Cost Accounting PDF

1 of 625
_____ is the amount of money or money's equivalent, expressed in monetary terms given up in exchange of some
goods or services.
Profit
Expense
Cost
None of the above
The correct option is "Cost"Score:- 1
2 of 625
The objective of a firm may be manufacturing a product or rendering the services, which involves expenses under
various heads:-
Labour
Overhead
Material
All of the above
The correct option is "All of the above"Score:- 1
3 of 625
A manufacturing unit is interested in ascertaining cost per unit manufactured.
True
False
The correct option is "TRUE"Score:- 1

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4 of 625
In its simplest form, the cost per unit is arrived by _____ the total units produced to total cost incurred.
Dividing
Adding
Multiplying
None of the above
The correct option is "None of the above"Score:- 1
5 of 625
Work in progress is valued at factory cost while stock of finished goods may be valued at _____ cost.
Office
Market
Selling
Production
The correct option is "Office"Score:- 1
6 of 625
Which of the below mentioned options can be classified as the different bases of costs?
Controllability
Association with the product
By time
All of the above
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Historical costs can be defined as "The costs that are ascertained after they are incurred".
True
False
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Change in activity or volume
By nature of elements
Degree of traceability
All of the above
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Accounting period
By function
Decision making
All of the above
10 of 625
______ costs are calculated before they are incurred on the basis of a specification of all factors affecting the cost.
Pre-determined
Product
Historical
Period
The correct option is "Pre-determined"Score:- 1
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Direct materials can be classified as those materials that are:-
Purchased specifically for a particular job/process
Acquired and later requisitioned from store
Primary packing materials
All of the above
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All material which is used for the purpose ancillary to production is termed as direct material.
True
False
The correct option is "FALSE"Score:- 1
13 of 625
Overhead can be classified as:-
Production or manufacturing
Selling
Administration
All of the above
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Employee working in accounts department is classified as:-
Direct worker
Casual
Indirect worker
None of the above
The correct option is "Indirect worker"Score:- 1
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Product costs are those that are traceable to the product and included in inventory values.
True
False
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Period costs are incurred on the basis of _____ and include many selling and administrative costs, essential to
keep business running.
Profit
Raw material
Labour
Time
The correct option is "Time"Score:- 1
17 of 625
Which of the below mentioned options can be considered as the reasons for selling and administrative costs, to be
considered as period costs?
Expense are fixed in nature
Difficult to determine the relation between cost and the product
Difficult to apportion these
All of the above
18 of 625
Labour employed for the purpose of carrying out task incidental to goods or services provided is called:-
Market labour
Indirect labour
Casual labour
Direct labour
The correct option is "Indirect labour"Score:- 1
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Fixed cost never changes.
True
False
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Discretionary costs are related to operations.
True
False

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Variable costs are those costs that do not vary directly and proportionately with the:-
Output
Overhead
Input
None of the above
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Examples of Indirect Expenses are:-
a) Labour salary
b) Rent
c) Taxes
Both (b) and (c)
The correct option is "Both (b) and (c)"Score:- 1
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'Paid to compositors in a printing press' is an example of Indirect Labour Expense.
True
False
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Examples of Indirect Expenses are:-
Lighting
Power
Insurance
All of the above
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Based on changes in activity, costs can be classified as:-
a) Fixed
b) Mixed
c) Product
Both (a) and (b)
The correct option is "Both (a) and (b)"Score:- 1
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Based on changes in activity, costs can be classified as variable cost.
True
False
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Fixed cost is defined as "The cost which is incurred for a period, with certain output & turnover limit, tend to be
unaffected by _____ in the level of activity".
Market
Direct labour
Fluctuations
None of the above
The correct option is "Fluctuations"Score:- 1
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Fixed costs are incurred so that _____ necessary for business operations can be provided.
a) Executive development
b) Physical facilities
c) Human facilities
Both (b) and (c)
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Product costs are used for valuating inventories, which are shown in balance sheet as assets, till they are sold.
True
False
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Variable costs are those costs that vary directly and proportionately with the input.
True
False
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Direct material and direct labour is classified as:-
Overhead
Fixed cost
Variable cost
None of the above
The correct option is "Variable cost"Score:- 1
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The terms fixed in context with cost, refer to _____ related to the relevant range.
a) Non variability
b) Variability
c) Changeability
Both (b) and (c)
The correct option is "a) Non variability"Score:- 1
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The management has little or no discretion on committed costs.
True
False
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Fixed cost can be classified as:-
Policy
Discretionary costs
Committed
All of the above
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Example of committed costs are:-
a) Rent
b) Insurance
c) Raw material
Both (a) and (b)
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Policy costs are often discretionary.
True
False
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Step costs are _____ for a given level of output.
Fluctuate
Direct labour cost
Constant
None of the above
The correct option is "Constant"Score:- 1
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Variable cost per unit is:-
a) Constant
b) Variable
c) Fluctuate
Both (a) and (c)
The correct option is "a) Constant"Score:- 1
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Managed costs are incurred to ensure the operating existence of the company, e.g. staff services.
True
False
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Total costs changes correspond to the level of:-
Output
Input
Overhead
None of the above
The correct option is "Output "Score:- 1
41 of 625
Total cost is expressed in terms of units and not:-
a) Time
b) Variability
c) Labour
Both (b) and (c)
The correct option is "a) Time"Score:- 1
42 of 625
The product cost of goods sold is transferred to the 'cost of goods sold account'.
True
False
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Functional costs can be classified as:-
a) Production
b) Administrative
c) Raw material
Both (a) and (b)
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The 'net income of a concern' is not influenced by both product and period costs.
True
False
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Functional costs can be classified as:-
a) Research and development cost
b) Period cost
c) Distribution cost
Both (a) and (c)
The correct option is "Both (a) and (c)"Score:- 1
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Manufacturing cost includes:-
Direct material
Direct labour
Overhead expenses
All of the above
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Administrative costs are classified as direct costs.
True
False
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Expenditure incurred in transporting finished goods to central stores or local stores are considered as distribution
cost.
True
False

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Selling cost is the cost of seeking to _____ demands.
a) Create
b) Stimulate
c) Observe
Both (a) and (b)
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Capital expenditure provides benefit in the future period and is classified as:-
a) Asset
b) Drawback
c) Talent
Both (b) and (c)
The correct option is "a) Asset"Score:- 1
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Expenditure incurred in moving articles to prospective customers, as in case of goods on sales or return basis, is
also considered as distribution cost.
True
False
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When an asset is written off, capital expenses to that extent becomes:-
Cost
Policy
Discretionary costs
All of the above
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Pre-production costs are not charged to the cost of future production.
True
False
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The difference between _____ is very important for the purpose of cost accounting.
a) Terms
b) Period
c) Provisions
Both (a) and (c)
The correct option is "a) Terms"Score:- 1
55 of 625
Belkaoni has mentioned the following fallacies about controllable costs:-
a) Variable costs are controllable
b) Fixed costs are controllable
c) Direct costs are controllable
Both (a) and (c)
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Belkaoni has mentioned the following fallacies about controllable costs:-
a) Long term costs are not controllable
b) Long term costs are controllable
c) Indirect costs are controllable
Both (a) and (c)
The correct option is "b) Long term costs are controllable"Score:- 1
57 of 625
Sometimes time factor and decision making authority can make a cost controllable.
True
False
58 of 625
The authority and responsibility of cost control is elevated to different levels, though the _____ are responsible for all
the costs.
Managing Directors
Workers
Managers
All of the above
The correct option is "Managing Directors"Score:- 1
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Opportunity costs are the costs of selecting one:-
a) Course of action
b) Event
c) Activity
Both (a) and (b)
The correct option is "a) Course of action"Score:- 1
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A sunk cost is one that has already been:-
a) Termed
b) Incurred
c) Provisions made
Both (a) and (c)
The correct option is "b) Incurred"Score:- 1
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Sunk cost is avoidable cost.
True
False
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Sunk cost is useful for decision making, as all past costs are relevant.
True
False
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Differential cost is the difference in total cost between alternatives calculated to assist:-
a) Manipulating
b) Decision making
c) Forecasting
Both (a) and (b)
The correct option is "b) Decision making"Score:- 1
64 of 625
The differential cost between any two levels of production is the difference between the marginal cost, at these two
levels and increase or decrease in:-
a) Variable cost
b) Overheads
c) Fixed cost
Both (b) and (c)
The correct option is "c) Fixed cost"Score:- 1
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An incremental cost measures the additional unit cost for an addition in output.
True
False
66 of 625
The incremental cost is usually expressed as a cost per unit whereas the differential cost is measured in:-
Total
Partly
Complete
All of the above
The correct option is "Total"Score:- 1
67 of 625
Joint costs are the costs incurred upto a:-
Point of view
Point of separation
Both of the above
None of the above
The correct option is "Point of separation"Score:- 1
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The incremental cost needs to be same at all the levels of production.
True
False
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Bierman defines, joint costs relate to a situation in which the factors of production by their basic nature, result in two
or more:-
a) Units
b) Products
c) Prototypes
Both (b) and (c)
The correct option is "b) Products"Score:- 1
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Joint cost relates to two or more products from a:-
a) Common production process
b) Common element material
c) Productive resources
Both (a) and (b)
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Joint costs can be apportioned to different products only by adopting a suitable basis of apportionment.
True
False
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Common costs are those costs which are incurred for more than one product, job or any other costing product.
True
False
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_____ costs are not incurred and are useful while taking decision pertaining to a particular situation.
Period
Sunk
Imputed
None of the above
The correct option is "Imputed"Score:- 1
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Example(s) of imputed costs is/are:-
a) Interest on internally generated funds
b) Overheads
c) Salaries of partners or owners
Both (a) and (c)
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Replacement cost is the cost of replacing asset at:-
Current market value
Total cost
Depreciation cost
All of the above
The correct option is "Current market value"Score:- 1
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Conversion cost of a finished product or work in progress, comprises of:-
a) Direct labour
b) Manufacturing overhead
c) Direct material
Both (a) and (b)
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Marginal cost is aggregate of variable costs.
True
False
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Normal cost is the cost which can be easily incurred at a given level of:-
a) Units
b) Inputs
c) Output
Both (a) and (c)
The correct option is "Output"Score:- 1
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Traceable cost is a cost which can be easily associated with:-
Product
Department
Process
All of the above
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Avoidable costs are those costs which, under the present conditions, need to be controlled.
True
False
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Unavoidable costs are those costs which, under the present conditions, must be incurred.
True
False
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Total cost is the sum of associated costs to a particular unit for:-
Total labour
Total material
Overheads
All of the above
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Depreciation is also deducted for ascertaining 'value added'.
True
False
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Costing is a technique and process of _____ costs.
Ascertaining
Depreciation
Locating
None of the above
The correct option is "Ascertaining"Score:- 1
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The important objective(s) of costing is/are:-
a) Cost control
b) Cost reduction
c) Budgetary control
Both (a) and (b)
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Marginal cost is aggregate of variable costs.
True
False
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Expenditure in total is set against:-
a) Total turnover
b) Income
c) Process
Both (a) and (b)
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The main objectives of Orthodox Cost Accounting is the analysis of financial records, so as to subdivide the
expenditure and to allocate it carefully to selected:-
Cost centers
Profit centers
Revenue centers
All of the above
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The cost units should be natural which should be understood and accepted by all.
True
False
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The process of costing can be carried in any of the following ways:-
Marginal
Standard
Conventional
All of the above
91 of 625
In conventional costing, the cost is calculated:-
Before production
Theoretically
After production
None of the above
The correct option is "After production"Score:- 1
92 of 625
Conventional costing is useful only to determine costs, but not useful for exercising any _____ over the cost.
a) Control
b) Outcome
c) Value
Both (b) and (c)
The correct option is "a) Control"Score:- 1
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Expenditure will ultimately be charged to 'cost units'.
True
False
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Incase of standard costing, each article is determined before hand under:-
Historical conditions
Time
Current and anticipated conditions
All of the above
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In context with standard costing, actual costs are compared with predetermined costs and deviation is known as:-
Degree of tractability
Change in activity or volume
Variance
All of the above
96 of 625
Cost accounting involves _____ of costs.
a) Classification
b) Accounting period
c) Accumulation
Both (a) and (c)
The correct option is "Both (a) and (c) "Score:- 1
97 of 625
Wheldon defines cost accounting as "_____ for determining the cost of products or services".
Recording
Allocation of expenditure
Classifying
All of the above
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The first accounting principle is that cost should be related to its cause.
True
False
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Selling cost unit should not be charged to the unit cost, while it is still in factory.
True
False
100 of 625
According to W.M Harper, a cost statement should give the facts with:-
No known bias
Direct worker
Known bias
None of the above
The correct option is "No known bias "Score:- 1
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A cost should be charged only after it has incurred.
True
False
102 of 625
Abnormal costs should be ______ from costs accounts.
Manipulated
Included
Excluded
None of the above
The correct option is "Excluded"Score:- 1
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Objective(s) of cost accounting is/are:-
a) To meet requirements of taxes
b) To provide information to management to arrive at decisions
c) To provide perpetual inventory of stores
Both (b) and (c)
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Financial accounting aims at safeguarding the interests of:-
a) Business
b) Partners
c) Suppliers
Both (a) and (b)
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Past costs are charged to future projects.
True
False
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Accident, negligence, etc. costs should be included in cost accounts.
True
False
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Cost ledger and cost control accounts should be kept on ____ principles as far as possible.
Single entry
Overhead
Double entry
None of the above
The correct option is "Double entry"Score:- 1
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To indicate various forms of waste either in terms of material, time is not one of the objectives of cost accounting.
True
False
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To provide data for periodical profit and loss account
To analyze and classify all expenditures
To arrive at the cost of production
All of the above
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a) To revel sources of Economics
b) To provide actual figures for cost of comparison
c) To safeguard interest of business
Both (a) and (b)
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To present comparative cost data for different period and various volumes of output, is one of the objectives of cost
accounting.
True
False
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Cost accounting renders information for:-
a) Operations
b) Planning
c) Market fluctuations
Both (a) and (b)
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Financial accounts are kept generally to meet the requirements of management.
True
False
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Cost accounts are kept in such a way to meet Companies Act, Income Tax, etc.
True
False
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In cost accounting, transactions are recorded in:-
Tables
Subjective manner
Objective manner
None of the above
The correct option is "Objective manner"Score:- 1
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Cost accounts deal:-
a) Partly with actual facts and figures
b) With operating results
c) Partly with estimates
Both (a) and (c)
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Financial accounting does not disclose the net profit or loss of the business.
True
False
118 of 625
Financial accounting is concerned with:-
Discretionary costs
External transactions
Internal transactions
All of the above
The correct option is "External transactions"Score:- 1
119 of 625
The costs are reported in _____ in financial accounts.
a) Unit basis
b) Aggregate
c) Transaction
Both (a) and (b)
The correct option is "b) Aggregate"Score:- 1
120 of 625
Cost accounting discloses the net profit or loss of the business.
True
False
121 of 625
Financial accounting stocks are valued at:-
Cost
Cost or market price, whichever is less
Cost or market price, whichever is more
None of the above
The correct option is "Cost or market price, whichever is less"Score:- 1

