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Fundamental Concepts of Cost
Class 10
Exercise/MCQ Set 1
Fundamental Concepts of Cost
1. Which is not the example of Direct Expenses ?
salaries of security staff
hiring charges for tools and equipment
fees paid to the architect of a building
job processing charges
2. _______ means expenditure incurred on material, labour and other items.
overhead
goods
income
cost
3. Which is not the type of overhead ?
factory overhead
office and administrative overheads
selling and distribution overheads
none of these
4. Which is also know as chargeable expenses ?
fixed expenses
variable expenses
direct expenses
indirect expenses
5. The production of an article, materials are purchased, wages are paid to workers are included in __________.
direct cost
indirect cost
6. Which cost vary in proportion to the volume of output.
product cost
sunk cost
variable cost
fixed cost
7. Rent of Factory building is the example of which cost ?
variable cost
fixed cost
direct cost
prime cost
8. Indirect material such as packing material, printing and stationary material is classified as
factory overhead
selling overhead
administrative overhead
office overhead
9. Direct labour is also known as ______________.
daily labour
productive labour
chargeable labour
selling labour
10. Which among the following is NOT a type of overhead ?
Purchase overhead
Production and Manufacturing overhead
Selling overhead
Distribution overhead
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