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Cost Concept MCQ Questions & Answers

Cost Concept MCQs : This section focuses on the "Cost Concept". These Multiple Choice Questions (MCQs) should be practiced to improve the Cost Concept skills required for various interviews (campus interview, walk-in interview, company interview), placement, entrance exam and other competitive examinations.

Question 1

What is the basic concept of cost concept?

A. Cost ascertainment.
B. Tax compliance.
C. Financial audit
D. Profit analysis

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Question 2

A total of all the direct costs is known as

A. Cost of production
B. Cost of sales
C. Prime cost
D. Works cost

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Question 3

What item is not included in cost accounting?

A. Product costing
B. Profit-sharing
C. Planning
D. Controlling

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Question 4

Warehouse rent is a part of which cost?

A. Production cost
B. Distribution cost
C. Prime cost
D. Factory cost

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Question 5

In how many ways cost classification can be done?

A. Three ways
B. Two ways
C. Four ways
D. Many ways

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Question 6

Direct expenses are also known as

A. Overhead expenses
B. Sundry expenses
C. Chargeable expenses
D. Major expenses

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Question 7

Which cost is incurred even if the company is closed?

A. Sunk cost
B. Historical cost
C. Shutdown cost
D. Imputed cost

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Question 8

What is tender?

A. Estimation of cost
B. Estimation of profit
C. Estimation of units
D. Estimation of the selling price

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Question 9

Toy manufacturing companies use what type of costing?

A. Multiple costing
B. Process costing
C. Unit costing
D. Batch costing

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Question 10

Process costing is appropriate for which firm?

A. Bricklaying firms
B. Transport firms
C. Hospitals
D. Oil refining firms

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