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Created on March 15, 2026 By

CA Sonal Saboo

CMA Inter

Inter Cost Accounting PN-8 Quiz 2

This quiz is based on the CMA Cost Accounting paper.
Each question is multiple-choice with 4 options, and only 1 option is correct.
Attempt the quiz to test your understanding of CMA CA concepts.

1 / 25

Category: Cost Accounting PN-8

1. Direct material can be classified as :

a. Fixed cost

b. Semi-Variable cost

c. Variable Cost

d. Prime cost

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Category: Cost Accounting PN-8

2. Which of the following is considered as accounting record?

a. Bin Card

b. Bill of material

c. Store Ledger

d. None of these

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Category: Cost Accounting PN-8

3. Direct material is a –

a. Adiministration Cost

b. Selling and Distribution cost

c. All of these

d. None of these

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Category: Cost Accounting PN-8

4. The most important element of cost is-

a. Material

b. Labour

c. Overheads

d. All of these

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Category: Cost Accounting PN-8

5. Which of the following is considered as normal loss of material?

a. Pilferage

b. Loss due to accident

c. Loss due to careless handling of material

d. None of these

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Category: Cost Accounting PN-8

6. Calculate cost of sales from the following:

Net Works cost: Rs.2,00,000

Office & Administration Overheads: Rs. 1,00,000

Opening stock of WIP: Rs. 10,000

Closing Stock of WIP: Rs. 20,000

Closing stock of finished goods: Rs. 30,000

There was no opening stock of finished goods. Selling overheads: Rs. 10,000

a. Rs. 2,70,000

b. Rs. 2,80,000

c. Rs. 3,00,000

d. Rs. 3,20,000

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Category: Cost Accounting PN-8

7. Total cost of a product: Rs. 10,000 Profit: 25% on Selling Price Profit is:

a. Rs. 2,500

b. Rs. 3,000

c. Rs. 3,333

d. Rs. 2,000

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Category: Cost Accounting PN-8

8. Calculate the prime cost from the following information: Direct material purchased: Rs. 1,00,000

Direct material consumed: Rs. 90,000 Direct labour: Rs. 60,000

Direct expenses: Rs. 20,000

Manufacturing overheads: Rs. 30,000

a. Rs. 1,80,000

b. Rs. 2,00,000

c. Rs. 1,70,000

d. Rs. 2,10,000

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Category: Cost Accounting PN-8

9. Sunk costs are:

a. relevant for decision making

b. Not relevant for decision making

c. cost to be incurred in future

d. future costs

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Category: Cost Accounting PN-8

10. Conversion cost includes cost of converting……….into……..

a. Raw material, WIP

b. Raw material, Finished goods

c. WIP, Finished goods

d. Finished goods, Saleable goods

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Category: Cost Accounting PN-8

11. Abnormal cost is the cost:

a. Cost normally incurred at a given level of output

b. Cost not normally incurred at a given level of output

c. Cost which is charged to customer

d. Cost which is included in the cost of the product

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Category: Cost Accounting PN-8

12. Element/s of Cost of a product are:

a. Material only

b. Labour only

c. Expenses only

d. Material, Labour and expenses

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Category: Cost Accounting PN-8

13. Uncontrollable costs are the costs which be influenced by the action of a specified member of an undertaking.

a. can not

b. can

c. may or may not

d. must

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Category: Cost Accounting PN-8

14. Fixed cost is a cost:

a. Which changes in total in proportion to changes in output

b. which is partly fixed and partly variable in relation to output

c. Which do not change in total during a given period despise changes in output

d. which remains same for each unit of output

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Category: Cost Accounting PN-8

15. Cost Unit is defined as:

a. Unit of quantity of product, service or time in relation to which costs may be ascertained or expressed

b. A location, person or an item of equipment or a group of these for which costs are ascertained and used for cost control.

c. Centres having the responsibility of generating and maximising profits

d. Centres concerned with earning an adequate return on investment

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Category: Cost Accounting PN-8

16. Responsibility Centre can be categorised into:

a. Cost Centres only

b. Profit Centres only

c. Investment Centres only

d. Cost Centres, Profit Centres and Investment Centres

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Category: Cost Accounting PN-8

17. A profit centre is a centre

a. Where the manager has the responsibility of generating and maximising profits

b. Which is concerned with earning an adequate Return on Investment

c. Both of the above

d. Which manages cost

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Category: Cost Accounting PN-8

18. Which of the following is not an element of Works Overhead ?

a. Store Keeper's Salary

b. Plant Manager's salary

c. Sales Manager's Salary

d. Product Inspector's Salary

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Category: Cost Accounting PN-8

19. A company pays Royalty to State Government on the basis of production , it is treated as:

a. Direct material cost

b. Quality Control Cost

c. Direct Expenses

d. Administrative Overhead

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Category: Cost Accounting PN-8

20. Canteen Expenses for factory workers are part of -

a. Factory Overheads

b. Administration cost

c. marketing cost

d. direct expenses

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Category: Cost Accounting PN-8

21. Salary paid to factory stores is a part of

a. Factory Overheads

b. Production Cost

c. Direct Employee Cost

d. Direct Material Cost

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Category: Cost Accounting PN-8

22. Audit fees paid to external Statutory Auditors is part of

a. Administration Cost

b. Production Cost

c. Selling & distribution Costs

d. Quality Costrol Cost

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Category: Cost Accounting PN-8

23. A manufacturing Company has set-up a lab for testing of products for compliance with standards. Salary of this Lab Staff are part of :

a. Works Overheads

b. Quality Control Cost

c. Direct Expenses

d. Reearch & Development Cost

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Category: Cost Accounting PN-8

24. Depreciation of Director's Laptop is treated as a part of :

a. Administration Overheads

b. Factory Overheads

c. IT infrastructure Cost

d. Research & Development Cost

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Category: Cost Accounting PN-8

25. Salary paid to plant Supervisor is a part of

a. Direct expenses

b. Factory Overheads

c. Quality Control Cost

d. administrative cost

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Inter PN-8 Cost Accounting Quiz 2

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