Test 8 Welcome to AADVIKMS! Empowering Finance Careers Connect with top finance professionals and employers for exciting opportunities. Total Number of Questions: 40 Time: 40 Minutes All the best... Kind Regards CMA Madhuri Kashyap & CMA Sandeep Kumar - Founder - International Navodaya Chamber of Commerce Name Email Phone State 1. Which of the following best defines Cost Accounting? A method to record financial transactions. The process of tracking, recording, and analyzing costs associated with the products or activities of an organization. Preparing a company's tax return. A system to track cash flows None 2. Which is NOT a type of cost? Fixed Cost Variable Cost Random Cost Semi-Variable Cost None 3. The primary objective of cost accounting is: To determine profit To determine the costs of products or services To manage cash flow To assess depreciation None 4. Cost Classification is important for: Determining product price Controlling costs. Both A and B. None of the above. None 5. Which cost accounting standard is related to cost of utilities? CAS 7 CAS 8 CAS 9 CAS 10 None 6. Which of these is a fixed cost? Direct materials Direct labor Rent Raw material costs None 7. Prime Cost is calculated as: Direct Material + Direct Labor + Direct Expenses Direct Material + Overheads Indirect Cost + Direct Cost None of the above None 8. In cost accounting, "Direct Material" is: An indirect cost. A fixed cost. A direct cost. An overhead. None 9. Cost Accounting Standard on material cost is: CAS 6 CAS 1 CAS 2 CAS 8 None 10. Which method of costing is used for industries like oil and gas? Batch costing Process costing Job costing Standard costing None 11. Cost Accounting Standard related to employee costs is: CAS 5 CAS 7 CAS 9 CAS 10 None 12. Which term refers to the cost that changes with the level of production? Fixed cost Variable cost Period cost ) Sunk cost None 13. The cost that has already been incurred and cannot be changed is: Sunk cost Variable cost Opportunity cost Avoidable cost None 14. What is Marginal Cost? The cost of producing one additional unit Total fixed cost Cost of overheads only None of the above None 15. CAS 4 is related to: Material Cost Employee Cost Cost of Production for Captive Consumption ) Overheads None 16. Differential cost refers to: Cost difference between two alternatives. Total cost of production. Cost of finished goods. Fixed costs None 17. Which of the following is NOT an element of cost? Material Labor Expenses Sales None 18. Standard Costing is primarily used for: Budgeting Controlling costs Both A and B None of the above None 19. In cost accounting, what does CAS 6 represent? Material Cost Employee Cost Cost of Utilities Depreciation Cost None 20. Opportunity cost is best described as: Cost saved by a decision. Benefit foregone by choosing one alternative over another Total fixed cost Variable cost per unit None 21. Which of the following describes "Conversion Cost"? Direct Material + Direct Labor Direct Labor + Overheads Prime Cost + Fixed Cost None of the above None 22. CAS 10 deals with: Administrative overheads Selling and Distribution overheads Production overheads Employee costs None 23. Which type of costing is used for construction projects? Job costing Batch costing Contract costing Process costing None 24. In which CAS is Research and Development cost covered? CAS 15 CAS 11 CAS 9 CAS 14 None 25. A cost that remains constant regardless of activity level is: Variable cost Fixed cost Step cost Mixed cost None 26. CAS 12 relates to: Repairs and Maintenance Cost Inventory Valuation Employee Benefits Material Cost None 27. What is "Absorption Costing"? Method of costing where only variable costs are included All costs are absorbed by units produced Fixed costs are ignored. None of the above None 28. Which cost is considered while calculating Marginal Cost? Fixed cost Variable cost Total cost Overheads None 29. Prime Cost includes: Fixed costs only Direct costs only Indirect costs only Both direct and indirect costs None 30. Which of the following is a controllable cost? Depreciation Direct Labor Rent None of the above None 31. Which cost is not relevant for decision-making? Opportunity cost Sunk cost Differential cost Incremental cost None 32. Total cost of production includes Prime cost only Overheads only Prime cost + Overheads Material cost only None 33. CAS 13 relates to: Interest and Finance Charges Employee Benefits Selling Overheads Depreciation None 34. The cost of marketing and distribution falls under: Production cost Administrative cost Selling and distribution cos Fixed cost None 35. What is the primary purpose of cost allocation? Profit measurement Cost control Accurate costing of products or services Tax calculation None 36. CAS 14 deals with: Cost of Production for Captive Consumption Research and Development Costs Repair and Maintenance Costs None of the above None 37. Overhead costs include: Direct material costs Fixed costs only Both fixed and variable indirect costs Direct costs only None 38. Which term describes a cost that includes both fixed and variable components? Fixed cost Variable cost Semi-variable cost Opportunity cost None 39. Which cost is excluded in Marginal Costing? Fixed cost Variable cost Total cost Direct cost None 40. Which standard provides guidelines on determining Depreciation Cost? CAS 15 CAS 16 CAS 17 CAS 18 None Thank you for participating in our test series! We hope it boosted your knowledge and prepared you well for finance job interviews. Keep leveraging what you've learned to build confidence and excel. Wishing you great success in your career journey! Time's upTime is Up!
