost? Salaries for future projects Cost of raw material purchased but not yet used Cost of machinery purchased three years ago Expected costs for a new product None 3. Which variance is associated with the efficiency of the usage of materials? Material price variance Material usage variance Labour efficiency variance Overhead expenditure variance None 4. Which of the following is a key feature of activity-based costing (ABC)? It uses only direct labour hours to allocate costs It assigns overheads based on activities that drive costs It is only used in service industries It excludes indirect costs None 5. Which of the following describes equivalent units of production? The number of defective units produced The units that could have been produced given the total input The difference between actual and standard production units The cost per unit of raw material used None 6. In a manufacturing concern, factory rent is an example of Variable cost Fixed cost Direct cost Semi-variable cost None 7. The cost incurred in reworking defective products is called: Prime cost Conversion cost Rework cost Opportunity cost None 8. Which of the following is not an example of a fixed cost? Depreciation of machinery Rent of factory building Direct labour wages Insurance premium None 9. A high margin of safety indicates: Higher fixed costs Higher profitability Low break-even point Low sales volume None 10. The process of estimating future costs based on historical data is called: Budgeting Standard costing Cost forecasting Cost allocation None 11. Which of the following is a feature of job costing? Suitable for continuous production Costs are accumulated for a batch of similar products Costs are traced to individual jobs Costs are not traced to specific products None 12. Which method of costing is used in the construction of bridges? Job costing Batch costing Contract costing Process costing None 13. Fixed cost per unit will change with: Variable cost changes Changes in production level Direct labour changes Material cost changes None 14. The cost accounting system that records costs after they have been incurred is called: Standard costing Historical costing Marginal costing Budgetary costing None 15. The difference between the standard cost and the actual cost of production is called: Overhead Variance Absorption Contribution None 16. Which cost can be eliminated if a specific operation is discontinued? Committed cost Avoidable cost Sunk cost Fixed cost None 17. Which costing method is appropriate for a bakery producing bread and cakes in batches? Job costing Batch costing Contract costing Process costing None 18. The main purpose of cost accounting is to Maximize profit Allocate costs accurately Determine tax liability Maintain legal records None 19. Which cost is treated as a product cost under absorption costing? Selling expenses General administrative expenses Fixed manufacturing overhead Interest on loans None 20. Which of the following best describes step-fixed costs? Costs that vary with each unit produced Costs that remain fixed over a certain range and then increase Costs that are only incurred in certain production steps Costs that remain the same irrespective of production volume None 21. Which type of cost is allocated to products in activity-based costing? Direct costs Indirect costs based on activities Only fixed costs Variable costs only None 22. In which industry is process costing most likely to be used? Construction Chemical manufacturing Tailoring services Automobile servicing None 23. Labour efficiency variance is related to: Time taken by labour compared to standard time Number of workers employed Wage rate fluctuations Production overheads None 24. Which of the following is true regarding contribution margin? It is the difference between sales and fixed costs It is used to cover variable costs first It is the difference between sales and variable costs It is the profit before taxes None 25. Which of the following is a controllable cost? Factory rent Depreciation on equipment Direct materials used in production Salaries of factory managers None 26. Which of the following best describes the term 'cost driver' in activity-based costing? A measure that directly causes costs A tool for profit calculation The total variable cost The production volume None 27. Under marginal costing, profit is calculated based on: Absorbed overheads Contribution margin Total fixed costs Opportunity costs None 28. The overhead absorption rate is used to: Allocate variable costs to cost units Determine the selling price of products Charge overheads to cost units Calculate direct labour cost None 29. Which of the following is an example of semi-variable costs? Rent of a factory Supervisor's salary Utility costs with a fixed and variable component Direct materials cost None 30. Break-even analysis is primarily concerned with: Estimating future profits Finding the level of sales to cover all costs Calculating gross margin Determining production capacity None 31. Under process costing, normal loss is treated as: Part of the cost of production Abnormal gain Overhead cost Not included in cost accounts None 32. Which of the following is true about under-absorbed overhead? t occurs when actual overhead is less than absorbed overhead It occurs when absorbed overhead is more than actual overhead It indicates that the actual overhead is more than absorbed overhead It does not affect cost accounting None 33. The term 'prime cost' refers to: Direct material cost