cost accounting

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.

• All statements are correct

• Statements A , C & D are correct

• Except statement 'C' is correct

• Only statements 'C' & 'D' are correct

Which method is used in hospitals for determining cost?

• Job costing

• Unit costing

• Operating costing

• Process costing

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.

• Statements A & C

• Statement D only

• Statements B & D

• None of the above

Prime cost =

• Indirect materials + Indirect labour + Indirect expenses

• Total material + Total labour + Other expenses

• Total cost + selling costs + distribution costs

• Direct material + Direct labour + Direct expenses

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

• Job costing & Operating costing

• Batch costing & Contract costing

• Marginal costing & Absorption costing

• Process costing & Unit costing

Cost unit is calculated as

• Total Expense/Quantity
• Quantity/Total Cost
• Total Cost/Quantity
• Quantity/Total Expense

Cost is classified into:

• Cost and expense
• Expense and revenue
• Indirect expense and Overheads
• Direct cost and Indirect cost

Costs that possess characteristics of both fixed and variable cost are called...

• Semi-variable cost
• Step cost
• variable cost
• fixed cost

floor area may be used as a basis for the apportionment of-------

• rent and rate

• building insurance

• lighting

• all of these

variable overhead----

• remains constant per unit

• remains varies per unit

• remains constant total cost

• remains varies total cost