Costing

Costing MCQs with Answers and Explanations | Cost Accounting Objective Questions

Sharpen your understanding of Costing and Cost Accounting with our collection of MCQs with answers and detailed explanations. Covering key topics such as marginal costing, standard costing, process costing, job order costing, variance analysis, budgeting, cost control, and managerial decision-making, these objective questions are highly useful for students, teachers, and candidates preparing for professional and competitive exams (CA, ACCA, ICMA, MBA, CSS, PMS, NTS, FPSC, PPSC, UPSC, etc.). Each question includes a clear solution and explanation to strengthen concepts, improve problem-solving skills, and enhance exam preparation. Perfect for practice, self-assessment, and revision in the field of Cost Accounting.

605. Cost which remains unchanged, in proportion to level total volume of production is classified as

by
total cost
infeasible cost
fixed cost
variable cost
✅ The correct answer is C.
Cost which remains unchanged, in proportion to level total volume of production is classified as fixed cost. A fixed cost is a cost that does not change with an increase or decrease in the amount of goods or services produced or sold. Fixed costs are expenses that have to be paid by a company, independent of any specific business activities.

608. What-if technique, which examines changes in results if original prediction would not be achieved is called

by
change analysis
original analysis
sensitivity analysis
predicted analysis
✅ The correct answer is C.
Technique that examines changes in results if original prediction would not be achieved is called sensitivity analysis. A sensitivity analysis determines how different values of an independent variable affect a particular dependent variable under a given set of assumptions.

609. Second step for estimation of cost function by using quantitative analysis is to

by
choose independent variable
choose cost estimation method
choose price estimation method
choose dependent variable
✅ The correct answer is A.
Second step for estimation of cost function by using quantitative analysis is to choose independent variable. An independent variable is the variable that is changed or controlled in a scientific experiment to test the effects on the dependent variable.