only Direct material, direct labour, and direct expenses Total cost minus overheads Selling and distribution expenses None 34. Which of the following best describes absorption costing? Only variable costs are included in product cost Fixed overheads are treated as period costs Both fixed and variable overheads are included in product cost It ignores the contribution margin None 35. If actual output is more than normal output, the fixed overhead volume variance will be: Zero Favourable Adverse Equal to the spending variance None 36. The purpose of budgetary control is to: Set sales targets Provide a basis for financial reporting Compare actual performance with budgeted figures Allocate costs between products None 37. Which of the following statements is true regarding step-variable costs? They remain fixed irrespective of production levels They increase in small steps as production volume increases They are always fixed within the relevant range They are direct costs None 38. Which costing method is suitable for industries where products pass through different processes? Job costing Process costing Contract costing Batch costing None 39. The margin of safety ratio is calculated as: (Actual Sales - Break-even Sales) / Actual Sales (Fixed Costs / Total Sales) x 100 (Contribution Margin / Variable Costs) x 100 Total Sales / Fixed Costs None 40. In a cost sheet, depreciation is treated as: Direct cost Variable cost Overhead Selling expense None 1 out of 4 Great job on taking the INCOC Test! 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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. Which of the following statements is true regarding direct expenses? They are always variable costs They cannot be traced to a cost unit They are part of prime cost They are always fixed costs None 2. Which of the following is a feature of marginal costing? It includes fixed costs in product cost Fixed costs are treated as period costs It is used for external reporting It does not consider contribution None 3. The term 'cost centre' refers to: A unit where costs are incurred A unit responsible for revenue generation A profit-making division A unit that produces no expenses None 4. Which of the following is the formula for contribution per unit? Selling Price - Fixed Cost Selling Price - Variable Cost Fixed Cost - Variable Cost Total Cost - Selling Price None 5. The allocation of costs that are not directly attributable to cost centres is called: Apportionment Absorption Allocation Distribution None 6. Which of the following industries would most likely use batch costing? Oil refining Printing Electricity generation Steel production None 7. A cost that has already been incurred and cannot be recovered is known as: Fixed cost Sunk cost Variable cost Opportunity cost None 8. The predetermined overhead rate is calculated as: Actual Overheads / Actual Activity Leve Estimated Overheads / Estimated Activity Level Fixed Costs / Contribution Margin Total Sales / Total Costs None 9. A semi-variable cost is also known as a: Fixed cost Stepped cost Mixed cost Direct cost None 10. Which costing technique is used to minimize waste in production? Marginal costing Absorption costing Standard costing Activity-based costing None 11. Which of the following does not affect the break-even point? Selling price per unit Variable cost per unit Fixed costs Production volume None 12. A budgetary control system aims to: Calculate profitability Compare actual performance with budgeted figures Increase fixed costs Allocate indirect costs None 13. Which of the following best describes the purpose of cost accounting? To prepare financial statements To ascertain and control costs To comply with legal requirements To determine tax liability None 14. Fixed costs that can be reduced with managerial intervention are called: Avoidable costs Discretionary fixed costs aCommitted fixed costs Variable costs None 15. Which method of costing is used in mass production industries? Process costing Job costing Batch costing Contract costing None 16. Which of the following statements is true regarding indirect costs? They are easily traced to a product They do not include labour costs They are shared among cost centres They are always variable None 17. The method of costing used by hospitals is typically: Job costing Process costing Operating costing Batch costing None 18. The fixed overhead volume variance occurs due to: Change in sales price Difference between actual and budgeted production Changes in direct material cost Over-absorption of overheads None 19. The main purpose of standard costing is to: Calculate profit Control costs Allocate overheads Increase sales revenue None 20. Which of the following is used to calculate the profit-volume ratio? (Contribution / Sales) x 100 (Fixed Cost / Sales) x 100 (Variable Cost / Sales) x 100 (Net Profit / Sales) x 100 None 21. An example of direct cost in a furniture factory is: Rent of factory Supervisor's salary Timber used for production Depreciation of equipment None 22. Variable costs in total: Remain constant at all activity levels Increase as the level of activity increases Decrease with increasing production Are always fixed None 23. Which cost is used as a benchmark to evaluate actual performance? Historical cost Standard cost Fixed cost Sunk cost None 24. The term 'absorption rate' refers to: The rate of sales growth The rate of variable cost allocation The rate of allocating overhead costs to production units The rate of profit