1.

An unexpired cost is converted into an ………… when it

expires while helping to earn revenue.
Expense
Income
Asset
None of the given options
2. The objectives of cost accounting!
All of these given options
Ascertainment of costs
Guide to business policy
Cost control and Cost reduction
3. Cost centres are primarily are of
Two
Three
One
Four
4. ……….. may be defined as “anything for which a separate
measurement of the cost may be desired”
Cost Unit
Cost Object
Cost Control
None of the given options
5. The important techniques of costing which are in practice are:
Marginal Costing
Standard Costing
Budgetary Control
All of these given options
6. Fixed Costs tend to vary with the volume of activity.
True
False

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 7. Abnormal Cost is Cost which is not normally incurred at a
given level of output in the conditions in which that level of
output is normally attained.
True
False
8. Materials which do not normally form part of the finished
product are Indirect materials.
True
False
9. Factory rent is a Direct expense.
True!
False
10. The cost Sheet is a Cost Statement.
True
False
11.

On On March
March1 30

Cost of raw materials 30,000 25,000

Cost of work in progress 6000 7,500

Cost of stock of finished goods 45,000 55,000

Purchase of raw materials during March 2020 2,40,000

Wages paid 1,20,000

Factory overheads 50,000

Administration overheads (related to

25,000
production)

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 Selling and distribution overheads 12,500

sales 5,00,000

Raw materials consumed is:

2,25,000
2,50,000orrect!
2,45,000
2,30,000
12.

On On
March March
1 30

Cost of raw
30,000 25,000
materials

Cost of work
6000 7,500
in progress

Cost of stock
of finished 45,000 55,000
goods

Purchase of
raw materials
2,40,000
during March
2020

Wages paid 1,20,000

Factory
50,000
overheads

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 Administration
overheads
25,000
(related to
production)

Selling and
distribution 12,500
overheads

sales 5,00,000

Prime Cost is:

3,25,000
3,40,000orrect!
3,65,000
3,55,000
13.

On On
March March
1 30

Cost of raw
30,000 25,000
materials

Cost of work
6000 7,500
in progress

Cost of stock
of finished 45,000 55,000
goods

Purchase of 2,40,00
raw 0

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 materials
during
March 2020

1,20,00
Wages paid
0

Factory
50,000
overheads

Administrati
on overheads
25,000
(related to
production)

Selling and
distribution 12,500
overheads

5,00,00
sales
0

Profit is:
59,000
58,000
62,000
56,000

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