Economic Analysis lecture test

Characteristics of cost accounting - more than one answer

• It is closer to financial accounting than management accounting.

• It is closer to management accounting than financial accounting.

• It is forward-looking

• It is backward-looking

• It sometimes uses historical information to start the analytical process

Permanent accounts include - more than one answer

• assets

• liabilities

• revenues

• costs and expenses

• equity accounts

Temporary accounts include - more than one answer

• assets

• liabilities

• revenues

• costs and expenses

• equity accounts

Their costs can be considered on a case-by-case basis and are possible to determine accurately

• operational goals

• tactical goals

• strategic goals

Their costs mainly considered at the medium organisational level and can be more accurately estimated to some extent

• operational goals

• tactical goals

• strategic goals

Their costs are sketchy, considered at a global organisational level, difficult to estimate in detail.

• operational goals

• tactical goals

• strategic goals

S.W.O.T. Analysis in terms of costs contains analysis of - more than one answer

• Strenghts

• Weaknesses

• Opportunities

• Threats

The first step in the control process is to

• Measure performance

• Compare performance to standards

• Take action

• Establish standards

Process of ascertaining, determining costs

• Costing

• Cost Accounting

• Cost Accountancy

• Cost analysis

Anything for which a calculation of costs is desired

• Cost driver

• Cost object

• Cost generator

• Cost effect