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COST ACCOUNTING- 2

Total questions: 10

Worksheet time: 3mins

Name
Class
Date
1.

The main purpose of cost Accounting is to_______

a)

Maximize profits

b)

Help in inventory

c)

Provide information to management for decision making

d)

Aid in the fixation of Selling price

2.

An example of fixed cost is____________.

a)

Direct material cost

b)

Works manager's r salary

c)

Depreciation of machinery

d)

Chargeable expenses

3.

The purpose of financial accounting is to provide information for___________.

a)

Assessing the profitability and financial position of the firm

b)

Fixing prices

c)

Locating factors leading to wastages and losses

d)

cost control

4.

The term 'Sunk cost' refers to______

a)

cost that are directly influenced by unit manager

b)

Past cost that are now irrevocable

c)

Cost that should be incurred in a particular production process

d)

Benefits lost from rejecting the next best alternative

5.

On the basis of behavior, cost can be classified as_________,_____________ and________________.

(a)  

6.

The main function of financial accounting is (a)   reporting.

7.

The technique and process of ascertaining cost is known as (a)   .

8.

_____________Cost remains constant with changes in volume, while____________ cost fluctuate with volume.

(a)  

9.

Costing, cost accounting, cost accountancy mean the same

a)

TRUE

b)

FALSE

10.

Direct cost and direct expenses are the same

a)

TRUE

b)

FALSE