1621. Which method of costing is best suited for interior dedorator ?
A. Job costing *
B. Process costing
C. Contract costing
D. Operating costing
1622. Which method of costing is used in hospitals?
A. Job costing
B. Operating costing *
C. Unit costing
D. No method is used
1623. The following are examples of costs that are determined after they have been incurred:
A. Imputed costs
B. Historical costs *
C. Sunk costs
D. Opportunity costs
1624. Prime cost plus variable overhead is known as :
A. Production cost
B. Total cost
C. Marginal cost *
D. Cost of sales
1625. When premises are owned a charge in lieu of rent is :
A. Opportunity cost
B. Sunk cost
C. Imputed cost *
D. Future cost
1626. Research and development cost is a :
A. Pre-production cost *
B. Opportunity cost
C. Sunk cost
D. Imputed cost
1627. The loss of interest on a bank deposit will be referred to as when money deposited in a bank is taken out to finance a project:
A. Sunk cost
B. Pre-production cost
C. Opportunity cost *
D. Replacement cost
1628. Which of the following is almost always followed by the cost of production?
A. Research and development cost
B. Selling and distribution cost *
C. Interest on capital
D. All of them
1629. Indirect material cost is a part of :
A. Prime cost
B. Factory overhead *
C. Chargeable expenses
D. None of them
1630. Which of the following is the most significant benefit that cost accounting offers management?
A. It improves the company’s reputation;
B. It satisfies the statutory requirements of the Companies Act.
C. It reveals the business’s profitable and unprofitable activities *
D. It verifies the accuracy of financial records