Question $1$:$-$ What would be the attitude of the management in treating Sunk costs in decision making?

a$)$ A periodic investment of cash resources that has been made and should be relevant for decision making

b$)$ It is a past cost which is not directly relevant in decision making

c$)$ Management will treat it as variable cost each time in decision making

d$)$ None of the given options

Question $2$:$-$ All of the following are true EXCEPT:

a$)$ Profit $+$ Fixed cost $+$ Variable cost $=$ Sales

b$)$ Profit $+$ Fixed cost $=$ Sales Variable cost

c$)$ Contribution margin Fixed cost $=$ Profit

d$)$ Profit $+$ Fixed cost $=$ Sales $+$ Variable cost

Question $3$:$-$ Which of the following is a cause of the pressure on companies to continually attempt to reduce costs?

a$)$ Government pressure

b$)$ Increased global competition

c$)$ Ethical guidelines published by the Institute of Cost Accountants

d$)$ None of these

Question $4$:$-$ Responsibility accounting aims to:

a$)$ Ensure that a manager is punished if things go wrong

b$)$ Ensure that costs become the responsibility of a specific manager

c$)$ Allocate costs to all areas of a business

d$)$ None of the above

Question $5$:$-$ A cost centre is:

a$)$ An area for which costs are accumulated

b$)$ A production department where all production costs are aggregated

c$)$ The part of the business where all costs are paid to suppliers

d$)$ An area of the business accountable for both costs and revenues