The PFRDA Grade A Costing Practice Quiz has been prepared to help candidates revise important concepts from Costing and Management Accounting for the General Stream Paper 2 exam. The quiz covers key topics such as cost accounting basics, costing methods, standard costing, marginal costing, budgeting, and modern cost management techniques. Practising these questions can help candidates understand important concepts and improve their accuracy.
In this blog, we have provided a PFRDA Grade A Costing Practice Quiz along with a free PDF containing questions with direct answers and solutions.
Download PFRDA Grade A Costing Practice Quiz PDF
The PFRDA Grade A Costing Practice Quiz is useful for candidates preparing the Costing section of Paper 2. The direct link to download the PDF is provided below.
| Particulars | Link |
| PFRDA Grade A Costing Practice Quiz | Download Now |
| PFRDA Grade A Stream Wise PYPs | Download Now |
Attempt PFRDA Grade A Costing Practice Quiz
Take a free test based on Costing and Management Accounting and check your level of preparation for the PFRDA Grade A exam. The quiz can help you revise formulas, concepts, methods, and important terms covered in the syllabus.
1. Which of the following best defines ‘Cost Accounting’?
2. Management accounting differs from financial accounting mainly because it:
3. Which of the following is an example of a ‘direct cost’?
4. Cost classified as ‘controllable’ and ‘uncontrollable’ is based on:
5. ‘Opportunity cost’ refers to:
6. Sunk cost is best described as a cost that:
7. Which cost concept refers to the change in total cost resulting from producing one additional unit?
8. A cost centre is best defined as:
9. Prime cost consists of:
10. Which of the following is classified as an ‘indirect expense’?
11. Cost accounting primarily assists management in:
12. The ‘cost unit’ of a road transport company would typically be measured as:
13. Unit costing (single/output costing) is most suitable for industries that:
14. Job costing is most appropriate for:
15. Batch costing is essentially a variant of:
16. The ‘Economic Batch Quantity’ concept is relevant to:
17. Contract costing is characterised by all of the following EXCEPT:
18. In contract costing, ‘retention money’ refers to:
19. Process costing is most suitable for industries where:
20. In process costing, ‘normal loss’ is a loss that:
Quiz Summary
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What is the PFRDA Grade A Costing Paper 2 exam pattern?
Costing is one of the subjects included in the PFRDA Grade A General Stream Paper 2 syllabus, along with Commerce & Accountancy, Management, Finance, Companies Act, Economics, and Pension Sector.
| Phase/Paper | Subjects Covered | Maximum Marks | No. of Questions | Duration |
| Phase 1/Paper 2 | Commerce & Accountancy, Management, Finance, Costing, Companies Act, Economics & Pension Sector | 100 | 50 | 40 minutes |
| Phase 2/Paper 2 | Commerce & Accountancy, Management, Finance, Costing, Companies Act, Economics & Pension Sector | 100 | 50 | 40 minutes |
What is the Costing syllabus for PFRDA Grade A?
Costing is one of the important sections of the General Stream Paper 2 syllabus. The syllabus covers the basics of cost and management accounting, different costing methods, cost control techniques, budgeting, and modern management systems.
| Topic | Important Areas for Preparation |
| Cost Accounting Basics | Meaning of cost, cost accounting, cost classification, cost centre, cost unit |
| Costing Methods | Unit costing, job costing, batch costing, contract costing, process costing |
| Standard Costing | Standard cost, variance analysis, material variance, labour variance |
| Marginal Costing | Fixed cost, variable cost, contribution, P/V ratio, break-even point |
| Budgeting | Types of budgets, budgetary control, flexible budget, cash budget |
| Lean Systems | JIT, Kaizen, 5S, TPM, Six Sigma |
| Process Improvement | Process innovation, Business Process Re-engineering (BPR) |
What are the important topics under Cost Accounting basics?
Cost accounting helps a business understand how much it spends to produce goods or provide services. Candidates should revise the meaning and objectives of cost accounting and understand the different ways costs are classified. Topics such as cost centre, cost unit, direct cost, indirect cost, fixed cost, and variable cost are important for building a strong foundation. These concepts are also useful for understanding other costing methods.
- Meaning and objectives of cost accounting
- Cost and management accounting
- Cost classification
- Fixed and variable costs
- Direct and indirect costs
- Product and period costs
- Cost centre and cost unit
- Prime cost and conversion cost
- Overheads
- Cost control and cost reduction
What are the important costing methods for PFRDA Grade A?
