CMA Foundation Dec 2026 | Paper 2 FFCA — Fundamentals of Cost Accounting ALL MCQs Solved

CMA Foundation December 2026 students — this video covers ALL MCQs on Fundamentals of Cost Accounting from Paper 2 (FFCA), solved one by one with clear reasoning for each option. 📌 What's covered in this video: ✅ Objectives and purpose of Cost Accounting ✅ Absorption Costing vs Marginal Costing — traditional vs modern approach ✅ Prime Cost, Factory Cost, Cost of Production, Cost of Sales — the full Cost Sheet build-up ✅ Fixed, Variable, and Semi-Variable Cost (behavior-wise classification) ✅ Cost Center — location, person, or equipment ✅ Opportunity Cost, Sunk Cost, and other relevant/irrelevant costs ✅ Commercial Cost, Period Cost, and Conversion Cost ✅ Methods of Costing — Job, Process, Batch, Contract, Operating Costing (industry-wise usage) ✅ Items excluded from Cost Accounts (financial items like dividend, interest on debentures) ✅ Cost, Costing, Cost Accounting & Cost Accountancy — definitions ✅ Free downloadable PDF with all solved MCQs 🎯 This is the foundation chapter for your entire Cost Accounting section in FFCA — get these definitions and classifications rock solid, and every later cost chapter becomes easier. 📥 FREE PDF DOWNLOAD: Link available in the description box below and pinned as the first comment. 💬 Got doubts on any question? Drop them in the comments — I'll help you out. ⏱️ TIMESTAMPS: 0:02 Intro — Fundamentals of Cost Accounting MCQs 0:30 Objective of Cost Accounting (Cost Center Allocation) 0:41 Behavior-wise Cost Classification (Fixed & Variable) 1:03 Absorption Costing — Traditional Approach 1:25 Marginal Costing — Behavior-Oriented Approach 1:39 Main Purpose of Cost Accounting 1:55 Variable Cost — Fixed Per Unit 2:16 Fixed, Variable & Semi-Variable Cost Classification 2:26 Factory Cost (Prime Cost + Factory Overhead) 2:42 Cost Center — Location, Person, or Equipment 2:59 Opportunity Cost Definition 3:10 Commercial Cost Definition 3:29 Cost of Goods Sold Formula 3:48 Prime Cost Formula 4:08 Job Costing for Printing Press 4:19 Composite Cost Unit 4:46 Fixed Cost — Decreases Per Unit with Activity 4:56 Period Cost (Rent Example) 5:12 Sunk Cost — Irrelevant in Decision Making 5:19 Cost Center Definition (Detailed) 5:47 Prime Cost — What's Included 6:11 Cost Classification — Element, Function, Behavior 6:27 Variable Cost — Total vs Per Unit 6:58 Net Sales Formula 7:19 Traditional Approach — Absorption Costing 7:29 Prime Cost from Direct Material & Labor 7:51 Period Cost Definition 8:22 Definition of Cost 8:48 Cost of Sales Formula 9:12 Factory Cost / Production Cost 9:22 Royalty as Direct Expense 9:26 Advertisement — Selling Overhead 9:36 Chargeable Expense (Direct Expense) 9:49 Items Excluded from Cost Accounts 10:17 Cost Sheet Format — Full Build-up 10:43 Costing vs Cost Accounting vs Cost Accountancy 11:04 Common Item in Prime Cost & Conversion Cost 11:39 Cost Accounting Definition 12:01 Direct vs Indirect Cost (Traceability) 12:21 Methods of Costing (Not a Valid Method) 12:34 Cost Unit for BPO/Call Center 12:55 Main Purpose of Cost Accounting (Decision Making) 13:08 Carriage Outward — Selling Overhead 13:17 Cost Reduction — Long-Term Phenomenon 13:39 Industry-wise Costing Methods 13:59 Cost Sheet Definition 14:13 Items in Financial Accounts Not in Cost Accounts --- 🔗 Useful Links: Free PDF (Fundamentals of Cost Accounting MCQs Solved): [link in description/pinned comment] Full ICMAI Question Bank Playlist: Must Do Kit For December 2026: ❓ FREQUENTLY ASKED QUESTIONS Q1. What is the difference between absorption costing and marginal costing? A. Absorption costing is the traditional approach where fixed overheads are included in the cost of inventory. Marginal costing is the modern approach where only variable costs are included in product cost, and fixed costs are treated as period costs. Q2. What is Prime Cost? A. Prime Cost is the sum of all direct costs — Direct Material + Direct Labor + Direct Expenses. Q3. What is the difference between Factory Cost and Cost of Production? A. Factory Cost (also called Works Cost) = Prime Cost + Factory Overhead. Cost of Production = Factory Cost + Administration Overhead. Q4. What is a Cost Center? A. A cost center is any location, person, or item of equipment (or a group of these) for which costs can be ascertained and used for the purpose of cost control. 📚 Join Our CA/ CMA Foundation & Intermediate Classes 👉 Modes: Face-to-Face (Kolkata), Live Online, Google Drive, and Pendrive 📞 𝐖𝐡𝐚𝐭𝐬𝐀𝐩𝐩: / 🌐 𝐕𝐢𝐬𝐢𝐭: ‎🌐 𝐖𝐡𝐚𝐭𝐬𝐀𝐩𝐩 𝐂𝐡𝐚𝐧𝐧𝐞𝐥: 🌐 𝐓𝐞𝐥𝐞𝐠𝐫𝐚𝐦: 🌐 𝐈𝐧𝐬𝐭𝐚𝐠𝐫𝐚𝐦: #CMAFoundation #FFCA #CostAccounting #CMAFoundationDecember2026