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. The cost incurred to detect defective products before they are sold is classified as: Prevention Cost Appraisal Cost Internal Failure Cost External Failure Cost None 2. Which of the following is NOT included in cost accounting? Determining Selling Price Preparation of Financial Statements Cost Control Cost Reduction None 3. The difference between actual cost and standard cost is termed as: Overhead Profit Variance Margin None 4. Prime cost plus factory overheads is equal to: Cost of Sales Works Cost Total Cost Direct Cost None 5. Which of the following is a direct expense? Salaries of Supervisors Depreciation on Plant Rent of Factory Premises Royalty Paid on Production None 6. Operating costing is applicable to: Oil Refineries Hospitals Construction Projects Sugar Mills None 7. The method of costing used in shipbuilding is: Job Costing Process Costing Contract Costing Batch Costing None 8. Which costing method is suitable for industries producing homogeneous products? Job Costing Process Costing Unit Costing Operation Costing None 9. Which method of costing is used for cement manufacturing? Job Costing Process Costing Unit Costing Contract Costing None 10. In which industry is the service costing method typically used? Textile Industry Electricity Supply Oil Refinery Automobile Manufacturing None 11. Economic Order Quantity (EOQ) minimizes: Material Costs Ordering and Carrying Costs Fixed Costs Total Costs None 12. Perpetual inventory system helps in: Stock Valuation Determining Reorder Levels Continuous Stock Record Maintenance Matching Physical Stock with Ledger None 13. The safety stock is maintained to: Reduce Holding Costs Reduce Ordering Costs Prevent Stock-Outs Meet Maximum Demand None 14. The formula for maximum stock level is: Reorder Level + EOQ – Minimum Consumption Reorder Level + EOQ Reorder Level + Minimum Stock Level Reorder Level + EOQ – Average Consumption None 15. In the FIFO method, the closing stock is valued at: Latest Purchase Price Oldest Purchase Price Weighted Average Price Standard Price None 16. Which of the following is an indirect labor cost? Wages Paid to Factory Workers Salaries of Maintenance Staff Overtime Paid to Direct Workers Incentives Paid to Direct Workers None 17. The wage payment system where earnings are proportional to output is called: Time Rate System Piece Rate System Halsey Plan Rowan Plan None 18. A guaranteed minimum wage is provided under: Piece Rate System Rowan Plan Halsey Plan Both b and c None 19. Which of the following is a preventive measure for reducing idle time? Providing Overtime Pay Effective Machine Maintenance Increasing Production Targets Hiring Additional Workers None 20. The cost associated with training new employees is classified as: Direct Cost Indirect Cost Fixed Cost Sunk Cost None 21. Variable overheads change in proportion to: Total Output Fixed Costs Machine Maintenance Supervisor Salaries None 22. Apportionment of overhead costs involves: Direct Allocation to Jobs Distribution Among Cost Centers Absorbing Costs into Products None of the Above None 23. Which of the following is a basis for apportioning power costs? Number of Workers Floor Area Machine Hours Value of Material Consumed None 24. Over-absorbed overhead means: Actual Overhead > Absorbed Overhead Actual Overhead < Absorbed Overhead Absorbed Overhead = Budgeted Overhead None of the Above None 25. In ABC costing, the term "cost pool" refers to: The Activity That Generates Costs A Group of Costs Linked to an Activity The Cost Driver All of the Above None 26. Zero-based budgeting starts with: Last Year’s Budget Zero Base Every Year Projected Expenses Estimated Sales None 27. The budget prepared first in the budgeting process is: Production Budget Sales Budget Cash Budget Master Budget None 28. A flexible budget is useful for: Static Production Levels Variable Costs Only Varying Activity Levels Fixed Overheads Only None 29. Budgetary control aims to: Eliminate Costs Control Activities and Costs Fix Production Targets Achieve Zero Variance None 30. Which of the following budgets is an operating budget? Capital Budget Cash Budget Production Budget Master Budget None 31. Which cost remains constant per unit but varies in total? Fixed Cost Variable Cost Marginal Cost Sunk Cost None 32. The formula for break-even sales (in units) is: Fixed Costs ÷ Contribution per Unit Fixed Costs ÷ Variable Costs Total Sales ÷ Contribution Fixed Costs ÷ Sales Price per Unit None 33. In decision-making, sunk costs are: Relevant Costs Irrelevant Costs Fixed Costs Incremental Costs None 34. The main objective of marginal costing is to: Control Fixed Costs Determine Total Cost Ascertain Contribution Margin Allocate Overheads None 35. Which cost is considered in a shutdown decision? Sunk Cost Avoidable Fixed Cost Opportunity Cost Incremental Cost None 36. Labor efficiency variance is caused by: Change in Wage Rate Efficiency of Workers Idle Time Both b and c None 37. The variance that arises due to changes in output level is called: Sales Volume Variance Overhead Volume Variance Material Price Variance Overhead Efficiency Variance None 38. The formula for material cost variance is: Standard Cost - Actual Cost Standard Price × Standard Quantity Standard Cost - Budgeted Cost Actual Cost - Budgeted Cost None 39. None 40. Which variance reflects the difference between actual and standard labor cost? Labor Rate Variance Labor Efficiency Variance Labor Cost Variance Labor Idle Time Variance 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!
