Asked Questions From NCERT:

  __________ costs are the costs incurred upto the point of separation.

a) Joint costs c) Decremental costs

b) Shut down costs d) Disjoint costs.

 Differential cost denotes both increase or decrease, but ______ cost applies only to

increase in production & is restricted to cost only.

a) Decremental cost c) Sunk cost

b) Step cost d) Incremental cost

  Differential cost is the increase or decrease in total cost resulting out of :

a) Selection of additional sales channel

b) Change in method of production

c) Addition or deletion of territory.

d) All of the above.

 __________ cot is the one that has already been incurred & cannot be avoided by

decisions taken in future. It has no economic relevance to the present decision making

process. :

a) Differential cost c) Opportunity cost

b) Sunk cost d) Joint cost.

  __________ cot is the one that has already been incurred & cannot be avoided by

decisions taken in future. It has no economic relevance to the present decision making

process. :

a) Differential cost c) Opportunity cost

b) Sunk cost d) Joint cost.

  All indirect costs are controllable but, direct costs are not controllable.

a) True b) False

  Costs which can be influenced by its budget holder are known as :

a) Fixed costs c) Uncontrollable costs

b) Step costs d) Controllable costs

  ________ costs are constant at a given level of output & then increase by a fixed amount

at higher level of production.

a) Discretionary cost c) Committed cost

b) Step cost d) Sunk Cost

  ___________ costs result from special policy decision, new research & are not related to

operations.

a) Discretionary cost c) Committed cost

b) Step cost d) Sunk cost.

  Direct material include all of the following except :

a) Primary packing, c) Royalty

b) Secondary packing d) Cost of layout.