Cost and management accounting

Audit fees paid to auditors is part of

• Administration Cost

• Production cost

• Selling & Distribution cost

• Not shown in cost sheet

Which of these is not an objective of Cost Accounting?

• Ascertainment of Cost

• Determination of Selling Price

• Cost Control and Cost reduction

• Assisting Shareholders in decision making

Fixed cost is a cost:

• Which changes in total in proportion to changes in output

• Which is partly fixed and partly variable in relation to output

• Which do not change in total during a given period despise changes in output

• Which remains same for each unit of output

Sunk costs are:

• relevant for decision making

• Not relevant for decision making

• cost to be incurred in future

• A.   future costs

Salary paid to factory store staff is part of:

• Factory overheads

• Production Cost

• Direct Employee cost

• Direct Material Cost

Overhead refers to:

• Direct or Prime Cost

• All Indirect costs

• Only Factory indirect costs

• Only indirect expenses

Canteen expenses for factory workers are part of:

• Factory overhead

• Administration Cost

• Marketing cost

• None of the above

A profit centre is a centre

• Where the manager has the responsibility of generating and maximising profits

• Which is concerned with earning an adequate Return on Investment

• Both of the above

• Which manages cost

Marginal costs is taken as equal to

• Prime Cost plus all variable overheads

• Prime Cost minus all variable overheads

• Variable overheads

• None of the above

Which cost is more useful for decision making?

• Marginal cost

• Fixed cost

• Total cost

• Opportunity cost