Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Cost and Management AccountingTotal Number of Question: 40Time: 41 MinutesPlease check your email after completion of test for result.All the best... Name Phone No Email State 1. Which of the following is a classification of cost based on behavior? Direct Material Fixed Cost Factory Overheads Prime Cost None 2. Costs that remain constant irrespective of the level of production are called: Variable Costs Semi-variable Costs Fixed Costs Marginal Costs None 3. Direct expenses are also known as: Chargeable expenses Factory expenses Indirect expenses Fixed costs None 4. Which of the following is not an element of cost? Material Labor Overheads Profit None 5. The difference between selling price and variable cost per unit is known as: Contribution Profit Gross margin Fixed cost None 6. Which method of costing is most suitable for the oil refinery industry? Job Costing Process Costing Batch Costing Contract Costing None 7. Which costing method applies to the construction of bridges or dams? Job Costing Process Costing Contract Costing Marginal Costing None 8. Marginal costing is based on the assumption that: All costs are fixed. All costs are variable. Costs can be segregated into fixed and variable components. All costs are semi-variable. None 9. Absorption costing considers: Only variable costs. Only fixed costs Both fixed and variable costs. Direct costs only None 10. In process costing, the cost incurred in one process is transferred to: Profit and Loss Account Finished Goods Account Next Process WIP Account None 11. A budget is a: Plan of action for a defined period. Summary of financial accounts. Tool to record actual costs Statement of liabilities. None 12. Variance analysis is used in: Budgetary Control Marginal Costing Process Costing Contract Costing None 13. If actual cost is higher than the standard cost, the variance is: Favorable Adverse Neutral None of the above None 14. Which of the following budgets is prepared first? Production Budget Sales Budget Cash Budget Purchase Budget None 15. The primary purpose of flexible budgeting is to: Estimate fixed costs. Accommodate changes in activity levels. Allocate indirect costs. Control direct materials. None 16. Which tool is used to analyze the relationship between cost, volume, and profit? Cost Sheet Marginal Costing CVP Analysis Process Costing None 17. The break-even point is the level of activity where: Total cost equals total revenue. Fixed costs equal variable costs. Profit is maximized. Contribution is zero. None 18. Which of the following is not a technique of cost control? Standard Costing Budgetary Control Marginal Costing Kaizen Costing None 19. A cost that can be eliminated if a department is discontinued is called: Fixed Cost Sunk Cost Avoidable Cost Opportunity Cost None 20. Cost incurred in the past and irrelevant for decision-making is called: Sunk Cost Marginal Cost Opportunity Cost Replacement Cost None 21. Overheads are classified into: Direct and Indirect Overheads Fixed, Variable, and Semi-variable Overheads Material and Labor Overheads Product and Period Overheads None 22. The basis of apportionment for electricity expenses is usually: Floor Area Horsepower of Machines Number of Workers Value of Materials None 23. Factory overheads are also called: Production Overheads Selling Overheads Administration Overheads Distribution Overheads None 24. Which of the following is not an overhead cost? Salary of Factory Manager Rent of Factory Building Depreciation of Machinery Cost of Direct Materials None 25. Under-absorbed overheads occur when: Actual overheads are less than absorbed overheads. Actual overheads are more than absorbed overheads. Absorbed overheads are equal to actual overheads. None of the above. None 26. Which costing method is more appropriate for short-term decision-making? Absorption Costing Marginal Costing Standard Costing Activity-Based Costing None 27. The key difference between marginal costing and absorption costing is the treatment of: Direct Materials Variable Costs Fixed Costs Prime Costs None 28. In marginal costing, fixed costs are considered as: Product Costs Period Costs Direct Costs Variable Costs None 29. Which statement is true under marginal costing? Profit is affected by inventory levels. Fixed costs are charged to units of production Profit is not affected by inventory levels. Fixed costs are included in unit cost. None 30. Absorption costing can lead to overstatement of profits if: Inventory levels increase. Inventory levels decrease. Sales remain constant. Fixed costs decrease. None 31. Which cost is relevant for decision-making? Fixed Cost Historical Cost Opportunity Cost Sunk Cost None 32. Shutdown costs are: Fixed costs that continue during shutdown. Costs incurred to restart operations. Variable costs during a shutdown period. None of the above None 33. A special order decision usually ignores: Variable Costs Fixed Costs Opportunity Costs Contribution Margin None 34. Make or buy decisions are based on: Total Costs Relevant Costs Marginal Costs Fixed Costs None 35. Opportunity cost is: Notional cost. Future cost. Cost of the next best alternative foregone. Fixed cost. None 36. Which document shows the detailed cost of a product? Cost Sheet Trial Balance Balance Sheet Job Card None 37. Which costing technique is useful for cost reduction? Standard Costing Historical Costing Marginal Costing Absorption Costing None 38. Which of the following is a direct cost? Supervisor’s Salary Factory Rent Direct Materials Electricity Expenses None 39. Depreciation is an example of: Fixed Cost Variable Cost Semi-variable Cost Direct Cost None 40. Management accounting primarily focuses on: Compliance with regulations External Reporting Decision-making and control Historical Data 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!
