Home Topics Quiz Login

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

Process costing is appropriate for which firm?

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

View Answer

Question 2

What is the basic concept of cost concept?

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

View Answer

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

View Answer

Question 4

What is tender?

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

View Answer

Question 5

Toy manufacturing companies use what type of costing?

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

View Answer

Question 6

Direct expenses are also known as

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

View Answer

Question 7

What item is not included in cost accounting?

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

View Answer

Question 8

Warehouse rent is a part of which cost?

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

View Answer

Question 9

Which cost is incurred even if the company is closed?

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

View Answer

Question 10

In how many ways cost classification can be done?

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

View Answer