Question:

Which one is included in financial accounts but not in cost accounts?

A.

Royalty

B.

Dividend paid

C.

Excise duty

D.

Carriage and freight

Answer» b. Dividend paid

Question:

Prime cost plus factory overheads is known as

A.

Marginal Costing

B.

Conversion Cost

C.

Commercial Cost

D.

Factory Cost

Answer» d. Factory Cost

Question:

Excise duty is an example of

A.

Chargeable expense

B.

Factory overhead

C.

Administrative overhead

D.

Non-cost item

Answer» a. Chargeable expense

Question:

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

Answer» a. 2,32,000

Question:

Which of the following is a part of both Prime cost and Conversion cost?

A.

Direct Material

B.

Indirect Labour

C.

Direct Labour

D.

All of the above

Answer» c. Direct Labour

Question:

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

Answer» c. Capital Costs and Revenue Costs.

Question:

Process cost is very much applicable in

A.

Construction industry

B.

Pharmaceutical industry

C.

Airline company

D.

Printing industry

Answer» b. Pharmaceutical industry

Question:

In the situation of increasing prices, the valuation of closing stock is more under:

A.

Simple average

B.

Weighted average

C.

FIFO

D.

LIFO

Answer» c. FIFO

Question:

The works cost plus administration expenses represents 27

A.

Total cost

B.

Cost of Production

C.

Cost of sales

D.

Factory cost

Answer» b. Cost of Production

Question:

In behavioural analysis, costs are divided into

A.

Production and Non-Production costs

B.

Controllable and Non-Controllable costs

C.

Direct and indirect costs

D.

Fixed and Variable costs

Answer» d. Fixed and Variable costs