Chap 2: Cost terms and concepts

_____________ is a resource sacrificed or foregone to achieve a specific objective.

• Cost

• Cost unit

• Cost centre

• Cost object

______________________ is a cost that has occurred.

___________________________is known as the difference between budgeted and actual.

• Expenses

• Cost

• Budget

• Variance

____________________ refers to anything for which costs are assigned.

• Cost

• Cost unit

• Cost object

• Actual cost

A _____________________________ is defined as "a unit of quantity of product, service, or time in relation to which costs may be ascertained or expressed."

A ______________ is a department within a business to which costs can be allocated

Choose the correct cost classification.

• Cost accounting

• By Behaviour

• By Function

• Cost management

• By traceability

A manufacturer of pyjamas in Selangor produces almost 5000 production unit per month. For this manufacturer cost of purchasing materials like satin and cotton are _________________ cost and the cost of electricity is ___________ cost.

• Total, fixed

• Fixed, mixed

• Direct, indirect

• indirect, direct

The followings are the techniques to separate mixed costs into variable and fixed portions, EXCEPT

• high-low method

• least square regression method

• scattergraph method

• splitting method

Cost behavior is classified as:

• Fixed, variable and mixed cost

• Direct and indirect cost

• Manufacturing and non manufacturing

• Product and period cost