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 costs does not vary with the level of production? Direct material cost Fixed cost Variable cost Semi-variable cost None 2. Which costing method is most suitable for a sugar mill? Job costing Process costing Batch costing Contract costing None 3. The break-even point is the point where: Total revenue equals fixed costs Contribution margin equals fixed costs Total costs are greater than total revenue Profit is maximized None 4. Labor efficiency variance measures: Difference in actual and standard labor rates Difference in hours worked versus hours budgeted Wastage of materials None of the above None 5. Overhead apportionment is the process of: Allocating overheads to a single cost center Spreading overheads among multiple cost centers Distributing direct costs Absorbing indirect costs None 6. Which of the following is a relevant cost for decision-making? Fixed cost Sunk cost Opportunity cost Historical cost None 7. Variable costs are also known as: Product costs Marginal costs Prime costs Period costs None 8. A flexible budget: Adjusts based on production levels Remains fixed regardless of production levels Focuses on non-variable costs Is prepared only for fixed costs None 9. In process costing, abnormal loss is: Charged to the process account Treated as part of normal production cost Credited to the Profit and Loss account Ignored in cost calculation None 10. The margin of safety is calculated as: Contribution ÷ Sales Fixed costs ÷ Contribution margin Actual sales – Break-even sales Sales ÷ Fixed costs None 11. The fixed cost per unit decreases when: Production decreases Production increases Variable costs increase Selling price increases None 12. An example of controllable cost is: Rent Advertising expenditure Depreciation Salaries of permanent staff None 13. In marginal costing, inventory is valued at: Fixed cost Total cost Variable cost Marginal cost only None 14. An increase in fixed costs will: Decrease the break-even point Increase the break-even point Have no effect on the break-even point Decrease contribution per unit None 15. Under standard costing, variance analysis helps in: Budget preparation Identifying deviations from expected performance Financial reporting Inventory management None 16. Direct costs can be traced directly to: Products Cost centers Period costs Financial statements None 17. An abnormal gain occurs when: Actual loss is more than expected Actual loss is less than expected Process cost increases Scrap value decreases None 18. Which of the following is not included in prime cost? Direct material cost Direct labor cost Factory overheads Direct expenses None 19. In absorption costing, under-absorption of overheads occurs when: Overhead absorbed is less than actual overhead incurred Overhead absorbed is more than actual overhead incurred All overheads are absorbed Overheads are ignored in costing None 20. Which of the following best defines "cost center"? A production unit incurring direct costs A location or department incurring costs but not generating revenue A center responsible for generating sales A cost recovery unit None 21. Joint costs are: Costs incurred for producing by-products Costs incurred up to the split-off point in joint production Marginal costs Fixed costs only None 22. The break-even analysis is used to determine: Maximum profit Minimum cost No profit, no loss point Total revenue None 23. The cost accounting method used for software development projects is: Batch costing Job costing Process costing Operating costing None 24. A budget prepared for a specific level of activity is called: Fixed budget Flexible budget Zero-based budget Rolling budget None 25. In contract costing, retention money is: Deducted from contract price until completion Added to profit immediately Ignored in cost accounting Treated as direct income None 26. Imputed costs are most relevant in: Tax accounting Decision-making Inventory management Budget preparation None 27. Which of the following costs is not a semi-variable cost? Telephone bill Salaries with incentives Rent Maintenance cost None 28. Which costing method uses the concept of equivalent units? Process costing Job costing Batch costing Marginal costing None 29. Activity-based costing focuses on: Cost centers Activities that drive costs Reducing sales price Eliminating fixed costs None 30. Fixed costs are also called: Marginal costs Period costs Direct costs Relevant costs None 31. Variable cost per unit: Changes with the level of activity Remains constant Increases with production Decreases with production None 32. The margin of safety is: Break-even Sales - Actual Sales Actual Sales - Break-even Sales Fixed Costs ÷ Contribution Variable Costs ÷ Contribution None 33. Which of the following is not part of conversion costs? Direct labor Factory overheads Direct material Depreciation of machinery None 34. A cost that does not involve cash outflow is: Opportunity cost Fixed cost Sunk cost Imputed cost None 35. The most appropriate costing system for a repair workshop is: Job costing Process costing Operating costing Batch costing None 36. Contribution is the difference between: Sales and fixed costs Sales and total costs Sales and variable costs Fixed costs and profits None 37. A contract with a pre-determined profit margin is: Job contract Cost-plus contract Fixed-price contract Variable-cost contract None 38. Which of the following is not a feature of marginal costing? Focus on contribution Fixed costs are treated as product costs Variable costs are charged to product Profit is calculated after deducting fixed costs None 39. Over-absorption of overheads indicates: Under-applied costs Over-applied costs High production efficiency None of the above None 40. The cost accounting system used in public utility services is: Job costing Operating costing Process 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 !! Your quiz time is about to finish. Few seconds left. 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