Cost Classification and Codification Quiz

What is the primary focus of cost accounting?

• Managing investments

• Preparing financial statements

• Controlling operations or products

• Conducting audits

Which of the following is NOT a basic element of cost?

• Revenue

• Expenses

• Labour

• Material

What are costs that can be directly identified with a specific cost unit called?

• Indirect costs

• Variable costs

• Direct costs

• Fixed costs

Which of the following is an example of a direct material cost?

• Factory rent

• Wages of factory supervisors

• Raw materials

• Utilities

What is the aggregate of direct costs, direct labour, and direct expenses called?

• Variable cost

• Prime cost

• Total cost

• Fixed cost

Which type of costs cannot be directly allocated to a specific cost unit?

• Indirect costs

• Variable costs

• Fixed costs

• Direct costs

What are costs that remain unchanged regardless of activity levels called?

• Fixed costs

• Variable costs

• Direct costs

• Indirect costs

Which of the following is an example of a period cost?

• Selling expenses

• Factory overheads

• Production wages

• Cost of raw materials

What type of costs can be influenced by the actions of a responsibility center manager?

• Controllable costs

• Uncontrollable costs

• Fixed costs

• Sunk costs

Which of the following costs is considered avoidable?

• Sunk costs

• Fixed costs

• Costs that can be saved by choosing an alternative

• Uncontrollable costs