Top 80+ Solved Fundamentals of Costing MCQ Questions Answer
Q. Cost of staff services is an example of
a. Committed Costs
b. Policy and Managed Costs
c. Discretionary Costs
d. Step Costs
Q. Which of the following is not a method of costing?
a. Process Costing
b. Batch Costing
c. Direct Costing
d. Operating Costing
Q. The written down value of the abandoned plant less its salvage value is
a. Imputed cost
b. Sunk cost
c. Avoidable Cost
d. Opportunity cost
Q. The costs are differentiated between fixed and variable costs under
a. Marginal Costing
b. Direct Costing
c. Standard Costing
d. Absorption Costing
Q. Which of the following is a suitable cost unit for the BPO Services/Call Centers?
a. Cost per item
b. Cost per hour
c. Cost per account handled
d. Cost per minute
Q. Interest on own capital is
a. Cash Cost
b. Notional Cost
c. Part of Prime Cost
d. Semi-Variable Cost
Q. Advertisement costs are termed as
a. Direct Expenses
b. Cost of Production
c. Selling Overhead
d. Distribution Overhead
Q. Direct Wages 2,05,000 and Factory Cost 5,60,000. If the ratio of direct wages and factoryoverhead is 5 : 3 then Direct Material Cost will be
a. 2,32,000
b. 3,50,000
c. 3,41,667
d. 2,24,000
Q. A technique and process of ascertaining costs is known as
a. Cost
b. Costing
c. Cost Accounting
d. Cost Accountancy
Q. The branch of the accounting dealing with the classification, recording, allocation,summarizing and reporting of current and prospective costs, is known as
a. Financial Accounting
b. Management Accounting 26
c. Cost Accounting
d. Cost Accountancy
Q. Which of the following is not a function of Cost Accountancy?
a. Cost Control
b. Cost Ascertainment
c. Cost Analysis
d. Cost Accounting
Q. Which of the following ‘CAS’ is related to “Pollution Cost”?
a. CAS - 11
b. CAS - 13
c. CAS - 14
d. CAS – 17
Q. Costs are classified between direct and indirect costs according to method of classificationby
a. Nature or Element
b. Functions
c. Degree of traceability to product
d. Change in Activity or Volume
Q. Depreciation on building is an example of
a. Committed Costs
b. Policy and Managed Costs
c. Discretionary Costs
d. Step Costs
Q. When the volume of output is increased then the per unit fixed cost will be
a. increase in the proportion of output.
b. decrease in the reverse proportion of output
c. changed but not in proportion of output.
d. unchanged