{"id":5615,"date":"2021-09-08T15:15:09","date_gmt":"2021-09-08T09:45:09","guid":{"rendered":"https:\/\/scholarsclasses.com\/blog\/?p=5615"},"modified":"2025-12-24T17:41:32","modified_gmt":"2025-12-24T12:11:32","slug":"cost-classification","status":"publish","type":"post","link":"https:\/\/scholarsclasses.com\/blog\/cost-classification\/","title":{"rendered":"Cost Classification MCQ with Answers | Cost Accounting MCQs (Free Resource)"},"content":{"rendered":"\n<h2 class=\"wp-block-heading has-text-align-center\"><strong>Cost Classification MCQ with Answers<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><a href=\"https:\/\/scholarsclasses.com\/blog\/cost-accounting-mcq\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/cost-accounting-mcq\/\" target=\"_blank\" rel=\"noreferrer noopener\">MCQs on other topics of Cost Accounting <\/a><\/strong><\/li>\n\n\n\n<li><a href=\"https:\/\/www.icsi.edu\/media\/webmodules\/modelquestionpaper\/CMA-MCQ%20100.pdf\" data-type=\"URL\" data-id=\"https:\/\/www.icsi.edu\/media\/webmodules\/modelquestionpaper\/CMA-MCQ%20100.pdf\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Cost Accounting MCQs pdf <\/strong><\/a><\/li>\n<\/ul>\n\n\n\n<p><strong>1. _____________ cost is imputed cost.<br><\/strong>a) Interest on Capital <br>b) Variable <br>c) Out of pocket <br>d) Opportunity<\/p>\n\n\n\n<p><strong>2. Interest on capital is ___________.<br><\/strong>a) Overheads Cost <br>b) Imputed Cost <br>c) Sunk Cost <br>d) Avoidable Cost<\/p>\n\n\n\n<p><strong>3. Drawing office salaries ____________ overheads.<br><\/strong>a) Factory <br>b) Office <br>c) Selling <br>d) Distribution<\/p>\n\n\n\n<p><strong>4. Prime cost is ____________ cost.<br><\/strong>a) Direct Cost <br>b) Indirect Cost <br>c) Factory Cost <br>d) Production Cost<\/p>\n\n\n\n<p><strong>5. Overheads are ________ cost.<br><\/strong>a) Direct Cost <br>b) Indirect Cost <br>c) Production Cost <br>d) Variable Cost<\/p>\n\n\n\n<p><strong>6. Factory Cost is = Prime Cost + _________ .<br><\/strong>a) Direct Cost <br>b) Factory Overheads <br>c) Cost of Production <br>d) None of the above<\/p>\n\n\n\n<p><strong>7. Cost of Production is = Factory Cost + __________ .<br><\/strong>a) Factory Overheads <br>b) Office overheads <br>c) Direct Cost <br>d) Prime Cost<\/p>\n\n\n\n<p><strong>8. Cost of Sales = Cost of Production + __________ .<br><\/strong>a) Selling Overheads <br>b) Direct Cost <br>c) Factory Overheads <br>d) Factory cost<\/p>\n\n\n\n<p><strong>9. Sales = Total ________ + Profit.<br><\/strong>a) Production <br>b) Price <br>c) Cost <br>d) Overheads<\/p>\n\n\n\n<p><strong>10. In costing stock valuation is done at __________ .<br><\/strong>a) Cost of Production <br>b) Cost of Material <br>c) Cost of Finished Goods <br>d) Cost of Sale<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answers:<\/strong> <span class=\"has-inline-color has-vivid-red-color\">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<\/span><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"576\" data-src=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/09\/Cost-Classification-1024x576.jpg\" alt=\"Cost Classification\" class=\"wp-image-5681 lazyload\" title=\"\" data-srcset=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/09\/Cost-Classification-1024x576.jpg 1024w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/09\/Cost-Classification-300x169.jpg 300w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/09\/Cost-Classification-768x432.jpg 768w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/09\/Cost-Classification-1536x864.jpg 1536w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/09\/Cost-Classification.jpg 1920w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/576;\" \/><figcaption class=\"wp-element-caption\">Cost Classification<\/figcaption><\/figure>\n\n\n\n<p><strong>11. Cost of rectification is ___________ overheads.<br><\/strong>a) Selling <br>b) Office <br>c) Factory <br>d) Direct Cost<\/p>\n\n\n\n<p><strong>12. Stock of WIP is adjusted to ___________ overheads.<br><\/strong>a) Office <br>b) Factory <br>c) Selling <br>d) Direct Material<\/p>\n\n\n\n<p><strong>13. Sale of scrap of material is deducted from cost of ___________ .