Cost Classification MCQ with Answers | Cost Accounting MCQs (Free Resource)

Cost Classification MCQ with Answers

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1. _____________ cost is imputed cost.
a) Interest on Capital
b) Variable
c) Out of pocket
d) Opportunity

2. Interest on capital is ___________.
a) Overheads Cost
b) Imputed Cost
c) Sunk Cost
d) Avoidable Cost

3. Drawing office salaries ____________ overheads.
a) Factory
b) Office
c) Selling
d) Distribution

4. Prime cost is ____________ cost.
a) Direct Cost
b) Indirect Cost
c) Factory Cost
d) Production Cost

5. Overheads are ________ cost.
a) Direct Cost
b) Indirect Cost
c) Production Cost
d) Variable Cost

6. Factory Cost is = Prime Cost + _________ .
a) Direct Cost
b) Factory Overheads
c) Cost of Production
d) None of the above

7. Cost of Production is = Factory Cost + __________ .
a) Factory Overheads
b) Office overheads
c) Direct Cost
d) Prime Cost

8. Cost of Sales = Cost of Production + __________ .
a) Selling Overheads
b) Direct Cost
c) Factory Overheads
d) Factory cost

9. Sales = Total ________ + Profit.
a) Production
b) Price
c) Cost
d) Overheads

10. In costing stock valuation is done at __________ .
a) Cost of Production
b) Cost of Material
c) Cost of Finished Goods
d) Cost of Sale

Answers: 1)Interest on Capital 2)Imputed Cost 3)Factory 4)Direct Cost 5)Indirect Cost 6)Factory Overheads 7)Office overheads 8)Selling Overheads 9)Cost 10)Cost of Production

11. Cost of rectification is ___________ overheads.
a) Selling
b) Office
c) Factory
d) Direct Cost

12. Stock of WIP is adjusted to ___________ overheads.
a) Office
b) Factory
c) Selling
d) Direct Material

13. Sale of scrap of material is deducted from cost of ___________ .
a) Materials
b) Production
c) Selling
d) None of the above

14. Sale of factory scrap is deducted from __________ overheads.
a) Factory
b) Selling
c) Office
d) None of the above

15. Profit on sale of asset is a __________ item.
a) Non Cost
b) Indirect Cost
c) Direct Cost
d) Variable Cost

16. Prelim-Expenses written off is a ___________ item.
a) Indirect Cost
b) Non Cost
c) Variable Cost
d) Direct Cost

17. Notional cost is known as :
a) Imputed cost
b) Variable cost
c) Opportunity cost
d) Out of pocket cost

18. Unavoidable cost is called as :
a) Urgent cost
b) Inexcapable cost
c) Implicit cost
d) Explicit cost

19. Interest on capital on :
a) Imputed cost
b) Sunk cost
c) overheads cost
d) avoidable cost

20. Cost incurred in closing down a department is called as :
a) Abandonment cost
b) Sunk cost
c) shutdown cost
d) urgent cost

Answers: 11)Factory 12)Factory 13)Materials 14)Factory 15)Non Cost 16)Non Cost 17)Imputed cost 18)Inescapable cost 19)Imputed cost 20)Abandonment cost

21. The cost involves payment to other parties is called as :
a) out of pocket cost
b) book cost
c) sunk cost
d) urgent cost

22. Cost which must be incurred to continue the operations is called :
a) urgent cost
b) opportunity cost
c) Implicit cost
d) Traceable cost

23. Dock charges is a :
a) Direct cost
b) Indirect cost
c) Urgent cost
d) Production cost

24. Drawing office salaries is a :
a) Factory overheads
b) Office overheads
c) Selling overheads
d) Distribution overheads

25. Prime cost is equal :
a) Direct cost
b) Direct cost + Factory overheads
c) Factory cost
d) Cost of production

26. Cost of rectification is a :
a) Factory overheads
b) office overheads
c) selling overheads
d) direct cost

27. Stock of WIP is adjusted to :
a) Office overheads
b) Factory overheads
c) Selling overheads
d) Direct materials

28. In costing closing stock is valued at :
a) Cost of production
b) Factory cost
c) Market price
d) Realisable value

29. Opening stock of material is 5,000 purchases 30,000 closing stock of materials ` 2,000. The cost of material used is __________ .
a) 33,000
b) 30,000
c) 35,000
d) 40,000

30. Cost of material used is 50,000 opening stock of materials is 4,000 and closing stock of materials is 6,000 purchase of material is _________ .
a) 50,000
b) 52,000
c) 60,000
d) 48,000

31. Cost of production is 20,64,074 opening stock of finished goods is 45,280 and closing stock of finished goods is 50,240 Cost of goods sold is ________.
a) 20,59,110
b) 25,00,000
c) 23,00,000
d) 22,00,000

32. Total cost is 23,07,930, profit is 10% on cost. The sales is _______.
a) 25,000
b) 25,38,723
c) 23,80,000
d) 20,25,000

33. Total cost is Rs 36,12,000 profit is 10% on selling price. Sales is _______.
a) 45,15,000
b) 45,50,000
c) 50,00,000
d) 40,25,000

34. Prime cost is 10,00,000 work overheads is 6,63,400. Factory cost is
a) 16,63,400
b) 14,50,000
c) 12,40,000
d) 10,25,000

Answer: 21)out of pocket cost 22)urgent cost 23)Direct cost 24)Factory overheads 25)Direct cost 26)Factory overheads 27)Factory overheads 28)Cost of production 29)33,000 30)52,000 31)20,59,110 32)25,38,723 33)45,15,000 34)16,63,400