Material and Labor Costing Quiz - CBSE Class 12 Accountancy
Free practice quiz: Material and Labor Costing (CBSE Class 12 Accountancy). 18 multiple-choice questions with answers and explanations. Play online, no sign-up needed.
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Which of the following is not a type of material cost?
- Direct materials
- Indirect materials
- Fixed materials
- Raw materials
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Answer: C. Fixed materials
Fixed materials is not a recognized category of material costs, as costs are typically classified into direct, indirect, and raw materials.
How do you calculate direct material cost?
- Total material cost minus indirect costs
- Total revenue generated from the product
- Total fixed costs incurred
- Variable costs plus fixed costs
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Answer: A. Total material cost minus indirect costs
Direct material cost can be calculated by subtracting any indirect material costs from the total material cost.
Which costing method emphasizes analysis of production processes?
- Activity-Based Costing
- Standard Costing
- Historical Costing
- Marginal Costing
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Answer: A. Activity-Based Costing
Activity-Based Costing analyzes production processes by determining costs based on activities undertaken.
Which of the following is a characteristic of a fixed cost?
- Changes with production volume
- Remains constant regardless of output level
- Variable with time
- Inversely related to sales
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Answer: B. Remains constant regardless of output level
Fixed costs do not change with the level of production or sales, remaining constant over a period.
Which of the following factors does not affect labor cost?
- Hourly wage rates
- Production volume
- Employee productivity
- Raw material prices
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Answer: D. Raw material prices
Raw material prices do not directly affect labor costs, as labor costs are primarily influenced by wages and productivity.