calculation None 25. In marginal costing, which cost is ignored while calculating product cost? Direct material Direct labour Variable overheads Fixed overheads None 26. Which of the following is not a characteristic of job costing? Customized production Costs are accumulated by individual jobs Suitable for repetitive production Costs are assigned to each job separately None 27. When total sales are equal to total costs, the business is at: A loss Break-even Profit Marginal return None 28. Cost plus pricing is used when: The demand is elastic The cost of the product is difficult to estimate Profit margin is added to the cost Competition is very high None 29. Over-absorption of overhead occurs when: Actual overheads are greater than absorbed overheads Absorbed overheads are greater than actual overheads Actual overheads are equal to absorbed overheads Variable costs are more than fixed costs None 30. In absorption costing, closing inventory is valued using: Only variable costs Only fixed costs Total production cost Contribution margin None 31. Labour turnover measures: The efficiency of labour The number of employees leaving the organization The rate of wage increase The amount of overtime worked None 32. Which of the following is true regarding batch costing? Each item is costed individually ated for each product separately It is used for products that are identical It is not used in manufacturing industries Costs are accumulated for each product separately None 33. An overhead absorption rate is used to: Allocate direct costs to production Estimate the profit margin Absorb indirect costs into product costs Calculate selling price None 34. Marginal costing is also known as: Direct costing Absorption costing Total costing Standard costing None 35. Break-even analysis is based on which assumption? Total cost is linear with respect to output Variable cost changes with production volume Fixed cost changes with production volume Selling price per unit changes with volume None 36. Which costing method is used in a chemical industry? Job costing Contract costing Process costing Operating costing None 37. The cost incurred for a specific purpose and that can be eliminated if that purpose is not pursued is called: Committed cost Relevant cost Sunk cost Opportunity cost None 38. The fixed cost per unit will: Increase as production increases Remain constant irrespective of production volume Decrease as production increases Be greater than the variable cost None 39. In the cost sheet, selling and distribution expenses are considered as: Part of prime cost Factory overheads Administration costs Period costs None 40. The material price variance is calculated as: (Actual Quantity × Standard Price) - (Actual Quantity × Actual Price) (Standard Quantity × Standard Price) - (Actual Quantity × Standard Price) (Actual Price - Standard Price) × Actual Quantity (Standard Price - Actual Price) × Standard Quantity 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. Which of the following statements is true about cost classification? Costs can only be classified by function Costs can be classified by behavior, function, and nature Costs can only be classified by nature Costs cannot be classified None 2. Which of the following is included in factory overheads? Direct labour Direct material Indirect material Selling expenses None 3. Cost allocation refers to: Assigning costs to cost units Assigning a whole item of cost to a single cost center Dividing costs among multiple cost centers Absorbing costs to products None 4. Which of the following is not an objective of cost accounting? Cost control Financial statement preparation Cost ascertainment Cost reduction None 5. A cost that remains constant per unit at different levels of activity is called: Fixed cost Variable cost Semi-variable cost Total cost None 6. The term 'relevant cost' refers to: Cost that has already been incurred Cost that is considered in decision-making Fixed cost Overhead cost None 7. Which costing system is most suitable for industries producing identical units? Job costing Process costing Contract costing Batch costing None 8. Which of the following is a limitation of absorption costing? It considers only variable costs It does not provide profit information Fixed costs are apportioned based on arbitrary methods It ignores all costs None 9. Which of the following is an example of controllable cost? Rent Depreciation Direct labour Interest on loans None 10. Which cost is related to the future and can be altered by decisions? Sunk cost Opportunity cost Relevant cost Committed cost None 11. The process of spreading overhead costs over cost units is called: Allocation Apportionment Absorption Budgeting None 12. Opportunity cost is defined as: The cost of direct material used The cost of the next best alternative foregone The cost of overheads absorbed The difference between fixed and variable cost None 13. In cost-volume-profit analysis, which of the following is assumed to remain constant? Selling price per unit Variable cost per unit Fixed cost All of the above None 14. Which costing technique focuses on ascertaining costs to help in managerial decision-making? Marginal costing Absorption costing Standard costing Historical costing None 15. Which of the following is a non-cost item in a cost sheet? Depreciation Direct labour Profit Factory rent None 16. Process costing is used in which of the following industries? Automobile manufacturing Paint production Construction Aircraft