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
- 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