Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Cost and Management Audit 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 section of the Companies Act, 2013 deals with Cost Audit? ) Section 139 Section 148 Section 177 Section 233 None 2. Who is responsible for maintaining cost records in a company? Statutory Auditor Cost Auditor CFO Board of Directors None 3. Which of the following industries is NOT covered under mandatory cost audit? Cement Fertilizers Banking Sugar None 4. The primary objective of cost audit is to: Ensure compliance with taxation laws Detect frauds and errors Improve cost efficiency and control Ensure financial stability None 5. Who prescribes the Cost Accounting Standards in India? ICAI ICMAI SEBI RBI None 6. The appointment of a cost auditor is made by: Shareholders Board of Directors Statutory Auditor CFO None 7. Which of the following is NOT a duty of a Cost Auditor? Examine cost records Recommend cost-saving techniques Certify financial statements Verify efficiency in resource utilization None 8. A cost auditor must submit the cost audit report to the Board within: 60 days 90 days 120 days 150 days None 9. Which of the following is an essential quality of a Cost Auditor? Knowledge of tax laws Independence and objectivity Strong public speaking skills Experience in banking None 10. Cost Auditor’s report is filed in which form? CRA-1 CRA-2 CRA-3 CRA-4 None 11. CAS-10 deals with: Material Cost Selling and Distribution Overhead Depreciation Research & Development Costs None 12. CAS-6 relates to: Employee Cost Material Cost Overheads Direct Expenses None 13. CAS-14 is applicable to: Pollution Control Cost Packing Material Cost ) Interest and Financing Charges Administrative Overheads None 14. Which CAS standard covers Overheads? CAS-3 CAS-6 CAS-7 CAS-9 None 15. CAS-22 deals with: Cost of Utilities Cost of Production Packing Material Cost Research & Development None 16. Which of the following is NOT a method used in Cost Audit? Ratio Analysis Budgetary Control Financial Forecasting Variance Analysis None 17. Cost Audit is primarily based on: Cost Accounting Records Tax Records Bank Statements Profit and Loss Account None 18. Which of the following does NOT require Cost Audit? IT services Sugar industry Power generation Cement industry None 19. Cost Audit primarily benefits: Employees Government Shareholders All of the above None 20. Who is responsible for filing the cost audit report with MCA? Statutory Auditor Company Secretary Cost Auditor Board of Directors None 21. Cost Audit assists management by: Reducing tax liabilities Identifying cost inefficiencies Ensuring regulatory compliance only Increasing profit margins directly None 22. Which of the following is NOT an objective of cost audit? Cost control Profit maximization Efficiency improvement Prevention of frauds None 23. Which of the following is a limitation of cost audit? Increased managerial efficiency Identifies cost inefficiencies Requires additional time and resources Provides better cost control None 24. One of the key challenges in cost audit is: Determining tax liabilities Estimating production budgets Availability of accurate cost data Increasing market share None 25. Which of the following areas is NOT directly impacted by Cost Audit? Product Pricing Marketing Strategies Resource Optimization Tax Evasion None 26. If a company fails to comply with cost audit provisions, the penalty may go up to: ₹10,000 ₹50,000 ₹1,00,000 ₹5,00,000 None 27. Non-maintenance of cost records can lead to a penalty of: ₹1,00,000 ₹5,00,000 ₹10,00,000 ₹50,000 None 28. Failure to appoint a cost auditor can result in penalties for: The company only The CFO only Both company and officers in default Statutory Auditor None 29. Who has the authority to order a cost audit? Shareholders Ministry of Corporate Affairs Internal Auditor CFO None 30. Cost Audit improves corporate governance by: Increasing financial statements’ credibility Avoiding statutory audits Manipulating costs Eliminating competition None 31. In the pharmaceutical industry, cost audit primarily focuses on: Drug pricing and production costs Marketing expenses Profit-sharing agreements Research tax benefits None 32. Which industry is NOT subject to mandatory cost audit under the Companies Act? Telecommunication Power generation Software development Petroleum refining None 33. Cost audit in the cement industry helps in: Cost reduction and efficiency improvement Tax compliance Mergers and acquisitions Sales forecasting None 34. Which of the following industries has a high dependency on cost audit for pricing regulations? Aviation Banking IT services Agriculture None 35. The cost audit report for the sugar industry is useful for: Managing production efficiency Avoiding tax liabilities Manipulating selling prices Increasing shareholder dividends None 36. Cost audit contributes to sustainability by: Reducing material wastage Increasing taxation Manipulating financial data Enhancing statutory compliance None 37. Environmental cost audit is primarily focused on: Compliance with environmental laws Identifying financial frauds Maximizing profit margins Reducing employee wages None 38. Which of the following costs are assessed in a Green Cost Audit? Water and energy consumption costs Shareholder dividend costs Advertising costs Corporate restructuring costs None 39. Social cost audit evaluates: A company’s impact on society and labor welfare Shareholder investment strategies Tax-saving strategies Competitor analysis None 40. The key objective of an Energy Audit within cost audit is to: Reduce electricity and fuel costs Improve employee productivity Enhance brand awareness Minimize statutory penaltis 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!