122 of 625
Measurement of _____ with each task has been carried out in an organization is not possible with the help of
financial accounting.
a) Efficiency
b) Effectively
c) Performance
Both (a) and (c)
The correct option is "a) Efficiency"Score:- 1
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Financial accounting provides information on the relative efficiencies of various workers, plans and machinery.
True
False
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Cost accounting provides information on the relative efficiencies of various workers, plans and machinery.
True
False
125 of 625
Financial accounting does not provide information on:-
Control of expenditure
Overhead
Transactions
None of the above
The correct option is "Control of Expenditure"Score:- 1
126 of 625
Financial accounting is not of much help in ascertaining the _____ sales or output.
a) Time required
b) Break even point
c) Labour involved
Both (b) and (c)
The correct option is "b) Break even point"Score:- 1
127 of 625
Pricing is another matter which can be solved with the help of financial accounting.
True
False
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Financial accounting is not of very great help in:-
Forecasting
Budgeting
Planning
All of the above

129 of 625
_____ does not provide adequate information for reports to outside agencies like government, banks, etc.
a) Financial accounting
b) Cost accounting
c) Management accounting
Both (a) and (c)
The correct option is "a) Financial accounting"Score:- 1
130 of 625
Cost accounting increases the overall productivity.
True
False
131 of 625
Cost accounting helps in:-
a) Eliminating wastages
b) Making estimates
c) Arriving at net profit
Both (a) and (b)
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Makes comparisons possible
Canalizing production
Making estimates
All of the above
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Cost accounting helps in the period of trade depression.
True
False
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Cost accounting aids price fixation.
True
False
135 of 625
Enhancing efficiency
Providing data for periodical profit and loss account
Eliminate wastages
All of the above
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Cost accounting does not help in controlling inventory.
True
False
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Cost center is the smallest organization sub-unit for which separate cost collection is attempted.
True
False
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Cost center can be classified as:-
a) Productive
b) Unproductive
c) Provisional
Both (a) and (b)
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a) Controllable
b) Personal
c) Impersonal
Both (b) and (c)
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A unit cost is a unit of product or services in relation to which, costs are ascertained subdivision.
True
False
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Machine shop, welding shops and assembly shops are examples of unproductive cost centers.
True
False
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Operation
Mixed cost
Process
All of the above
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Incase a cost center consists of machines or persons which carry out the same operation, it is termed as process
cost center.
True
False
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The selection factor(s) for cost centers is/are:-
Management policy
Suitability of the units of centers for cost purpose
Availability of information
All of the above
145 of 625
Principle methods of costing are:-
a) Job costing
b) Event costing
c) Process costing
Both (a) and (c)
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A personal cost center consists of a department plant or item of equipment.
True
False

147 of 625
Methods of job costing are:-
a) Contract costing
b) Batch costing
c) Uniform costing
Both (a) and (b)
148 of 625
Process costing is generally adopted in:-
a) Textile industries
b) Chemical industries
c) Cement manufacturing
Both (a) and (b)
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Terminal costing is a method of job costing.
True
False
150 of 625
Unit or single output costing is generally adopted in producing mechanical articles e.g. Bicycle.
True
False
151 of 625
Unit or single output costing is generally adopted in:-
a) Brick making
b) Cement manufacturing
c) Soap manufacturing
Both (a) and (b)
152 of 625
Operating costing is applicable where _____ rendered.
a) Goods produced
b) Process incurred
c) Services
Both (b) and (c)
The correct option is "c) Services"Score:- 1
153 of 625
Industries like collieries, floor mills adopt process costing.
True
False
154 of 625
Operating costing is generally adopted in:-
a) Telephone
b) Electricity
c) Flour mills
Both (a) and (b)
155 of 625
Operating costing is generally adopted in:-
a) Hospital
b) Soap manufacture
c) Water supply
Both (a) and (c)
156 of 625
Industries like brick making, cement adopt process costing.
True
False
157 of 625
Multiple costing is generally adopted in concerns manufacturing:-
Machine tools
Motor cars
Aeroplanes
All of the above
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Uniform costing is not a distinct method of costing by itself.
True
False
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Standard costing and marginal costing methods are used for departmental costing.
True
False
160 of 625
Relationship of cost accounting with personnel division:-
Wage rate agreement
Records
Basis for salaries
All of the above
161 of 625
Relationship of cost accounting with marketing division:-
a) Competitive price
b) Manufacturing overhead
c) Direct material
Both (a) and (b)
The correct option is "a) Competitive price"Score:- 1
162 of 625
The law has not made it compulsory to install a costing system.
True
False
163 of 625
Prerequisites for installing sound costing system are:-
Support from top management
Co-operation of workers
Clear-cut authority
All of the above
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The size, layout of factory are irrelevant and need not be considered while deciding cost accounting system.
True
False
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The method of paying wages should be studied while deciding cost accounting system.
True
False
166 of 625
The following are the essential considerations which would govern the installations of sound costing in an
organization:-
Executive side
Accounting side
Internal control side
All of the above
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Essential considerations while installing costing system are:-
The system should suit organization
The management requirement kept in view
Forms and records involve minimum clerical work and cost
All of the above
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The system should be so designed that cost can be effectively controlled
The staff should be produce required costing data
The methods of paying wages should be considered
All of the above
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Simplicity
Equity
Accuracy
All of the above
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The cost accounting system should be elastic and capable of adopting itself to altered circumstances.
True
False
171 of 625
The output of the factory for year March, 2005 is 2000 units and the expenses are as follows:-
Fixed Rs.15,000/-
Variable Rs.10,000/-
Semi variable (40% variable) Rs.12,000/-
Total Rs.37,000/-
In April, the output is likely to increase by 1000 units. What is total cost considering all above expenses for total units
budgeted in the month of April?
Rs.30,350/-
Rs.50,000/-
Rs.45,600/-
None of the above
The correct option is "Rs.45,600/-"Score:- 1
172 of 625
Proper delegation helps in establishing clear:-
a) Controllability
b) Responsibility
c) Talent
Both (a) and (b)
173 of 625
The materials which can be easily identified and attributed to the individual units being manufactured are known as:-
Overhead
Indirect materials
Direct materials
None of the above
The correct option is "Direct materials"Score:- 1
174 of 625
The Institute of Chartered Accountants of India defines inventory as tangible property held:-
For consumption in the production for sale
In the process of production for goods or services for sale
For sale in the ordinary course of business
All of the above
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Inventory Control is a planned method of determining what to indent, so that __________ cost are minimum without
affecting production or sale.
a) Purchasing
b) Storing
c) Control
Both (a) and (b)
176 of 625
Scientific control of inventories should serve the following purpose of:-
Minimizing investment in inventories
Providing continuous flow of required materials
Keeping surplus and obsolete items to minimum
All of the above
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Common technique(s) of Inventory Control is/are:-
a) The ABC plan
b) Fixation of various levels
c) Activity control
Both (a) and (b)
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The ABC plan is not based upon segregation of materials for selection control.
True
False
The correct option is "False"Score:- 1
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The important step(s) involved in segregating materials or Inventory Control is/are to:-
Find out future use of each item of stock in terms of physical quantities for the review forecast period
Determine the price per unit for each item
Compute the total cost of each item as a percentage of total costs of all items
All of the above
180 of 625
Danger level represents ___________ of stock, which are usually stopped at this level and are made only under
specific instructions.
Normal issues
Past issues
Abnormal issues
All of the above
The correct option is "Normal issues"Score:- 1
181 of 625
Ordering level represents the level at which __________ should be placed for replenishing stocks.
Purchase orders
Indents
Invoices
All of the above
The correct option is "Indents"Score:- 1
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Factor(s) taken into account for maximum level of inventory is/are:-
Insurance cost
Storage space
Capital outlet
All of the above
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The factor(s) that should be taken into consideration for maximum level is/are:-
Consumption per annum
The lead-time
Investment to be made in stores
All of the above
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The minimum level is a policy and is also based on:-
The lead time
The production requirement
The consumption per annum
All of the above
185 of 625
The desirable safety stock level is that amount which:-
a) Minimizes the carrying costs
b) Minimizes stock-out costs
c) Retain stock to maximum level
Both (a) and (b)
186 of 625
The ordering level should be fixed, so that when an ___________ is placed at the ordering level, the stock reaches
the minimum level, when the replenishment is received.
Invoice
Delivery challan
Indent
All of the above
The correct option is "Indent"Score:- 1
187 of 625
The ordering level is calculated from which of the following factor(s)?
The lead time
The expected usage
The minimum level
All of the above
188 of 625
The re-ordering level is calculated from which of the following factor(s)?
a) Labour salary
b) Lead time
c) Minimum level
Both (b) and (c)
189 of 625
Expected usage of material is not required to decide re-order level.
True
False

190 of 625
The quantity for which the cost of holding plus the cost of purchasing is the minimum is called:-
Economic ordering quantity
Order quantity
Optimum order quantity
All of the above
The correct option is "Economic ordering quantity"Score:- 1
191 of 625
Economic order quantity depend(s) upon:-
Annual storage cost of inventory
Annual consumption
Ordering cost
All of the above
192 of 625
Ordering costs may include rent for space used by purchasing department, salaries & wages of purchase staff.
True
False
The correct option is "True"Score:- 1
193 of 625
Stock valuation is the ascertainment of quantities of stocks of:-
a) Semi finished component
b) Work in progress
c) Human facilities
Both (a) and (b)
194 of 625
Stock valuation is the ascertainment of quantities of stocks of finished goods.
True
False
195 of 625
EOQ does not depend upon annual consumption per year.
True
False
196 of 625
The __________________ method is based on the accounting doctrine, that all losses should be provided for, but
no credit should be taken for the profits which are not actually realized.
Lower of Cost or Market Price
Higher of Cost or Market Price
Discretionary Costs
None of the above
The correct option is "Lower of Cost or Market Price"Score:- 1

