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Chapters
2: Marketing mix - 4 P's
3: Advertising and Brand Promotion
4: Sales and Selling Process
5: Generally Accepted Accounting Principles (GAAP)
6: Financial Accounting and Reporting
7: Banking and Bank Transactions
▶ 8: Fundamental Concepts of Cost
9: Importance of Human Resources
10: Recruitment, Selection and Training
11: Public Relations
12: Issues of the Environment
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Solutions for Chapter 8: Fundamental Concepts of Cost
Below listed, you can find solutions for Chapter 8 of CISCE Goyal Brothers Prakashan for Commercial Applications [English] Class 10 ICSE.
Goyal Brothers Prakashan solutions for Commercial Applications [English] Class 10 ICSE 8 Fundamental Concepts of Cost EXERCISES [Pages 136 - 139]
MULTIPLE CHOICE QUESTIONS.
The term "variable costs" refers to ______.
All costs that are likely to respond to the amount of attention devoted to them by a specific manager.
All costs associated with marketing, shipping, warehousing, and billing activities.
All costs that do not change in total for a given period of time and relevant range but become progressively smaller on a per unit basis as volume increases.
All manufacturing costs incurred to produce units of output.
What consist of indirect material, indirect labour, and indirect expenses?
Labour
Expenses
Overheads
Amount
Overheads are often related to accounting concepts such as fixed cost and ______ cost.
Direct
Indirect
Primary
Money
Variable cost is a cost that ______.
Changes with the level of output.
Remains same at all levels of output.
Either changes with the level of output or remains same at all levels of output.
None of these.
Total variable cost per unit increases ______.
When production grows
When demand decreases
Change in government rules
Change in availability of raw material
'The product has some value which can be measured in terms of money' it is called ______.
Historical value
Exchange value
Zero value
Positive value
A typical factory overhead cost is ______.
Audit
Compensation of plant manager
Design distribution
Internal
Overhead refers to ______.
Direct or prime cost
All indirect costs
Only factory indirect costs
Only indirect expenses
In element-wise classification of overheads, which one of the following is not included in?
Fixed overheads
Indirect labour
Indirect materials
Indirect expenditure
Fixed cost is a cost which ______.
Changes in total in proportion to changes in output.
Is partly fixed and partly variable in relation to output.
Does not change during a given period of time.
Remains same for each unit of output.
Fixed cost per unit decreases when ______.
Production volume increases.
Production volume decreases.
Variable cost per unit decreases.
Variable cost per unit increases.
______ means amount spent on production or to provide services.
cost
profit
revenue
expenditure
The cost remains same at all levels of output is called ______ cost.
variable
fixed
flexible
urgent
Which cost decreases with increase in the volume of output?
Variable cost
Fixed cost
Revenue cost
Smart cost
Which of the following cost is time based?
Fixed cost
Variable cost
Implicit cost
None of these
All indirect expenses are count under the head of ______.
Overheads
Total cost
Revenue
None of these
It refers to the expenses incurred on those items which are not directly chargeable to production. Salaries of timekeeper, foremen and watchmen are examples of this cost. This cost is incurred for the concern as a whole rather than a particular product.
Direct cost
Indirect cost
Selling cost
Advertising cost
Which definition best describes indirect costs?
Indirect costs are those costs which are not controlled directly by a manager.
Indirect costs are those costs which cannot be directly associated with a product or service.
Indirect costs are always fixed.
Indirect costs are always manufacturing overhead cost.
To control costs, it is essential to keep control on ______.
Prime cost
Overheads
Indirect materials and tools cost
All of these
Wages paid to a labour who was engaged in the production activities can be termed as ______.
Direct cost
Indirect cost
Sunk cost
Implicit cost
Which of the following best describes a fixed cost?
A cost that remains at the same level up to a particular level of output.
The cost changes with levels of output.
A cost that remains at the same level when output increases.
None of these
Which of the following is best suited meaning of overhead?
Overhead is the cost incurred in the course of buying a product, providing a service or running a department, but which cannot be traced directly and in full to the product, service or department.
Overhead is the cost incurred in the course of making a product, providing a service or running a department, but which cannot be traced directly and in full to the product, service or department.
Overhead is the cost incurred in the course of selling a product, providing a service or running a department, but which cannot be traced directly and in full to the product, service or department.
Overhead is the cost incurred in the course of advertising a product, providing a service or running a department, but which cannot be traced directly and in full to the product, service or department.
Amount spent to purchase a machinery is the example of ______ cost.
Variable
Fixed
Prime
None of these
Which of the following is overhead cost?
