ACCA Exam Practice

Classification of cost questions for ACCA MA1

Welcome in series of ACCA exam question, In this article we will discuss about classification of cost questions.

Let’s start with our first question.

Classification of cost questions

  1. Which cost are prime cost?
  1. All variable cost
  2. Direct material and labor only
  3. Direct labor, direct material and direct expense.
  4. Production overhead and direct material.

2. Which of the following statement best describe the semi-variable cost?

  1. A cost that increase in direct proportion to output
  2. A cost that remain constant irrespective of the level of output
  3. Cost that contain an element of both fixed and variable cost
  4. A cost that increase throughout the year

3. Which of the following is not a fixed cost?

  1. Insurance
  2. Business rate
  3. Depreciation-based on straight line method
  4. Material used in production

4. Which cost are included within production overhead?

  1. Variable overhead only
  2. Indirect material, labor, expense related to production activity
  3. Direct expense only
  4. Indirect material and labor related to production activity

5. Which of the following statement best describes the direct cost?

  1. A cost which can not be influenced by its budget holder
  2. Expenditure which can be economically identified with a specific cost unit
  3. A cost which need to be apportion to cost center
  4. The highest proportion of the total cost of a product.

6. A factory makes wooden chairs.

Which of the following items would be most likely to behave as stepped costs?

  1. Wood use for making chair
  2. Factory supervisor salary
  3. Heating and light
  4. Staples to fix the fabric to the seat of the chairs.

7. Which types of cost does the following graph represent?

Classification of cost
  1. Fixed cost
  2. Variable cost
  3. Semi variable cost
  4. stepped cost

8. For operational purposes, for a company operating a fleet delivery vehicles, which of the following method of calculating cost would be most iseful?

  1. Cost per mile run
  2. Per driver hour
  3. cost per tonne mile
  4. Cost per kilogram carried

9. Which of the following is a direct expense?

  1. Material use in production
  2. Special tools for job 7
  3. Power
  4. Depreciation

10. Which of the following is a service cost center in a manufacture company?

  1. Finishing
  2. Machining
  3. Despatch
  4. Assembly


  1. (3)
  2. (3)
  3. (4)
  4. (2)
  5. Cost which specified on units (2)
  6. (2)
  7. It is variable (2)
  8. (3)
  9. (2)
  10. (3)

Hope you like Classification of cost questions and get some new idea about MA1 exam, Must read other articles related to MA1 and FA1 exams questions link is given below.

MA1 multiple choice questions (ACCA exam questions)

FA1 exam questions (ACCA exams questions for FA1)

Source documents and coding (ACCA MA1 exam questions)

ACCA FA1 exam questions (FIA exam questions)

Double entry exam questions (ACCA FA1 exams questions)

ACCA MA1 exam questions (production overheads)

ACCA exam practice questions-Business transaction and documentation

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