Costing and Budgeting Quiz

Which of the following is not a component of total cost?

• Prime Cost

• Factory Cost

• Office Cost

• Interest on Loan

The technique of costing used in industries like oil, chemical, and electricity is:

• Job Costing

• Process Costing

• Batch Costing

• Contract Costing

The term ‘overhead’ refers to:

• Direct expenses

• Indirect expenses

• Prime cost

• Variable cost only

Which of the following is a variable cost?

• Rent

• Depreciation

• Direct Materials

• Insurance

Break-even point occurs when:

• Total revenue = Total cost

• Total fixed cost = Total variable cost

• Total cost = Total profit

• Selling price = Variable cost

In marginal costing, fixed cost is treated as:

• Product cost

• Period cost

• Variable cost

• Sunk cost

EOQ (Economic Order Quantity) deals with:

• Labour cost

• Ordering and carrying cost

• Fixed cost

• Advertising cost

The document prepared to show the cost of each job separately is:

• Cost Sheet

• Job Cost Sheet

• Process Account

• Contract Account

A budget that remains unchanged irrespective of activity level is:

• Flexible Budget

• Fixed Budget

• Cash Budget

• Zero-Based Budget

Contribution is calculated as:

• Sales – Fixed Cost

• Sales – Profit

• Sales – Variable Cost

• Variable Cost – Profit