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 not a characteristic of fixed costs? Constant in total within a relevant range Varies per unit with the level of activity Directly proportional to production volume Includes rent or salaries None 2. Cost incurred to maintain the quality of a product is categorized as: Quality Cost Overhead Cost Production Cost Fixed Cost None 3. Which cost classification is based on variability with production volume? Product and Period Cost Fixed and Variable Cost Direct and Indirect Cost Controllable and Uncontrollable Cost None 4. The opportunity cost of an alternative action is: Sunk Cost Incremental Cost Implicit Cost Irrelevant Cost None 5. Which of the following costs is relevant for decision-making? Sunk Cost Marginal Cost Fixed Cost Historical Cost None 6. Stock levels are calculated to ensure: Higher Safety Stock Continuity of Operations Increased Carrying Costs Reduction in Material Consumption None 7. The reorder level is calculated as: Minimum Stock + Average Consumption Maximum Stock – Safety Stock Maximum Consumption × Maximum Reorder Period EOQ ÷ Reorder Period None 8. Which of the following is NOT a material control technique? EOQ Analysis Just-in-Time Inventory ABC Analysis Capital Budgeting None 9. Scrap value is generally treated as: Overheads Revenue Direct Cost A deduction from the cost of material consumed None 10. Normal loss in process costing is: Charged to Profit and Loss Account Transferred to the Next Process Absorbed by the Output of the Process Ignored in Cost Records None 11. Time rate system is suitable for: Assembly Line Operations Highly Skilled Jobs Jobs with Uniform Output Standards Routine Maintenance Work None 12. The most effective method for reducing labor turnover is: Training Programs Incentive Schemes Job Enrichment Welfare Facilities None 13. Which of the following is NOT a labor cost control measure? Regular Training Effective Supervision High Idle Time Use of Incentive Plans None 14. Idle time arising due to machine breakdown is classified as: Normal Idle Time Abnormal Idle Time Avoidable Idle Time Non-Recurring Idle Time None 15. Overtime premium paid to workers engaged in direct production is treated as: Factory Overhead Direct Labor Cost Administrative Overhead Selling Overhead None 16. Which basis is most appropriate for apportioning rent costs? Machine Hours Number of Employees Floor Area Units Produced None 17. Under-absorbed overheads are: Deducted from Cost of Sales Transferred to Overhead Reserve Charged to Profit and Loss Account Ignored in the Final Accounts None 18. Which of the following is an absorption method for overheads? rime Cost Percentage Direct Cost Apportionment Marginal Cost Allocation None of the Above None 19. Which of the following is a part of production overheads? Factory Rent Salaries of Office Staff Interest on Debentures Advertisement Expenses None 20. The formula for predetermined overhead rate is: Total Overheads ÷ Units Produced Budgeted Overheads ÷ Budgeted Activity Level Actual Overheads ÷ Actual Activity Level Total Cost ÷ Total Output None 21. Cost Volume Profit (CVP) analysis is used to determine: Optimal Production Levels Relationship Between Costs, Volume, and Profits Fixed Cost Allocation Budgeted Sales Growth None 22. In marginal costing, fixed costs are considered as: Product Costs Period Costs Incremental Costs Avoidable Costs None 23. Break-even sales (in value) can be calculated as: Fixed Costs ÷ PV Ratio Contribution ÷ Fixed Costs Fixed Costs × Variable Costs Fixed Costs ÷ Sales Ratio None 24. Shutdown point is determined when: Revenue Covers Variable Cost Revenue Equals Fixed Cost Revenue Covers All Costs Revenue Covers Marginal Cost Only None 25. Contribution margin is equal to: Sales – Fixed Costs Sales – Variable Costs Fixed Costs – Variable Costs Variable Costs – Sales None 26. Equivalent units are calculated to: Value Normal Loss Determine Total Cost of Production Allocate Joint Costs Value Work-in-Progress None 27. Abnormal gain is credited to: Process Account Normal Loss Account Profit and Loss Account Work-in-Progress Account None 28. Joint products are distinguished from by-products based on: Total Cost Allocation Sales Value Production Method Volume Produced None 29. Which of the following methods is used to apportion joint costs? Physical Output Basis Average Cost Basis Marginal Cost Basis Standard Cost Basis None 30. Which type of loss is included in cost accounts? Normal Loss Abnormal Loss Controllable Loss Avoidable Loss None 31. Cash budgets are used to: Allocate Overheads Manage Working Capital Determine EOQ Track Profit Margins None 32. Which budget ensures resource availability for capital projects? Sales Budget Capital Budget Master Budget Flexible Budget None 33. Which budgeting method prioritizes activities? Zero-Based Budgeting Rolling Budgeting Incremental Budgeting Activity-Based Budgeting None 34. Differential cost is also known as: Marginal Cost Incremental Cost Fixed Cost Sunk Cost None 35. Relevant cost for decision-making is: Fixed Cost Opportunity Cost Sunk Cost Historical Cost None 36. Material usage variance arises due to: Change in Material Price Inefficiency in Material Usage Change in Quantity Produced Change in Overheads None 37. The variance arising due to deviation in wage rates is called: Labor Rate Variance Labor Efficiency Variance Idle Time Variance Wage Cost Variance None 38. Overhead efficiency variance is caused by changes in: Machine Hours Worked Output Levels Overhead Rates Fixed Costs None 39. Sales margin variance measures: Effect of Sales Volume on Contribution Difference Between Actual and Budgeted Sales Price Change in Overheads Absorbed Effect of Changes in Sales Mix None 40. Which variance indicates over- or under-utilization of resources? Efficiency Variance Volume Variance Capacity Variance Rate 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! 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