Amount spent on raw material.
Salary of the finishing cost centre supervisor.
Wages paid to labour.
None of these.
Variable cost per unit increases when ______.
Volume of production decreases
Volume of production increases
Cost of raw material decreases
Tax decreases
An example of a production overhead would be ______.
Material
Rent
Labour cost
Supervisory cost
A cost that is easily traceable to a cost object is known as ______.
Direct cost
Indirect cost
Variable cost
Fixed cost
Overhead is actually the total of ______.
Indirect materials
Indirect expenses
Indirect labour
All of these
Fixed cost is a cost which remains same at ______.
All levels of output
Even zero level of output
Both All levels of output and Even zero level of output
Neither All levels of output nor Even zero level of output.
Direct cost increases when ______.
Sales price of product increases
Cost of raw material increases
Tax increases
Subsidy increases
Cost means ______.
Revenue paid for something
Price paid for something
To generate expenses
Depreciation earned
SHORT-ANSWER QUESTIONS.
Abnormal costs are not recorded as part of production cost. Justify for or against.
Give one difference between money cost and real cost.
Distinguish betwen implicit costs and explicit costs.
"Some costs are semi-variable in nature." Comment.
Give one difference between normal cost and abnormal cost.
Give one difference between product cost and period cost.
Distinguish between Direct Labour cost and Indirect Labour cost.
Distinguish between direct costs and indirect costs.
Distinguish between shut down cost and sunk cost.
Distinguish between Fixed cost and Variable cost.
What is meant by variable cost?
"The cost of sugarcane is an avoidable cost." Justify for or against.
What is Indirect Labour Cost?
State one difference between Historical costs and Predetermined costs.
What are indirect expenses?
Give an example of indirect expenses.
"Some costs are semi-variable in nature." Comment.
What do you mean by office and administrative overhead?
What do you mean by Semi-Fixed cost?
Give an example of Semi-Fixed cost.
LOlNG-ANSWER QUESTIONS.
Explain the following:
Material Cost
What do you mean by Semi-Fixed cost?
Distinguish between controllable and uncontrollable costs.
Differentiate between expired and unexpired costs.
Classify cost according to its nature.
Distinguish betwen implicit costs and explicit costs.
Explain different elements of cost.
What is opportunity cost?
Give an example of opportunity cost.
Explain with an example, the meaning of fixed costs.
Explain with an example, the meaning of variable costs.
Write short notes on opportunity costs.
Write short notes on Variable Costs.
Explain the following with an example:
Marginal cost.
Explain the following with an example:
opportunity cost.
What are indirect expenses?
Explain various types of Overheads.
Explain with an example, the meaning of fixed costs.
Explain with an example, the meaning of variable costs.
What do you mean by Semi-Fixed cost?
Explain different elements of cost.
Explain different elements of cost.
Write a short note on direct labour cost.
Write short note on indirect labour cost.
Goyal Brothers Prakashan solutions for Commercial Applications [English] Class 10 ICSE 8 Fundamental Concepts of Cost QUESTION BANK [Pages 139 - 141]
Explain with an example, the meaning of fixed costs.
Explain with an example, the meaning of variable costs.
Distinguish between controllable and uncontrollable costs.
Give one difference between normal cost and abnormal cost.
State one difference between Historical costs and Predetermined costs.
Distinguish betwen implicit costs and explicit costs.
Distinguish between private costs and social costs.
Explain different elements of cost.
Give one difference between money cost and real cost.
Explain the following with an example:
Marginal cost.
Explain the following:
Out of pocket cost.
Explain the following:
Differential cost
What is meant by sunk cost?
Explain the following:
Notional or imputed cost.
Explain the following:
Replacement cost
What is opportunity cost?
Give an example of opportunity cost.
Distinguish betwen implicit costs and explicit costs.
Give one difference between normal cost and abnormal cost.
Give one difference between product cost and period cost.
Distinguish between shut down cost and sunk cost.
Distinguish between controllable and uncontrollable costs.
What are indirect expenses?
Explain various types of Overheads.
Solutions for 8: Fundamental Concepts of Cost
Goyal Brothers Prakashan solutions for Commercial Applications [English] Class 10 ICSE chapter 8 - Fundamental Concepts of Cost
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Concepts covered in Commercial Applications [English] Class 10 ICSE chapter 8 Fundamental Concepts of Cost are Fundamental Concept of Cost, Elements of Cost, Cost Unit, Cost Centre and Cost Sheet, Classification of Costs, Controllable and Uncontrollable Costs.
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