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?



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:



4.Cost centers are also called __________ centers.

Profit centers

Investment centers

Strategic business unit

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



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



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?



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

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