Cost Accounting: Test Questions
Question Bank
MODULE - 1 1. Explain the following terms: (DEC, 2010) 1. Direct Cost 2. Indirect Cost 3. Cost Object 4. Cost Driver 5. Cost Allocation 6. Cost Sheet 7. Semi variable cost 2. Write a detailed note on Target Costing. (DEC, 2010) 3. Write a note on methods of absorption of overheads. (DEC, 2010) 4. Write a note on classification of overheads. (DEC, 2010) 5. Write short notes on the following: i. Product Costs ii. Period costs iii. Out of pocket cost iv. Sunk Costs v. Opportunity cost vi. Replacement cost vii. Joint cost (DEC, 2011) 6. Explain the advantages of and objections against Cost Accounting (DEC, 2011) 7. Briefly explain suitability, merits and demerits of the following methods of absorption of overheads: i.) Percentage of direct material cost ii) Percentage of direct labor cost (DEC, 2011) 8. Explain the difference between the cost accountancy, costing and cost accounting. (MAY, 2010) 9. Elaborate in detail the methodology to be adopted for departmentalization of overhead expenses. How the activity based apportionment helps the organization to achieve the much precise level of cost compilation? Elaborate in detail. (MAY, 2010) 10. What do you mean by job costing? Under what circumstances, the job costing suitable? Can the caterer use the job costing? If no, which method he should use? (MAY, 2010) 11. Distinguish between scrap, spoilage, and defectives in a restaurant industry with Specific reference to accounting treatment for each. (MAY, 2010) 12. How do you differentiate cost accounting from management accounting? (MAY, 2011) 13. Explain the terms cost tracing, cost allocation and cost apportionment with suitable examples? (MAY, 2011) 14. How would you allocate cost in activity – based costing? Illustrate your answer with imaginary figures? (MAY, 2011) 15. What do you understand by job order costing? Under what conditions, it is Suitable? How batch costing is
MODULE - 1 1. Explain the following terms: (DEC, 2010) 1. Direct Cost 2. Indirect Cost 3. Cost Object 4. Cost Driver 5. Cost Allocation 6. Cost Sheet 7. Semi variable cost 2. Write a detailed note on Target Costing. (DEC, 2010) 3. Write a note on methods of absorption of overheads. (DEC, 2010) 4. Write a note on classification of overheads. (DEC, 2010) 5. Write short notes on the following: i. Product Costs ii. Period costs iii. Out of pocket cost iv. Sunk Costs v. Opportunity cost vi. Replacement cost vii. Joint cost (DEC, 2011) 6. Explain the advantages of and objections against Cost Accounting (DEC, 2011) 7. Briefly explain suitability, merits and demerits of the following methods of absorption of overheads: i.) Percentage of direct material cost ii) Percentage of direct labor cost (DEC, 2011) 8. Explain the difference between the cost accountancy, costing and cost accounting. (MAY, 2010) 9. Elaborate in detail the methodology to be adopted for departmentalization of overhead expenses. How the activity based apportionment helps the organization to achieve the much precise level of cost compilation? Elaborate in detail. (MAY, 2010) 10. What do you mean by job costing? Under what circumstances, the job costing suitable? Can the caterer use the job costing? If no, which method he should use? (MAY, 2010) 11. Distinguish between scrap, spoilage, and defectives in a restaurant industry with Specific reference to accounting treatment for each. (MAY, 2010) 12. How do you differentiate cost accounting from management accounting? (MAY, 2011) 13. Explain the terms cost tracing, cost allocation and cost apportionment with suitable examples? (MAY, 2011) 14. How would you allocate cost in activity – based costing? Illustrate your answer with imaginary figures? (MAY, 2011) 15. What do you understand by job order costing? Under what conditions, it is Suitable? How batch costing is