Download Calicut University M.Com Latest 2020 Cost Management Question Bank

MULTIPLE CHOICE QUESTIONS FOR MCOM - (MC4C15)

COST MANAGEMENT

1. Marginal costing is concerned with;
   1. Fixed cost

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   2. variable cost
   3. semi fixed
   4. None of these
2. Cost unit is used for
   1. cost control

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   2. cost reduction
   3. ascertainment of cost
   4. None of these
3. Pareto's law is concerned with;
   1. ABC analysis

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   2. VED analysis
   3. JIT
   4. FSND analysis
4. Over head is an aggregate all ........ costs
   1. Indirect cost

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   2. direct cost
   3. material cost
   4. all of the above
5. Bad debts are treated as part of
   1. selling overhead

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   2. factory overhead
   3. office overhead
   4. any of the above
6. Unit costing is a ..................?
   1. technique

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   2. method
   3. quotation
   4. tender
7. Which method of costing is used where the job is large and is of long duration;
   1. process costing

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   2. batch costing
   3. job costing
   4. contract costing
8. Abnormal process loss is transferred to.............
   1. balance sheet

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   2. costing P/L account
   3. Nominal a/c
   4. none of the above
9. Master budget is the summary of :
   1. cash budget

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   2. sales budget
   3. production budget
   4. All functional budget
10. Difference between standard cost & actual cost is known as:
    1. Profit

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    2. loss
    3. differential cost
    4. variance
11. In an activity based costing implementation, products diverse demand is based on
    1. batch size

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    2. complexity
    3. process steps
    4. all of above
12. The following is also known as overhead costs or on costs
    1. cost of direct labour

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    2. cost of indirect labour
    3. direct expenses
    4. indirect expenses
13. Which of the following calculate the actual cost of a product;
    1. cost estimation

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    2. costing
    3. both a & b
    4. none of the above
14. ........... costing is a type of job costing?
    1. multiple

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    2. operating
    3. unit
    4. batch
15. The following cost helps in taking 'make or buy' decision
    1. standard cost

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    2. marginal cost
    3. differential cost
    4. sunk cost

Answer key

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