COST ACCOUNTING- 2

The main purpose of cost Accounting is to_______

• Maximize profits

• Help in inventory

• Provide information to management for decision making

• Aid in the fixation of Selling price

An example of fixed cost is____________.

• Direct material cost

• Works manager's r salary

• Depreciation of machinery

• Chargeable expenses

The purpose of financial accounting is to provide information for___________.

• Assessing the profitability and financial position of the firm

• Fixing prices

• Locating factors leading to wastages and losses

• cost control

The term 'Sunk cost' refers to______

• cost that are directly influenced by unit manager

• Past cost that are now irrevocable

• Cost that should be incurred in a particular production process

• Benefits lost from rejecting the next best alternative

On the basis of behavior, cost can be classified as_________,_____________ and________________.

The main function of financial accounting is _____________reporting.

The technique and process of ascertaining cost is known as________________.

_____________Cost remains constant with changes in volume, while____________ cost fluctuate with volume.

Costing, cost accounting, cost accountancy mean the same

• TRUE

• FALSE

Direct cost and direct expenses are the same

• TRUE

• FALSE