Cost Concepts And Principles II

10 Questions | Total Attempts: 520

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Cost Accounting Quizzes & Trivia

Basics of cost and cost concepts and principles


Questions and Answers
  • 1. 
    Which method of costing is best suited for interior decorator ?
    • A. 

      A. job costing

    • B. 

      B. contract costing

    • C. 

      C. process costing

    • D. 

      D. operating costing.

  • 2. 
    1. Which method of costing is used in hospitals ?
    • A. 

      A. job costing

    • B. 

      B. unit costing

    • C. 

      C. operating costing

    • D. 

      D. no method is used.

  • 3. 
    1. Costs which are ascertained after they have been incurred are known as
    • A. 

      A. imputed costs

    • B. 

      B. sunk costs

    • C. 

      C. historical costs

    • D. 

      D. opportunity costs.

  • 4. 
    1. Prime cost plus variable overhead is known as
    • A. 

      A. production cost

    • B. 

      B. marginal cost

    • C. 

      C. total cost

    • D. 

      D. cost of sales

  • 5. 
    1. When premises are owned, a charge in lieu of rent is
    • A. 

      A. an opportunity cost

    • B. 

      B. an imputed cost

    • C. 

      C. a sunk cost

  • 6. 
    1. Research and development cost is a
    • A. 

      A. pre-production cost

    • B. 

      B. sunk cost

    • C. 

      C. opportunity cost

    • D. 

      D. imputed cost.

  • 7. 
    1. When amount deposited in a bank is withdrawn for financing a project, the loss of interest on bank deposit will be referred to as
    • A. 

      A. sunk cost

    • B. 

      B. pre-production cost

    • C. 

      C. opportunity cost

    • D. 

      D. replacement cost.

  • 8. 
    1. Which of the following is virtually always after-production cost
    • A. 

      A. research and development cost

    • B. 

      B. selling and distribution cost

    • C. 

      C. interest on capital

    • D. 

      D. all of these.

  • 9. 
    1. Direct material cost is generally
    • A. 

      A. controllable

    • B. 

      B. uncontrollable.

  • 10. 
    1. A cost per unit which increases or decreases when volume of output increases or decreases is known as
    • A. 

      A. fixed cost

    • B. 

      B. variable cost

    • C. 

      C. semi-variable cost.

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