Different costing methods are used depending on the type of product, service, or production process. Candidates should understand when each method is used and how costs are collected under each method. Unit costing is generally used for identical products, while job and batch costing are useful for specific jobs or groups of products. Process and contract costing should also be revised carefully.
| Costing Method | Key Area to Study |
| Unit Costing | Cost per unit and total cost |
| Job Costing | Cost of a specific job |
| Batch Costing | Cost of a batch of products |
| Contract Costing | Long-term and large contracts |
| Process Costing | Continuous production and process-wise costs |
What are the important topics under Standard Costing?
Standard costing is used to compare the expected cost with the actual cost incurred by a business. Candidates should understand the meaning of standard cost and variance and revise the major types of variances. The syllabus may require an understanding of material and labour variances and their interpretation. Focus should be placed on the basic concepts and purpose of variance analysis.
- Meaning of standard costing
- Standard cost and actual cost
- Variance analysis
- Material cost variance
- Material price and usage variance
- Labour cost variance
- Labour rate and efficiency variance
- Favourable and adverse variance
- Uses of standard costing
What are the important topics under Marginal Costing?
Marginal costing focuses on the relationship between variable cost, fixed cost, sales, and profit. Candidates should understand concepts such as contribution, Profit/Volume ratio, break-even point, and margin of safety. These concepts are useful for understanding short-term business decisions. Questions may test both formulas and their practical application.
- Meaning of marginal costing
- Fixed cost and variable cost
- Contribution
- Profit/Volume (P/V) ratio
- Break-even point
- Margin of safety
- Cost-volume-profit analysis
- Profit planning
- Decision-making using marginal costing
What are the important topics under Budgeting?
Budgeting is an important tool used by management for planning and controlling business activities. Candidates should understand the meaning and purpose of budgets and the difference between different types of budgets. Flexible budgets, cash budgets, and budgetary control are important areas to revise. Candidates should also understand how budgets help management in planning and performance evaluation.
- Meaning and objectives of budgeting
- Budgetary control
- Fixed and flexible budgets
- Cash budget
- Sales budget
- Production budget
- Functional budgets
- Master budget
- Budget preparation and control
What are the important topics under Lean Systems?
Modern cost management focuses on reducing waste, improving efficiency, and increasing productivity. Candidates should understand the basic concepts of Just-in-Time (JIT), Kaizen, 5S, Total Productive Maintenance (TPM), and Six Sigma. These methods aim to improve processes and reduce unnecessary costs. Basic definitions, objectives, and applications should be revised carefully.
- Just-in-Time (JIT)
- Kaizen
- 5S
- Total Productive Maintenance (TPM)
- Six Sigma
- Waste reduction
- Quality improvement
- Continuous improvement
- Productivity improvement
What are the important topics under Process Innovation and BPR?
Process innovation focuses on improving existing business processes to achieve better performance. Business Process Re-engineering (BPR) involves redesigning major business processes to improve efficiency, quality, cost, and speed. Candidates should understand the meaning, objectives, and importance of these concepts. Questions can be based on definitions, features, and practical applications.
- Process innovation
- Business Process Re-engineering
- Process redesign
- Cost reduction
- Productivity improvement
- Quality improvement
- Efficiency improvement
- Technology in process improvement
Which Costing topics should candidates focus on for PFRDA Grade A?
Candidates should focus on topics that explain how costs are calculated, controlled, and used for business decisions. Basic costing concepts should be studied first, followed by costing methods and cost control techniques. Candidates should also revise important formulas and understand the meaning of key terms. Regular practice through quizzes can help improve speed and accuracy.
| Priority Area | Topics to Revise |
| Basics | Cost classification, cost centre, cost unit, overheads |
| Costing Methods | Unit, job, batch, contract, process costing |
| Cost Control | Standard costing, variance analysis, marginal costing |
| Budgeting | Budgetary control, flexible budget, cash budget |
| Lean Systems | JIT, Kaizen, 5S, TPM, Six Sigma |
| Process Improvement | Process innovation, BPR |
FAQs
The syllabus covers cost and management accounting basics, costing methods, standard costing, marginal costing, budgeting, lean systems, process innovation, and BPR.
Yes, Costing is included in the General Stream Paper 2 syllabus.
Candidates should study unit, job, batch, contract, and process costing.
Candidates should revise contribution, P/V ratio, break-even point, margin of safety, and cost-volume-profit analysis.
Yes, the practice quiz PDF includes questions along with direct answers and solutions for better revision.
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