197 of 625
The stock value at any date will depend on the value at which the consumption(s) is/are:-
a) Carried forward
b) Written off
c) Depreciated
Both (a) and (b)
The correct option is "Written off"Score:- 1
198 of 625
The Cost Price Method gives a false picture of cost.
True
False
199 of 625
Which of the following method(s) is/are used in the cost pricing of material?
First in First Out
Specified Price
Base Stock
All of the above
200 of 625
Which of the following method(s) is/are used in average pricing of material?
a) Simple Average
b) Variable
c) Fluctuate
Both (a) and (c)
The correct option is "Simple Average"Score:- 1
201 of 625
Last In First Out Methods are used in cost pricing of material.
True
False
202 of 625
Weighted Average Methods are used in cost pricing of the material.
True
False
203 of 625
Which of the following method(s) is/are used in average pricing of material?
Periodic Simple Average
Moving Weighted Average
Moving Simple Average
All of the above
204 of 625
Moving Weighted Average Methods are used in average pricing of material.
True
False
205 of 625
Advantage(s) of First In First Out Method is/are:-
a) Good management system
b) It is logical
c) The cost of production is not linked to current prices
Both (a) and (b)
206 of 625
Advantage(s) of First In First Out Method is/are:-
It facilitates inter firm comparisons
It is easy to operate
Valuation is consistent
All of the above
207 of 625
Disadvantage(s) of First In First Out Method is/are:-
Its overhead expenses not considered
Its valuation is inconsistent
It does not give true picture, when lots are purchased at different prices
All of the above
The correct option is "It does not give true picture, when lots are purchased at different prices"Score:- 1
208 of 625
Disadvantage of First In First Out Method is, it is not logical.
True
False
209 of 625
Disadvantage of First In First Out Method is, the pricing of material return is difficult.
True
False
210 of 625
Disadvantage of First In First Out Method is, the pricing of material return is difficult as:-
Usually more than one price has to be adopted for a particular issue
High inflation creates problems in replacing used material
The cost comparison between low batches of production becomes difficult
All of the above
211 of 625
First In First Out Method is suitable when:-
a) The size of raw material is large
b) The unit price is high
c) The materials are received multiple times
Both (a) and (b)
212 of 625
Last In First Out Method is also known as_______________________ method.
Discretionary Cost
Average Cost
Replacement Cost
All of the above
The correct option is "Replacement Cost"Score:- 1
213 of 625
First In First Out Method is suitable, when prices are not steady.
True
False
214 of 625
Advantage(s) of Last In First Out Method is/are:-
It matches current costs with current revenue
It revels real income in times of rising prices
It minimizes unrealized inventory
All of the above
215 of 625
Disadvantage(s) of Last In First Out Method is/are:-
a) The rates of material fluctuating, this method becomes complicated
b) The costs are controllable
c) More than one price have to be adopted for an issue
Both (a) and (c)
216 of 625
Disadvantage of Last In First Out Method is the stocks are required to be adjusted during the falling prices.
True
False
217 of 625
Disadvantage of Last In First Out Method is, it reveals real income in times of rising prices.
True
False
218 of 625
Disadvantage(s) of Last In First Out Method is/are:-
a) The long term costs are not controllable
b) The company can plan the purchases to cause high, low costs thus changing reported income at will
c) Prohibition in using government contracts
Both (a) and (c)
The correct option is "The company can plan the purchases to cause high, low costs thus changing reported income
at will"Score:- 1
219 of 625
Simple Average Method for determining the prices is the average of prices ignoring the quantities involved.
True
False
220 of 625
The Weighted Cost Method for determining the prices:-
Avoids price fluctuations
Reduce number of calculations
Gives acceptable figure to stock
All of the above
The correct option is "Gives acceptable figure to stock"Score:- 1
221 of 625
The advantage(s) of Weighted Cost Method for determining the price(s) is/are:-
a) Logical & consistent
b) Change in prices do not affect issues & inventory
c) It revels real income in times or rising prices
Both (a) and (b)
222 of 625
Weighted Cost Method for determining the prices, the total quantities & total costs are taken into account.
True
False
223 of 625
Periodic Weighted Average Method price is calculated periodically and not every time the material is received.
True
False
224 of 625
Scrap represents the unusable loss, which can be:-
a) Thrown
b) Treated as waste
c) Sold
Both (a) and (b)
The correct option is "Sold"Score:- 1
225 of 625
Advantages of Periodic Weighted Cost Method for determining the prices are the issue prices and are not affected
by short term fluctuation.
True
False
226 of 625
The control of waste, scrap and spoilage can be exercised at which of the following level(s)?
Disposal
Occurrence
Recovery
All of the above
227 of 625
Spoilage may not be sold as seconds.
True
False
228 of 625
Losses are incurred due to:-
Nature of product
Methods of production
Quality control
All of the above
229 of 625
Labour related losses are incurred due to:-
a) Lack of training
b) Inadequate supervision
c) Theft
Both (a) and (b)
230 of 625
If the losses are not controllable in short term, then they may not be controllable in long term.
True
False
231 of 625
Causes of losses related to manufacturing process are incurred due to:-
a) Defective equipment
b) Pitfall in design
c) Strict inspection
Both (a) and (b)
232 of 625
Materials related losses are incurred due to machine jam.
True
False
233 of 625
Materials related losses are incurred due to:-
Deterioration
Defective material
Obsolescence
All of the above
234 of 625
Manufacturing related losses are incurred due to overloading resources.
True
False
235 of 625
The following information is available from production records for using materials X & Y:-
Maximum level for material X is:-
560
180
1220
None of the above
The correct option is "1220"Score:- 1
236 of 625
Maximum level for material Y is:-
560
180
1320
None of the above
237 of 625
Minimum level for material X is:-
180
360
1220
None of the above
238 of 625
Minimum level for material Y is:-
180
280
1220
None of the above
239 of 625
Ordering level for material X is:-
960
1400
300
None of the above
240 of 625
Ordering level for material Y is:-
1400
300
640
None of the above
241 of 625
Over or under costing of products distorts cost information.
True
False
242 of 625
Which amongst the below mentioned options can be defined as a process or procedure that causes work?
Planning
Deployment
Activity
All of the above
The correct option is "Activity"Score:- 1
243 of 625
Which of the below mentioned options can be co-related with activities of the support of service departments w.r.t
Activity Based Costing (ABC)?
Engineering change
Material handling
Quality testing
All of the above
244 of 625
_________ are identified with or assigned to the cost object, in the same manner as done in the case of traditional
costing system.
Direct costing
Losses
Expenses
Under costing
The correct option is "Direct costing"Score:- 1
245 of 625
Overhead costs cannot be linked to the cost objects based on the activities.
True
False
246 of 625
In Activity Based Costing, the fundamental cost object(s) is/are:-
a) Expenses
b) Cost pools
c) Cost drivers
Both (b) and (c)
247 of 625
Cost driver for Activity Based Costing for machine set up is/are:-
a) Items in stock
b) Number of production runs
c) Number of parts
Both (b) and (c)
The correct option is "Number of production runs"Score:- 1
248 of 625
Cost driver for Activity Based Costing for purchasing material(s) is/are:-
a) Number of orders place
b) Number of line items
c) Number of parts
Both (a) and (b)
The correct option is "Number of orders place"Score:- 1

249 of 625
Cost drivers are used for the allocation bases.
True
False
250 of 625
Cost driver for Activity Based Costing for warehouse(s) is/are:-
a) Items in stock
b) Number of production runs
c) Number of parts
Both (b) and (c)
The correct option is "Items in stock"Score:- 1
251 of 625
Cost driver for Activity Based Costing for quality testing is/are:-
Hours of test time
Number of production runs
Inspection per item
None of the above
The correct option is "Hours of test time"Score:- 1
252 of 625
Cost driver for Activity Based Costing for receiving material(s) is/are:-
Number of parts
Number of orders placed
None of the above
253 of 625
Cost driver for Activity Based Costing for store delivery is/are:-
Number of parts
Number of orders placed
None of the above
254 of 625
Traditional system moreover focuses on the effect of the cost, whereas Activity Based Costing focuses on the
__________ for cost management.
Expenses
Activities
Strategies
All of the above
The correct option is "Activities"Score:- 1
255 of 625
Which amongst the below mentioned strategic exercises does Activity Based Costing leads to?
Value chain analysis
Target costing
Benchmarking
All of the above
256 of 625
Which amongst the below mentioned, cannot be considered as costs incurred under support departments and won't
vary in the short run?
Setup
Inspection
Raw material
Scheduling
The correct option is "Raw material"Score:- 1
257 of 625
Which of the below mentioned options cannot be considered as the transaction based cost drivers?
Number of setup trials
Number of dispatch orders
Number of goods received orders
The correct option is "Number of setup trials"Score:- 1
258 of 625
A charging out rate can be arrived at by dividing the total cost of the cost pool by the number of transactions or
activities that generated these costs.
True
False
259 of 625
By which of the following ways does an organization try to expand out?
Introducing new models
New lines of business
New distribution channels
All of the above
260 of 625
Which one of the below mentioned, can be considered as the major kind of activities in any organization?
Report generation
End of day billings
Product sustaining activities
None of the above
The correct option is "Product sustaining activities"Score:- 1
261 of 625
Which of the below mentioned categories can the costs or expenses can be classified into?
Product sustaining costs
Costs at batch or production run level
Costs at the unit level
All of the above

262 of 625
_________ level costs correspond to short-run variable costs like materials, energy and labour.
Batch
Unit
Product sustaining
None of the above
The correct option is "Unit"Score:- 1
263 of 625
The length of setups or the number of setup runs cannot be classified as a batch or production level activity.
True
False
The correct option is " False"Score:- 1
264 of 625
_________ relates to the activities that enable firms to produce each specific product.
Product sustaining costs
Batch
Unit
None of the above
The correct option is "Product sustaining costs"Score:- 1
265 of 625
The unit level measures resources, that are consumed proportionately with the number of units produced.
True
False
The correct option is " True"Score:- 1
266 of 625
Factors affecting cost varying with units, for unit level activities are labour hours.
True
False
The correct option is " True"Score:- 1
267 of 625
Factors affecting cost, varying with units for product sustaining activities is/are:-
a) Product specification
b) Machine set up
c) Process engineering
Both (a) and (c)
268 of 625
Factors affecting cost varying with units for batch level activities are material movements.
True
False
269 of 625
Factors affecting cost varying with units for sustaining activities is/are:-
Machine set up
Materials
Inspection
None of the above
270 of 625
Factors affecting cost varying with units for sustaining activities is/are:-
a) Purchase orders
b) Customer satisfaction
c) Inspection
Both (a) & (c)
The correct option is "Customer satisfaction"Score:- 1
271 of 625
Activity Based Costing strives to assign costs to the factors that cause them.
True
False
272 of 625
The benefits of ABC costing are:-
Managers mange activities & not product, hence better control
Costs are identified with activities and more accurate costing results
ABC highlights problem area
All of the above
273 of 625
Which of the below mentioned options can be classified as multiple cost drivers?
Labour hours
Machine hours
Material consumption
All of the above
274 of 625
Costs that are incurred at the batch level may be described by identifying the primary cost driver of each activity and
treating it as the cost center or cost pool.
True
False
275 of 625
Which of the below mentioned options can be considered as cost drivers for the costs that are incurred at the batch
level?
Getting client orders
Transport
Materials requisition
None of the above
The correct option is "Materials requisition"Score:- 1

276 of 625
If the activities are managed well, the costs will fall and the resulting product will be more:-
Productive
Competitive
Expensive
None of the above
The correct option is "Competitive"Score:- 1
277 of 625
Activity Based Costing encourages Managers to think about changing work processes to make business more
competitive.
True
False
278 of 625
____________ costing systems are simplistic, because they only consider volume or unit-based assignment.
Indirect
Conventional
Direct
None of the above
The correct option is "Conventional"Score:- 1
279 of 625
Product ____________ occurs when products consume activities and inputs in different proportions.
Diversity
Disparity
Expense
None of the above
The correct option is "Diversity"Score:- 1
280 of 625
The following information is available from production records for products A&B:-
Cost per unit of product A is:-
Rs.3,000/-
Rs.2,493/-
Rs.2,500/-
None of the above
281 of 625
Cost per unit of product B is:-
Rs.2,493/-
Rs.3,453/-
Rs.2,593/-
None of the above
282 of 625
Cost per unit of product A using ABA is:-
Rs.28,493/-
Rs.1,890/-
Rs.1,875/-
None of above
283 of 625
Cost per unit of product B using ABA is:-
Rs.3,125/-
Rs.2,225/-
Rs.2,193/-
None of above
284 of 625
The budgetary control system is an excellent system for the centralization of authority by losing the control over the
operations of the firm.
True
False
The correct option is "FALSE"Score:-1
285 of 625
Which of the below mentioned options show that policy and program are to be followed in a future period under
planned conditions?
Budget
Forecast
Policy
All of the above
The correct option is "Budget"Score:-1
286 of 625
A _____________ is a comparison of the actual with the budgets both for the month and cumulative to the current
month.
Budget Committee
Budget Manual
Budget Report
Budget Document
The correct option is "Budget Report"Score:-1
287 of 625
Which amongst the below mentioned options should not be considered while deciding the length of the budget
period?
Completion of production of various products
Financing of production well in advance of actual needs
Expenses to be incurred
Should coincide with the financial accounting period
The correct option is "Expenses to be incurred"Score:-1
288 of 625
Budgets can be generally classified into which of the below mentioned categories?
The coverage or scope they encompass
The capacity or efficiency to which they relate
The conditions on which they are based
All of the above
The correct option is "All of the above"Score:-1
289 of 625
Which amongst the below mentioned options cannot be considered as principal budget factors that can influence the
targets?
Availability of raw materials
Plant capacity
Labour schemes
Customer demands
The correct option is "Labour schemes"Score:-1
290 of 625
Which amongst the below mentioned options can be considered as the targeted profit and loss statement and
balance sheet of the organization?
Materials budget
Functional budget
Production budget
Master budget
The correct option is "Master Budget"Score:-1
291 of 625
The grades of the workers required and the labour time for each job, operation and process is determined by which
of the following budgets?
Direct labour
Production
Materials
Sales
The correct option is "Direct labour"Score:-1
292 of 625
The direct labour budget considers which of the below mentioned factors?
Allowances
Bonus
Rates of pay
All of the above
293 of 625
Departmentalization of expenditure can be considered as one of the probable steps in the preparation of which of
the following budgets?
Selling expenses
Direct labour
Manufacturing overhead
Administration cost
The correct option is "Manufacturing overhead"Score:-1
294 of 625
Which amongst the below mentioned budgets is based on the amounts of cash which would be available in a future
period?
Cash
Direct labour
Selling expenses
The correct option is "Cash"Score:-1
295 of 625
The master budget provides the basis for computing the effect of any changes in which of the following phases of
operations?
Product mix
Labour cost
Prices
All of the above
296 of 625
ABC Ltd. manufactures a product P with a single grade labour. The sales budget and finished goods stocks budget
for the 3rd quarter are as follows:-
Sales 1200 units
Opening finished goods 120 units
Closing finished goods 160 units
The goods are imported only when the production work is completed and it is budgeted that 5% of the finished work
will be scrapped. The standard direct labour content of the product P is 2 hrs. The budgeted productivity ratio for
direct labour is only 75%. The company employs 25 direct operatives, who are expected to average 125 working
hours each in the third quarter. With respect to the production budget, the total production required can be calculated
as:-
1300 units
1250 units
1275 units
1350 units
The correct option is "1300 units"Score:-1
297 of 625
Sales 1200 units

