Test 351 Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Cost Accounting (CA)Total Number of Question: 40Time: 41 MinutesPlease check your email after completion of test for result.All the best... Name Phone No Email State 1. Cost accounting primarily focuses on: Profit measurement Cost control and reduction Legal compliance Tax planning None 2. Fixed costs remain constant: Per unit In total Per unit and in total Only when production is zero None 3. Variable costs per unit: Decrease with increased production Increase with increased production Remain constant per unit Vary depending on management decisions None 4. Which of the following is a method of costing? Standard Costing Batch Costing Absorption Costing Costing Activity-Based Costing None 5. Prime cost is the sum of: Direct material and direct expenses Direct material and direct labor Direct labor, material, and expenses Direct and indirect costs None 6. Which costing method is suitable for custom-made goods? Job costing Process costing Marginal costing Batch costing None 7. A cost center is: A unit within a business for which costs can be allocated The primary production unit A revenue-generating unit The main administrative office None 8. Opportunity cost is: An irrelevant cost for decision-making The benefit foregone from an alternative choice The variable cost in production Fixed cost per unit None 9. Which one is an example of a fixed cost? Raw materials Depreciation Direct labor Sales commission None 10. Break-even point is where: Total cost equals total revenue Fixed cost equals variable cost Profit equals variable cost Sales volume is maximized None 11. Which is not a cost classification based on behavior? Fixed cost Variable cost Mixed cost Sunk cost None 12. Process costing is most suitable for: Manufacturing steel Accounting services Custom-made furniture Consulting None 13. The term “absorption costing” means: Absorbing all costs as fixed Allocating variable costs to products Absorbing all variable costs Charging all manufacturing costs to products None 14. Contribution margin is calculated as: Fixed cost minus variable cost Sales minus fixed cost Sales minus variable cost Total cost minus sales None 15. Which is a component of prime cost? Indirect materials Direct expenses Administrative salaries Selling expenses None 16. 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 17. Marginal costing considers: Only variable costs for decision making Only fixed costs for decision making Both fixed and variable costs for decision making Only sunk costs None 18. Cost allocation means: Assigning indirect costs to cost objects Apportioning costs to cost centers Dividing fixed costs Directly assigning costs None 19. Fixed costs per unit: Remain constant Increase with activity level Decrease with activity level Equal total costs None 20. The main objective of cost accounting is: Financial analysis Budgeting Cost ascertainment and control Taxation None 21. The EOQ formula is used to determine: Economic cost Optimal order quantity Order frequency Production cost None 22. A cost that does not change in total with production level is called: Variable cost Fixed cost Marginal cost Relevant cost None 23. The process of apportioning indirect costs to cost centers is called: Cost classification Cost allocation Cost apportionment Cost analysis None 24. A product cost includes: Administrative expenses Selling expenses Direct material, labor, and overhead Financing costs None 25. Which method would be used to determine the cost of producing a batch of identical products? Job costing Process costing Batch costing Contract costing None 26. The term “overhead” refers to: Direct costs Indirect costs Prime costs Sunk costs None 27. When a cost can be traced to a specific cost object, it is called: Direct cost Indirect cost Variable cost Fixed cost None 28. In marginal costing, fixed costs are: Treated as product costs Treated as period costs Ignored Always variable None 29. Which of the following is an element of production cost? Selling expenses Direct labor Administrative expenses Finance costs None 30. Differential cost is: The difference in cost between two alternatives The average cost of production An irrelevant cost Equal to the fixed cost None 31. Which cost is not considered in decision-making? Sunk cost Relevant cost Opportunity cost Marginal cost None 32. Material mix variance arises due to: Difference in actual and standard price Difference in actual and standard mix of materials Difference in production levels Sales variance None 33. Factory overhead includes: Selling expenses Administrative expenses Indirect material, labor, and expenses Direct material None 34. Which of the following is considered a variable cost? Depreciation Direct materials Direct materials Insurance None 35. What is the main objective of Cost Accounting? To determine profit To ascertain the cost of goods and services To manage budgets To calculate net worth None 36. Which costing method is most suitable for industries where products are produced only on specific customer orders? Process costing Batch costing Job costing Contract costing None 37. Which of the following is NOT included in prime cost? Direct labor Direct materials Direct expenses Factory overhead None 38. In cost-volume-profit analysis, which of the following is assumed to remain constant? Sales price per unit Total fixed costs Variable cost per unit All of the above None 39. Absorption costing treats fixed manufacturing overhead as: A product cost A period cost A variable cost None of the above None 40. Which of the following methods is used for assigning overheads to products based on activities? Marginal costing Standard costing Absorption costing Activity-based 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 !! Time's upTime is Up!