manufacturing None 17. Variable cost per unit remains constant but varies in total in proportion to: Profit Sales Level of activity Fixed costs None 18. Direct material cost is an example of: Fixed cost Variable cost Semivariable cost Overhead cost None 19. Which of the following costs would not be classified as a product cost? Direct material Factory rent Selling expenses Direct labour None 20. Which of the following is true about overheads in cost accounting? They are always fixed They are always variable They can be fixed, variable, or semivariable They are irrelevant to costing None 21. Cost drivers are used in which costing system? Process costing Job costing Activity-based costing Absorption costing None 22. Normal loss is treated as: Part of the cost of production An abnormal expense A direct expense An opportunity cost None 23. Which cost remains constant irrespective of production volume? Fixed cost Variable cost Semi-variable cost Marginal cost None 24. Job costing is applicable in which of the following industries? Oil refinery Construction Cement manufacturing Chemical processing None 25. Which of the following is not an overhead cost? Direct material Indirect labour Factory rent Indirect material None 26. In which costing method is each unit of production charged with its proportion of fixed costs? Marginal costing Absorption costing Job costing Batch costing None 27. When actual overheads are less than absorbed overheads, it results in: Overabsorption Under-absorption Full absorption Semi-absorption None 28. Which of the following is an indirect labour cost? Wages paid to machine operators Salary of a production supervisor Payment to a contract worker Direct wages None 29. Break-even analysis helps to determine: The level of sales required to cover all costs Profitability only Total fixed cost The amount of inventory None 30. Marginal costing considers fixed costs as: Product costs Period costs Opportunity costs Sunk costs None 31. Cost sheets are prepared to: Estimate the selling price Determine the profit Determine the cost of a product Allocate overheads None 32. The cost of goods sold includes: Only direct material Only prime cost Prime cost + Factory overheads Only indirect material None 33. Which of the following is an example of fixed overhead? Direct wages Indirect material Factory rent Commission on sales None 34. Standard cost is: An actual cost An estimated future cost A historical cost A cost that has already been paid None 35. Which method of costing is used in construction contracts? Batch costing Contract costing Job costing Process costing None 36. In activity-based costing, overheads are allocated based on: Direct labour hours Machine hours Activities that drive costs Units produced None 37. Cost control aims to: Minimize the difference between budgeted and actual costs Increase sales revenue Maximize fixed costs Allocate direct costs None 38. Which of the following is considered a step in overhead cost allocation? Determining total revenue Identifying cost centers Calculating direct labour costs Estimating selling price None 39. A budget prepared for various levels of activity is called a: Fixed budget Flexible budget Zero-based budget Master budget None 40. The formula for calculating the break-even point in units is: Fixed Costs / (Selling Price per Unit - Variable Cost per Unit) Total Costs / Variable Cost per Unit Fixed Costs / Contribution per Unit Total Revenue / Selling Price per Unit 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. 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!
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 the primary objective of production scheduling? Maximizing labor costs Minimizing inventory levels Ensuring timely completion of tasks Increasing idle time None 2. Which of the following production systems is characterized by a fixed sequence of activities? Job Shop Batch Production Assembly Line Project Production None 3. Which of the following inventory management techniques categorizes inventory based on its consumption value? ABC Analysis JIT EOQ Model MRP None 4. Which of the following is a key benefit of flexible manufacturing systems (FMS)? Low investment cost o Inflexible production capacity Ability to handle variety in products Limited product customization None 5. Which type of process layout is ideal for a job shop? Product Layout Fixed Position Layout Cellular Layout Process Layout None 6. In operations management, "Kaizen" means: Waste reduction Just-in-time inventory Continuous improvement Product quality control None 7. What does a fishbone diagram help with in operations management? Inventory control Root cause analysis Sales forecasting Layout planning None 8. Which of the following is a benefit of adopting the Just-in-Time (JIT) approach? Increased lead time Decreased quality Reduced inventory holding costs Increased buffer stock None 9. Which term refers to the percentage of time a machine is used compared to its available time? Machine Efficiency Utilization Rate Idle Time Ratio Capacity Utilization None 10. In which type of production system is the work done on a product at a single fixed location? Batch Production Job Shop Fixed Position Layout Product Layout None 11. Which of the following is the primary focus of Statistical Process Control (SPC)? Scheduling machine maintenance Reducing employee turnover Monitoring and controlling quality Improving marketing efficiency None 12. What is the key advantage of a cellular