1. Cost accounting is one of the subdivisions of

a. management accounting

b. financial accounting

c. corporate accounting

d. none of these

2. The basic objective of cost accounting is

a. recording of cost

b. reporting of cost

c. cost control

d. profit earning

3. Cost objects are

a. costing systems

b. costing methods

c. cost estimates

d. cost unit and cost centre

4. Cost unit is used for

a. cost control

b. cost reduction

c. resources foregone

d. ascertainment of cost

5. Cost incurred is identified with

a. (cost) unit of output

b. cost control

c. cost reduction

d. none of these

6. The methods used for the calculation of cost

per unit are known as

a. costing methods

b. costing procedure

c. costing systems

d. none of these

7. Cost centres are created for

a. segregating costs into fixed and variable

b. control and fixing responsibility

c. making decisions

d. ascertaining profit

8. Profit centre is

a. a department ascertaining profit

b. a centre for inventory valuation

c. a responsibility centre in which performance is

measured

d. none of these

9. Cost control refers to

a. a continuous action by members of an

undertaking

b. a remedial measures by purchase department

c. action by production department

d. none of these

10. Cost reduction can be attained by

a. reducing volume of production

b. reducing volume of sale

c. without affecting the quality or value of goods

produced

d. reducing prices

11. Conversion cost excludes

a. direct material cost

b. direct Labour cost

c. direct expenses

d. all the above

12. Fixed cost per unit decreases when

a. a volume of production decreases

b. volume of production increases

c. volume of sales increases

d. volume of sales decreases

13. Variable cost increases in total due to

a. increase in sales

b. increase in profit

c. increase in volume of production

d. all of the above

14. Imputed cost is a

a. Differential cost

b. Fixed cost

c. Variable cost

d. Notional cost

15. Conversion cost includes:

a. direct wages and factory overheads

b. direct expenses and factory overheads

c. direct materials and factory overheads

d. direct wages and direct materials cost

16. Sunk cost is

a. a foregone cost

b. invested cost or recorded cost

c. a postponable cost

d. none of these

17. Process costing is suitable for

a. civil engineering construction

b. brick making

c. oil refining − refineries

d. printing

18. Single or output costing is suitable for

a. construction activities

b. ship-building concerns

c. brick making

d. refineries

19. Batch costing is suitable for

a. construction

b. brick making

c. cutting-tool manufactures

d. general-purpose machine tool manufactures

20. Cost of production is

a. factory cost + administration overhead

b. factory cost + prime cost

c. prime cost + factory cost

d. prime cost + factory overheads

21. Mention two objectives of cost accounting.

22. State any four items which are not included

in cost accounts.