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

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