Blank quiz 15

What is cost analysis?

• Cost analysis is the study of customer satisfaction and feedback.

• Cost analysis is the evaluation of costs related to a project or service to assess its financial viability.

• Cost analysis involves calculating the time required for project completion.

• Cost analysis is the process of determining the market price of a product.

Why is cost analysis important?

• Cost analysis is crucial for informed decision-making and resource optimization.

• Cost analysis is irrelevant in project management.

• Cost analysis is only necessary for large companies.

• Cost analysis is primarily used for marketing strategies.

Name one technique used in cost analysis.

• Marginal Costing

• Job Order Costing

• Activity-Based Costing (ABC)

• Standard Costing

What does break-even analysis help determine?

• The break-even point in sales volume.

• The market demand for a specific product.

• The optimal pricing strategy for a new product.

• The total profit margin for a product.

How can cost analysis help businesses?

• Cost analysis helps businesses optimize expenses and improve financial decision-making.

• Cost analysis eliminates the need for budgeting.

• Cost analysis increases production time and costs.

• Cost analysis is only useful for large corporations.

What is the purpose of variance analysis?

• The purpose of variance analysis is to assess performance by comparing actual results to budgeted figures.

• To analyze customer satisfaction levels.

• To determine the total revenue generated.

• To calculate the average of a dataset.

What is a fixed cost?

• A fixed cost is an expense that does not change with production levels.

• A fixed cost is a one-time payment for a service.

• A fixed cost is an expense that increases with sales.

• A fixed cost varies with production levels.

What is a variable cost?

• Costs that are fixed and do not change with output levels.

• Costs that remain constant regardless of production volume.

• Costs that are incurred only during the initial setup of production.

• Variable costs are costs that vary with production volume.

How does cost analysis affect pricing strategies?

• Cost analysis only affects production efficiency, not pricing.

• Cost analysis informs pricing strategies by ensuring prices cover costs and align with profit goals.

• Cost analysis is irrelevant to pricing strategies.

• Pricing strategies are solely based on market trends.

What is the role of budgeting in cost management?

• Budgeting eliminates all financial risks.

• Budgeting is solely about increasing revenue.

• Budgeting helps allocate resources, monitor spending, and control costs.

• Budgeting is only for large corporations.