891. When premises are owned a charge in lieu of rent is :
A. Opportunity cost
B. Sunk cost
C. Imputed cost
D. Future cost
892. Research and development cost is a :
A. Pre-production cost
B. Opportunity cost
C. Sunk cost
D. Imputed cost
893. The loss of interest on a bank deposit will be referred to as when money deposited in a bank is taken out to finance a project:
A. Sunk cost
B. Pre-production cost
C. Opportunity cost*
D. Replacement cost
894. Which of the following is almost always followed by the cost of production?
A. Research and development cost
B. Selling and distribution cost
C. Interest on capital
D. All of them
895. Indirect material cost is a part of :
A. Prime cost
B. Factory overhead
C. Chargeable expenses
D. None of them
896. Which of the following is the most significant benefit that cost accounting offers management?
A. It improves the company’s reputation;
B. It satisfies the statutory requirements of the Companies Act.
C. It reveals the business’s profitable and unprofitable activities
D. It verifies the accuracy of financial records
897. Net sales = Sales less:
(A) Sales returns
(B) Sales discounts
(C) Sales returns & allowances
D) Sales returns & allowances and sales discounts
898. Which of the following is considered as basic systems of remunerating labor?
(A) Time rate system
(B) Piece rate system
(C) Halsey Premium plan
D) Both time rate and piece rate system
899. In which of the following center FOH cost is NOT incurred?
(A) Production Center
(B) Service Center
(C) General Cost Center
D) Head Office
900. Which of the following is an indirect cost?
(A) The depreciation of machinery
(B) The overtime premium incurred at the specific request of a customer
(C) The hire of tools for a specific job
D) All of the given options
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