<br><\/strong>a) Materials <br>b) Production <br>c) Selling <br>d) None of the above<\/p>\n\n\n\n<p><strong>14. Sale of factory scrap is deducted from __________ overheads.<br><\/strong>a) Factory <br>b) Selling <br>c) Office <br>d) None of the above<\/p>\n\n\n\n<p><strong>15. Profit on sale of asset is a __________ item.<br><\/strong>a) Non Cost <br>b) Indirect Cost <br>c) Direct Cost <br>d) Variable Cost<\/p>\n\n\n\n<p><strong>16. Prelim-Expenses written off is a <em>___________<\/em> item.<br><\/strong>a) Indirect Cost <br>b) Non Cost <br>c) Variable Cost <br>d) Direct Cost<\/p>\n\n\n\n<p><strong>17. Notional cost is known as :<br><\/strong>a) Imputed cost <br>b) Variable cost <br>c) Opportunity cost <br>d) Out of pocket cost<\/p>\n\n\n\n<p><strong>18. Unavoidable cost is called as :<br><\/strong>a) Urgent cost <br>b) Inexcapable cost <br>c) Implicit cost <br>d) Explicit cost<\/p>\n\n\n\n<p><strong>19. Interest on capital on :<br><\/strong>a) Imputed cost <br>b) Sunk cost <br>c) overheads cost <br>d) avoidable cost<\/p>\n\n\n\n<p><strong>20. Cost incurred in closing down a department is called as :<br><\/strong>a) Abandonment cost <br>b) Sunk cost <br>c) shutdown cost <br>d) urgent cost<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answers:<\/strong> <span class=\"has-inline-color has-vivid-red-color\">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<\/span><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>21. The cost involves payment to other parties is called as :<br><\/strong>a) out of pocket cost <br>b) book cost <br>c) sunk cost <br>d) urgent cost<\/p>\n\n\n\n<p><strong>22. Cost which must be incurred to continue the operations is called :<br><\/strong>a) urgent cost <br>b) opportunity cost <br>c) Implicit cost <br>d) Traceable cost<\/p>\n\n\n\n<p><strong>23. Dock charges is a :<br><\/strong>a) Direct cost <br>b) Indirect cost <br>c) Urgent cost <br>d) Production cost<\/p>\n\n\n\n<p><strong>24. Drawing office salaries is a :<br><\/strong>a) Factory overheads <br>b) Office overheads <br>c) Selling overheads <br>d) Distribution overheads<\/p>\n\n\n\n<p><strong>25. Prime cost is equal :<br><\/strong>a) Direct cost <br>b) Direct cost + Factory overheads <br>c) Factory cost <br>d) Cost of production<\/p>\n\n\n\n<p><strong>26. Cost of rectification is a :<br><\/strong>a) Factory overheads <br>b) office overheads <br>c) selling overheads <br>d) direct cost<\/p>\n\n\n\n<p><strong>27. Stock of WIP is adjusted to :<br><\/strong>a) Office overheads <br>b) Factory overheads <br>c) Selling overheads <br>d) Direct materials<\/p>\n\n\n\n<p><strong>28. In costing closing stock is valued at :<br><\/strong>a) Cost of production <br>b) Factory cost <br>c) Market price <br>d) Realisable value<\/p>\n\n\n\n<p><strong>29. Opening stock of material is 5,000 purchases 30,000 closing stock of materials ` 2,000. The cost of material used is __________ .<br><\/strong>a) 33,000<br>b) 30,000 <br>c) 35,000<br>d) 40,000<\/p>\n\n\n\n<p><strong>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 _________ .<br><\/strong>a) 50,000<br>b) 52,000 <br>c) 60,000<br>d) 48,000<\/p>\n\n\n\n<p><strong>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 ________.<br><\/strong>a) 20,59,110 <br>b) 25,00,000 <br>c) 23,00,000<br>d) 22,00,000<\/p>\n\n\n\n<p><strong>32. Total cost is  23,07,930, profit is 10% on cost. The sales is _______.<br><\/strong>a) 25,000 <br>b) 25,38,723 <br>c) 23,80,000<br>d) 20,25,000<\/p>\n\n\n\n<p><strong>33. Total cost is Rs 36,12,000 profit is 10% on selling price. Sales is _______.<br><\/strong>a) 45,15,000 <br>b) 45,50,000 <br>c) 50,00,000 <br>d) 40,25,000<\/p>\n\n\n\n<p><strong>34. Prime cost is 10,00,000 work overheads is 6,63,400. Factory cost is<br><\/strong>a) 16,63,400 <br>b) 14,50,000 <br>c) 12,40,000 <br>d) 10,25,000<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answer:<\/strong><span class=\"has-inline-color has-vivid-red-color\"><strong> <\/strong>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<\/span><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-contrast-color has-text-color\">Online lectures of BCOM &amp; BAF<\/h3>\n\n\n\n<p>\ud83d\udd17 Share our videos and channel with your friends, and help us grow this channel.<br>Learn many Chapters from our playlist.