Cost Accounting Quiz

Which of the following is NOT a component of cost?

• Direct Material

• Direct Labor

• Selling Overheads

• Cash Discount

Prime cost is the sum of:

• Direct material + Direct labor + Direct expenses

• Direct material + Indirect labor

• Factory overhead + Administration overhead

• Direct labor + Selling overhead

Fixed costs remain constant:

• Per unit

• In total irrespective of production level

• With increase in production

• Only at zero level of production

The method of costing used in construction contracts is:

• Job costing

• Contract costing

• Process costing

• Operating costing

Which of the following is a technique of management accounting?

• Marginal costing

• Financial accounting

• Trial balance

• Cash book

Break-even point is the point where:

• Total cost = Total revenue

• Fixed cost = Variable cost

• Net profit is maximum

• Contribution is negative

What is the formula for Contribution?

• Sales – Profit

• Sales – Fixed Cost

• Sales – Variable Cost

• Sales – Total Cost

Which costing method is suitable for sugar industry?

• Job costing

• Process costing

• Contract costing

• Batch costing

Management accounting provides information to:

• Internal management

• Tax authorities

• Creditors

• Public

Variance analysis is used in:

• Historical accounting

• Standard costing

• Job costing

• Marginal costing