manufacturing system? Increased production lead time Reduced material movement Increased equipment costs Reduced workforce involvement None 13. Which type of inventory system maintains a continuous count of inventory levels? Periodic System Perpetual System Fixed Order System Manual System None 14. In lean manufacturing, which of the following terms describes activities that add no value to the product? Value-Added Activities Waste Process Value Inventory Contro None 15. The purpose of Poka-Yoke in lean production is to: Increase batch size Prevent defects from occurring Implement automated systems Increase inventory levels None 16. Which of the following is the term for reducing the time taken to switch from one product to another in manufacturing? Cycle Time Reduction Set-up Time Reduction Lead Time Minimization Idle Time Management None 17. What is meant by "cycle time" in production? The time taken to manufacture a batch of products The time between two successive outputs The total time taken for quality inspection The time a machine remains idle None 18. Which of the following scheduling techniques is used to determine the critical path in a project? PERT Gantt Chart EOQ ABC Analysis None 19. Which of the following refers to the process of locating bottlenecks in production? Line Balancing Bottleneck Analysis Load Leveling Layout Planning None 20. Which of the following is a type of growth strategy that involves adding new but related products? Diversification Market Penetration Product Development Retrenchment None 21. Which of the following is a major component of strategic management? Budget Control Operational Planning Strategy Implementation Employee Training None 22. Which strategy in the Ansoff Matrix involves selling existing products in new markets? Market Penetration Market Development Product Development Diversification None 23. What type of strategy is used when a company decides to exit from a particular business unit or market? Growth Strategy Retrenchment Strategy Diversification Strategy Stability Strategy None 24. Porter's Five Forces model does not include: Threat of substitutes Bargaining power of buyers Product innovation Rivalry among competitor None 25. Which of the following represents the key purpose of a mission statement? To define the organization's purpose and core activities To predict financial outcomes To detail employee compensation To outline marketing campaigns None 26. What does "first-mover advantage" mean in strategic management? Being the first to lower prices Being the first to enter a market and establish a brand Having the lowest costs in an industry Developing new HR policies None 27. Which of the following tools is used for assessing industry attractiveness and competitive position? SWOT Analysis BCG Matrix Porter's Five Forces Break-even Analysis None 28. Which of the following strategies focuses on competing within a narrow market segment? Cost Leadership Differentiation Focus Diversification None 29. A "star" in the BCG Matrix represents a product with: High market share in a low-growth market Low market share in a high-growth market High market share in a high-growth market Low market share in a low-growth market None 30. Which of the following statements is true of vertical integration? It involves acquiring competitors It refers to acquiring suppliers or distributors It focuses on creating unrelated products It targets unrelated markets None 31. Which of the following strategic options involves reducing organizational scope by eliminating unprofitable areas? Growth Strategy Stability Strategy Divestment Strategy Integration Strategy None 32. Which of the following best describes the role of a strategic business unit (SBU)? It is a unit responsible for marketing activities It acts as an autonomous entity responsible for strategic planning It manages human resources within the organization It focuses only on research and developme None 33. Which strategic framework helps a company decide whether to build, hold, harvest, or divest SBUs? SWOT Analysis BCG Matrix Porter's Value Chain PESTLE Analys None 34. The balanced scorecard is used to measure performance from all of the following perspectives except: Financial Customer Operational Competitive forces None 35. Which growth strategy in Ansoff’s matrix involves creating new products for new markets? Market Penetration Product Development Diversification Market Development None 36. What is the primary focus of Porter's differentiation strategy? Offering the lowest prices Providing unique products or services Maximizing production capacity Acquiring competitors None 37. Which of the following describes a "conglomerate diversification" strategy? Developing new, related products Entering into unrelated industries Expanding into new geographic regions Acquiring competitors None 38. Which analysis tool is used to identify internal capabilities and external opportunities? BCG Matrix SWOT Analysis PESTLE Analysis Value Chain Analysis None 39. In strategic management, a "core competency" refers to: A company's ability to reduce costs A unique strength that provides competitive advantage An organization's financial capability The size of a company’s customer base None 40. Which of the following is true about preventive maintenance? It is performed after a machine fails It increases machine reliability by servicing regularly It is used only for office equipment It is unplanned and sudden 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!
