Question 18:- The term relevant cost applies to all the following decisional situations, except: a) Determination of a product price b) Replacement of equipment c) Manufacture or purchase of component parts d) None of the above

Question 19:- Which one of the following statements is false? a) Job costing can be used in industries using standard costing b) Contract costing is a basic method of specific order (https://text-to-search.com/s/?q=order) costing c) Escalation clause in a contract provides that the contract price is fixed. d) Job costing can be used in conjunction with marginal costing

Question 5:- Conversion cost is equal to the total of:

a) Direct material and factory overheads

b) Direct material and direct wages

c) Direct wages and factory overheads

d) Direct material and indirect wages

Question 7:- Which of the following statement is true?

a) All costs are controllable

b) Fixed cost per unit remains constant

c) Depreciation is an out-of-pocket cost

d) An item of cost that is direct for one business may be indirect for another.

Question 9:- A sunk cost is the cost which has been incurred in the past and is:

a) Relevant to short-term decision making

b) Irrelevant to decision making

c) Relevant to long-term decision making

d) A common fixed overhead cost

Question 10:- Which of the following is an example of a cost centre?

a) Advertising

b) Customer service

c) Research and development

d) All of the above

Question 13:- Which of the following costs can be significantly influenced by a particular manager?

a) Material cost

b) Labour cost

c) Uncontrollable cost

d) Controllable cost

Question 15:- Which of the following is NOT a technique of management accounting?

a) Marginal costing

b) Standard costing

c) Process costing

d) Budgetary control