/25

0 votes, 0 avg

Created on March 13, 2026 By

CA Sonal Saboo

CMA Inter

Inter Cost Accounting PN-8 Quiz 1

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. Which of the following are direct expenses ? (1) Cost of Special Designs ,drawings or layout, (2) Hire of Tools or Equipment for a particular job , (3) Salesman's wages , (4) Rent , rates and Insurance of a factory ,

a. (1) and (2)

b. (1) and (3)

c. (2) and (3)

d. (3) and (4)

2 / 25

Category: Cost Accounting PN-8

2. Which of these is not an objective of Cost Accounting?

a. Ascertainment of Cost

b. Determination of Selling Price

c. Cost Control and Cost reduction

d. Assisting Shareholders in decision making

3 / 25

Category: Cost Accounting PN-8

3. Which of the following does not form part of prime cost

a. Cost of Packing

b. cost of transportation paid to bring materials to factory

c. GST paid on Raw materials (where input credit cannot be claimed)

d. overtime premium paid to workers

4 / 25

Category: Cost Accounting PN-8

4. What is prime cost

a. Total direct cost only

b. Total Indirect Costs only

c. Total Non- Production Costs

d. Total Production Costs

5 / 25

Category: Cost Accounting PN-8

5. Generally , for the purpose of Cost sheet preparation , costs are classified on the basis of -

a. Functions

b. variablity

c. relevance

d. nature

6 / 25

Category: Cost Accounting PN-8

6. Cost which are ascertained after they have been incurred are known as

a. sunk costs

b. Imputed Costs

c. Historical Costs

d. Oppurtunity Costs

7 / 25

Category: Cost Accounting PN-8

7. Which of the following is an example of functional classification of cost?

a. Semi -variable costs

b. Fixed Cost

c. Administrative overhead

d. indirect Overheads

8 / 25

Category: Cost Accounting PN-8

8. A Ltd. Has three Production Departments, and each department has machines , which of the following cannot be treated as Cost Centre for cost allocation:

a. Machines under the production Production Department

b. Pruction Departments

c. Both Production Department and Machines

d. A Ltd.

9 / 25

Category: Cost Accounting PN-8

9. A taxi provider charges minimum Rs.80 thereafter Rs. 12 per kilometer of distance travelled ,the behaviour of conveyance Cost is

a. fixed cost

b. semi-variable

c. variable

d. administrative cost

10 / 25

Category: Cost Accounting PN-8

10. The advantage of using IT in Cost Accounting does not include

a. Single point data entry

b. stock needs to be reconciled with goods received note

c. reduction in multiplicity of documents

d. integration of various functions

11 / 25

Category: Cost Accounting PN-8

11. distinction between Direct Cost and Indirect Cost is an example of classification.

a. By element

b. By Function

c. By controllability

d. By Variability

12 / 25

Category: Cost Accounting PN-8

12. Process Costing method is suitable for :

a. Transport Sector

b. Chemical Industries

c. Dam Construction

d. Furniture- making

13 / 25

Category: Cost Accounting PN-8

13. Cost Units used in Power Sector is :

a. Kilo-meter (K.M.)

b. Kilo - Watt-Hour (kWh)

c. Number of Electric Points

d. Machine Hours

14 / 25

Category: Cost Accounting PN-8

14. Which of the following is true about Cost Control

a. It is a corrective function

b. It challenges the set standards

c. It ends when targets achieved

d. It is concerned with future

15 / 25

Category: Cost Accounting PN-8

15. is anything for which a separate measurement is required

a. cost unit

b. cost object

c. cost driver

d. cost sentre

16 / 25

Category: Cost Accounting PN-8

16. the main purpose of cost accounting is

a. to maintain profit

b. to help in inventory valuation

c. to enter into price War with competitive firms

d. to provide information to management for decision-making

17 / 25

Category: Cost Accounting PN-8

17. Absorption costing is also referred as

a. Historical costing

b. Traditional costing

c. Full costing

d. All of the above terms

18 / 25

Category: Cost Accounting PN-8

18. Ticket counter in a Metro Station is an example of

a. Profit centre

b. Investment centre

c. Cost centre

d. Revenue centre

19 / 25

Category: Cost Accounting PN-8

19. is anything for which a separate measurement of cost is required

a. Cost driver

b. Cost centre

c. Cost unit

d. Cost object

20 / 25

Category: Cost Accounting PN-8

20. Which of the following is applicable for Cost Control?

a. It is related with the future

b. It is a corrective function

c. It ends when the targets are achieved

d. It challenges the standards set

21 / 25

Category: Cost Accounting PN-8

21. Which of the following classification is meant for distinction between direct cost and indirect cost?

a. Function

b. Element

c. Variability

d. Controllability

22 / 25

Category: Cost Accounting PN-8

22. is a method of dealing with overheads which involves spreading common costs over cost centers on the basis of benefit received.

a. overhead absorption

b. overhead apportionment

c. overhead allocation

d. overhead analysis

23 / 25

Category: Cost Accounting PN-8

23. A company has to pay a Rs. 1 per unit royalty to the designer of a product which it manufactures and sells. The royalty charge would be classified in the company’s accounts as a

a. Direct expense

b. Production overhead

c. Administrative overhead

d. Selling overhead

24 / 25

Category: Cost Accounting PN-8

24. A company employs three drivers to deliver goods to its customers. The salaries paid to these drivers are:

a. a part of prime cost

b. a direct production expense

c. a production overhead

d. a selling & distribution overhead

25 / 25

Category: Cost Accounting PN-8

25. Prime Cost is:

a. All costs incurred in manufacturing a product

b. the total of direct costs

c. the material cost of a product

d. the cost of operating a department

NamePhone Number

Your score is

The average score is 55%

Inter PN-8 Cost Accounting Quiz 1

Best CMA Coaching Institute in Jaipur with Affordable Fees – Join Dhruv Classes for Success!

About CMA

About DCC

Ahinsa Circle Branch

Tonk Road Branch