Introduction to Cost Accounting Quiz

What is cost accounting?

• Cost accounting is the study of consumer behavior

• Cost accounting is the process of marketing analysis

• Cost accounting is the recording, analysis, and reporting of costs associated with a business's operations.

• Cost accounting is the management of financial accounts

What are the objectives of cost accounting?

• Selling more products, increasing revenue, expanding the business

• Determining the cost of products, providing information for decision-making, planning, and control, assisting in cost reduction and cost control, facilitating the preparation of financial statements.

• Reducing employee salaries, cutting down on production costs, minimizing expenses

• Maximizing profits, increasing market share, improving customer satisfaction

What are the different methods of costing?

• Job costing and process costing

• Variable costing, absorption costing, and marginal costing

• Direct costing, indirect costing, and differential costing

• Historical costing, budgeted costing, and forecast costing

What is the importance of cost accounting in business?

• Cost accounting is only useful for small businesses

• Cost accounting has no importance in business

• Cost accounting only provides information for marketing purposes

• Cost accounting provides valuable information for decision-making and cost control.

What is the role of cost accounting in decision making?

• Cost accounting helps in analyzing and controlling costs to make better decisions.

• Cost accounting has no impact on decision making

• Cost accounting is only relevant for large companies

• Cost accounting is only used for financial reporting

What are the advantages of cost accounting?

• Cost accounting only focuses on performance evaluation

• Cost accounting is not useful for cost control

• Cost accounting helps in cost control, decision making, and performance evaluation.

• Cost accounting has no impact on decision making

What is the primary responsibility of a cost accountant in an organization?

• Managing financial investments

• Recording and analyzing production costs

• Auditing external financial statements

• Facilitating employee payroll

What distinguishes cost accounting from financial accounting?

• Cost accounting focuses on internal reporting, while financial accounting is for external stakeholders.

• Financial accounting deals with production costs, while cost accounting addresses revenue streams.

• Cost accounting emphasizes long-term financial planning, while financial accounting focuses on short-term goals.

• Financial accounting is solely concerned with manufacturing costs, while cost accounting covers all business expenses

Which financial statements are primarily associated with cost accounting?

• Balance sheet and income statement

• Statement of cash flows and retained earnings statement

• Cost of goods sold and operating expenses statement

• Statement of changes in equity

Which accounting system is more likely to use job costing or process costing for tracking costs?

• Cost accounting

• Financial accounting

• Both equally

• Tax accounting