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 Area Pin Code 1. A cost that varies directly with the level of activity is called: Fixed cost Profit computation Cost control and reduction Tax assessment None 2. The main objective of cost accounting is: Financial analysis Budgeting Cost ascertainment and control Taxation None 3. Overhead is also known as: Prime cost Indirect cost Direct cost Differential cost None 4. Cost of idle time is generally classified as: Direct labor cost Indirect labor cost Fixed overhead Opportunity cost None 5. A cost sheet is prepared to: Calculate cost of goods manufactured Determine profits Assess capital expenditure Ascertain fixed None 6. Normal loss in process costing is treated as: Abnormal loss Cost of production Profit Transfer cost None 7. A budget that remains constant regardless of the activity level is: Flexible budget Master budget Fixed budget Capital budget None 8. The term "cost driver" in Activity-Based Costing refers to: Prime costs Factors causing cost changes Overhead rates Selling price None 9. In marginal costing, fixed costs are treated as: Period costs Product costs Incremental costs Differential costs None 10. Opportunity cost is relevant in: Historical costing Decision-making Marginal costing only None of the above None 11. The most suitable costing method for the steel industry is: Job costing Process costing Batch costing Operating costing None 12. Material Cost Variance is computed as: Standard quantity × Standard rate (Actual quantity × Actual rate) – (Standard quantity × Standard rate) Actual quantity × Standard rate Standard cost – Fixed cost None 13. The total of all direct costs is known as: Fixed Cost Prime Cost Total Cost Marginal Cost None 14. Which of the following is excluded in a cost sheet? Direct materials Indirect expenses Interest on bank loan Direct wages None 15. Earning a fixed percentage on cost is a feature of: Job costing Process costing Cost-plus contract Batch costing None 16. Fixed cost per unit decreases when: Production increases Production decreases Variable cost increases Variable cost decreases None 17. Operating costing is most suitable for: Manufacturing units Transport services Retail businesses IT companies None 18. Which of the following costs is irrelevant for decision-making? Incremental cost Opportunity cost Sunk cost Marginal cost None 19. In absorption costing, fixed overheads are treated as: Variable cost Period cost Part of inventory valuation Direct cost None 20. A contract is considered 50% complete. The profit to be recognized is: 100% 50% 25% 10% None 21. In activity-based costing, activities are grouped into: Activity pools Cost centers Fixed overheads Direct costs None 22. Conversion cost includes: Direct materials and direct wages Direct wages and factory overheads Direct materials and factory overheads All direct and indirect costs None 23. The process of distributing overheads among various cost centers is: Absorption Apportionment Allocation Analysis None 24. Process costing is ideal for: Custom-made goods Continuous production Short-term projects High-value products None 25. Marginal cost is also called: Incremental cost Total cost Prime cost Differential cost None 26. Which is not an objective of cost accounting? Fixing selling price Inventory valuation Recording cash flows Budgeting None 27. Scrap value is subtracted from: Fixed cost Cost of production Depreciation cost Work-in-progress None 28. Uniform costing is generally adopted by: Individual businesses Businesses in the same industry Government organizations International firms None 29. The most appropriate costing method for a hospital is: Process costing Operating costing Job costing Batch costing None 30. FIFO method is used to: Calculate cost of raw materials Allocate overheads Value closing stock Estimate profits None 31. A budget is considered flexible when: It remains constant It adjusts based on activity levels It is prepared once a year It focuses on fixed costs None 32. A feature of Job Costing is: High volume, low variety Continuous production Identifiable costs per job Homogeneous products None 33. Imputed costs are: Notional costs Direct costs Variable costs Unrecoverable costs None 34. A standard cost is a: Historical cost Pre-determined cost Actual cost Fixed cost None 35. Labor turnover is measured as: (No. of employees joined ÷ Total employees) × 100 (No. of separations ÷ Average workforce) × 100 (Total labor cost ÷ Output) × 100 (Overtime cost ÷ Total wages) × 100 None 36. Under-absorption of overheads indicates: Overestimation of costs Over-recovery of overheads Under-recovery of overheads High productivity None 37. Cost-volume-profit analysis is useful for: Long-term planning Short-term decision-making Tax planning Inventory management None 38. Break-even point is where: Total Revenue = Total Cost Total Revenue > Total Cost Fixed Cost = Variable Cost Profit = Fixed Cost None 39. Differential cost is also known as: Marginal Cost Incremental Cost Fixed Cost Sunk Cost None 40. In job costing, costs are accumulated for: Each Process Each Contract Each Job Each Batch 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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