by Dr IMU
Cost Accounting is
recording and summarising of cost information
accounting for all Direct & Indirect costs
a technique to fix the Product cost
all of them above
Costing refers to the techniques and processes of __________
all of the below
ascertainment of costs
allocation of costs
apportion of costs
distribution of costs
Cost accounting has been developed because of……...of financial accounting.
both (a) and (b)
None of these
Cost accounting is based on………figures.
either (a) or (c)
Cost reports are prepared
in the beginning of year
at the end of the year
none of these
either (a) or (b)
The total of all direct expenses is known as
Work cost is the total of
Opportunity cost does not involve
In Financial Accounting, stocks are valued at
cost or market value whichever is lower
Neither cost nor market value
Higher market value
All of these
In Cost Accounting, stocks are valued at
When classified according to traceability to cost objective, the cost of raw materials is considered a:
Variable costs are costs that change regularly while fixed costs remain the same all the time.
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.
If direct materials = P200, direct labor = P150, and manufacturing overhead = P100, how much is the total conversion cost?
Not in the choices
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:
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.
Future costs can never be sunk costs.
The cost raw materials is recorded as product cost when:
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.
Cost accountancy is the science, art and……. of cost accountant.
What is EOQ?
Economics Order Quality
Economics Output Order
Economics Order Quantity
Ergonomics Order Quantity
What is/are the importance(s) of cost management?
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.