Multiple Choice Questions on Cost Classification

MCQS (Multiple choice questions) are integral part of exam papers. These Quizzes provide valuable knowledge tot he students while preparing for the exams. These also improves the overall understanding of the topic.

1.Multiple Choice Questions on Cost Classification

Administration expenses are variable in nature?

True

False

2.Cost of an additional unit produced is called:

Marginal cost

Decremental cost

Carrying cost

3.Abnormal cost is loss by nature of the manufacturing process:

True

False

4.Cost centers are also called __________ centers.

Profit centers

Investment centers

Strategic business unit


5.variable cost increases with the production of every unit?

True

False

6.Financial accounting provides valuable information to exercise significant control for cost controlling.

True

False

7.Prime cost is:

Sum of direct material and direct labour

Sum of direct material and FOH

Sum of direct labour and FOH

  1. Depreciation is an indirect expense?

True

False

9.Cost can be classified into:

Controllable cost & Uncontrollable cost

Variable & fixed costs

Normal cost & abnormal cost

All of the above.

10.Excess of sales price over variable costs is referred to as:

Net profit

Gross profit

Contribution margin

Contents
Financial Ratios Accounting Cycle Accounting Principles Financial Accounting Basics Financial Statements Reporting Bad Debts Current Assets Long-term Assets Voucher System Partnership Depreciation Work Sheet - 10 Column Work Sheet Difference Between Reserve and Fund Accounting for Leases Capital reduction and reconstruction Absorption of Company Amalgamation Accounting for Installment Sales Basis of Recording Profit and Loss Branch Accounting Construction Contracts Revenue Recognition Accounting for Groups Financial Analysis Events After the Balance Sheet Date Deferred Tax Cost Accounting Difference Between Cost Accounting and Financial Accounting Objectives of Cost Accounting Scope of Cost Accounting Classification of Costs Methods of Costing Absorption Costing Pre-determined Overhead Rate Over/ Under Absorbed Overheads Marginal Costing Advantages, Benefits, Pros of Absorption Costing Disadvantages/ Drawbacks of Absorption Costing Advantages of Marginal Costing Disadvantages of Marginal Costing Joint Product Costing Process Costing Practical Difficulties in Installing a Cost Accounting System Elements of Cost Re-Ordering Level Economic Order Quantity EOQ Danger Level Minimum Level Stock Maximum Stock Level Bin Card Stores Ledger Uniform Costing Cost Ratios Benefits of Minimum Stock Level Cost Accounting MCQS - Multiple Choice Questions Multiple Choice Questions on Cost Classification Activity Based Costing (ABC) Throughput Accounting Relevant Cost Break Even Analysis Standard Costing Inventory Management Payroll Accounting Royalty Accounting Statistics Master Budget Salary Income Microsoft Excel Tutorial Other Topics Share or Stock Valuation Model Financial Management Topics Kinds of Endorsement Letter of Credit, Kinds and Its Advantages/ Utilities Modern Functions of a Commercial Banks Difference Between Secured And Unsecured Loan Excel conditional formatting red if negative green if positive How to Remove Extra Spaces in Excel Result Card or Result Sheet Creation Using Excel Basic Accounting MCQS Multiple Choice Questions