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/www.youtube.com\/playlist?list=PLJ_81_DlRlydBJkFOG9X7cqtVesnyQdiY\" data-type=\"link\" data-id=\"https:\/\/www.youtube.com\/playlist?list=PLJ_81_DlRlydBJkFOG9X7cqtVesnyQdiY\" target=\"_blank\" rel=\"noopener\">Standard Costing <\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/www.youtube.com\/playlist?list=PLJ_81_DlRlydgIIWTK-MAhenQShV9aCK-\" data-type=\"link\" data-id=\"https:\/\/www.youtube.com\/playlist?list=PLJ_81_DlRlydgIIWTK-MAhenQShV9aCK-\" target=\"_blank\" rel=\"noopener\">Marginal Costing<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/www.youtube.com\/playlist?list=PLJ_81_DlRlyfAB3BFBOpzxOcTccRd9Sd9\" data-type=\"link\" data-id=\"https:\/\/www.youtube.com\/playlist?list=PLJ_81_DlRlyfAB3BFBOpzxOcTccRd9Sd9\" target=\"_blank\" rel=\"noopener\">Process Costing<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/www.youtube.com\/playlist?list=PLJ_81_DlRlycvOpisB7z6ChFU_M12WaHF\" data-type=\"link\" data-id=\"https:\/\/www.youtube.com\/playlist?list=PLJ_81_DlRlycvOpisB7z6ChFU_M12WaHF\" target=\"_blank\" rel=\"noopener\">Contract Costing<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/www.youtube.com\/playlist?list=PLJ_81_DlRlycztlxZO8_dFK3MBUpDmspT\" data-type=\"link\" data-id=\"https:\/\/www.youtube.com\/playlist?list=PLJ_81_DlRlycztlxZO8_dFK3MBUpDmspT\" target=\"_blank\" rel=\"noopener\">Material Cost<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/www.youtube.com\/playlist?list=PLJ_81_DlRlydix7pL2yOZvNwjTC2NE4Hs\" data-type=\"link\" data-id=\"https:\/\/www.youtube.com\/playlist?list=PLJ_81_DlRlydix7pL2yOZvNwjTC2NE4Hs\" target=\"_blank\" rel=\"noopener\">Labour Cost<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/www.youtube.com\/playlist?list=PLJ_81_DlRlyfya-qJBFNCGDo694oYD3HM\" data-type=\"link\" data-id=\"https:\/\/www.youtube.com\/playlist?list=PLJ_81_DlRlyfya-qJBFNCGDo694oYD3HM\" target=\"_blank\" rel=\"noopener\">Overheads<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/youtu.be\/OTqK6hkkWao\" data-type=\"link\" data-id=\"https:\/\/youtu.be\/OTqK6hkkWao\" target=\"_blank\" rel=\"noopener\">Cost Sheet<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/www.youtube.com\/playlist?list=PLJ_81_DlRlycqh9Q_KNwtQu9Btq0HX90Q\" data-type=\"link\" data-id=\"https:\/\/www.youtube.com\/playlist?list=PLJ_81_DlRlycqh9Q_KNwtQu9Btq0HX90Q\" target=\"_blank\" rel=\"noopener\">Foreign Exchange Currency<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/www.youtube.com\/playlist?list=PLJ_81_DlRlyf2XUidmrcmeoKRO_lhgVEN\" data-type=\"link\" data-id=\"https:\/\/www.youtube.com\/playlist?list=PLJ_81_DlRlyf2XUidmrcmeoKRO_lhgVEN\" target=\"_blank\" rel=\"noopener\">Investment Accounting<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/www.youtube.com\/playlist?list=PLJ_81_DlRlyf19LYQpS269Jv96hKVR8sN\" data-type=\"link\" data-id=\"https:\/\/www.youtube.com\/playlist?list=PLJ_81_DlRlyf19LYQpS269Jv96hKVR8sN\" target=\"_blank\" rel=\"noopener\">Buy Back of Shares<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/www.youtube.com\/playlist?list=PLJ_81_DlRlyeLvm_Yt0P33iAlqoZpALna\" data-type=\"link\" data-id=\"https:\/\/www.youtube.com\/playlist?list=PLJ_81_DlRlyeLvm_Yt0P33iAlqoZpALna\" target=\"_blank\" rel=\"noopener\">Liquidation of Companies<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":5681,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,1],"tags":[5593],"class_list":["post-5615","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bcom","category-misc","tag-cost-classification-mcq-with-answers"],"_links":{"self":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/5615","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/comments?post=5615"}],"version-history":[{"count":4,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/5615\/revisions"}],"predecessor-version":[{"id":41521,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/5615\/revisions\/41521"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media\/5681"}],"wp:attachment":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media?parent=5615"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/categories?post=5615"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/tags?post=5615"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}