MCQ Questions on Cost Concept: Below, You will find a list of Commerce MCQ Questions as per the latest prescribed syllabus. Ace up your preparation with the Objective Questions available on Cost Concept and enhance your subject knowledge. Understand the concept clearly by consistently practicing the Multiple Choice Questions and score well in your exams.
MCQ Questions on Cost Concept
1. What is the basic concept of cost concept?
(a) Cost ascertainment.
(b) Tax compliance.
(c) Financial audit
(d) Profit analysis
Answer
Answer: (a)
2. Process costing is appropriate for which firm?
(a) Bricklaying firms
(b) Transport firms
(c) Hospitals
(d) Oil refining firms
Answer
Answer: (d)
3. In how many ways cost classification can be done?
(a) Three ways
(b) Two ways
(c) Four ways
(d) Many ways
Answer
Answer: (d)
4. Which cost is incurred even if the company is closed?
(a) Sunk cost
(b) Historical cost
(c) Shutdown cost
(d) Imputed cost
Answer
Answer: (c)
5. Direct expenses are also known as
(a) Overhead expenses
(b) Sundry expenses
(c) Chargeable expenses
(d) Major expenses
Answer
Answer: (c)
6. Warehouse rent is a part of which cost?
(a) Production cost
(b) Distribution cost
(c) Prime cost
(d) Factory cost
Answer
Answer: (b)
7. What is tender?
(a) Estimation of cost
(b) Estimation of profit
(c) Estimation of units
(d) Estimation of the selling price
Answer
Answer: (d)
8. A total of all the direct costs is known as
(a) Cost of production
(b) Cost of sales
(c) Prime cost
(d) Works cost
Answer
Answer: (c)
9. What item is not included in cost accounting?
(a) Product costing
(b) Profit-sharing
(c) Planning
(d) Controlling
Answer
Answer: (b)
10. Toy manufacturing companies use what type of costing?
(a) Multiple costing
(b) Process costing
(c) Unit costing
(d) Batch costing
Answer
Answer: (d)