Introduction to Cost and Management Accounting Quiz

What is the primary purpose of cost accounting?

• To analyze market trends

• To track and control costs

• To prepare financial statements

• To manage investments

Which of the following is included in the prime cost?

• Factory overheads

• Direct material

• Selling expenses

• Administrative overheads

What does a cost sheet provide details about?

• Sales revenue

• Employee salaries

• Costs incurred in production

• Market share

Which of the following is NOT a component of factory cost?

• Direct labor

• Office expenses

• Factory overheads

• Direct material

Which type of accounting focuses on internal users?

• Financial Accounting

• Cost Accounting

• Management Accounting

• Tax Accounting

Which of the following is a characteristic of management accounting?

• Flexible for internal use

• Focuses on external users

• Strictly regulated

• Historical data only

What type of data does management accounting combine?

• Historical data only

• Only financial data

• Cost and financial data

• Market data

Which of the following is an example of selling and distribution overheads?

• Factory rent

• Advertising expenses

• Depreciation on machinery

• Salary of office staff

What is the role of cost accounting in decision-making?

• Provides financial snapshots

• Ensures compliance with regulations

• Guides high-level financial strategies

• Offers detailed cost analysis

What is included in office and administrative overheads?

• Salary of managing director

• Factory rent

• Direct material costs

• Cost of production