hours each in the third quarter.With respect to the direct labour budget, the total standard hrs required can be
calculated as:-
2500 hrs.
2600 hrs.
3000 hrs.
None of the above
The correct option is "2600 hrs."Score:-1
298 of 625
Sales 1200 units

hours each in the third quarter.
With respect to the direct labour budget, the shortfall can be calculated as:-
342 hrs.
315 hrs.
325 hrs.
None of the above
299 of 625
Sales 1200 units

hours each in the third quarter. With respect to the direct labour budget, the Actual hrs required can be calculated
as:-
3580 hrs.
3440 hrs.
3500 hrs.
3467 hrs.
300 of 625
A budget plan that is prepared and approved prior to the budget period, shows which of the below mentioned
options?
Expenditure
Income
Capital
All of the above
301 of 625
A ___________ is a precise statement of the financial and quantitative implications of the course of action that the
management has decided to follow.
Policy
Budget
Rollout
None of the above
The correct option is "Budget"Score:-1
302 of 625
A budgetary control system secures control over performance and costs in different parts of business by:-
Establishing budgets
Taking corrective actions and remedial measures or revisions of the budget
Comparing actual attainments against the budget
All of the above
303 of 625
Which amongst the below mentioned can be considered as the objective(s) of budgetary control?
Facilitating centralized controls with delegated authority
Achieving maximum profitability by planning income and expenditures
Using different levels of management in cooperative endeavour
All of the above
304 of 625
Which amongst the below mentioned options cannot be considered as a principle advantage of budgetary control
system?
It provides employee retention policies
The task of managerial coordination is facilitated through budgetary control
It provides a clear definition of the objectives and policies of concern
It maximizes the profit through effective planning and control
The correct option is "It provides employee retention policies"Score:-1
305 of 625
Budgets are meant to deal with business conditions which are constantly changing.
True
False
The correct option is "TRUE"Score:-1
306 of 625
Which amongst the below mentioned pre-requisites should be fulfilled for a successful implementation of budgetary
control?
A budget factor (key factor) should be indicated at start
There should be an efficient accounting system to record and provide data
The objectives, plans and policies of the business should be defined
All of the above
307 of 625
A ___________ stores all details regarding the plan, procedure and the period of the budget.
Budgetary handbook
Budget catalogue
Budget diary
Budget manual
The correct option is "Budget Manual."Score:-1
308 of 625
Which one of the below mentioned options does not characterize a good budget?
Complete
Realistic to attain
Comprehensive
Discrete
The correct option is "Discrete"Score:-1
309 of 625
A(n) ______________ is a statement defining the functional representatives of executives responsible for
accomplishment of organizational objectives.
Organizational chart
Sales chart
Resource chart
None of the above
The correct option is "Organizational chart"Score:-1
310 of 625
A ____________ is the section of the organization of the undertaking defined for the purpose of budget control.
Budget Committee
Budget Center
Budget Manual
None of the above
The correct option is "Budget Center"Score:-1
311 of 625
An organizational chart does not show the functional responsibility of a particular executive.
True
False
312 of 625
A ____________ is a document which sets outstanding instructions governing the responsibilities of persons and
procedures.
Budget Manual
Budget Chart
Budget Document
All of the above
The correct option is "Budget Manual"Score:-1
313 of 625
Which amongst the below mentioned can be considered as the important matter(s) dealt with in the budget manual?
Important factors that must be considered for each forecast
The categorization of expenses
Dates by which preliminary forecasts and plans are to be submitted
All of the above
314 of 625
The main idea of the budget manual is to inform the line executives about procedures to be followed, before hand.
True
False
315 of 625
Which amongst the below mentioned options cannot be considered as the budget controllers duties?
Efficient preparation of budgets and proper reporting
Preparing an expense and organizational chart report
Helping in preparation of various budgets
Compilation of information about actual performance on a continuous basis
The correct option is "Preparing an expense and organizational chart report"Score:-1
316 of 625
The _________________ is a group of representatives of various functions in an organization.
Organizational Committee
Budget Committee
Report Committee
All of the above
The correct option is "Budget Committee"Score:-1
317 of 625
Which of the below mentioned responsibilities and duties should a budget manual include?
Receive and review budget estimates from respective divisions
Consider recommendations for revision of the budget policies
Recommend changes and approval of revised budget
All of the above
318 of 625
____________ provide the perspective, in the sense that it provides a view of what likely is to be achieved and what
the chief problems are.
Short term budgets
Long term budgets
Forecasts
None of the above
The correct option is "Long term budgets"Score:-1
319 of 625
Which amongst the below mentioned options can be considered as a factor that will limit the activities of an
undertaking and is taken into account while preparing budgets?
Budget Expense Factor
Principal Budget Factor
Budget Manual
None of the above
The correct option is "Principal Budget Factor"Score:-1
320 of 625
Reports are usually sent at shorter intervals so that corrective action could be taken within the budget period.
True
False
321 of 625
____________ and report of variance can be considered as an integral part of any control system.
Loss evaluation
Performance evaluation
Budget evaluation
None of the above
The correct option is "Performance evaluation"Score:-1
322 of 625
Which amongst the below mentioned characteristics cannot be associated with a correct budget report?
Expressed in terms of direct figures
Correlated to a 'money value' wherever possible
Designed to give detailed information (major and minor)
Regularly and promptly presented
The correct option is "Designed to give detailed information (major and minor) "Score:-1
323 of 625
Every budget report should be followed up till final results are achieved.
True
False
324 of 625
Budgets for a period are really classified according to the various ___________ in the organization.
People
Activities
Processes
None of the above
The correct option is "Activities"Score:-1
325 of 625
Approved targets for individual functions are known as __________ budget.
Sales
Functional
Production
Master
The correct option is "Functional"Score:-1
326 of 625
The sales budget is a forecast of the total sales expressed in terms of money and quantity.
True
False
327 of 625
The sales budget is based on the sales forecasting, which is the responsibility of the:-
Production Manager
Sales Manager
Line Manager
None of the above
The correct option is "Sales Manager"Score:-1
328 of 625
Which amongst the below mentioned options can be considered as the main steps in the preparation of the
Production Budget?
Consideration of capacity
Integration of sales forecast
Production planning
All of the above
329 of 625
Which amongst the below mentioned budgets assists the purchase department in suitably planning the purchases?
Sales
Administration costs
Materials
Production
The correct option is "Materials"Score:-1
330 of 625
The operation of production budget results in the under utilization of productive resources of the enterprise.
True
False
331 of 625
Which amongst the below mentioned can be considered as the steps to be followed while preparing a
manufacturing overhead budget?
Expenditure classification into fixed, variable and semi-variable components
Determining level of activity for setting the overhead rates
Establishing the variable overhead rates per unit
All of the above
The correct option is "All of the above "Score:-1
332 of 625
The manufacturing expenses include items of expenditure related to higher management function as well as
expenses of the legal, financial and accounting departments.
True
False
333 of 625
The _________ budget takes care of items of expenditure related to higher management function as well as
expenses of the legal, financial and accounting departments.
Administrative
Selling expenses
Direct labour
The correct option is "Administrative"Score:-1
334 of 625
The budgeted expenses are determined on the basis of _________ spent in previous years and minimum
requirements for the efficient operation of each department.
Materials
Man hours
Amounts
None of the above
The correct option is "Amounts"Score:-1
335 of 625
Which amongst the below mentioned budgets takes into account the expenditure on promotion, maintenance and
distribution of the finished product?
Selling expenses
Administrative
Direct labour
The correct option is "Selling expenses"Score:-1
336 of 625
Selling and distribution expenses are always fixed with regards to the volumes of sales.
True
False
337 of 625
The ______________ budget depends mostly on the management decisions regarding the research and
development effort for projects already in hand and the proposed ones.
Cash
Research and development
Selling expenses
The correct option is "Research and development"Score:-1
338 of 625
The estimates of _________ are prepared on a monthly basis and majorly depend on the estimated cash sales.
Cash disbursements
Cash payments
Cash receipts
All of the above
The correct option is "Cash receipts"Score:-1
339 of 625
The estimates of _________ are based on the estimated cash purchases, payments to creditors, employees
remuneration, etc.
Cash disbursements
Cash receipts
Cash payments
All of the above
The correct option is "Cash disbursements"Score:-1
340 of 625
Which amongst the below mentioned options can be considered as the objectives behind preparing a cash budget?
A sound basis for credit for current control of cash position
Effect of sudden and seasonal requirements, large stocks, etc.
Cash can be coordinated in relation to total working capital
All of the above
341 of 625
Cash budgets help in arranging short term borrowings in advance to meet the situations of shortage of cash.
True
False
342 of 625
Which of the below mentioned methods cannot be considered while preparation of a cash budget?
Adjusted profit and loss accounting method
Receipts and payments
Cash disbursement method
Balance method
The correct option is "Cash disbursement method"Score:-1
343 of 625
The cash receipts from various sources and cash payments to various agencies are estimated in which of the
following methods?
Adjusted profit and loss accounting method
Balance method
Receipts and payments
All of the above
The correct option is "Receipts and payments"Score:-1
344 of 625
A ______________ is consolidated summary of the various functional budgets.
Direct labour
Cash
Master
The correct option is "Master"Score:-1
345 of 625
The master budget is the culmination of the preparation of all other budgets like:-
Sales budget
Production budget
Purchase budget
All of the above
346 of 625
A master budget is prepared by the budget committee on the basis of coordinated functional budgets.
True
False
347 of 625
The master segregates income, costs and profits by areas of responsibilities.
True
False
348 of 625
A ______________ is a budget designed to remain unchanged irrespective of the level of activity actually attained.
Selling expense budget
Direct labour budget
Cash budget
Fixed budget
The correct option is "Fixed budget"Score:-1
349 of 625
A ________________ recognizes the difference between fixed, semi-fixed and variable cost.
Fixed budget
Flexible budget
Direct labour budget
Selling expense budget
The correct option is "Flexible budget"Score:-1
350 of 625
A flexible budget is desirable in which of the following cases?
Undertaking is suffering from shortage
Business is new and difficult to foresee the demand
Level of activity during a year varies from period to period
All of the above
351 of 625
The main characteristic of a flexible budget is that it shows the expenditure appropriate to various levels of output.
True
False
352 of 625
A product is sold at a price of Rs.1200/- per unit and its variable cost is Rs.800/- per unit. The fixed expenses of the
business are Rs.16,000/- per year.Break-even point in Rs. is ________.
Rs.18,000/-
Rs.48,000/-
Rs.24,000/-
None of the above
The correct option is "Rs.48,000/- "Score:-1
353 of 625
business are Rs.16,000/- per year.Break-even point in numbers is ______.
180
40
200
None of the above
The correct option is "40"Score:-1
354 of 625
The CVP analysis helps the management in finding out the relationship of costs and revenues to ____________.
Business
Productivity
Profit
None of the above
The correct option is "Profit"Score:-1
355 of 625
business are Rs.16,000/- per year.Profits made when sale are 2400 units is ________.
96,000
80,000
76,000
None of the above
The correct option is "80,000"Score:-1
356 of 625
The basic or the primary aim of any organization or undertaking is to earn:-
Project
Profit
Recognition
None of the above
357 of 625
A product is sold at a price of Rs.1,200/- per unit and its variable cost is Rs.800/- per unit. The fixed expenses of the
business are Rs.16,000 per year.Sales to be made to earn net profit of Rs.50,000/- for the year ________.
1,98,000
1,76,000
1,80,000
None of the above
The correct option is "1,98,000 "Score:-1
358 of 625
The volume of sales depends upon the volume of the _________ .
Profit
Risk
Production
None of the above
The correct option is "Production"Score:-1
359 of 625
Cost is said to be the resultant of the operation of many varying factors.
True
False
360 of 625
Which one of the following is not a factor which affects the cost?
Size of the plant
Internal efficiency
External effectively
None of the above
The correct option is "External effectively"Score:-1
361 of 625
XYZ Ltd. represents the following data:-
From the above data, Break-even point is _________.

