Question:

Statement showing break up of costs is known as

A.

Cost sheet

B.

Tender

C.

Production account

D.

Statement of profit

Answer» a. Cost sheet

Question:

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

Answer» c. Degree of traceability to product

Question:

Variable costs are fixed

A.

depend upon the entity

B.

for a period

C.

per unit

D.

for a particular process of production

Answer» c. per unit

Question:

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

Answer» d. Cost Accounting Standard on Quality Control

Question:

Interest on own capital is

A.

Cash Cost

B.

Notional Cost

C.

Part of Prime Cost

D.

Semi-Variable Cost

Answer» b. Notional Cost

Question:

Over which the following costs, management is likely to have least control?

A.

Wages cost

B.

Building Insurance cost

C.

Machinery Breakdown cost

D.

Advertisement cost

Answer» c. Machinery Breakdown cost

Question:

Costing is a technique of

A.

Recording of Cost transactions

B.

Ascertaining Cost

C.

Preparation of final accounts

D.

Decision making

Answer» b. Ascertaining Cost

Question:

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

Answer» c. Cost Accounting

Question:

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

Answer» d. All of the above

Question:

Cost of free samples and gifts are included in

A.

Prime Cost

B.

Factory Overhead

C.

Office and Administrative Overheads

D.

Selling & Distribution Overheads

Answer» d. Selling & Distribution Overheads