CBSE Class 12 Cost Accounting Question Paper 2026 PDF with Solutions - Available

Cost Accounting focuses on determining, recording, and controlling costs of production to improve efficiency and profitability.

Step 1: Analyze the options.

- Financial transactions — Financial Accounting
- Determination and control of costs — Correct ✔
- Preparation of final accounts — Financial Accounting
- Profit calculation only — Too limited


Step 2: Conclusion.

Thus option (B) is correct.



Final Answer: \[ \boxed{(B)} \] Quick Tip: Cost Accounting = Cost control + Efficiency

Fixed costs remain constant regardless of production level. Factory rent does not change with output.


Final Answer: \[ \boxed{(C)} \] Quick Tip: Fixed cost = Constant total cost

Prime cost includes all direct costs of production.
\[ Prime Cost = Direct Material + Direct Labour + Direct Expenses \]


Final Answer: \[ \boxed{(A)} \] Quick Tip: Prime Cost = Direct Costs only

At break-even point, there is neither profit nor loss because total cost equals total revenue.


Final Answer: \[ \boxed{(C)} \] Quick Tip: Break-even = No profit, No loss

Variable costs increase or decrease in direct proportion to the level of output.


Final Answer: \[ \boxed{(B)} \] Quick Tip: Production ↑ ⇒ Variable Cost ↑

Cost Accounting is the process of recording, analyzing, and controlling costs associated with production. It helps management in planning, controlling expenses, fixing prices, and improving efficiency.

It is important because it assists in cost reduction, profit maximization, decision making, and proper utilization of resources. Quick Tip: Cost Accounting supports managerial planning

Fixed costs remain constant irrespective of production (e.g., rent, salaries). Variable costs change with output (e.g., raw materials, direct labour). Quick Tip: Fixed = Constant total, Variable = Changes with output

Break-even analysis determines the level of sales at which total revenue equals total cost. It helps management plan production, pricing, and profitability. Quick Tip: BEP helps determine minimum sales required

Total cost consists of fixed cost and variable cost.
\[ Total Cost = Fixed Cost + Variable Cost \]

Fixed costs remain constant while variable costs change with production. Quick Tip: Total Cost = Fixed + Variable

A cost sheet is a statement showing the detailed cost of production at different stages.

Format:

\begin{tabular{|p{8cm|p{3cm|
\hline
Direct Material & xxx

Direct Labour & xxx

Direct Expenses & xxx

\hline
Prime Cost & xxx

Factory Overheads & xxx

\hline
Factory Cost & xxx

Administrative Overheads & xxx

\hline
Cost of Production & xxx

Selling Overheads & xxx

\hline
Total Cost & xxx

\hline
\end{tabular Quick Tip: Cost sheet shows cost at each stage of production