Rs.35,000/-
Rs.1,00,000/-
Rs.2,50,000/-
None of the above
The correct option is "Rs.1,00,000/- "Score:-1
362 of 625
From the above data, P/V Ratio is _________.
40%
50%
35%
None of the above
The correct option is "50%"Score:-1
363 of 625
______ is perhaps the largest single factor which influences the cost in a very big way.
Volume
Client-specification
Product mix
None of the above
The correct option is "Volume"Score:-1
364 of 625
From the above data, margin of safety is _________.
Rs.50,000/-
Rs.80,000/-
Rs.35,000/-
None of the above
The correct option is "Rs.80,000/- "Score:-1
365 of 625
Volume changes in an organization are of frequent occurrence, often necessitated by:-
Management changes
Future prospects
Outside factors
None of the above
The correct option is "Outside factors "Score:-1
366 of 625
The managerial control of the factors of volume presents no problems at all, infact it is a necessary control.
True
False
367 of 625
From the above data, Break-even point is ______.

Rs.1,30,000/-
Rs.1,55,553/-
Rs.1,35,000/-
None of the above
The correct option is "Rs.1,55,553/- "Score:-1
368 of 625
From the above data, P/V Ratio is ________.
15%
40%
35%
None of the above
The correct option is "15%"Score:-1
369 of 625
In any organization, the profits are affected by the _______ of cost and volume.
Relation
Opposition
Interplay
None of the above
The correct option is "Interplay"Score:-1
370 of 625
The management must have at it's disposal _______ that can allow reasonably accurate presentation of the effect of
change.
Analysis
Opportunity
Framework
None of the above
The correct option is "Analysis"Score:-1
371 of 625
________ analysis furnishes a picture of the profit at various levels of the business activity.
Economical
CVP
Short-term
None of the above
The correct option is "CVP"Score:-1
372 of 625
The complexity of the costs incurred by a company to attain the required sales volume is reducing very rapidly.
True
False
373 of 625
Fixed costs would be the same during any designated period regardless of the volume of the ______.
Analysis
Output
Profit
None of the above
The correct option is "Output"Score:-1
374 of 625
The fixed costs in any organization are prescribed by the ________.
Procedure
Contract
Analysis
None of the above
The correct option is "Contract"Score:-1
375 of 625
The inflexibility of the fixed costs would be within the ______ of a given combination of resources.
Management
Framework
Benchmarking
None of the above
The correct option is "Framework"Score:-1
376 of 625
As fixed costs do not change with _________, the amount per unit declines as the output declines.
Production
Profits
Risks
None of the above
The correct option is "Production"Score:-1
377 of 625
Absorption or full costing system seeks to allocate the fixed costs to products.
True
False
378 of 625
The absorption or the full cost system creates a problem of _______.
Availability
Delay
Apportionment
None of the above
The correct option is "Apportionment"Score:-1
379 of 625
SWAT stands for ______, Weaknesses, Opportunities and Threats.
Strengths
Stress
Success
None of the above
The correct option is "Strengths"Score:-1
380 of 625
The ________ costs have very little relation with the volume of the production.
Analysis
Absorption
Fixed
None of the above
The correct option is "Fixed"Score:-1
381 of 625
The variable costs have very little relation to the activity itself.
True
False
382 of 625
The variable costs expand and contract as the ______ rises and falls.
Activity
Price
Profit
None of the above
The correct option is "Activity"Score:-1
383 of 625
In the case of the variable costs, the amount per unit:-
Increases
Remains the same
Decreases
None of the above
The correct option is "Remains the same "Score:-1
384 of 625
Volume is never measured in terms of the sales capacity, as it is measured in terms of pure profit percentage.
True
False
385 of 625
The study of the costs and the C.V.P. relationship needs proper definition of the volume or the _______.
Service
Valuation
Activity
None of the above
The correct option is "Activity"Score:-1
386 of 625
Production ________ also called as the value of sales is expressed as a percentage of the maximum productivity.
Delay
Capacity
Defect
None of the above
The correct option is "Capacity"Score:-1
387 of 625
Which one of the following is not a factor involved in the interplay of the C-V-P analysis?
Product mix of the profits
Selling price
Volume of sales
None of the above
The correct option is "Product mix of the profits "Score:-1
388 of 625
Inorder to forecast the _____ accurately, it is essential to know the relationship between the profits and costs.
Profit
Setbacks
Sales volumes
None of the above
The correct option is "Profit "Score:-1
389 of 625
The C.V.P. analysis is useful in setting up the fixed costs based budget.
True
False
390 of 625
The C.V.P. analysis is useful in setting up the performance evaluation for the purposes of the _______.
Integration
Profit
Control
None of the above
The correct option is "Control "Score:-1
391 of 625
______ plays an important part in the fixing up and stabilizing the volumes.
Development
Profits
Pricing
None of the above
The correct option is "Pricing "Score:-1
392 of 625
Relationship plays no part in formulating the price policies to suit any particular circumstances.
True
False
393 of 625
The ratio or the percentage of contribution margin is known as the _____ ratio.
Profit
P/V
Completion
None of the above
The correct option is "P/V "Score:-1
394 of 625
In terms of the profit and the volume ratio, the Sales - Variable cost = ______.
Contribution
Measurement
Profitability
None of the above
The correct option is "Contribution"Score:-1
395 of 625
The P/V ratio = Fixed cost + Profit / ______.
Sales value
Volume
Delay
None of the above
The correct option is "Sales Value "Score:-1
396 of 625
The profit planning is based on the _______ level of the activity in any organization.
Unplanned
Set
Anticipated
None of the above
The correct option is "Anticipated "Score:-1
397 of 625
The flexible budget technique is used for the profit planning.
True
False
398 of 625
The _______ is the point where the total revenue equals the total cost.
Break-even
Benchmarking
Analysis
None of the above
The correct option is "Breakeven"Score:-1
399 of 625
_______ is the excess of sales over the variable costs, which is much more than the fixed costs.
Contribution
CVP analysis
Profit
None of the above
The correct option is "Contribution "Score:-1
400 of 625
Which one of the following is not a part of the algebraic method of defining the BEP?
Equation techniques
Redesigning approach
Contribution margin approach
None of the above
The correct option is "Redesigning approach "Score:-1
401 of 625
Which one of the following is not a part of the graphic representation method of defining the BEP?
Sales chart
Profit volume chart
Break-even chart
None of the above
The correct option is "Sales chart "Score:-1
402 of 625
The level at which neither profit nor loss is termed as the break-even point.
True
False
403 of 625
Fixed costs will remain constant and will not change with the change in the _______, is one of the prime
assumptions in the break-even charts.
Sales
Profit
Output
None of the above
404 of 625
The break-even chart cannot be called as the cost-volume-profit graph.
True
False
405 of 625
The basic assumption of the break-even chart is that the selling price will remain constant even though there may
be:-
Delay
Risks
Competition
None of the above
The correct option is "Competition"Score:-1
406 of 625
The basic assumption of the break-even method is that there will be no change in the ________ efficiency.
Operating
Function
Training
None of the above
The correct option is "Operating "Score:-1
407 of 625
In the first method of the break-even chart, the large angle of incidence denotes a good profit position of a company.
True
False
408 of 625
The second method is the variation of the first method in which the ______ cost is drawn first.
Fixed
Net
Variable
None of the above
The correct option is "Variable "Score:-1
409 of 625
The added advantage of the second method is that the contributions at various levels of the ______ are
automatically depicted in the chart.
Sales
Output
Profit
None of the above
410 of 625
In the contribution break-even method, the _____ cost line is drawn parallel to the X-axis.
Variable
Absorption
Fixed
None of the above
The correct option is "Fixed"Score:-1
411 of 625
In the profit-volume graph, the sales are shown on the vertical axis.
True
False
412 of 625
The margin of ______ is the difference between the actual sales and sales at the BEP.
Safety
Profitability
Pricing
None of the above
The correct option is "Safety "Score:-1
413 of 625
The margin of safety can also be calculated with the help of the:-
P-V ratio
BEP
Graphical representation
None of the above
The correct option is "P-V ratio "Score:-1
414 of 625
The margin of safety = _____ / P/V ratio.
Sales
Value
Profit
None of the above
415 of 625
The margin of safety cannot be expressed as a percentage of sales.
True
False
416 of 625
In the context of the margin of safety, a(an) _____ level of activity might prove to be disastrous.
Delayed
Reduced
Increased
None of the above
The correct option is "Reduced"Score:-1
417 of 625
In the context of the margin of safety, the _____ of a business is gauged by the size of the margin of safety.
Profit
Volume of sales
Soundness
None of the above
The correct option is "Soundness "Score:-1
418 of 625
In the context of the margin of safety, a low margin of safety usually indicates high fixed ________.
Setbacks
Sales volumes
Overheads
None of the above
The correct option is "Overheads"Score:-1
419 of 625
A low margin of safety is accompanied by low fixed costs.
True
False
420 of 625
Which one of the following steps is not a part of the measures taken to improve the margin of safety?
Lower variable costs
Higher variable costs
Lowered fixed costs
None of the above
The correct option is "Higher variable costs"Score:-1
421 of 625
Changing the ________ as to improve the contribution is one of the key steps taken to improve the margin of safety.
Product mix
Profits
Pricing
None of the above
The correct option is "Product mix"Score:-1
422 of 625
The combined fixed costs need not to be met by the combined BEP sales.
True
False
423 of 625
In the composite break-even point, the ______ product mix is one of the approaches.
Continuous
Completion
Constant
None of the above
The correct option is "Constant"Score:-1
424 of 625
The constant mix product approach is also maintained at the ______ sales also.
Volume
BEP
Profitability
None of the above
The correct option is "BEP"Score:-1
425 of 625
The variable product mix is preferred where the ________ ratio of that particular organization is higher.
Profit
Contribution
Volume
None of the above
The correct option is "Contribution"Score:-1
426 of 625
The C.V.P. analysis helps in forecasting the profits as a result in the change of _______ .
Volumes
Profit
Product
None of the above
The correct option is "Volumes"Score:-1
427 of 625
A quantum of profit can be determined with the change in the volume of sales.
True
False
428 of 625
The C.V.P. analysis helps in determining the relative _______of each product, line, project or the profit plan.
Cost
Profit
Contribution
None of the above
429 of 625
Through the cost-profit-volume analysis, the inter-firm comparison of profitability can be done ______ .
Intelligently
Non-effectively
Cumulatively
None of the above
The correct option is "Intelligently"Score:-1
430 of 625
The C.V.P analysis helps in determining the ________ requirements at a desired volume of output.
Profit
Cash
Contribution
None of the above
The correct option is "Cash"Score:-1
431 of 625
The break analysis does not emphasize the importance of capacity utilization for achieving economy.
True
False
432 of 625
The effect on total cost of a _______ in the fixed over-head is more clearly demonstrated through the break-even
analysis.
Price
Delay
Change
None of the above
The correct option is "Change"Score:-1
433 of 625
The requirement of ______ can be gauged from the position of the break-even point.
Capital
Debt
Risk
None of the above
The correct option is "Capital "Score:-1
434 of 625
The variable costs can be gauged by the ______ of incidence of the break-even chart.
Cost
Angle
Valuation
None of the above
The correct option is "Angle"Score:-1
435 of 625
One of the prime disadvantages of the break-even chart is that it is not able to visualize the information in a clear
manner.
True
False
436 of 625
In the break-even charts, the information is presented in a very _____ form for the user.
Complicated
Dynamic
Simple
None of the above
The correct option is "Simple"Score:-1
437 of 625
The break-even chart shows the relative importance of the ______ in the total cost of production.
Volume of sales
Fixed costs
Selling price
None of the above
The correct option is "Fixed costs "Score:-1
438 of 625
Which one of the following is not a part of the things that can be analyzed through the break-even chart?
Capacity utilization
Profit sharing
The economy of the scale
None of the above
The correct option is "Profit sharing "Score:-1

