Question $1$:$-$ Which of the following statement is TRUE about historical cost?

a$)$ It is always relevant to decision making

b$)$ It is always irrelevant to decision making

c$)$ It is always an opportunity cost

d$)$ It is always realizable value

Question $2$:$-$ In cost accounting, unavoidable loss is charged to which of the following?

a$)$ Factory overhead control account

b$)$ Work in process control account

c$)$ Marketing overhead control account

d$)$ Administration overhead control account

Question $3$:$-$ Which of the following cost is linked with the calculation of cost of inventories?

a$)$ Period cost

b$)$ Product cost

c$)$ Both product and period cost

d$)$ Historical cost

Question $4$:$-$ When closing stock is over valuate, what would its effect on profit?

a$)$ It will Increase the profit

b$)$ It will decrease the profit

c$)$ No effect on profit

d$)$ Can not determined with given statement

Question $5$:$-$ Which of the following is NOT true? A small company$`$s breakeven point:

a$)$ Occurs where its revenue equals its expenses

b$)$ Shows entrepreneurs minimum level of activity required to keep the company in

operation

c$)$ Is the point at which a company neither earns a profit nor incurs a loss

d$)$ Total contribution margin equals total variable expenses