Test 357 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 State 1. Which of the following best describes semi-variable costs? Costs that do not change with production levels Costs that vary directly with production levels Costs that have both fixed and variable components Costs that are always fixed per unit None 2. Which costing method is most suitable for the construction of roads? Job costing Batch costing Contract costing Process costing None 3. In marginal costing, fixed costs are treated as: Product costs Period costs Opportunity costs Direct costs None 4. Which of the following costs is considered an indirect expense? Direct material Supervisor's salary Direct labour Machine operator wages None 5. The formula for break-even sales in units is: Fixed Costs / Contribution per Unit Fixed Costs / Variable Cost per Unit Total Costs / Sales Volume Contribution Margin / Fixed Costs None 6. Which of the following is an example of a non-cost item in cost accounting? Direct labour Depreciation Income tax Indirect material None 7. Standard costing is mainly used to: Prepare financial statements Evaluate managerial performance Determine selling price Allocate indirect costs None 8. Which of the following is considered a controllable cost? Rent of factory building Direct labour Depreciation Interest on loans None 9. Prime cost includes: irect material, direct labour, and indirect costs Direct material, direct labour, and direct expenses Factory overheads and selling expenses Indirect expenses and variable costs None 10. Which costing method is most suitable for industries with mass production of identical units? Job costing Batch costing Process costing Contract costing None 11. The purpose of calculating variances in standard costing is to: Determine tax liabilit Prepare cash flow statements Control costs by analyzing differences between actual and standard costs Allocate direct costs to products None 12. Which of the following is a feature of absorption costing? Only fixed costs are included in product cost All manufacturing costs are included in product cost Only direct costs are included Variable costs are excluded None 13. The difference between standard hours for actual production and actual hours worked is called: Labour rate variance Labour efficiency variance Labour mix variance Labour yield variance None 14. Which of the following describes the concept of a cost center? A unit that generates revenue A unit where costs are incurred but no revenue is generated A unit responsible for investment decisions A unit that produces finished goods None 15. Fixed cost per unit decreases when Production increases Production decreases Variable cost decrease Sales revenue decreases None 16. Which of the following is an avoidable cost? Fixed cost Opportunity cost Direct labour Sunk cost None 17. Which of the following statements is true about marginal costing? It treats all costs as product costs It is not useful for decision-making It classifies costs as variable and fixed It allocates fixed costs to products None 18. In contract costing, profit on incomplete contracts is usually: Ignored until the contract is complete Estimated based on work certified Added to the next contract Deducted from direct costs None 19. The process of spreading the cost of a non-production department to production departments is known as: Allocation Absorption Apportionment Reallocation None 20. Which of the following costs is not considered while calculating the contribution margin? Direct material Direct labour Variable overheads Fixed overheads None 21. Which of the following methods is used to analyze the cost behaviour in relation to activity levels? Marginal costing Absorption costing Job costing Break-even analysis None 22. In which of the following industries is job costing most likely used? Oil refining Custom furniture manufacturing Cement production Textile weaving None 23. Which type of budget is prepared for a particular level of activity and does not change with actual levels? Fixed budget Flexible budget Zero-based budget Master budget None 24. Which of the following statements about direct costs is true? They cannot be directly traced to a cost object They include indirect material and labour They can be directly traced to a specific cost object They are always fixed None 25. The key difference between absorption costing and marginal costing is: Treatment of fixed costs Treatment of variable costs Treatment of direct costs Treatment of selling expenses None 26. The variance that arises due to the difference between budgeted and actual fixed overheads is called: Fixed overhead expenditure variance Fixed overhead efficiency variance Sales variance Material variance None 27. Which of the following is an abnormal loss? Scrap generated during normal production Loss due to machine breakdown Wastage considered normal in production Indirect material loss None 28. The purpose of a flexible budget is to: Provide a budget that remains unchanged irrespective of activity levels Help compare actual performance with budgeted performance at different levels of activity Allocate costs equally among cost centres Determine profit margins None 29. Which of the following statements is correct regarding opportunity cost? It is always a fixed cost It is the benefit foregone from the next best alternative It is a cost recorded in the books of accounts It has no relevance in decision-making None 30. In which costing method are costs accumulated by department or process? Job costing Batch costing Contract costing Process costing None 31. The margin of safety is the difference between: Fixed costs and variable costs Actual sales and break-even sales Contribution and fixed costs Sales and profit None 32. Which of the following is not part of prime cost? Direct materials Direct labour Factory overheads Direct expenses None 33. Which of the following costs is most likely to be classified as a committed fixed cost? Advertising expenses Depreciation of machinery Direct materials Temporary worker wages None 34. Which of the following describes a step-fixed cost? Costs that vary directly with activity Costs that remain fixed for a certain range of output and then increase by steps Costs that are always fixed per unit Costs that decrease as production volume increases None 35. The overhead rate based on direct labour hours is calculated by: Dividing total overheads by the number of units produced Dividing total overheads by direct labour hours Dividing direct costs by direct labour hours Dividing fixed costs by direct labour costs None 36. Which of the following is an example of an indirect labour cost? Wages paid to machine operators Salary of a factory supervisor Direct wages paid to assembly workers Payment to casual labour for specific jobs None 37. 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 38. Which of the following best defines a 'by-product'? The main product of a production process A secondary product obtained incidentally during the production of the main product A product produced by accident A product with a higher cost than the main product None 39. Which of the following statements about fixed costs is true? They remain fixed per unit as production increases They remain fixed in total as production levels increase They always increase with production They decrease per unit as production levels decrease None 40. The difference between actual sales and break-even sales is known as: Contribution margin Profit margin Margin of safety Gross margin 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!]
