7. 1.

Cost accounting is one of the subdivisions of

a. a. b. c. d. management accounting financial accounting corporate accounting none of these b. c. d.

Cost centres are created for

segregating costs into fixed and variable control and fixing responsibility making decisions ascertaining profit

8. 2. The basic objective of cost accounting is

a. a. b. c. d. recording of cost reporting of cost cost control profit earning d. b. c.

Profit centre is

a department ascertaining profit a centre for inventory valuation a responsibility centre in which performance is measured none of these

3.

Cost objects are

9.

Cost control refers to

a. b. c. d.

costing systems costing methods cost estimates cost unit and cost centre

a.

a continuous action by members of an undertaking

b. c. d.

a remedial measures by purchase department action by production department none of these

4.

Cost unit is used for

10. Cost reduction can be attained by

a. b. c. d. cost control cost reduction resources foregone ascertainment of cost a. b. c. reducing volume of production reducing volume of sale without affecting the quality or value of goods produced d. reducing prices

5.

Cost incurred is identified with

a. b. c. d.

(cost) unit of output cost control cost reduction none of these

11. Conversion cost excludes

a. b. c. d.

direct material cost direct Labour cost direct expenses all the above

6.

The methods used for the calculation of cost per unit are known as

12. Fixed cost per unit decreases when

a. b. c. d. costing methods costing procedure costing systems none of these a. b. c. d. a volume of production decreases volume of production increases volume of sales increases volume of sales decreases

13. Variable cost increases in total due to

19. Batch costing is suitable for

a. b. c. d.

increase in sales increase in profit increase in volume of production all of the above

a. b. c. d.

construction brick making cutting-tool manufactures general-purpose machine tool manufactures

14. Imputed cost is a

20. Cost of production is

a. b. c. d.

Differential cost Fixed cost Variable cost Notional cost

a. b. c. d.

factory cost + administration overhead factory cost + prime cost prime cost + factory cost prime cost + factory overheads

15. Conversion cost includes:

21. Mention two objectives of cost accounting. 22. State any four items which are not included

a. b. c. d.

direct wages and factory overheads direct expenses and factory overheads direct materials and factory overheads direct wages and direct materials cost

in cost accounts.

16. Sunk cost is

a. b. c. d.

a foregone cost invested cost or recorded cost a postponable cost none of these

17. Process costing is suitable for

a. b. c. d.

civil engineering construction brick making oil refining refineries printing

18. Single or output costing is suitable for

a. b. c. d.

construction activities ship-building concerns brick making refineries