MCQ for CA Intermediate COSTING - Chapter 5 - ACTIVITY BASED COSTING

Sample Multiple Choice Questions (MCQ's) for CA Intermediate - Paper 1 - COST AND MANAGEMENT ACCOUNTING Chapter 5: ACTIVITY BASED COSTING - For Practice relevant for May/November 23 Examinations


Q1. A cost driver is:

  1. An item of production overheads
  2. A common cost which is shared over cost centres
  3. Any cost relating to transport
  4. An activity which generates costs

Answer: 4

Q2. In activity based costing, costs are accumulated by activity using:

  1. Cost drivers
  2. Cost objects
  3. Cost pools
  4. Cost benefit analysis

Answer: 3

Q3. A cost driver:

  1. Is a force behind the overhead cost
  2. Is an allocation base
  3. Is a transaction that is a significant determinant of cost
  4. All of the above

Answer: 4

Q4. Which of the following is not a benefit of ABC?

  1. Accurate cost allocation
  2. Improved decision making
  3. Better control on activity and costs
  4. Reduction of prime cost

Answer: 4

Q5. The key elements of activity based budgeting are:

  1. Type of activity to be performed
  2. Quantity of activity to be performed
  3. Cost of activity to be performed
  4. All of the above

Answer: 4


CA Intermediate COSTING - MCQ for Chapter 6 -   

To get back to the Chapterwise MCQ List Page       

Hope you can find this article helpful. If you did like the content then Share it with your friends who are preparing for CA Inter Exams or who will be giving their CA Inter Exams in the near future.