Cost Concepts And Principles II
10 Questions
| Total Attempts: 520
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.
- 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.
- 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.
- 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.
- 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.
- Research and development cost is a
- A.
A. pre-production cost
- B.
B. sunk cost
- C.
C. opportunity cost
- D.
D. imputed cost.
- 7.
- When amount deposited in a bank is withdrawn for financing a project, the loss of interest on bank deposit will be referred to as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.
- 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.
- Direct material cost is generally
- A.
A. controllable
- B.
B. uncontrollable.
- 10.
- 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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