Basic Cost Concepts

Which of the following is an example of functional classification of cost:

• Direct Material Cost

• Fixed Cost

• Administrative Overheads

• Indirect Overheads

A taxi provider charges minimum Rs. 80 thereafter Rs12 per kilometer of distance travelled, the behaviour of conveyance cost is:

• Fixed Cost

• Semi-variable Cost

• Variable Cost

• Administrative cost

1. Which cost is incurred even if the company is closed?

• Sunk Cost

• Historical Cost

• Shutdown cost

• Imputed Cost

1. Direct expenses are also known as

• Overhead expenses

• Sundry expenses

• Chargeable expenses

• Major expenses

Warehouse rent is a part of which cost?

• Production cost

• Distribution cost

• Prime cost

• Factory cost

A total of all the direct costs is known as

• Cost of production

• Cost of sales

• Prime cost

• Works cost

Management accounting assists the management

• Only in control

• Only in direction

• Only in planning

• In planning, direction and control

Management accounting is related with

• The problem of choice making

• Recording of transactions

• Cause and effect relationships

• All are false

Management accountancy is a structure for

• Costing

• Accounting

• Decision making

• Management

Opportunity cost does not involve

• Cash inflow

• Cash outflow

• Cash outlay

• Either (a) or (b)