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Exam Review

Key Facts: CHSE Odisha Cost Accounting Exam

Year-2 only

Cost Accounting is Group-I Year-2 elective (Banking & Insurance is Year 1)

CHSE Odisha Commerce Courses of Studies

100 marks

Council AHSE Year-2 Cost Accounting assessment (with project/viva as notified)

CHSE Odisha scheme of studies / Cost Accounting paper

4 theory units

Introduction & cost sheet; materials; labour; overheads (+ project Unit V)

CHSE Cost Accounting course inputs

AS-2 pricing

FIFO and weighted average methods specified for material issue pricing

CHSE Cost Accounting Unit II

In AHSE fee

No separate elective marketplace fee; included in session exam fee

CHSE Odisha AHSE fee structure via colleges

CHSE Odisha Cost Accounting is the +2 Commerce Group-I Year-2 elective (100 marks at Council AHSE, with project/viva). This free 2026 bank is an English MCQ study adaptation on cost concepts, materials, labour, overheads and methods—not a pure official-format simulation.

Sample CHSE Odisha Cost Accounting Practice Questions

Try these sample questions to review concepts for the CHSE Odisha Cost Accounting exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1In CHSE +2 Cost Accounting, which statement best describes cost accounting?
A.The process of recording, classifying, analysing and ascertaining costs for control and management decisions
B.A system that mainly prepares the statutory Balance Sheet for outside shareholders
C.Only the calculation of income-tax liability for a firm
D.A marketing technique for setting maximum retail prices
Explanation: Cost accounting records and analyses costs so management can ascertain unit cost, control spending, and support decisions. It is distinct from pure financial accounting aimed at external reporting.
2Cost accounting developed mainly because of limitations of which branch of accounting?
A.Income-tax accounting only
B.Financial accounting
C.Social accounting
D.National income accounting
Explanation: Traditional financial accounting reports overall profit and position but does not give product-wise costs or detailed control information, which led to the growth of cost accounting.
3Which of the following is a method of costing (not merely a technique)?
A.Marginal costing
B.Standard costing
C.Process costing
D.Absorption costing
Explanation: Process, job, batch, contract, operating and unit/output costing are methods suited to industry type. Marginal, standard and absorption costing are techniques applied across methods.
4Which costing method is most suitable for a road transport undertaking?
A.Job costing
B.Contract costing
C.Process costing
D.Operating (service) costing
Explanation: Transport and similar service businesses use operating (service) costing, often with composite cost units such as tonne-kilometre or passenger-kilometre.
5Ship building is typically costed using which method?
A.Contract costing
B.Batch costing
C.Operating costing
D.Farm costing
Explanation: Large construction-type jobs such as ships, bridges and buildings use contract costing, where each contract is a cost unit.
6A cost unit is best defined as:
A.Any person responsible for a budget
B.A unit of product, service or time in relation to which costs are ascertained
C.Only the factory building itself
D.The difference between sales and profit
Explanation: A cost unit is the quantity of product, service or time (for example per unit, per tonne-km, per patient-day) against which costs are measured.
7Three primary elements of cost are:
A.Prime cost, works cost and profit
B.Only fixed, variable and semi-variable costs
C.Material, labour and other expenses (direct/indirect)
D.Sales, purchases and closing stock
Explanation: By element, costs comprise material, labour and expenses (other expenses), each further classified as direct or indirect.
8Prime cost is the aggregate of:
A.Direct material + factory overheads only
B.Works cost + administrative overheads
C.Selling overheads + distribution overheads
D.Direct material + direct labour + direct (chargeable) expenses
Explanation: Prime cost = direct material + direct labour + direct expenses (chargeable expenses). Factory overheads are added next to reach works (factory) cost.
9Direct materials Rs.50,000; direct labour Rs.30,000; direct expenses Rs.5,000. What is prime cost?
A.Rs.85,000
B.Rs.75,000
C.Rs.80,000
D.Rs.55,000
Explanation: Prime cost = 50,000 + 30,000 + 5,000 = Rs.85,000.
10Prime cost Rs.85,000 and factory overheads Rs.25,000. Works (factory) cost is:
A.Rs.60,000
B.Rs.1,10,000
C.Rs.85,000
D.Rs.25,000
Explanation: Works cost = prime cost + factory (works) overheads = 85,000 + 25,000 = Rs.1,10,000.

About the CHSE Odisha Cost Accounting Exam

Odisha CHSE Higher Secondary Cost Accounting is the Commerce stream Group-I Year-2 elective. Unit I covers cost accounting concepts, classification, methods and techniques, and preparation of the cost sheet (excluding tender and quotation). Unit II covers material purchase and stores control, bin card and stores ledger, FIFO and weighted average pricing (as per AS-2), EOQ, stock levels, ABC/VED analysis and material losses. Unit III covers labour classification, timekeeping and time booking, idle time, overtime, labour turnover and incentive plans (Halsey, Halsey-Weir, Rowan). Unit IV covers overhead classification, allocation and apportionment, primary and secondary distribution, and absorption methods including machine hour rate and under/over absorption. Unit V is project work and viva.

