Cost Accounting Assessment - I

Which of the following is a direct material cost?

• Rent of the factory building
• Depreciation of plant and machinery
• Salary of factory supervisor
• Cost of raw materials used in production

Identifying the different types of costs incurred by a business is known as:

• Cost reduction.
• Cost classification.
• Cost analysis.
• Cost control.

In a cost sheet, which cost is calculated after adding factory overhead to direct costs?

• Cost of production
• Prime cost
• Cost of goods sold
• Total cost

When preparing a tender, which of the following is usually added to the total cost to arrive at the quotation price?

• Profit margin
• Factory overhead
• Direct expenses
• Administrative overhead

Which of the following items would typically cause a difference between the profit shown by cost accounts and financial accounts?

• Direct labor cost
• Factory overhead
• Income tax
• Direct material cost

In unit costing, the total cost is divided by the number of units produced to determine the:

• Selling price per unit
• Factory cost per unit
• Cost of production per unit
• Prime cost per unit

A company produced 10,000 units at a total cost of ₹2,00,000. The cost per unit is:

• ₹10
• ₹2,000
• ₹200
• ₹20

Which costing method is most suitable for businesses that produce heterogeneous products or undertake specific projects?

• Process costing
• Operation costing
• Job costing
• Unit costing

In job costing, costs are accumulated for:

• Each process of production
• Each specific job or order
• Each unit of output
• Each period of time

When preparing a cost sheet, which of the following is the first element of cost to be recorded?

• Factory overhead
• Direct labor
• Direct expenses
• Direct materials