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JAIIB · Accounting & Financial Management · Module D — Cost Management Accounting and Taxation

JAIIB AFM Unit 32 — Costing Methods: Free MCQs with Explanations

By Swarnakshi Jha (ex-banker) · Updated 20 September 2026 · Paper 3 of the November 2026 cycle (28 November 2026)

This page is a free slice of our JAIIB AFM question bank for Unit 32 — Costing Methods (Module D — Cost Management Accounting and Taxation). The Mock Centre holds 49 questions on this unit alone, every one with a why-right / why-wrong explanation; below are the facts examiners keep returning to, five of those questions to try, and the traps that cost marks.

AFM · Module D49 MCQs in the Mock Centre5 free belowPaper on 28 November 2026

Key facts examiners test from this unit

  1. Costing = ascertaining the cost of products/services; methods differ by industry but PRINCIPLES stay the same; two broad families: specific-order (job/batch/contract) and continuous-operation (process/service/unit).
  2. Unit costing: cost per unit = total cost ÷ units (1.5 crore ÷ 5,000 = Rs.3,000); suits single-product industries; cost sheet excludes purely financial items.
  3. Job costing: identifiable customer-specific jobs; job cost card collects materials + labour + overheads; non-manufacturing overheads usually added as a final percentage.

5 free practice questions — tap an option

Five basic questions from this unit. Answers lock on the first tap, exactly as in the exam, and a short explanation opens underneath. The Mock Centre adds the moderate and tough questions, why every other option is wrong, the concept capsule and the exam tip — with your score and revision dates tracked.

Question 1 of 5
The two broad categories of costing methods are:
Why (b): All specific methods descend from two families: JOB costing (distinct, identifiable jobs) and PROCESS costing (continuous, indistinguishable output). Contract/batch are job-family; unit/ operating lean process-family.
Question 2 of 5
Under unit costing, the per-unit cost is:
Why (b): Single-output (unit) costing: cost per unit = total cost ÷ units produced.
Question 3 of 5
A job cost card records:
Why (b): The job card is the job's full cost dossier — materials drawn, labour hours (and idle time), overheads applied.
Question 4 of 5
Under batch costing, cost per unit is calculated as:
Why (b): The BATCH is the cost unit; per-piece cost = batch total ÷ batch quantity.
Question 5 of 5
Service (operating) costing is used by:
Why (b): Where the output is a SERVICE, cost per service unit (per km, per patient-day, per room-night, per transaction) is the metric.
0 of 5 answered.

Traps in this unit

Confusable AConfusable BThe difference
Job costingContract costingShort works in-house vs long site contracts (the cost unit is the whole contract)
Job costingBatch costingOne-off job vs identical units run together
Practise all 49 questions on Unit 32. The free demo opens a slice of every subject with the same explanations; the AFM Online-only pass unlocks all 1,681 AFM questions, the full and module mocks, Smart Revision and the Readiness Score for one year (₹1,299). Not sure where you stand? Take the free 10-question test first.
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← Unit 31: An Overview of Cost and Management Accounting · Unit 33: Standard Costing → · All AFM units · JAIIB 2026 guide

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Independent study aid — not affiliated with, endorsed by, or sponsored by the Indian Institute of Banking & Finance (IIBF). Exam pattern, dates, fees and passing criteria are set by IIBF — always confirm the current rules at iibf.org.in. Regulatory figures verified as of September 2026; verify from official sources before relying on them in practice.