Exam sponsor: Council of Higher Secondary Education, Odisha (CHSE Odisha). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

CHSE Odisha Higher Secondary Cost Accounting is the Year-2 paper of Commerce 4th Elective Group-I (Year-1 Group-I is Banking & Insurance). The Council Year-2 assessment is 100 marks and typically includes a ~3-hour written theory component plus project work and viva as outlined in the syllabus (cost sheet, stores ledger, labour cost, incentive schemes, overhead apportionment, machine hour rate). This free bank is an English MCQ study adaptation—not a full long-answer or project simulation.

Time Limit

3 hours (theory component per 100-mark paper pattern)

Passing Score

~30% minimum in theory (confirm current AHSE circular for subjects with project)

Exam / Certification Fees

Included in the CHSE Odisha AHSE examination fee for the session (collected through the affiliated college/H.S. school; no separate public per-elective marketplace fee).

Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

~25% of this local bank

Introduction & Cost Sheet

Concepts, methods/techniques, elements, prime/works/COP/cost of sales calculations.

~25% of this local bank

Materials

Purchase, stores documents, FIFO, weighted average, EOQ, stock levels, ABC/VED, losses.

~25% of this local bank

Labour

Direct/indirect labour, idle time, overtime, turnover, time/piece rates, Halsey/Rowan.

~25% of this local bank

Overheads

Allocation, apportionment, primary/secondary distribution, absorption rates, under/over absorption.

Preparing for the CHSE Odisha Cost Accounting Exam

What You Need to Know

  • Passing score: ~30% minimum in theory (confirm current AHSE circular for subjects with project)
  • Assessment: CHSE Odisha Higher Secondary Cost Accounting is the Year-2 paper of Commerce 4th Elective Group-I (Year-1 Group-I is Banking & Insurance). The Council Year-2 assessment is 100 marks and typically includes a ~3-hour written theory component plus project work and viva as outlined in the syllabus (cost sheet, stores ledger, labour cost, incentive schemes, overhead apportionment, machine hour rate). This free bank is an English MCQ study adaptation—not a full long-answer or project simulation.
  • Time limit: 3 hours (theory component per 100-mark paper pattern)
  • Exam / certification fees: Included in the CHSE Odisha AHSE examination fee for the session (collected through the affiliated college/H.S. school; no separate public per-elective marketplace fee). Official sources

Using Our Practice Resources

  • Work through all 100 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

CHSE Odisha Cost Accounting: Suggested Study Strategy

1Memorise the cost-sheet sequence: materials consumed → prime cost → works cost → cost of production → cost of sales.
2Drill FIFO vs weighted average with rising/falling price effects on issue and closing stock.
3Write Halsey (50%) and Rowan formulas before substituting numbers; compare both on the same data.
4Link overhead bases: area for rent, kW/HP for power, labour/machine hours for absorption.
5Use the official Commerce Courses of Studies PDF and current AHSE circulars on chseodisha.nic.in.

Frequently Asked Questions

How is CHSE Odisha Higher Secondary Cost Accounting examined?

Cost Accounting is the Year-2 paper of Commerce 4th Elective Group-I (following Banking & Insurance in Year 1). The Council AHSE assessment is 100 marks and mixes objective, short and long written items, with project work and viva as prescribed. Papers are typically about 3 hours for theory—not a pure MCQ board paper.

What units does the Cost Accounting syllabus cover?

Unit I introduction and cost sheet; Unit II materials (purchase, stores, pricing, inventory control); Unit III labour (accounting, idle time, overtime, turnover, incentive plans); Unit IV overheads (allocation, apportionment, absorption); Unit V project work and viva (cost sheet, stores ledger, labour cost, incentives, service department apportionment, machine hour rate).

Is this practice bank the same format as the official CHSE paper?

No. Official papers mix objective and constructed-response items plus project/viva evidence. This bank is an English-language multiple-choice study adaptation for concept and calculation revision—not an official blueprint replica.

What is the pass mark?

CHSE Odisha AHSE practice commonly requires about 30% as the minimum pass floor in theory, with project components following the notified pattern for the subject. Confirm the current AHSE notification on chseodisha.nic.in.

What does the exam cost?

Examination charges are included in the CHSE Odisha AHSE fee structure notified for the session and collected through the affiliated college/H.S. school—no separate public per-elective marketplace fee.

Which calculations should I prioritise?

Cost-sheet ladders (materials consumed, prime cost, works cost, cost of production, cost of sales), FIFO and weighted average issues, EOQ and reorder level, Halsey and Rowan earnings, labour turnover percentages, and overhead absorption rates including machine hour rate and under/over absorption.