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1) ________________ is the technique of Costing Fully oriented towards Managerial decision making and control. a) Process Costing b) Operating Costing c) Marginal Costing d) Contract Costing 2) Marginal costing is also known as ______________. a) Batch costing or job costing b) Unit costing or output costing c) Operation costing or operating costing d) Variable Costing or out of Pocket costing 3) _________________ is defined as the ascertainment of marginal cost and of the effect on profit of changes in volume or type of output by differentiating between fixed costs and variable costs. a) Operating Costing b) Marginal Costing c) Job Costing d) Output costing 4) Marginal Costing is mainly concerned with __________________ to management to assist in decision making and to exercise control. a) Providing information b) Allocating Resources c) Providing Financial Support d) Fixed costs and variable costs. 5) The main point which distinguishes marginal cost and differential cost is that of change in ______________ when volume of production increases or decreases by a unit of production. a) Variable cost b) Fixed Cost c) Job cost d) Operation Cost

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6) Marginal Cost = ______________+ Total Variable Overheads or Total cost Fixed cost. a) Profit b) Variable cost C) Break Even Point d) Prime Cost 7) ______________ is that portion of Cost, which changes or varies in relation to output or Volume of production. a) Production cost b) Variable Cost c) Fixed Cost d) Prime Cost 8) _______________= Direct Materials+ Direct Labour +Direct Expenses + Variable Overheads. a) Prime Cost b) Variable Cost c) Material Cost d) Fixed Cost 9) ___________ are costs, which remain constant, for a given period of time, irrespective of level of output. a) Fixed Costs b) Job Costs c) Material Costs d) Variable Costs 10) Fixed Costs =________________+ Administrative Overheads + Fixed Selling and Distribution Overheads. a) Fixed Overheads b) Prime Costs c) Fixed Production Overheads d) Production Overheads

11) Fixed costs are treated as _______________ and are therefore charged to profit and loss account a) Periods Costs b) Variable Costs

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c) Marginal Costs d) Direct Material Cost 12) The Profitability of Marginal Costing at Various levels of activity is ascertained by calculating _________________________________ a) volume-prime cost-loss relationship b) fixed-variable-profit relationship c) Cost-volume- profit relationship d) variable-fixed-loss relationship 13) Break Even point and Margin of safety are the two important concepts helpful in _________________. a) Pricing Policy b) Stock Valuation c) Cost Control and Cost reduction d) Profit Planning 14) Pick the odd one out: Limitations of Marginal Costing a) Lack of Long-term Perspective b) Less scope for long- term policy decisions c) Suitable only for External Reporting d) Production aspect is ignored 15) Some expenses which exhibit characteristics of Fixed and Variable Costs, Such costs are ___________________ a) Semi variable costs. b) Fixed Variable Costs c) Prime costs d) Marginal Costs

16) __________________ is defined as the practice of charging all costs, both fixed and variable to operations, processes or products. a) Marginal Costing b) Absorption Costing c) Operation Costing d) Process Costing

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17) Absorption Cost is also known as _________________. a) Half Costing b) Marginal Costing C) Full Costing d) Batch Costing 18) ____________________ is termed as the Most Significant single Factor in Planning of the average business is the relationship between the volume of Business, its costs and profit. a) cost-volume-profit analysis b) business-cost-loss analysis c) cost-volume-loss analysis d) business-cost-profit analysis 19) Pick the odd one out from the following are the basic decision making indicators in Marginal Costing: a) Profit Volume Ratio (PV Ratio) / Contribution Margin ratio b) Break Even Point (BEP) c) Break Odd Point (BOP) d) Shut-down Point 20) _______________ is the focal point in the application of marginal costing as a technique. a) Fixed costs b) Absorption costs c) CVP analysis d) Variable Costs

21) ______________________ is the difference between sales and marginal cost. a) Contribution b) Variable Costs c) Fixed costs d) Break Even Point 22) Contribution = Fixed expenses + _______________. a) Loss b) Profit

