1. Fixed cost …………………… in the same proportion in which output changes.

(A) does not change
(B) changes
(C) increases
(D) none of these.



2. Administration expenses are mostly……………….

(A) semi-variable
(B) variable
(C) fixed
(D) none of these.



3. Abnormal cost is …………………..

(A) Uncontrollable
(B) controllable
(C) fixed
(D) none of these



4. Cost of production is equal to ……………………

(A) works overhead plus administration overheads
(B) Prime cost plus Works cost
(C) prime cost plus works overhead
(D) Works cost plus Administration Overheads 



5. Variable cost increases with ………….in output.

(A) Increase
(B) decrease
(C) increase or decrease
(D) none of these.



6. ……………………….Accounting provides information for cost control.

(A) Financial
(B) Cost
(C) Human Resource
(D) none of these.



7. ………………………. is one which can be conveniently identified with and charged to a particular unit of cost.

(A) Direct cost
(B) Indirect cost
(C) Overhead
(D) none of these



8. Cost centre and cost unit are……………………

(A) not the same
(B) the same
(C) not related
(D) none of these



9. Fixed cost per unit …………………… with rise in output and …………… with fall in output.

(A) Decreases, increases
(B) increases, decreases
(C) is constant, remains same
(D) none of the above



10. Period costs charged to……………….

(A) cost of production
(B) Products
(C) Period
(D) none of these




More MCQs on Cost Accounting