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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