LESSON

Cost accounting-key terms

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University

Business

3 hours ago by

21 slides

Cost accounting-key terms

by Dr IMU

Q.

Cost Accounting is

answer choices

recording and summarising of cost information

accounting for all Direct & Indirect costs

a technique to fix the Product cost

all of them above

Q.

Costing refers to the techniques and processes of __________

answer choices

all of the below

ascertainment of costs

allocation of costs

apportion of costs

distribution of costs

Q.

Cost accounting has been developed because of……...of financial accounting.

answer choices

limitations

expenditure

statutory requirements

both (a) and (b)

None of these

Q.

Cost accounting is based on………figures.

answer choices

approximated

estimated

historical

either (a) or (c)

None of these

Q.

Cost reports are prepared

answer choices

in the beginning of year

at the end of the year

when required

none of these

either (a) or (b)

Q.

The total of all direct expenses is known as

answer choices

total cost

overhead

prime cost

work cost

None of these

Q.

Work cost is the total of

answer choices

direct cost

indirect cost

variable cost

controllable cost

uncontrollable cost

Q.

Opportunity cost does not involve

answer choices

Cash inflow

cash outlay

cash outflow

either (a) or (b)

None of these

Q.

In Financial Accounting, stocks are valued at

answer choices

lower cost

cost or market value whichever is lower

Neither cost nor market value

Higher market value

All of these

Q.

In Cost Accounting, stocks are valued at

answer choices

cost only

cost or market value whichever is lower

Neither cost nor market value

Higher market value

None of these

Q.

When classified according to traceability to cost objective, the cost of raw materials is considered a:

answer choices

Discretionary cost

Direct cost

Product cost

Committed cost

Q.

Variable costs are costs that change regularly while fixed costs remain the same all the time.

answer choices

True

False

Q.

The cost associated with the next unit or the next project or incremental cost associated with an additional project as opposed to the next discrete unit.

answer choices

Out-of-pocket

Historical

Relevant

Marginal

Incremental

Q.

If direct materials = P200, direct labor = P150, and manufacturing overhead = P100, how much is the total conversion cost?

answer choices

P350

P300

P250

P200

Not in the choices

Q.

We have three suppliers - A, B and C. A sells the raw materials for P100 per kilo, B sells the raw materials for P120 per kilo and C sells the raw materials for P130 per kilo. If we buy from C because he is our relative:

answer choices

There will be a P20 out-of-pocket cost.

There will be a P30 opportunity cost.

There will be a P30 marginal cost.

There will be a P20 relevant cost.

Not in the choices

Q.

Future costs can never be sunk costs.

answer choices

True

False

Q.

The cost raw materials is recorded as product cost when:

answer choices

the raw materials are bought.

the raw materials are sold.

the raw materials are processed even if it is not yet finished.

the finished goods are available.

the finished goods are sold.

Q.

Cost accountancy is the science, art and……. of cost accountant.

answer choices

profession

management

administration

practice

All of these

Q.

What is EOQ?

answer choices

Economics Order Quality

Economics Output Order

Economics Order Quantity

Ergonomics Order Quantity

Q.

What is/are the importance(s) of cost management?

answer choices

To improve overall business profitability.

To explore opportunity through cost optimization.

To analyze and improve internal and external cost driver.

I think all answers are correct.

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