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B Com Exam  >  B Com Test  >  Cost Accounting  >  Test: Introduction to Cost Accounting- 3 - B Com MCQ

Introduction to Cost Accounting- 3 - Free MCQ Practice Test with solutions,


MCQ Practice Test & Solutions: Test: Introduction to Cost Accounting- 3 (10 Questions)

You can prepare effectively for B Com Cost Accounting with this dedicated MCQ Practice Test (available with solutions) on the important topic of "Test: Introduction to Cost Accounting- 3". These 10 questions have been designed by the experts with the latest curriculum of B Com 2026, to help you master the concept.

Test Highlights:

  • - Format: Multiple Choice Questions (MCQ)
  • - Duration: 10 minutes
  • - Number of Questions: 10

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Test: Introduction to Cost Accounting- 3 - Question 1
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What are accounting costs also known as?

Detailed Solution: Question 1

Accounting costs are also known as money costs or entrepreneur's costs. These costs are the expenses incurred by an organization during action and are entered in the books of accounts. They include out of pocket expenses, historical costs, depreciation, and other bookkeeping entries.

Test: Introduction to Cost Accounting- 3 - Question 2
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Which of the following is an example of an explicit cost?

Detailed Solution: Question 2

Explicit costs refer to the payments incurred by an organization in exchange for acquiring various resources. Maintenance charges are an example of explicit costs as they are payments made for services provided by outsiders.

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Test: Introduction to Cost Accounting- 3 - Question 3
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What is the definition of opportunity cost?

Detailed Solution: Question 3

Opportunity cost is the cost incurred on the next best alternative that is foregone to acquire or produce a particular good. It is the value of the alternative product that could have been produced using the resources used in its production.

Test: Introduction to Cost Accounting- 3 - Question 4
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Which of the following costs are not included in the calculation of average cost?

Detailed Solution: Question 4

Average cost is the total cost of production per unit of output. It includes explicit costs, such as fixed costs and variable costs, but does not include implicit costs, which are the costs of the organization's self-owned resources.

Test: Introduction to Cost Accounting- 3 - Question 5
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What are analytical costs used for?

Detailed Solution: Question 5

Analytical costs are those costs that are taken into account for analyzing the production activities of an organization. They are used as the deciding criteria for carrying out business activities and making organizational decisions.

Test: Introduction to Cost Accounting- 3 - Question 6
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Which of the following costs remain constant for a certain amount of output?

Detailed Solution: Question 6

Fixed costs are those costs that remain constant for a certain amount of output. They include costs incurred on managerial and administrative staff, depreciation of machinery, and maintenance of lands and buildings.

Test: Introduction to Cost Accounting- 3 - Question 7
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What is the addition to the total cost for producing an additional unit of the product called?

Detailed Solution: Question 7

Marginal cost is the addition to the total cost for producing an additional unit of the product. It can be calculated as the rate of change of the total cost or as the difference between the total cost of producing n units and n-1 units.

Test: Introduction to Cost Accounting- 3 - Question 8
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Which period allows an organization to change its output by changing only variable factors?

Detailed Solution: Question 8

In the short run, an organization can change its output by changing only variable factors, such as labor and capital. The fixed factors, such as land and machinery, remain the same in this period.

Test: Introduction to Cost Accounting- 3 - Question 9
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What are social costs borne by?

Detailed Solution: Question 9

Social costs are costs that are borne by the society and are not explicitly paid by the organization. These costs include pollution and global warming caused by the production activities of an organization.

Test: Introduction to Cost Accounting- 3 - Question 10
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What are sunk costs based on?

Detailed Solution: Question 10

Sunk costs are costs that are incurred whether there is an expansion or not. They are based on prior commitments and cannot be revised or recovered. Examples of sunk costs include rent and operational charges for hired machinery.

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About this B Com Practice Test

This test contains 10 MCQs on Introduction to Cost Accounting- 3 with detailed solutions for each question. It is part of the Cost Accounting course on EduRev, designed to align with the current B Com syllabus. Each solution explains not just the correct answer but also gives you an understanding of the topic — not just to attempt the question but also help you prepare for the exam with practice.

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