Practice

____________ is the process of determining and accumulating the cost of product or activity.

• A. Cost accounting

• B. Financial accounting

• C. Cost control

• D. Cost audit

Compared with financial accounting cost accounting is relatively ______ development.

• A. old

• B. recent

• C. earliest

• D. both A & C

__________ refer to presentation of cost primarily used by the management at different levels.

• A. Cost audit

• B. Cost ascertainment

• C. Cost reports

• D. Cost system

Which of these is not an objective of Cost Accounting?

• Ascertainment of Cost

• Determination of Selling Price

• Cost Control and Cost reduction

• Assisting Shareholders in decision making

Fixed cost is a cost:

• Which changes in total in proportion to changes in output

• which is partly fixed and partly variable in relation to output

• Which do not change in total during a given period despise changes in output

• which remains same for each unit of output

Cost Unit is defined as:

• Unit of quantity of product, service or time in relation to which costs may be ascertained or expressed

• A location, person or an item of equipment or a group of these for which costs are ascertained and used for cost control.

• Centres having the responsibility of generating and maximising profits

• Centres concerned with earning an adequate return on investment

Element/s of Cost of a product are:

• Material only

• Labour only

• Expenses only

• Material, Labour and expenses

Calculate the prime cost from the following information:

Direct material purchased: Rs. 100

Direct material consumed: Rs. 90

Direct labour: Rs. 60

Direct expenses: Rs. 20

Manufacturing overheads: Rs 30

• (a) Rs. 180

• (b) Rs. 200

• (c) Rs. 170

• (d) Rs. 210

Conversion cost includes cost of converting..........into........

• (a) Raw material, WIP

• (b) Raw material, Finished goods

• (c) WIP, Finished goods

• (d) Finished goods, Saleable goods

Which one out of the following is not an inventory valuation method?

• (a) FIFO

• (b) LIFO

• (c) Weighted Average

• (d) EOQ