WorksheetsIntroduction to Cost Accounting
Total questions: 5
Worksheet time: 3mins
A cost center and a cost unit are the same
YES. Both are used to ascertain cost
YES. Both are used for cost control
NO. Cost center is a section of the business to which costs are charged. Cost unit helps to ascertain cost for a product or service.
Which of the following is true about the behavior of fixed and variable costs?
Total FC changes with output.
Per unit FC reduces when output increases.
Total VC does not change with output.
Per unit VC reduces when output increases.
Companies are incurring extra costs for providing work from home facilities to employees during the current pandemic. Identify whether these are controllable or non controllable costs.
Controllable
Non controllable
We need further information to arrive at a decision as whether a cost is controllable or non controllable depends on the level of management authority .
Management has to decide between to alternative choices of action. Which of the following costs are relevant to their decision making?
Sunk cost.
Marginal cost.
Opportunity cost.
Both 2 and 3
Cost accounting is needed by which type of users
Internal users
External users
