MADURAI COACHING CENTRE

(RUN BY MCC EDUCATIONAL TRUST)

TRB – PG ASST. COMMERCE 2023-24
UNIT V - SLIP TEST 2 14.5.23
MADURAI – 1. 9842188882
1. The total cost incurred in the operation of a business undertaking other than the cost of
manufacturing and production is known as:
(a) direct cost (b) Variable cost (c) commercial cost (d) conversion cost
2. Which of the following is not a relevant cost?
(a) Replacement cost (b) Sunk cost (c) Marginal cost (d) standard cost
3. Process cost is very much applicable in:
(a) construction industry (b) pharmaceutical industry (c) Air line company (d) none of these
4. The main purpose of cost accounting is to:
(a) maximize profits, (b) help in inventory valuation
(c) provide information to management for decision making
(d) Aid in the fixation of selling price
5. Opportunity cost is the best example of:
(a) sunk cost (b) Standard cost (c) relevant cost (d) irrelevant cost
6. Costs are classified into fixed costs, variable costs and semi-variable costs, it is known as
(a) functional classification (b) behavioral classification
(c) element wise classification (d) classification according to controllability
7. Which method of costing is used for determination of costs for printing industry?
(a) process costing (b) operating costing (c) batch costing (d) job costing
8. Over which of the following costs, management is likely to have least control
(a) wages cost (b) building insurance cost (c) machinery breakdown cost (d) advertisement cost
9. Variable costs are fixed
(a) for a period (b) per unit (c) depends upon the entity (d) for a particular process of production
10. In behavioral analysis’, costs are divided into
(a) production and non-production costs (b) controllable and non-controllable costs
(c) direct and indirect costs (d) fixed and variable costs
11. Prime cost plus factory overheads is known as
(a) factory on cost (b) conversion cost (c) factory cost (d) marginal cost
12. Which of the following items is excluded from cost Accounts?
(a) Income tax (b) interest on debentures (c) cash discount (d) All of these
13. The following is included in financial accounts, but not in cost accounts.
(a) carriage and freight (b) Excise duty (c) Royalty (d) Dividend paid
14. Advertisements are treated as
(a) direct expenses (b) cost of production (c) selling overheads (d) distribution
overheads
15. Which cost system description applies to the manufacture of 20 engraved doors for the new
club house at a golf course?
(a) contract (b) process (c) Batch (d) service

MADURAI COACHNG CENTRE 1 PG TRB COMMERCE SLIP TEST 2 COSTING 2023-24

16. Prime cost may be correctly termed as
(a) the sum of direct material and labour cost with all other costs excluded.
(b) the total of all cost items which can be directly charged to product units.
(c) The total costs incurred in producing a finished unit.
(d) the sum of the large cost there in a product cost.
17. The guidance and regulation by executive action of the cost of operating an undertaking is
said to be
(a) Budgetary control (b) cost control (c) cost analysis (d) None
18. Direct expenses are also known as
(a) Overhead expenses (b) process expenses (c) chargeable expenses (d) None
19. Indirect material cost is a part of
(a) Prime cost (b) Factory overhead (c) chargeable expenses (d) None of these
20. Which of the following is a part of both Prime cost and conversion cost
(a) Direct Material (b) Indirect Labour (c) Indirect Material (d) Direct Labour
21. Statement showing break-up of costs is known as
(a) cost-sheet (b) statement of profit (c) production account (d) Tender
22. The works cost plus administration expenses
(a) Total Cost (b) Cost of production (c) cost of sales (d) Factory cost
23. Directors remuneration and expenses form a part of
(a) Production overhead ( b) Administration overhead
(c) Selling overhead (d) Distribution overhead
24. Cost reduction is
(a) Long term phenomena (b) It challenges the standards
(c) It is carried out without compromising the quality (d) All of the above
25. Interest on own capital is
(a) Cash cost (b) Notional cost (c) Sunk cost (d) Part of Prime Cost
True or False:
26. Process costing method is suitable for coal industry
27. Fixed cost per unit remains fixed but variable cost per unit vary with variation in output
28. Financial accounts provide information for determination of profit or loss
29. Cost accounts provide information for ascertainment of the financial position as on a
particular date
30. Cost accounting is an instrument of management control
31. Service costing is used in industries producing goods
32. In construction industry, contract costing is used
33. The process of finding cost is costing
34. Depreciation is an out of pocket cost
35. Variable cost per unit varies with increase or decrease in volume of output
36. All costs are controllable
37. Cash discount is excluded from cost sheet
38. Finance expenses are included in cost sheet
39. Discount to customer comes under “distribution cost”
40. Variable overhead cost is a period cost
41. In the cement industries the unit of cost is per tonne

MADURAI COACHNG CENTRE 2 PG TRB COMMERCE SLIP TEST 2 COSTING 2023-24

42. Scrap is a residue which comes out of a manufacturing process but has no recoverable value
43. Contract costing us a basic method is specific order costing
44. All the indirect cost related to indirect material, Indirect labour and indirect expenses are
termed as overheads
45. Direct wages is a variable cost
46. Historical costs are relevant costs for decision making
47. Contract costing is based on job costing principles
48. Cost accounting is an instrument of management control.
49. Abnormal cost is controllable
50. Fixed cost per unit decreases with rise in output and increases with fall in output

MADURAI COACHNG CENTRE 3 PG TRB COMMERCE SLIP TEST 2 COSTING 2023-24