CMA D

Cost unit and cost centre have the same meaning.

• True

• False

Variable cost per unit remains fixed.

• True

• False

Total fixed cost remains unaffected by changes in the volume of output.

• True

• False

Salaries paid to salesmen come under direct cost included in prime cost.

• True

• False

Cost of leather in shoe making is a direct cost.

• True

• False

Direct material cost is the material cost which can be allocated to cost centres or cost units.

• True

• False

The techniques and processes of ascertaining cost is known as (a)  

Period costs are not assigned to products.

• True

• False

According to which of the following method of pricing, issues are close to current economic values?

• LIFO

• FIFO

• Weighted Average Method

Loss of material due to fire is treated as overheads and included for calculating cost of production.

• True

• False