Cost and Works Accounting 3 MCQ - Summary
Cost accounting is a vital technique in managerial accounting that helps to find out the total production cost of a business. It calculates both the variable costs during each production phase and fixed costs, such as lease expenses. For students preparing for their B.Com annual exams, understanding cost accounting is crucial, especially when tackling MCQ question papers. This knowledge will aid them in getting familiar with the exam format and enhance their chances of success.
Types of Cost Accounting
Here are some important types of cost accounting you should know:
- Standard Costing
- Activity-Based Costing
- Lean Accounting
- Marginal Costing
Key Questions in Cost Accounting MCQs
Let’s take a look at some typical questions you might encounter:
What kind of cost has a tendency to change proportionally with a change in the level of output?
- a. Fixed cost
- b. Variable cost
- c. Non-controllable cost
- d. Administrative cost
Costs that don’t change proportionally with a change in the level of output are:
- a. Raw material cost
- b. Labour cost
- c. Power and fuel cost
- d. Audit fees/rent of factory
Marginal costing deals with:
- a. Variable cost
- b. Fixed cost
- c. Sunk cost
- d. Semi-variable cost
Marginal costing is also known as:
- a. Variable costing
- b. Direct costing
- c. ABC costing
- d. Budgeting
Marginal costing is primarily not used for:
- a. Profit planning
- b. Cost control
- c. Management decision
- d. Financial reporting
Managerial costing is concerned with:
- a. Fixed cost for period
- b. Administrative cost
- c. Expansion of organization
- d. Additional cost for incremental production
Make sure to download the Cost and Works Accounting 3 MCQ PDF using the link given below for further study and practice! 📚
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