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. Fixed cost per unit increases when: Production decreases Production increases Variable cost increases Selling price increases None 2. Marginal costing is also known as: Variable costing Absorption costing Historical costing Total costing None 3. A predetermined overhead rate is calculated based on: Actual costs Estimated costs and activity levels Standard costs Fixed costs only None 4. Which of the following is an indirect cost? Direct material Direct labor Factory rent Prime cost None 5. An abnormal loss is calculated as: Actual loss - Normal loss Normal loss - Actual loss Process cost - Scrap value None of the above None 6. Contribution is calculated as: Sales - Variable Cost Sales - Fixed Cost Fixed Cost - Variable Cost Sales - Total Cost None 7. What is the main feature of integrated accounting? Separate financial and cost accounts Combining financial and cost accounts Separate ledgers for cost control None of the above None 8. The basic purpose of a cost sheet is to: Determine profits Ascertain costs per unit Control overheads Allocate costs None 9. Absorption costing is also referred to as: Total costing Variable costing Marginal costing Historical costing None 10. In cost accounting, "bin card" refers to: Labor attendance record Stock record card Job cost record Fixed asset record None 11. What is the primary objective of process costing? Ascertain profit per product Determine cost per process Evaluate job costs Control variable costs None 12. Which of the following is a relevant cost? Fixed cost Opportunity cost Sunk cost Historical cost None 13. A batch costing system is suitable for: Textile industry Furniture manufacturing Shipbuilding Cement production None 14. Which of the following is excluded from a cost sheet? Prime cost Indirect expenses Interest on loans Factory overheads None 15. Opportunity cost is most relevant in: Short-term decision-making Historical cost accounting Fixed cost analysis Period cost calculations None 16. When average cost is falling, marginal cost is: Equal to average cost Less than average cost Greater than average cost Cannot be determined None 17. Under Job Costing, costs are accumulated: For each process For each department For each job For each product None 18. Which of the following is a feature of cost-plus contracts? Fixed price Pre-determined profit margin Independent of cost changes Suitable for mass production None 19. A flexible budget is: Prepared for a single level of activity A budget that is not fixed Prepared at multiple levels of activity The master budget None 20. The main objective of variance analysis is to: Prepare budgets Control costs Allocate costs Determine selling price None 21. Cost of normal spoilage is: Charged to production Treated as a loss Added to profit Ignored in costing None 22. A costing method that uses cost drivers is: Standard costing Marginal costing Activity-based costing Absorption costing None 23. Semi-variable costs consist of: Fixed and variable components Fixed components only Variable components only Fixed and marginal components None 24. Escalation clauses in contracts account for: Fixed costs Price changes due to inflation Prime costs Distribution expenses None 25. The costing system used in power generation companies is: Job costing Process costing Operating costing Contract costing None 26. The main focus of target costing is: Reducing production time Market-driven pricing Maximizing profit Controlling variable costs None 27. In cost accounting, the term “relevant cost” means: Past costs Costs affecting future decisions Sunk costs Bookkeeping costs None 28. Idle time is typically classified as: Prime cost Indirect cost Fixed cost Variable cost None 29. Cost reduction aims to: Improve product quality Eliminate unnecessary costs Increase selling prices Increase fixed costs None 30. Profit volume ratio is calculated as: Contribution ÷ Sales Fixed cost ÷ Contribution Variable cost ÷ Sales Contribution ÷ Fixed cost None 31. An abnormal gain is: Charged to Profit and Loss Account Credited to process account Ignored in process costing Treated as a normal cost None 32. Which cost classification is not used for decision-making? Avoidable cost Sunk cost Incremental cost Opportunity cost None 33. A transfer price is set for: Transactions within the same organization Sales to external customers Accounting for sunk costs Depreciation of assets None 34. Which of the following represents controllable costs? Depreciation Salaries Rent Variable costs None 35. Which is not a characteristic of cost accounting? Emphasis on control Future-oriented Focus on external reporting Decision-supportive None 36. A cash budget is used for: Cost control Managing liquidity Inventory valuation Profit analysis None 37. Scrap value is deducted from: Total cost Cost of production Depreciation calculation Variable costs None 38. What does break-even analysis not assume? Fixed costs remain constant Variable cost per unit is constant Sales mix is variable All costs can be classified as fixed or variable None 39. In marginal costing, fixed costs are considered as: Period costs Product costs Incremental costs Sunk costs None 40. A method of costing suitable for printing presses is: Process costing Job costing Operating costing Batch costing 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 !! 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