A N E X P E RT A CA D E M Y O RIG IN A L

B A SICS D E

COST CONCEPTS CA Vinod Reddy

 Focus Pixel, Pune.
Mayur - 9075 771 071
 CA Intermediate
COST &
MANAGEMENT ACCOUNTING
Volume 1

- CA Vinod Reddy -
1. Introduction to
Cost & Management Accounting

2. Cost Sheet

3. Material Cost

4. Employee Cost & Direct Expenses

5. Overheads & Absorption Costing

6. Activity Based Costing

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 Multiple Choice Questions (MCQs)
1. Generally, for the purpose of cost sheet preparation, costs are classified on the
basis of:
(a) Functions
(b) Variability
(c) Relevance
(d) Nature

2. 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 (input credit can not be claimed)
(d) Overtime premium paid to workers.
3. A Ltd. received an order, for which it purchased a special frame for
manufacturing, it is a part of:
(a) Direct Materials
(b) Direct expenses
(c) Factory Overheads
(d) Administration Overheads
4. Salary paid to plant supervisor is a part of
(a) Direct expenses
(b) Factory overheads
(c) Quality control cost
(d) Administration cost
5. Depreciation of director’s laptop is treated as a part of :
(a) Administration Overheads
(b) Factory Overheads
(c) Direct Expenses

(d) Research & Development cost.

6. A manufacture has set -up a lab for testing of products for compliance with
standards, salary of this lab staffs are part of:

(a) Works overheads

(b) Quality Control Cost
(c) Direct Expenses

(d) Research & Development Cost .

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Question 1: What is Cost ?

Question 2: What is Difference between Cost, Price, Value?

Question 3: What is Costing?

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Question 4: What is Cost Accounting?

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 Question :

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Question 6:

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Question 7: What are the Five Methods used for segregation of semi variable cost in to its
fixed and variable portion?

Question 8:

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Question 9:

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Question 10:

Question 11:

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 Question 12:

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Question 13:

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Question 14:

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 Question 15:

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Question 16:

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Question 17:

Question 18:

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Question 19:

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 Question 20:

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Question 21:

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Question 22:

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Question 23: What is Cost Sheet?

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Question 24:

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Question 25: What are the items not included in cost sheet?

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Question 26:

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Question 27: What is Cost Accountancy?

Question 28: What is Management Accounting?

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Question 29: What is Difference between Cost Accounting & Management Accounting?

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Question 30: What are the objectives of Cost Accounting?

Question 31: What is Difference between Cost Control & Cost Reduction?

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Question 32: What are the types of Cost on the basis of Time Period?

Question 33: What are the types of Cost on the basis of Decision Making?

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Question 34: What are the types of Cost on the basis of Controllability?

Question 35: What are the types of Cost on the basis of Normality?

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Question 36: What are the types of Cost on the basis of Association?

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Question 37: What is the meaning of Direct Cost & Indirect Cost?

Question 38: What is Cost Centre? Explain the Difference between Production Cost Centre &
Service Cost Centre.

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Question 39: What are the types of Responsibility Centres?

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Question 40: What is Scope of Cost Accounting?

Question 41: What are the essentials of Good Costing System?

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Question 42: What is Role & Functions of Cost & Management Accounting?

Question 43: Write down the difference between Cost Accounting & Management Accounting

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Question 44:

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Question 45:

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