439 of 625
The training efficiency is indicated by the angle of incidence of the break-even chart.
True
False
440 of 625
Which one of the following is not a part of the break-even analysis?
Long-term planning
Short-term planning
Forecasting
None of the above
The correct option is "Short-term planning "Score:-1
441 of 625
One of the prime objections raised against the utility of the break-even chart is that the _____ do not always remain
constant.
Fixed costs
Profits
Variable costs
None of the above
The correct option is "Fixed costs "Score:-1
442 of 625
The horizontal axis in the break-even chart can measure the units sold in unlike products with equal ease as it can
measure like products.
True
False
443 of 625
The break-even analysis is based on the assumption that the ______ is influenced by the changes in the sales.
Profit
Completion
Income
None of the above
The correct option is "Income "Score:-1
444 of 625
If the ______ costing is used in the break-even chart then the assumptions would hold good.
Full
Marginal
Measured
None of the above
The correct option is "Marginal"Score:-1
445 of 625
An unlimited amount of information can be presented in the single break-even chart.
True
False
446 of 625
The break-even chart does not provide any basis for ______ efficiency between different units or organizations.
Different
Comparative
Similarities
None of the above
The correct option is "Comparative"Score:-1
447 of 625
The quantities specified in manufacturing production order was 2000 units of article in which four operations were
involved. The piece rate for these four operations were in sequence, Rs.1,1.5,2,3 per unit.
The company recovered factory overhead expenses on the basis of direct labour cost and the current overhead rate
is 80%. The entire quantity of material authorized for the order viz. 1000 kg @ Rs.2/-per kg. was issued to shop floor.
Out of which 50 kg were returned as scrap, valued at Rs.8/-.
At the year end order was incomplete, only 200 units were completed, taking the work in progress revealed the
following position:-
Total cost of the material work in progress is _____________.
Rs.1,500/-
Rs.1,693.50/-
Rs.1,293.50/-
None of the above
The correct option is "Rs.1,693.50/-"Score:- 1
448 of 625
Job costing can be defined as the system in which the elements of costing are accumulated _____________ for
each job.
Broadly
Together
Separately
None of the above
The correct option is "Separately"Score:- 1
449 of 625
The Hindustan Movers processed production through two departments:-
1) Machinery and 2) Finishing
Overhead rates are predetermined on the basis of machine hours in machine department and the direct labour
wages in the finishing department.
The figure for the year 1996-97 based on which the overhead rates were arrived at as furnished below:-
The cost sheet for job order no. 1748, Part no. p-1865, indicates the following:-
Assuming that production order consists of 10 numbers of parts,find the unit cost of Part no. p-1865.
Rs.52.50/-
Rs.26.20/-
Rs.31.20/-
None of the above
The correct option is "Rs.31.20/- "Score:- 1
450 of 625
The industries which manufacture products or render services against ___________ order use job costing.
Common
Specific
Non-specific
None of the above
The correct option is "Specific"Score:- 1
451 of 625
The quantities specified in manufacturing production order was 2000 units of article in which four operations were
involved. The piece rate for these four operations were in sequence, Rs.1,1.5,2,3 per unit.
The company recovered factory overhead expenses on the basis of direct labour cost and the current overhead rate
is 80%. The entire quantity of material authorized for the order viz. 1000 kg @ Rs.2/-per kg. was issued to shop floor.
Out of which 50 kg were returned as scrap valued at Rs.8/-.
At the year-end order was incomplete, only 200 units were completed, taking the work in progress revealed the
following position:-
Total cost of the labour work in progress is _____.

Rs.5,410/-
Rs.5,310/-
Rs.5,216.50/-
None of the above
452 of 625
Which one of the following is not taken in the job costing?
Unit
Order
Profit
None of the above
The correct option is "Profit"Score:- 1
453 of 625
An article undergoes three successive operations A, B, C from raw materials to the finished product stage. The
following information is available from production records:-
Identify from the following options, what should be the input in the first operation in number of pieces to obtain a
finished product of 10,000 pieces after the last operation?
19,800
18,000
18,800
None of the above
The correct option is "19,800"Score:- 1
454 of 625
A production order is issued giving the instruction to the shops to proceed with the manufacturing of the product.
True
False
455 of 625
An article undergoes three successive operations A, B, C from raw materials to the finished product stage. The
following information is available from production records:-
Calculate the cost of raw material required to produce 10,000 pieces of finished product from the following
particulars:-
Weight of the finished pieces 100gm per piece

Price of raw material Rs.10/- per kg
Rs.18,000/-
Rs.18,800/-
Rs.19,800/-
None of the above
456 of 625
On the receipt of a production order, the shop draws the __________ materials from the store.
Effective
Requisite
Defective
None of the above
The correct option is "Requisite"Score:- 1
457 of 625
For the cost accounting purposes, the materials issue ______________ sheet is prepared.
Analysis
Production
Specification
None of the above
The correct option is "Analysis"Score:- 1
458 of 625
All the direct __________ costs must be analyzed according to the individual jobs or the work orders.
Labour
Management
Future
None of the above
The correct option is "Labour"Score:- 1
459 of 625
The indirect labour costs are posted on the respective cost-sheets.
True
False
460 of 625
The indirect labour costs is always considered as a form of _____________ costs.
Minute
Overhead
Relative
None of the above
The correct option is "Overhead"Score:- 1
461 of 625
_______________ costs are accumulated against standing order numbers and against cost centers.
Accumulated
Overhead
Future
None of the above
The correct option is "Overhead "Score:- 1
462 of 625
The cost of an incomplete job, that is a job on which some manufacturing operation is still due is termed as
__________________.
Work in progress
Short-term delay
Extra work
None of the above
The correct option is "Work in progress"Score:- 1
463 of 625
The determination of the work in progress in not very essential to the smooth functioning of the business.
True
False
464 of 625
Sometimes the progress of different jobs needs to be ascertained with the help of the ______________.
Analysis ticket
Job ticket
Profit
None of the above
The correct option is "Job ticket"Score:- 1
465 of 625
The _____________ in the job costs may be exercised by the comparison of the actual costs with the estimated
costs.
Analysis
Procedure
Control
None of the above
The correct option is "Control"Score:- 1
466 of 625
The standard costs are mostly made use in the __________ type of plants.
Non-profit
Management
Job
None of the above
The correct option is "Job"Score:- 1
467 of 625
The standard costs provide a firm basis for the preparation of the cost estimates for _____________ jobs.
Specific
Non-Profit
Risky
None of the above
The correct option is "Specific"Score:- 1
468 of 625
The standard costs thus serve as a powerful tool for the control of costs.
True
False
469 of 625
One of the prime advantages of the job costing is that it provides the management to detect whether the jobs are
__________________.
Profitable
Delayed
Available
None of the above
The correct option is "Profitable"Score:- 1
470 of 625
The application of a system of ______________ control is one of the prime advantages of the job costing.
Budgetary
Successful
Analysis
None of the above
The correct option is "Budgetary"Score:- 1
471 of 625
The _________________ work can be easily identified with the help of the job costing.
Delayed
Defective
Approved
None of the above
The correct option is "Defective"Score:- 1
472 of 625
The job costing is the most inappropriate method for the cost plus type of contracts.
True
False
473 of 625
The job cost information can be used for the estimation of the ___________ costs.
Profitable
Future
Lost
None of the above
The correct option is "Future"Score:- 1
474 of 625
The ______________ of costs also occurs when the batch quantities are totally different.
Distortion
Decrease
Increase
None of the above
The correct option is "Distortion "Score:- 1
475 of 625
A cost ____________ report shows the deviations in the actual costs of any project.
Valuation
Variance
Analysis
None of the above
The correct option is "Variance"Score:- 1
476 of 625
The variances in the cost are not mandatory and do not need to be analyzed into the material costs.
True
False
477 of 625
The __________ costing, as it is termed, is one of the forms of application of the principles of the job order costing.
Terminal
Delay
Defect
None of the above
The correct option is "Terminal"Score:- 1
478 of 625
In the contract costing, most of the expenses are of the _____________ nature.
Indirect
Proportionate
Direct
None of the above
The correct option is "Direct"Score:- 1
479 of 625
Under the contract costing, the ____________ is influenced by the specific causes of the contract.
Sales volumes
Volume
Pricing
None of the above
The correct option is "Pricing"Score:- 1
480 of 625
A ledger cannot be operated as a part of the financial books.
True
False
481 of 625
In the contract costing, the material must be purchased in _____________ and kept in the store.
Sets
Bulk
Loose
None of the above
The correct option is "Bulk"Score:- 1
482 of 625
All the labour costs employed on the site are regarded as the __________ labour costs regardless of the nature of
the task.
Direct
Indirect
Extra
None of the above
The correct option is "Direct"Score:- 1
483 of 625
The materials which are stolen or damaged in fire is regarded as lost and will not be transferred to the profit and loss
account.
True
False
484 of 625
On the basis of the analysis of the job cards, the __________ analysis sheets are prepared.
Profit
Completion
Labour
None of the above
The correct option is "Labour"Score:- 1
485 of 625
Which one of the following is not one of the direct expenses?
Special tools
Labour contribution
Electric charges
None of the above
The correct option is "Labour contribution "Score:- 1
486 of 625
Indirect expenses may be contributed on several contracts as a percentage of cost of______________.
Material
Prime cost
Wages paid
All of the above
487 of 625
__________________ is usually provided in the contract as a safeguard against likely changes in contract.
Benchmarking
Escalation clause
Insurance
None of the above
The correct option is "Escalation clause"Score:- 1
488 of 625
Advantages of cost plus contract are____________.
1) Simplifies work offering tenders
2) Reasonable profit to contractor even in risky conditions
3) CVP analysis
4) Both (1) & (2)
The correct option is "4) Both (1) & (2)"Score:- 1
489 of 625
Indirect expenses are few and related only to general office expenses.
True
False
490 of 625
Cost plus contract is a contract in which the value of the contract is ______________ by adding a certain
percentage of profit over the total cost of the work.
Benchmarked
Analyzed
Ascertained
None of the above
The correct option is "Ascertained"Score:- 1
491 of 625
Advantages of cost plus contract is that the customer has the right to conduct cost audit.
True
False
492 of 625
Job costing involves ___________________.
Costs are accumulated and applied department wise
Production is of like units in continuous flow
Goods are manufactured only as per specific orders
None of the above
The correct option is "Goods are manufactured only as per specific orders"Score:- 1
493 of 625
In job costing, costs are not necessarily calculated after every job is completed.
True
False
494 of 625
In job costing, the different jobs are _________________ in nature.
Risky
Independent
Interdependent
None of the above
The correct option is "Independent "Score:- 1
495 of 625
In the process stage, the production is of like units in a _____________ flow.
Functional
Discontinuous
Continuous
None of the above
The correct option is "Continuous"Score:- 1
496 of 625
In many process industries, some loss or wastage is not available for accounting.
True
False
497 of 625
The normal process loss is recorded only in terms of ______________ and the cost per unit of usable production.
Profit
Sales
Quantity
None of the above
The correct option is "Quantity"Score:- 1
498 of 625
The normal process loss is that loss which is ____________ because of the nature of raw material.
Negotiable
Fixed
Unavoidable
None of the above
The correct option is "Unavoidable"Score:- 1
499 of 625
Abnormal process loss is any loss caused by _____________ or abnormal conditions.
Expected
Variable
Unexpected
None of the above
The correct option is "Unexpected"Score:- 1
500 of 625
The normal process loss is the loss on the excess of the margin anticipated for normal process loss.
True
False
501 of 625
The units representing the abnormal process loss are valued like ____________ units produced.
Unfinished
Profitable
Good
None of the above
The correct option is "Good"Score:- 1
502 of 625
The value of the units representing the abnormal loss is debited to a ______________ account.
Common
New
Separate
None of the above
The correct option is "Separate"Score:- 1
503 of 625
If the abnormal loss has got any __________ value, it should be credited to abnormal loss account.
Sales
Scrap
Internal
None of the above
The correct option is "Scrap"Score:- 1
504 of 625
All the cost relating to the abnormal loss is credited to the abnormal loss account and is debited from the process
account.
True
False
505 of 625
The abnormal _____________ is said to happen when the quantum of loss is less than the determined profit
percentage of normal loss.
Gain
Increase
Loss
None of the above
The correct option is "Gain"Score:- 1
506 of 625
The presence of the abnormal effectiveness should not affect the __________ of the goods.
Volume
Profit
Cost
None of the above
507 of 625
The value of the abnormal gain is calculated taking in consideration the normal ________________.
Overheads
Setbacks
Wastage
None of the above
The correct option is "Wastage"Score:- 1
508 of 625
The value of the abnormal effectiveness is credited to the concerned process account.
True
False
509 of 625
The equivalent production represents the production of a process interms of the _____________ units.
Complete
Uniform
Fixed
None of the above
The correct option is "Complete"Score:- 1
510 of 625
In the context of the equivalent production, the costs between the ________________ and the completed output are
put in proportion.
Work in progress
Unfinished
Delayed
None of the above
The correct option is "Work in progress"Score:- 1
511 of 625
The cost per unit of the equivalent production will be equal to the total cost multiplied by the effective production.
True
False
512 of 625
The bi-products are defined as - saleable or usable value incidentally produced in ___________ to the main
product.
Continuation
Competition
Addition
None of the above
The correct option is "Addition"Score:- 1
513 of 625
The bi-products mean secondary or _____________ products.
Subsidiary
Mass
Primary
None of the above
The correct option is "Subsidiary"Score:- 1
514 of 625
The bi products are those products which are of a __________ value produced in the course of manufacturing the
main product.
Volumetric
Smaller
Profitable
None of the above
The correct option is "Smaller"Score:- 1
515 of 625
The joint-products represent two or more products ______________ in the course of some processing operations.
Joined
Dependent
Separated
None of the above
The correct option is "Separated"Score:- 1
516 of 625
The joint products are of equivalent importance.
True
False
517 of 625
Which one of the following is not an example of a joint products obtained from crude oil?
Tar
Rubber
Gasoline
None of the above
The correct option is "Rubber"Score:- 1
518 of 625
The joint products are produced simultaneously but the bi-products are produced _________.
Incidentally
Cumulatively
Non-effectively
None of the above
The correct option is "Incidentally"Score:- 1

