1. ……………costs are partly fixed and partly variable in relation to output.

 (A) Variable
(B) fixed
(C) Semi-variable
(D) both a & b



2. An opportunity cost is …………………..

(A) the advantage foregone
(B) the cost
(C) the income
(D) none of the above.



3. Works cost is a total of………………

(A) Indirect material, Indirect labour
(B) Direct material, direct labour, direct or chargeable expenses and works expenses
(C) Direct material, direct labour
(D) Indirect material, Indirect labour, Indirect expenses




4. An opportunity cost does not involve…………

(A) Cash outlays
(B) direct cost
(C) indirect cost
(D) none of the above



5. Variable costs change ……………………with change in output.

(A) Proportionately
(B) Inversely
(C) Disproportionately
(D) Sometimes



6. Fixed cost per unit …………………….with increase in output.

(A) decreases
(B) increases
(C) changes
(D) sometimes



7. Depreciation is…………………expenditure.

(A) fixed
(B) variable
(C) adjustable
(D) Semi-variable



8. Out of pocket costs involve payment to …………………

(A) Outsiders
(B) self
(C) employees
(D) none of the above



9. Added value is the change in…………………

(A) Market value
(B) cost
(C) income
(D) none of the above.



10. …………………. Accounting is not only a positive science but also a normative science because it includes techniques of budgetary control and standard costing.

(A) Financial
(B) Cost
(C) both a & b
(D) none of these




More MCQs on Cost Accounting