Cost Accounting Quiz

What is the primary objective of cost accounting?

• To reduce and control costs

• To manage human resources

• To determine the total revenue of a business

• To prepare financial statements

Which of the following is NOT an element of cost?

• Revenue

• Expenses

• Material

• Labour

What does a cost object refer to?

• A cost reduction technique

• A type of financial statement

• Anything for which a separate measurement of cost is desired

• A method of cost allocation

Which costing method is used for tracing specific costs to individual jobs?

• Process costing

• Contract costing

• Job costing

• Batch costing

What is the difference between cost allocation and cost apportionment?

• Cost allocation is based on estimates, while apportionment is based on actuals

• Cost allocation is for fixed costs, while apportionment is for variable costs

• Cost allocation is for direct costs, while apportionment is for indirect costs

• There is no difference; they are the same

Which of the following is a characteristic of financial accounting?

• Focuses on internal management needs

• Emphasizes cost control

• Reports on the profitability of specific products

• Provides a complete record of financial transactions

What is the purpose of cost control?

• To determine selling prices

• To prepare budgets

• To identify and prevent waste

• To increase sales revenue

Which of the following is a limitation of cost accounting?

• It eliminates the need for financial accounting

• It provides accurate financial statements

• It is applicable to all industries uniformly

• It can be expensive to implement

What does standard costing involve?

• Ignoring fixed costs in calculations

• Calculating costs after production is completed

• Setting predetermined standards for cost ascertainment

• Using actual costs for all products

Which of the following is a technique of costing?

• Standard costing

• Historical costing

• Marginal costing

• All of the above