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. Which of the following is an example of a semi-variable cost? Rent Direct labor Maintenance cost Raw material cost None 2. Which method of costing is most suitable for industries like construction? Job costing Batch costing Contract costing Process costing None 3. Cost incurred after the product is manufactured and ready for sale is classified as: Factory cost Prime cost Distribution cost Conversion cost None 4. The difference between fixed and variable costs is that fixed costs: Vary with production levels Are controllable in the short term Do not change with activity levels Are part of direct costs None 5. Equivalent production units are used in: Job costing Process costing Marginal costing Activity-based costing None 6. Cost of abnormal loss is: Transferred to cost of production Written off to Profit and Loss Account Included in normal cost Allocated to closing stock None 7. Which of the following is a limitation of marginal costing? Difficulty in segregation of costs Ignores variable costs Inappropriate for break-even analysis Complex to understand None 8. The break-even point is affected by: Variable cost per unit Fixed costs Selling price per unit All of the above None 9. Joint costs are apportioned based on: Selling price Net realizable value Physical quantities Any of the above None 10. Absorption costing includes: Only variable costs Only fixed costs Both fixed and variable costs Direct costs only None 11. In process costing, abnormal gain is valued at: Market price Cost per unit of normal production Selling price Zero cost None 12. A system of costing applied in hotels and hospitals is: Process costing Job costing Operating costing Batch costing None 13. Contribution margin is the difference between: Sales and fixed costs Sales and variable costs Variable costs and fixed costs Sales and prime costs None 14. What is the main purpose of standard costing? Inventory valuation Performance measurement Profit calculation Tax reporting None 15. Imputed costs are used in: Financial accounting Cost control Decision-making Tax accounting None 16. The primary purpose of time-keeping is to: Control material usage Measure labor efficiency Record employee attendance Allocate overheads None 17. Variable cost per unit: Changes with the level of activity Remains constant Increases with production Decreases with production None 18. The ratio of profit to contribution is known as: Margin of safety Profit-volume ratio Contribution ratio Efficiency ratio None 19. The following is treated as an indirect expense: Machine repairs Direct materials Assembly wages Sales commission None 20. Which costing method is appropriate for manufacturing unique products? Process costing Batch costing Job costing Operating costing None 21. In a flexible budget, cost behavior is classified as: Fixed, variable, and semi-variable Direct and indirect Relevant and irrelevant Avoidable and unavoidable None 22. In a make-or-buy decision, the relevant cost is: Fixed cost Historical cost Variable cost Sunk cost None 23. A budget is: A plan expressed in financial terms A method for cost control A decision-making tool All of the above None 24. Which of the following is not an element of cost? Material Labor Overheads Profit None 25. Which type of costing is followed in oil refining? Batch costing Job costing Process costing Contract costing None 26. Which variance shows the effect of changes in production volume on overhead recovery? Overhead expenditure variance Overhead efficiency variance Overhead volume variance Overhead cost variance None 27. Idle time is classified as: Direct labor cost Indirect labor cost Direct material cost Prime cost None 28. In Activity-Based Costing, costs are allocated to: Departments Cost pools Products Services None 29. A key feature of marginal costing is: Allocation of fixed costs Inclusion of all costs in inventory valuation Contribution analysis Detailed classification of overheads None 30. The fixed cost per unit decreases when: Production decreases Production increases Variable costs increase Selling price increases None 31. A cost that remains the same per unit, irrespective of changes in activity levels, is: Fixed cost Variable cost Total cost Marginal cost None 32. Cost control focuses on: Past costs Future costs Both past and future costs Uncontrollable costs None 33. When two or more products are produced from the same process, they are called: By-products Co-products Joint products None of the above None 34. Differential cost analysis is useful for: Routine accounting Short-term decision-making Fixed cost allocation Periodic reporting None 35. The relationship between cost, volume, and profit is analyzed using: Marginal costing Break-even analysis Standard costing Differential costing None 36. Which of the following is an avoidable cost? Opportunity cost Fixed cost Variable cost Sunk cost None 37. The method of costing used in pharmaceuticals is: Job costing Batch costing Operating costing Marginal costing None 38. Over-absorption of overheads indicates: Under-applied costs Over-applied costs High production efficiency None of the above None 39. The costing system used for a sugar factory is: Job costing Process costing Batch costing Operating costing None 40. The main purpose of budgetary control is: Financial reporting Profit maximization Cost control and planning Capital expenditure control 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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