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Cost Accounting. Module 1

Total questions: 15

Worksheet time: 7mins

Name
Class
Date
1.

Which method is used in hospitals for determining cost?

a)

Job costing

b)

Unit costing

c)

Operating costing

d)

Process costing

2.

Which of the following statements are correct.


a. Prime cost is the total of direct wages and variable overheads.

b. Abnormal cost is uncontrollable.

c. Contract costing method is used in ship building.

d. Cost accounting is a techinique of managerial control.

a)

All statements are correct

b)

Statements A , C & D are correct

c)

Except statement 'C' is correct

d)

Only statements 'C' & 'D' are correct

3.

Which one of the following is not a limitation of cost accounting?


a. Cost of installation of costing system is very high.

b. Difficult to be implemented by small business concerns.

c. Involves an element of judgement or estimation.

d. Cost accounting is not a pure science but is an art.

a)

Statements A & C

b)

Statement D only

c)

Statements B & D

d)

None of the above

4.

Identify the correct statements from the following;


a. Cost control is only a temporary technique

b. Cost reduction is a preventive function

c. Cost control emphasis on past and present costs

d. Cost control begins where cost reduction ends

a)

Statements A & B

b)

Statements C & D

c)

Only Statement A

d)

Statements A & C

5.

Prime cost =

a)

Indirect materials + Indirect labour + Indirect expenses

b)

Total material + Total labour + Other expenses

c)

Total cost + selling costs + distribution costs

d)

Direct material + Direct labour + Direct expenses

6.

Which one of the following is not treated as a method of costing?

a)

Job costing & Operating costing

b)

Batch costing & Contract costing

c)

Marginal costing & Absorption costing

d)

Process costing & Unit costing

7.

The main object of Cost Accounting is---

a)

to record day –to-day transactions of the business

b)

to reveal managerial efficiency

c)

to ascertain true cost of product & services

d)

to determine tender price

8.

Which among the following is an example of behavior wise classification of cost.

a)

Controllable cost

b)

Normal cost

c)

Indirect labour

d)

Semi variable cost

9.

State objectives of cost accounting

a)

A.Determination of cost

b)

B. Fixing selling price

c)

C. Cost control and cost reduction

d)

D.Helps in managerial decision-making

e)

E. All of the above

10.

Advertising expenses are a part of

a)

A. Factory overheads

b)

B. Administrative overheads

c)

C. selling and distribution overheads

d)

D. None of the above

11.

Prime cost =

a)

Indirect materials + Indirect labour + Indirect expenses

b)

Total material + Total labour + Other expenses

c)

Total cost + selling costs + distribution costs

d)

Direct material + Direct labour + Direct expenses

12.
Cost is classified into:
a)
Cost and expense
b)
Expense and revenue
c)
Indirect expense and Overheads
d)
Direct cost and Indirect cost
13.
a)
Worker
b)
Labour
c)
Inventory
d)
Cost
14.

The loss which arises due to abnormal circumstances is _____ loss.

a)

Normal

b)

abnormal

c)

net

d)

gross

15.
In…...costing the cost of a group of products is ascertained.
a)
process
b)
job
c)
batch
d)
service
e)
marginal