Question:

When re-ordering level is 200 units, minimum usage is 20 units, minimum lead time is 5 days,maximum stock is 400 units then re-ordering quantity will be:

A.

400 units

B.

200 units

C.

300 units

D.

100 units

Answer» c. 300 units

Question:

A technique and process of ascertaining costs is known as

A.

Cost

B.

Costing

C.

Cost Accounting

D.

Cost Accountancy

Answer» b. Costing

Question:

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

Answer» b. decrease in the reverse proportion of output

Question:

Carriage outward is a part of

A.

Office and Administrative overhead

B.

Factory overhead

C.

Selling and Distribution overhead

D.

Prime Cost

Answer» c. Selling and Distribution overhead

Question:

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

Answer» a. Behavioural classification

Question:

Cost of staff services is an example of

A.

Committed Costs

B.

Policy and Managed Costs

C.

Discretionary Costs

D.

Step Costs

Answer» b. Policy and Managed Costs

Question:

Indirect material cost is a part of

A.

Prime Cost

B.

Factory Overhead

C.

Chargeable Expenses

D.

None of the above

Answer» b. Factory Overhead

Question:

All indirect costs are termed as

A.

Prime cost

B.

Factory cost

C.

Conversion cost

D.

Overheads

Answer» d. Overheads

Question:

Bad debts are included as

A.

Direct expenses

B.

Distribution overhead

C.

Cost of production

D.

Selling overhead

Answer» d. Selling overhead

Question:

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

Answer» c. provide information for decision making.