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

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