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c) Marginal Cost d) Selling price 23) _____________ is the ratio of contribution to sales. a) Break Even Point b) Margin of safety c) Angle of Incidence d) P/V Ratio 24) P/V Ratio can be improved ___________________. a) By reducing the selling price b) By decreasing the share of products c) By increasing the selling price d) By increasing the variable cost 25) P/V Ratio = _____________ / Change in sales a) Change in CVP analysis b) Change in Profit c) Change in Fixed Cost d) Contribution

26) The Break Even Point is the point or a business situation at which there is neither a profit nor a loss to the firm. This B.E.P is also known as ______________. a) Zero profit & zero loss point . b) Odd Profit & Odd loss Point c) Break profit & break loss point d) Even profit & even loss point 27) Break Even Ratio is calculated by: Break even ratio = ______________ / Actual sales *100. a) Break odd sales

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b) Break even sales c) Profit d) P/V Ratio 28) __________________represents the difference between the actual total sales and sales at break-even point. a) Margin of Safety (MOS) b) Break Even Point (BEP) c) Margin of Safety d) P/V Ratio 29) X limited had furnished the following details: Variable cost per unit Rs. 4 Selling price per unit Rs. 20 Calculate P/V Ratio. 75% 80% 65% 50%

a) b) c) d)

30) You are given the following data for the coming year of a factory: Fixed Expenses Rs.4, 00,000 Variable Expenses Rs.10 per unit Selling Price Rs.20 per unit Calculate Break Even point. a) 55,000 units b) 60,000 units c) 40,000 units d) 35,000 units 31) ________________ is the increase or decrease in total cost or the change in specific elements of cost that result from any variation in operation. a) Differential cost b) Marginal Cost c) Absorption Cost

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d) Break Even Point 32) Calculate P/V Ratio : Selling Price Rs.44 per unit Contribution Rs.15 a) 43% b) 34% c) 54% d) 38% 33) Calculate Break Even point : Fixed Expenses = Rs.8000 Selling price = Rs. 10 Variable cost = Rs.6 a) 2500 units b) 2222 units c) 2000 units d) 1990 units

34) Calculate Selling price per unit for the following: Variable Cost per unit Rs.14 Contribution per unit Rs.4 a) Rs.18 b) Rs.24 c) Rs.10 d) Rs.14 35) Vasanth Ltd. Presents the following results for one year. Calculate the margin Safety. Sales Rs.2, 00,000 Variable Cost Rs.1, 20,000 Break Even Sales Rs.1, 25,000 a) Rs. 80,000 b) Rs.3, 20,000 c) Rs. 75,000 d) Rs.3, 25,000

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36) From the following Calculate number of units that must be sold to earn a profit of Rs.60, 000 per year. P/V ratio 30% Fixed Expenses Rs.79200 Sales Price Rs.20 per unit a) 22300 units b) 23200 units c) 25500 units d) 25000 units 37) From the following data calculate Profit: Fixed expenses Rs.15000 Contribution Rs.24000 a) Rs.9000 b) Rs.39000 c) 90% d) 390%

38) The sales turnover and Profit during two years were as follows: Profit (Rs.) 1991 140000 15000 1992 160000 20000 Calculate Profit when Sales are Rs. 120000 whose P/V ratio is 25% and Fixed Expenses are Rs.20000. a) Rs.10000 b) Rs.20000 c) Rs.30000 d) Rs.25000 39) __________________ is Concerned with production or sales which imposes limits on the production or sales . a) Production Factor b) Key Factor c) Sales Factor d) Cost factor Year Sales (Rs.)

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40) ____________________ is termed as permanently closing firm without any intention to revive it. Such a decision is warranted. a) Partial Shutdown b) Plant merger decision c) Complete Shutdown d) Limiting Factor.

Websites:

COSTING THEORY - CA FINAL.zip http://www.gntmasterminds.com/COSTING %20THEORY%20- %20CA%20FINAL.zip Related Books:

Cost and Management Accounting by T.S.Reddy & Y.Hari Prasad Reddy

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