Top 80+ Solved Fundamentals of Costing MCQ Questions Answer
Q. Carriage outward is a part of
a. Office and Administrative overhead
b. Factory overhead
c. Selling and Distribution overhead
d. Prime Cost
Q. Notional cost is also known as
a. Variable cost
b. Imputed cost
c. Opportunity cost
d. Out of Pocket cost
Q. Which one of the following is not a cost unit?
a. Kilo watt hour
b. Credit division
c. Patient day
d. Tonne-mile
Q. Cost reduction -
a. Long term phenomena
b. It challenges the standards.
c. It is carried out without compromising the quality.
d. All of the above
Q. Statement showing break up of costs is known as
a. Cost sheet
b. Tender
c. Production account
d. Statement of profit
Q. Prime cost may be correctly termed as 24
a. the total of all cost items which can be directly charged to product units.
b. the sums of all direct materials and labour cost excluding all other cost.
c. the total costs incurred in producing a finished unit.
d. the sum of the large cost in product cost.
Q. Which one is included in financial accounts but not in cost accounts?
a. Royalty
b. Dividend paid
c. Excise duty
d. Carriage and freight
Q. Which of the following term is excluded from the cost accounts?
a. Income tax
b. Interest on debenture
c. Cash discount
d. All of the above
Q. Variable costs are fixed
a. depend upon the entity
b. for a period
c. per unit
d. for a particular process of production
Q. Costs are classified into fixed costs, variable costs and semi-variable costs, it is known as
a. Behavioural classification
b. Classification according to controllability
c. Functional classification
d. Element wise classification
Q. The main purpose of cost accounting is to
a. maximize profit
b. inventory valuation
c. provide information for decision making.
d. fixation of selling price
Q. Process cost is very much applicable in
a. Construction industry
b. Pharmaceutical industry
c. Airline company
d. Printing industry
Q. CAS-21 is related to
a. Cost Accounting Standard on Overburden Removal Cost.
b. Cost Accounting Standard on Interest and Financing Charges
c. Cost Accounting Standard on Joint Cost
d. Cost Accounting Standard on Quality Control
Q. On the basis of “Relationship with accounting period” costs are classified as
a. Historical Costs and Pre-determined Costs.
b. Capital Costs and Commercial Costs.
c. Capital Costs and Revenue Costs.
d. Product Costs and Period Costs