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. Under marginal costing, contribution is: Profit before tax Sales minus variable costs Fixed costs plus profit Both b and c None 2. Which of the following is considered an implicit cost? Rent paid for a factory Salaries paid to workers Interest on own capital Depreciation of machinery None 3. Which of the following costing methods is best for construction projects? Job costing Contract costing Process costing Operating costing None 4. The term “cost unit” refers to: A unit of production or service Total cost incurred Cost of overheads None of the above None 5. A budget prepared for one level of activity is known as: Master budget Fixed budget Flexible budget Cash budget None 6. In process costing, work-in-progress is valued at: Cost per unit Market price Full cost Equivalent production units None 7. If selling price per unit increases, the break-even point: Decreases Increases Remains constant Becomes irrelevant None 8. What type of cost changes with the level of activity but not proportionally? Fixed cost Variable cost Semi-variable cost Imputed cost None 9. Contribution is used to cover: Fixed costs and profit Variable costs Sunk costs Opportunity costs None 10. The purpose of cost allocation is to: Separate fixed and variable costs Assign indirect costs to cost objects Calculate taxes Determine profit margins None 11. When overhead is under-absorbed, it means: Overheads charged are more than actual Overheads charged are less than actual No overheads were charged None of the above None 12. In target costing, the primary focus is on: Controlling costs Market-driven pricing Determining selling price Allocating indirect costs None 13. Cost-volume-profit analysis assumes: Fixed costs change with activity levels Selling price per unit is constant Variable cost per unit decreases with production Sales mix is irrelevant None 14. What is the main purpose of key factor analysis? Budget preparation Prioritize resource allocation Control variable costs Determine cost per unit None 15. The difference between actual cost and standard cost is: Opportunity cost Variable cost Cost variance Marginal cost None 16. An abnormal gain occurs when: Actual loss is more than expected Actual loss is less than expected Process cost increases Scrap value decreases None 17. A key difference between marginal costing and absorption costing is: Allocation of fixed costs Allocation of variable costs Classification of direct costs Treatment of period costs None 18. If the margin of safety is high, it indicates: Low risk of loss High fixed costs Low contribution per unit High break-even sales None 19. Which type of costing is used in the transport industry? Job costing Process costing Operating costing Batch costing None 20. The primary purpose of variance analysis is to: Prepare financial accounts Calculate inventory values Identify deviations from standards Allocate costs accurately None 21. Which of the following is not included in prime cost? Direct materials Direct labor Factory overheads Direct expenses None 22. The main objective of inter-firm comparison is to: Reduce competition Improve operational efficiency Control variable costs Fix prices None 23. Profit volume ratio increases when: Fixed costs decrease Variable costs decrease Selling price decreases Contribution decreases None 24. An item of cost that does not involve cash expenditure is: Opportunity cost Notional cost Historical cost Differential cost None 25. Operating costing is also known as: Process costing Service costing Marginal costing Contract costing None 26. Process costing is most suitable for: Manufacturing steel Accounting services Custom-made furniture Consulting None 27. The cost incurred in the past and irrelevant for decision-making is called: Sunk cost Variable cost Relevant cost Fixed cost None 28. What does "cost apportionment" mean? Charging costs directly to a cost center Splitting costs among multiple cost centers Ignoring indirect costs Allocating fixed costs only None 29. Which of the following is a controllable cost? Salaries Rent Advertising expenditure Depreciation None 30. What is a relevant cost for decision-making? A past cost A cost that will not change A cost that changes with decisions A non-monetary cost None 31. In marginal costing, profit is determined by: Contribution – Fixed cost Sales – Variable cost Fixed cost – Contribution Prime cost – Overhead None 32. If actual overheads are greater than absorbed overheads, it leads to: Under-absorption Over-absorption Full absorption None of the above None 33. Abnormal loss units in process costing are valued at: Scrap value Cost per unit of normal production Market price Zero value None 34. Differential cost analysis helps in: Long-term decisions Short-term decisions Preparing financial statements Evaluating sunk costs None 35. Imputed costs are: Notional costs Direct costs Variable costs Unrecoverable costs None 36. Uniform costing is suitable for: Individual firms Firms in the same industry Small businesses only Government organizations None 37. In a cost sheet, closing stock of finished goods is: Deducted from works cost Added to works cost Deducted from cost of sales Added to prime cost None 38. Which is a feature of process costing? Separate cost records for each job Continuous production Costs accumulated by department Both b and c None 39. Break-even analysis is used to determine: Optimum production quantity Minimum number of products to cover costs Maximum profit margin Material wastage percentage None 40. In activity-based costing, cost drivers are used to: Allocate direct material costs Assign indirect costs to cost objects based on activities Determine the selling price of a product Allocate profits among departments 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. 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! To begin the quiz, please grant this quiz access to your camera.Time is Up!Time is Up!