519 of 625
The co-products are particular types of products which are produced in different _____________.
Varieties
Processes
Quantities
None of the above
The correct option is "Varieties"Score:- 1
520 of 625
The co-products have to necessarily arise from the same production process.
True
False
521 of 625
In the joint products, the quantities remain in _____________ relationship.
Non-linear
Linear
Simultaneous
None of the above
The correct option is "Linear"Score:- 1
522 of 625
The co-products are _______________ ones ad may be produced in different quantities.
Dependant
Risky
Independent
None of the above
The correct option is "Independent"Score:- 1
523 of 625
One of the prime objectives of the joint cost analysis is to have the correct collection and _______________ of the
process costs.
Valuation
Compilation
Contribution
None of the above
The correct option is "Compilation"Score:- 1
524 of 625
The marginal contribution analysis is not a part of the objectives of the joint cost analysis.
True
False
525 of 625
In reference to the limitations of the joint cost analysis, the apportionment of joint costs are mainly _____________.
Complicated
Arbitrary
Dynamic
None of the above
The correct option is "Arbitrary"Score:- 1
526 of 625
Due to the limitations on the joint cost analysis, the inter-firm comparison becomes _____________.
Difficult
Simple
Necessary
None of the above
The correct option is "Difficult"Score:- 1
527 of 625
In the reference to the limitations of the joint cost analysis, if the bi-product value is ____________ sale value, the
analysis becomes very uneconomical.
Valuable
Negligible
Profitable
None of the above
The correct option is "Negligible"Score:- 1
528 of 625
The operating costs are also known as the production costing, where the services are rendered and articles are not
produced.
True
False

529 of 625
The ______________ costing refers to the cost procedure used for determining the cost per unit of service
rendered.
Operable
Service
Production
None of the above
The correct option is "Service"Score:- 1
530 of 625
The principle of the operational costs is to ___________ the costs under suitable heading.
Process
Separate
Accumulate
None of the above
The correct option is "Accumulate"Score:- 1
531 of 625
The most common factor in the service and manufacturing sector is the adoption of a multiple cost unit.
True
False
532 of 625
The manner of ____________ of the costs to the cost units is one of the prime differences between the survive and
the manufacturing concerns.
Collection
Allocation
Costing
All of the above
533 of 625
Which one of the following is not a part of the way the operating costs are collected?
Variable
Semi variable
Fixed or standard
None of the above
The correct option is "Semi variable"Score:- 1
534 of 625
An important feature of the operating costs is that mostly such costs are variable in nature.
True
False
535 of 625
Standards are far more exact than:-
1) Forecasts
2) Estimates
3) Attributes
Both 1 & 2
The correct option is "Both 1 & 2"Score:-1
536 of 625
Cost control, leading to cost reduction, should always be the objectives of any firm where _________ are used.
Standard costing
Scare resources
Marginal costing
None of the above
The correct option is "Scare resources"Score:-1
537 of 625
Standard costing is an excellent system of control of cost and of measuring efficiency.
True
False
538 of 625
Standard cost is expressed in:-
Money
Labour
Material
None of the above
The correct option is "Money"Score:-1
539 of 625
The techniques of standard costing involve:-
Standard costs
Predetermination of technical data
Comparison of actual performance
All of the above
540 of 625
The techniques of standard costing involve:-
Analysis of overhead
Analysis of labour cost
Analysis of variance
None of the above
The correct option is "Analysis of variance"Score:-1
541 of 625
Standard costs are planned costs of a product under current or anticipated operating condition.
True
False
542 of 625
What is standard for one, may be sub standard for other & vice versa.
True
False
543 of 625
The systems of standard costing and budgetary control have the common features:-
Result of comparison are analyzed in both method
Based on presumption that cost is controllable
Improve marginal control
All of the above
544 of 625
The system of standard costing is:-
Projection of financial accounts
Based on past actual
Related with control of expenses
All of the above
The correct option is "Related with control of expenses"Score:-1
545 of 625
1) Standards are mainly set for production
2) Standards are mainly set for production expenses
3) Projection of financial accounts
Both 1 & 2

546 of 625
Anticipated cost
Period
Based on technical assessments
Historical
The correct option is "Based on technical assessments"Score:-1
547 of 625
The system of standard costing & budgetary control are not interdependent.
True
False
548 of 625
1) Standards set up targets, which are attained by actual performance
2) Variance are analyzed in detailed
3) Complied for income & expenditure
Both 1 & 2
549 of 625
The system of standard costing:-
1) Do not tell what the costs are expected
2) It aims in policy determination
3) Used in various management decision
Both 1 & 2
550 of 625
Budgets are compiled for all items of income & expenditure.
True
False
551 of 625
The systems of budgetary control:-
Related with control of expenses
Bases on past actual, adjusted to future
Based on technical assessments
None of the above
The correct option is "Bases on past actual, adjusted to future"Score:-1
552 of 625
The system of budgetary control:-
Standards set up targets, which are attained by actual performance
Projection of financial accounts
Standards are mainly set for production expenses
All of the above
The correct option is "Projection of financial accounts"Score:-1
553 of 625
In budgetary control, variance are analyzed in detail.
True
False
554 of 625
Budgetary control cannot be applied without the help of standard costing.
True
False
555 of 625
Standard cost is determined on ______________ basis.
Scientific
Historical
Day to day
None of the above
The correct option is "Scientific "Score:-1
556 of 625
Standard cost can be applied in a business under:-
Overhead expenses
Historical system
Standard costing
None of the above
The correct option is "Standard costing"Score:-1
557 of 625
Standard cost systems are meant for controlling future performances.
True
False
558 of 625
Standard cost is fixed in respect of:-
Insurance
Every element of cost
Policy
All of the above
The correct option is "Every element of cost"Score:-1
559 of 625
Estimated costing is prepared for:-
1) Price fixing
2) Planning
3) Forecasting
Both 1 & 2

560 of 625
Standard cost systems are incorporate whole of business.
True
False
561 of 625
Estimated costing is calculated on:-
1) Past performance
2) Planning
3) Forecasting
Both 1 & 2
The correct option is "1) Past performance"Score:-1
562 of 625
Estimated costing can be ascertained to:-
1) Particular purpose
2) Part of business
3) Whole business
Both 1 & 2
563 of 625
Standard costing involves standards in respect of prices & rates.
True
False
564 of 625
All material & labour will be evaluated on the basis of standard price and rates.
True
False
565 of 625
Advantages of standard costing:-
The best way in which work can be done
Greater efficiency in operations
Constant increase in efficiency
All of the above
566 of 625
Objective judgment of people
Management by exception
Material issued is evaluated
All of the above
567 of 625
Standard costing is more economical than ordinary costing.
True
False
568 of 625
Prices are fixed for long term basis
Evaluation of inventory
Greater efficiency
All of the above
569 of 625
Costing procedure simplified
Integration of accounts
Provides means for cost reduction
All of the above
570 of 625
Standard costing facilitates delegation of authority.
True
False
571 of 625
Identify limitations of standard costing.
1) Establishment of standard is difficult
2) Fluctuate as per market conditions
3) In course of time standard becomes rigid
Both 1 & 3
572 of 625
1) Inaccurate, out of date standards are harmful
2) Integration of accounts
3) Create adverse psychological effects
Both 1 & 3
573 of 625
Standard costing is not useful for repair jobs.
True
False
574 of 625
Unreliable and out of date standards do more harm than any good.
True
False
575 of 625
Not useful for non standard jobs
Variance cannot be properly explained
Not useful for big concerns
All of the above
576 of 625
Types of standards are as follows:-
1) Basic
2) Current
3) Past
Both 1 & 2
577 of 625
Basic standards remain unchanged so long quality requirement are constant.
True
False
578 of 625
Types of standards are as follows:-
1) Expected
2) Historical
3) Normal
Both 1 & 3
579 of 625
Attainable standards are attained if:-
Material properly used
Standard unit work is carried out efficiently
Machine properly operated
All of the above
580 of 625
In a factory, three products A, B, C are produced, the standard time allowed is 20 hours, 30 hours and 24 hours. The
actual production in June 2007 & July 2007 was as stated before:-
June units July units

Product A 40,000 24,000
Product B 20,000 24,000
Product C 30,000 36,000
By what percentage has production changed in June & July?
3%
1.6%
2.6%
None of the above
The correct option is "2.6%"Score:-1
581 of 625
A current standard is for a long period.
True
False
582 of 625
In a factory, three products A, B, C are produced, the standard time allowed is 20 hours, 30 hours and 24 hours. The
actual production in June 2007 & July 2007 was as stated before:-
June units July units

Product A 40,000 24,000
Product B 20,000 24,000
Product C 30,000 36,000
If the actual hours paid for each in June and July were 12,00,000. What is rate of labour efficiency?
June 78.33%, July 66%
June 58.33%, July 76%
June 88.33%, July 86%
None of the above
The correct option is "June 88.33%, July 86%"Score:-1
583 of 625
Standard cost of a product in a factory is determined as follows:-
Material (4 units @Rs.5/- each) Rs.20/-

Labour (30 hours @Rs.1/- per hour) Rs.30/-
Overhead expenses Rs.10/-
Total Rs.60/-
During a period 8,000 units were produced, whose actual cost was as follows:-
Material (40,500 units @Rs.5/- each) Rs.2,02,500/-

Labour (1,50,000 hours @Rs.1.6 each) Rs.2,40,000/-
Overhead expenses Rs.90,000/-
Total Rs.5,32,500/-
Standard cost for the above product is:-

Rs.52,000/-
Rs.50,000/-
Rs.48,000/-
None of the above
The correct option is "Rs.48,000/-"Score:-1
584 of 625
Standard cost of a product in a factory is determined as follows:-
Material (4 units @Rs.5/- each) Rs.20/-
Labour (30 hours @Rs.1/- per hour) Rs.30/-
Total Rs.60/-
Material (40,500 units @Rs.5/- each) Rs.2,02,500/-

Overhead expenses Rs.90,000/-
Total Rs.5,32,500/-

Rs.44,800/-
Rs.52,000/-
Rs.5,32,500/-
None of the above
The correct option is "Rs.5,32,500/-"Score:-1
585 of 625
For producing one unit of product standard cost of a material is:-
Material X : (6kg. @ Rs.8/- per kg.)

Material Y : (4kg. @ Rs.10/- per kg.)
In a week, 1000 units were produced the actual consumption was:-
Material X : 5900kg. @ Rs.10/- per kg.

Material Y : 4800kg. @ Rs.9.50 per kg.
Total material cost variance is:-

Rs.10,700/-
Rs.5,000/-
Rs.16,600/-
None of the above
The correct option is "Rs.16, 600/-"Score:-1
586 of 625
The following data is obtained from the books of a manufacturing company regarding variable overheads:-
Budgeted production for January 300 units

Budgeted variable overhead for January Rs.7,800/-
Standard time for one unit 20 hours
Actual production for January 250 units
Actual hours worked 4,500 hours
Actual variable overheads Rs.7,000/-
Calculate variable overhead variance.
Rs.500(A)
Rs.600(A)
Rs.1000(A)
None of the above
The correct option is "Rs.500(A)"Score:-1
587 of 625
The following information relates to month of June1999:-
Budgeted Actual
Output 20,000 units 22,000 units
Overhead variable Rs.1,00,000/- Rs.1,07,000/-
Fixed Rs.1,50,000/- Rs.1,58,000/-
Variable overhead variance is:-
2800(F)
3000(F)
2500(F)
None of the above
The correct option is "3000(F)"Score:-1
588 of 625
In a factory working for 50 hours a week, employs 100 workers on job work. The standard rate is Rs.1 per hour and
standard output is 200 units per gang hour. During a week in June, ten employees were paid at 0.80 Rs.per hour &
five at Rs.1.20 an hour. Rest of employees were paid at standard rates. Actual number of units produced was
10,200.
Calculate labour cost variance.

