8/13/2019 Cost Accounting Test

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1. Cost accounting is one of thesubdivisions of

a. management accountingb. financial accountingc. corporate accountingd. none of these2. The basic objective of cost

accounting is

a. recording of costb. reporting of costc. cost controld.

profit earning

3. Cost objects area. costing systems

b. costing methodsc. cost estimatesd. cost unit and cost centre4. Cost unit is used fora. cost control

b. cost reductionc. resources foregoned. ascertainment of cost5. Cost incurred is identified witha. (cost) unit of output

b. cost controlc. cost reductiond.

none of these

6. The methods used for the calculationof cost per unit are known as

a. costing methodsb. costing procedurec. costing systems

d. none of these7. Cost centres are created fora. segregating costs into fixed and

variableb. control and fixing responsibilityc. making decisionsd. ascertaining profit8. Profit centre isa. a department ascertaining profit

b. a centre for inventory valuationc. a responsibility centre in which

performance is measuredd. none of these9. Cost control refers toa. a continuous action by members of

an undertaking

b. a remedial measures by purchasedepartment

c. action by production departmentd. none of these10.Cost reduction can be attained bya. reducing volume of production

b. reducing volume of salec. without affecting the quality or

value of goods produced

d. reducing prices11.Conversion cost excludesa. direct material cost

b. direct Labour costc. direct expensesd. all the above12.Fixed cost per unit decreases when

8/13/2019 Cost Accounting Test

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a. a volume of production decreasesb. volume of production increasesc. volume of sales increasesd. volume of sales decreases13.Variable cost increases in total due toa. increase in sales

b. increase in profitc. increase in volume of productiond. all of the above14. Imputed cost is aa. Differential cost

b.

Fixed costc. Variable costd. Notional cost15.Conversion cost includes:a. direct wages and factory overheads

b. direct expenses and factoryoverheads

c. direct materials and factoryoverheads

d. direct wages and direct materialscost

16.Sunk cost isa. a foregone cost

b. invested cost or recorded costc. a postponable costd. none of these17.Process costing is suitable fora. civil engineering construction

b. brick makingc. oil refining refineriesd. printing

18.Single or output costing is suitablefor

a. construction activitiesb. ship-building concernsc. brick makingd. refineries

19.Batch costing is suitable fora. construction

b. brick makingc. cutting-tool manufacturesd.

general-purpose machine toolmanufactures

20.Cost of production isa. factory cost + administration

overhead

b. factory cost + prime costc. prime cost + factory costd. prime cost + factory overheads21.Mention two objectives of cost

accounting.

22.State any four items which are notincluded in cost accounts.