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
Process costing is appropriate for which firm?
A. Bricklaying firms
B. Transport firms
C. Hospitals
D. Oil refining firms
Question 2
What is the basic concept of cost concept?
A. Cost ascertainment.
B. Tax compliance.
C. Financial audit
D. Profit analysis
Question 3
A total of all the direct costs is known as
A. Cost of production
B. Cost of sales
C. Prime cost
D. Works cost
Question 4
What is tender?
A. Estimation of cost
B. Estimation of profit
C. Estimation of units
D. Estimation of the selling price
Question 5
Toy manufacturing companies use what type of costing?
A. Multiple costing
B. Process costing
C. Unit costing
D. Batch costing
Question 6
Direct expenses are also known as
A. Overhead expenses
B. Sundry expenses
C. Chargeable expenses
D. Major expenses
Question 7
What item is not included in cost accounting?
A. Product costing
B. Profit-sharing
C. Planning
D. Controlling
Question 8
Warehouse rent is a part of which cost?
A. Production cost
B. Distribution cost
C. Prime cost
D. Factory cost
Question 9
Which cost is incurred even if the company is closed?
A. Sunk cost
B. Historical cost
C. Shutdown cost
D. Imputed cost
Question 10
In how many ways cost classification can be done?
A. Three ways
B. Two ways
C. Four ways
D. Many ways