Rs.150(A)
Rs.1000(A)
Rs.600(A)
None of the above
The correct option is "Rs.150(A)"Score:-1
589 of 625
Budgeted Actual
Fixed Rs.1,50,000/- Rs.1,58,000/-
Fixed overhead variance is:-
8000(A)
8200(A)
7500(A)
None of the above
The correct option is "8000(A)"Score:-1
590 of 625
Budgeted Actual
Fixed Rs.1,50,000/- Rs.1,58,000/-
Total overhead variance is:-
3000(A)
5000(A)
2800(A)
None of the above
The correct option is "5000(A)"Score:-1
591 of 625
The budgeted capacity of a factory per month of 25 days was 2,00,000 hours and the budgeted fixed overheads
were Rs.2,40,000. The management increased the capacity by 20% in the beginning of October, 1991, the actual
number of working days in that month were 23.
Hence, volume variance would be:-

24,960(F)
24,000(F)
30,000(F)
None of the above
The correct option is "24,960(F)"Score:-1
592 of 625
Actual cost of a product in a factory is determined as follows:-
Material (10 units @Rs.4 each) Rs.40/-

Labour (20 hours @Rs.3 per hour) Rs.60/-
Total Rs.120/-
Material (40,500 units @Rs.10 each) Rs.4,05,000/-

Overhead expenses Rs.1,00,000/-
Total Rs.9,85,000/-
Rs.4,80,000/-
Rs.10,48,000/-
Rs.12,00,000 /-
None of the above
The correct option is "Rs.12,00,000"Score:-1
593 of 625
Hence, capacity variance would be:-

46,960(F)
39,000(F)
48,000(F)
None of the above
The correct option is "48,000(F)"Score:-1
594 of 625
Actual cost of a product in a factory is determined as follows:-
Material (10 units @Rs.4 each) Rs.40/-

Labour (20 hours @Rs.3 per hour) Rs.60/-
Total Rs.120/-
Material (40,500 units @Rs.10 each) Rs.4,05,000/-

Overhead expenses Rs.1,00,000/-
Total Rs.9,85,000/-
Actual cost & variance for the above product is:-
Rs.7,85,000/- & Rs.2,35,000/-

Rs.8,85,000/- & Rs.2,25,000/-
Rs.9,85,000/- & Rs.2,15,000/-
None of the above
The correct option is "Rs.9,85,000 & Rs.2,15,000"Score:-1
595 of 625
Hence, calendar variance would be:-

24,960(A)
30,000(A)
23,040(A)
None of the above
The correct option is "23,040(A)"Score:-1
596 of 625
Variable costing is a costing method in which only variable costs are accumulated and _______________ is
ascertained only on the basis of ______________.
Cost per unit; Fixed cost
Cost per unit; Variable cost
Cost of production; Overheads
None of the above
The correct option is "Cost per unit; Variable cost"Score:-1
597 of 625
Prime costs and factory overheads are used to:-
1) Value inventories
2) Determine profit & loss
3) Determine selling cost
Both 1 & 3
598 of 625
Fixed cost vary with time, such as:-
1) Salaries
2) Rent
3) Overhead
Both 1 & 2
599 of 625
Fixed costs are controllable and are taken into account under marginal costing.
True
False
600 of 625
Variable cost tend to change in total with increase or decrease in:-
Level of output
Level of activity
Level of input
None of the above
The correct option is "Level of activity"Score:-1
601 of 625
Variable costing is generally known as:-
Marginal costing
Product costing
Selling costing
None of the above
The correct option is "Marginal costing"Score:-1
602 of 625
The CIMA has defined marginal cost as The cost of one unit of:-
1) Product
2) Services
3) Labour
Both 1 & 2
603 of 625
Variable costs per unit are fixed with changes in level of output.
True
False
604 of 625
Marginal cost in accounting system in which variable costs are charged to:-
Cost unit
Overhead
The product
All of the above
The correct option is "Cost unit"Score:-1
605 of 625
Fixed costs per unit are variable with changes in level of output.
True
False

606 of 625
Marginal costing is a technique of applying the existing methods in a particular manner in order to bring out the
relationship between:-
Profit & volume of output
Input & volume of output
Expenses & volume of output
None of the above
The correct option is "Profit & volume of output"Score:-1
607 of 625
Marginal costing & ___________________ are treated as interchangeable terms.
Unit costing
Indirect costing
Direct costing
All of the above
The correct option is "Direct costing"Score:-1
608 of 625
Gross margin is difference between:-
Sales cost & marginal costs of sales
Purchase cost & marginal costs of sales
Sales cost & production costs
None of the above
The correct option is "Sales cost & marginal costs of sales"Score:-1
609 of 625
Marginal costing assumes that the contribution provides a pool out of which _______ are met.
Variable cost
Overheads
Fixed cost
All of the above
The correct option is "Fixed cost"Score:-1
610 of 625
The main features of marginal cost include:-
1) Costs are separated into fixed & variable elements
2) Administration proper
3) Only variable cost are taken into account for evaluating work in progress
Both 1 & 2
611 of 625
The main features of marginal cost include:-
1) It combines the techniques of cost recording & cost reporting
2) Profitability of departments are determined in terms of marginal contribution
3) Simple to find overheads
Both 1 & 2
612 of 625
The unit cost of a product means the average variable cost of manufacturing the product.
True
False
613 of 625
If a system of managerial costing is operated in an organization with more than one product, it will not be possible to
ascertain the net profit per product because _____________ are charged in total to profit & loss account.
Labour cost
Fixed overheads
Variable overheads
None of the above
The correct option is "Fixed overheads"Score:-1
614 of 625
The excess of contribution over fixed cost is:-
Margin
Profit
Loss
None of the above
615 of 625
Under absorption costing, all manufacturing costs, both fixed & variable are charged to:-
Material cost
Direct labour cost
Product cost
All of the above
The correct option is "Product cost"Score:-1
616 of 625
Fixed factory overheads under direct or marginal costing are included in inventory.
True
False
617 of 625
Profit emerges only after charging all costs-fixed & variable.
True
False
618 of 625
Profit performance of a business can be improved by:-
1) Increasing volume of production
2) Increasing selling price
3) Increasing overhead
Both 1 & 2
619 of 625
Profit performance of a business can be improved by:-
1) Decreasing variable cost
2) Decreasing fixed cost
3) Decreasing material cost
Both 1 & 2
620 of 625
Profit performance of business can be improved by decreasing selling price.
True
False
621 of 625
The following data related to manufacturing company (export market) or special customers like government:-
Plant capacity: 4,00,000 units per annum

Present utilization: 40%
Actuals for year 1991
Material Rs.20/-per unit

Selling price Rs.50/-per unit
Variable cost Rs.15/-per unit
Fixed cost Rs.27 lakhs
In order to improve capacity utilization, the following proposal needs to be considered:-
Reduce selling price by 10%
Spend additional Rs.3 lakhs on sales promotion
How many units should be made & sold in order to earn a profit of Rs.5 lakhs per year?
2,50,000
4,50,000
3,50,000
None of the above
The correct option is "3,50,000"Score:-1
622 of 625
A Business produces three products A, B, C for which the standard variable costs and budgeted selling prices are
as follows:-
A (Rs.) B (Rs.) C (Rs.)

Direct material 3 4 8
Direct wages 4 6 10
Variable overhead 3 5 7
Selling price 18 25 48
In two successive periods, sales are as follows:-

A B C
Period1 (units) 10,000 10,000 10,000
Period2 (units) 20,000 13,000 5,000
The budget fixed overheads amounted to Rs.1,35,000/- for each period. In spite of increased sales the profit for the
second period has fallen below that of 1st period.
Find out net profit marginal contribution ratio for products A, B, C.
A: 44.4 B: 40 C: 47.9
A: 45.4 B: 41 C: 48.9
A: 43.4 B: 42 C: 46.9
None of the above
The correct option is "A: 44.4 B: 40 C: 47.9"Score:-1
623 of 625
A toy manufacture makes an average net profit of Rs.2.50 per piece on a selling price of Rs.14.30 by producing and
selling 60,000 pieces or 60% of the potential capacity. There, cost of sales is:-
Direct material Rs.3.50

Direct labour Rs.1.25
Overhead expenses Rs.6.25/(50% fixed)
Sales overhead expenses Rs.0.80/(25% variable)
During a the current year they anticipate that there fixed charges will go up by 10%, while the rate of direct material
and labour will increase by 6% and 8% respectively. But they have no option of increasing selling price. Under this
option they obtain offer of an order equal to 20% of there capacity.
What minimum price will you recommend for acceptance to ensure the manufacture an overall of Rs.1,67,300/-?
Rs.13/-
Rs.11/-
Rs.11.297
None of the above
The correct option is "Rs.11.297"Score:-1
624 of 625
The following data related to manufacturing company:-
Plant capacity: 4,00,000 units per annum

Present utilization: 40%
Actuals for year 1995

Selling price Rs.100/-per unit
Fixed cost Rs.54 lakhs
In order to improve capacity utilization the following proposal needs to be considered:-
Reduce selling price by 10%

Spend additional Rs.6 lakhs on sales promotion
How many units should be made & sold in order to earn a profit of Rs.7.5 lakhs per year?
2,50,000
3,37,500
4,50,000
None of the above
The correct option is "3,37,500"Score:-1
625 of 625
The cost of a manufacturing company for the products:-
Labour Rs.10/-per unit

Fixed cost Rs.20/-per unit
The companies normal capacity is 1,00,000 units. The figures given above are for 80,000 units. The company has
received an offer of additional 20,000 unit at Rs.40 per unit from a foreign customer.
Advise whether this export order is accepted or not with correct option.
Additional revenue of Rs.8,00,000/- generated hence accept the order

Total expenses are Rs.53/- per unit against Rs.40/- earned hence do not accept
Additional revenue of Rs.1,40,000/- generated hence accept the order
None of the above
The correct option is "Additional revenue of Rs.1,40,000/- generated hence accept the order"Score:-1

Cost Accounting PDF

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Copyright:

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Cost Accounting PDF

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1 of 625

The correct option is "Cost"Score:- 1

The correct option is "All of the above"Score:- 1

The correct option is "TRUE"Score:- 1

The correct option is "None of the above"Score:- 1

The correct option is "Office"Score:- 1

The correct option is "All of the above"Score:- 1

The correct option is "TRUE"Score:- 1

The correct option is "All of the above"Score:- 1

The correct option is "All of the above"Score:- 1

The correct option is "Pre-determined"Score:- 1

The correct option is "All of the above"Score:- 1

The correct option is "FALSE"Score:- 1

The correct option is "All of the above"Score:- 1

The correct option is "Indirect worker"Score:- 1

The correct option is "TRUE"Score:- 1

The correct option is "Time"Score:- 1

The correct option is "All of the above"Score:- 1

The correct option is "Indirect labour"Score:- 1

The correct option is "FALSE"Score:- 1

The correct option is "FALSE"Score:- 1

The correct option is "None of the above"Score:- 1

The correct option is "Both (b) and (c)"Score:- 1

The correct option is "FALSE"Score:- 1

The correct option is "All of the above"Score:- 1

The correct option is "Both (a) and (b)"Score:- 1

The correct option is "TRUE"Score:- 1

The correct option is "Both (b) and (c)"Score:- 1

The correct option is "TRUE"Score:- 1

The correct option is "FALSE"Score:- 1

The correct option is "Variable cost"Score:- 1

The correct option is "a) Non variability"Score:- 1

The correct option is "TRUE"Score:- 1

The correct option is "Both (a) and (b)"Score:- 1

The correct option is "TRUE"Score:- 1

The correct option is "Constant"Score:- 1

The correct option is "a) Constant"Score:- 1

The correct option is "TRUE"Score:- 1

The correct option is "Output "Score:- 1

The correct option is "TRUE"Score:- 1

The correct option is "Both (a) and (b)"Score:- 1

The correct option is "FALSE"Score:- 1

The correct option is "Both (a) and (c)"Score:- 1

The correct option is "All of the above"Score:- 1

The correct option is "FALSE"Score:- 1

The correct option is "TRUE"Score:- 1

The correct option is "Both (a) and (b)"Score:- 1

The correct option is "a) Asset"Score:- 1

The correct option is "TRUE"Score:- 1

The correct option is "Cost"Score:- 1

The correct option is "FALSE"Score:- 1

The correct option is "a) Terms"Score:- 1

The correct option is "b) Long term costs are controllable"Score:- 1

The correct option is "TRUE"Score:- 1

The correct option is "Managing Directors"Score:- 1

The correct option is "a) Course of action"Score:- 1

The correct option is "b) Incurred"Score:- 1

The correct option is "FALSE"Score:- 1

The correct option is "b) Decision making"Score:- 1

The correct option is "c) Fixed cost"Score:- 1

The correct option is "TRUE"Score:- 1

The correct option is "Total"Score:- 1

The correct option is "Point of separation"Score:- 1