861. Which of the following is not a relevant cost :
A. Replacement cost
B. Sunk cost
C. Marginal cost
D. Replacement cost
862. A cost that increases or decreases per unit when the volume of output decreases or increases is :
A. Fixed cost
B. Direct cost
C. Variable cost
D. Indirect cost
863. Which of the following is a part of both prime cost and conversion cost :
A. Direct Material
B. Direct labour
C. Indirect material
D. Indirect labour
864. Which of the following is a technique of profit planning :
A. Standard costing and variance analysis
B. Marginal costing and cost-volume-profitable analysis
C. Uniform costing
D. Multiple costing
865. Which of the following is an effective technique of cost control?
A. Standard costing
B. Budgetary control
C. Marginal costing
D. Uniform costing
866. Which of the following industries is not suitable for the use of multiple costing?
A. Car manufacture
B. Radio manufacture
C. Paper mill
D. Locomotive works
867. Batch costing is a variant of :
A. Job costing
B. Unit costing
C. Process costing
D. Multiple costing
868. In Tyre manufacture, which method of costing should be used?
A. Unit costing
B. Batch costing
C. Job costing
D. Process costing
869. Where the applied FOH cost is less than the actual FOH cost, it is:
A) Unfavorable variance
(B) Favorable variance
(C) Normal variance
(D) Budgeted variance
870. The main purpose of cost accounting is to:
(A) Maximize profits ; (B) Help in inventory valuation
B) Provide information to management for decision making
(C) Help in inventory valuation
(D) Aid in the fixation of selling price
Admin