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d. none of these 1. Cost accounting is one of the subdivisions of a. b. c. d.

management accounting financial accounting corporate accounting none of these 7. Cost centres are created for a. segregating costs into fixed and variable b. control and fixing responsibility c. making decisions d. ascertaining profit 8. Profit centre is a. a department ascertaining profit b. a centre for inventory valuation c. a responsibility centre in which performance is measured d. none of these 9. Cost control refers to a. b. c. d. costing systems costing methods cost estimates cost unit and cost centre a. a continuous action by members of an undertaking b. a remedial measures by purchase department c. action by production department d. none of these 10. Cost reduction can be attained by a. reducing volume of production b. reducing volume of sale c. without affecting the quality or value of goods produced d. reducing prices 11. Conversion cost excludes a. b. c. d. direct material cost direct Labour cost direct expenses all the above

2. The basic objective of cost accounting is a. b. c. d. recording of cost reporting of cost cost control profit earning

3. Cost objects are

4. Cost unit is used for a. b. c. d. cost control cost reduction resources foregone ascertainment of cost

5. Cost incurred is identified with a. b. c. d. (cost) unit of output cost control cost reduction none of these

6. The methods used for the calculation of cost per unit are known as a. costing methods b. costing procedure c. costing systems

12. Fixed cost per unit decreases when

a. b. c. d.

a volume of production decreases volume of production increases volume of sales increases volume of sales decreases

18. Single or output costing is suitable for a. b. c. d. construction activities ship-building concerns brick making refineries

13. Variable cost increases in total due to a. b. c. d. increase in sales increase in profit increase in volume of production all of the above

19. Batch costing is suitable for a. b. c. d. construction brick making cutting-tool manufactures general-purpose machine tool manufactures

14. Imputed cost is a a. b. c. d. Differential cost Fixed cost Variable cost Notional cost

20. Cost of production is 15. Conversion cost includes: a. direct wages and factory overheads b. direct expenses and factory overheads c. direct materials and factory overheads d. direct wages and direct materials cost 16. Sunk cost is a. b. c. d. a foregone cost invested cost or recorded cost a postponable cost none of these a. factory cost + administration overhead b. factory cost + prime cost c. prime cost + factory cost d. prime cost + factory overheads 21. Mention two objectives of cost accounting. 22. State any four items which are not included in cost accounts.

17. Process costing is suitable for a. b. c. d. civil engineering construction brick making oil refining refineries printing