Cost Accounting Quiz

What is the primary objective of cost accounting?

• Tax Calculation

• Financial Reporting

• Cost Control and Cost Reduction

• Preparing Profit & Loss Account

Which of the following is NOT a feature of cost accounting?

• It helps in decision-making

• It is a statutory requirement

• It deals with past and future costs

• It determines the selling price

Which of the following is an example of a variable cost?

• Rent of factory

• Depreciation of machinery

• Direct materials

• Salary of factory supervisor

Fixed cost per unit __________ as production increases.

• Increases

• Decreases

• Remains constant

• Fluctuates randomly

Costs that are incurred specifically for a particular department or unit are called:

• Common Costs

• Opportunity Costs

• Traceable Costs

• Uncontrollable Costs

Which costing method is most suitable for the construction industry?

• Process Costing

• Job Costing

• Batch Costing

• Marginal Costing

Marginal costing considers which type of cost for decision-making?

• Total Cost

• Fixed Cost

• Variable Cost

• Sunk Cost

A company has the following expenses:

• Factory Cost = ₹2,50,000

• Administrative Overheads = 10% of Factory Cost

• Selling & Distribution Overheads = ₹30,000

• What is the Total Cost of Production?

• ₹2,80,000

• ₹3,00,000

• ₹3,05,000

• ₹2,75,000

Which of the following is NOT a function of management accounting?

• Budgeting

• Cost Control

• Taxation

• Performance Evaluation

Cost accounting and management accounting are similar because they both:

• Focus on cost control and cost reduction

• Are legally required

• Follow GAAP principles

• Deal only with past costs