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CA Intermediate Paper 3

Activity Based Costing MCQ

Chapter 5 • 8 Questions from ICAI Study Material

Questions

8

Est. Time

12 min

Source

ICAI Book

Sample Questions: Activity Based Costing

Preview 3 of 8 questions from Chapter 5

1. A cost driver is:

A) An item of production overheads
B) A common cost which is shared over cost centres
C) Any cost relating to transport
D) An activity which generates costs ✓

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

A) Cost drivers
B) Cost objects
C) Cost pools ✓
D) Cost benefit analysis

3. A cost driver:

A) Is a force behind the overhead cost
B) Is an allocation base
C) Is a transaction that is a significant determinant of cost
D) All of the above ✓

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