10 Questions
What is the primary objective of Cost Accounting?
To provide information for decision making and cost control
A company produces 10,000 units of a product at a cost of 50,000. If the fixed cost is 10,000, what is the variable cost per unit?
4
Which of the following methods is used to allocate costs to different departments in a service organisation?
Direct Method
A company produces two products, X and Y. The cost of producing 100 units of X is 5,000 and the cost of producing 50 units of Y is 2,000. If the unit cost of X is 50, what is the unit cost of Y?
40
Which of the following is a characteristic of Job Costing?
Each job is a cost unit
A manufacturing company has two departments, namely, Fabrication and Assembly. The cost of machinery used in Fabrication department is 2,00,000. The machinery is used for 2,500 hours in the Fabrication department and 1,500 hours in the Assembly department. If the total working hours of the machinery are 4,000 hours, what is the amount of machinery cost allocated to the Assembly department using the reciprocal method?
83,333
A company produces 5,000 units of a product at a total cost of 2,50,000. The total variable cost is 1,75,000. What is the fixed cost per unit?
20
In a batch costing system, a batch of 500 units is produced at a total cost of 25,000. If 20 units are defective, what is the cost per unit of good output?
48
A contractor quotes a price of 8,00,000 for a contract that includes the cost of materials, labour and overheads. The cost of materials is 2,40,000 and the cost of labour is 2,80,000. If the overheads are 20% of the cost of labour, what is the total cost of the contract?
7,68,000
A company uses the absorption costing method. The total fixed cost is 4,00,000 and the total production is 20,000 units. What is the fixed cost per unit?
20
Study Notes
Exam Overview
- The exam is a 100 Multiple Choice Questions test covering eight topics in Costing and Management Accounting.
- The exam is designed according to IBPS standards and pattern.
Exam Topics
- Overview of Cost and Management Accounting
- Cost Sheet
- Methods & Techniques of Costing
- Cost Allocation vs Cost Apportionment vs Cost Absorption
- Unit Costing
- Batch Costing
- Job Costing
- Contract Costing, including treatment in Profit & Loss Account
Exam Features
- Questions will be a mix of Theory and Numericals.
- Numerical questions will have more weightage.
- Question difficulty level will vary from easy to tough.
- All questions will be in Indian Rupees (INR).
- Each question will have 5 options, with only 1 correct answer.
Exam Overview
- The exam is a 100 Multiple Choice Questions test covering eight topics in Costing and Management Accounting.
- The exam is designed according to IBPS standards and pattern.
Exam Topics
- Overview of Cost and Management Accounting
- Cost Sheet
- Methods & Techniques of Costing
- Cost Allocation vs Cost Apportionment vs Cost Absorption
- Unit Costing
- Batch Costing
- Job Costing
- Contract Costing, including treatment in Profit & Loss Account
Exam Features
- Questions will be a mix of Theory and Numericals.
- Numerical questions will have more weightage.
- Question difficulty level will vary from easy to tough.
- All questions will be in Indian Rupees (INR).
- Each question will have 5 options, with only 1 correct answer.
Take this 100-question multiple-choice exam to test your knowledge of Costing and Management Accounting, covering topics like cost sheets, methods of costing, and unit costing. Designed according to IBPS standards and pattern.
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