Cost Accounting Quiz

Cost accounting is primarily concerned with:

• Financial position

• Cost ascertainment

• Tax calculation

• Investment decisions

Which of the following is an objective of cost accounting?

• Preparing trial balance

• Determining cost of production

• Recording cash flows

• Calculating tax liability

Cost accounting helps in:

• Budgeting and cost control

• Auditing

• Tax planning

• Share valuation

The primary users of cost accounting information are:

• Creditors

• Internal management

• Government

• Shareholders

Cost accounting provides information mainly for:

• External reporting

• Internal decision-making

• Tax assessment

• Financial auditing

Which of the following best describes cost accounting?

• Historical in nature

• Forward-looking and analytical

• Regulated by law

• Used for investment analysis only

Which of the following is a direct cost?

• Factory rent

• Supervisor salary

• Raw materials

• Office stationery

Which cost changes with the level of production?

• Fixed cost

• Variable cost

• Sunk cost

• Notional cost

Which of the following is considered a fixed cost?

• Wages of casual labor

• Power used in production

• Factory rent

• Packing material

Sunk cost refers to:

• Cost incurred in the future

• Cost that can be changed

• Cost that has already been incurred and cannot be recovered

• Opportunity cost