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Introduction to Cost Accounting

Total questions: 15

Worksheet time: 13mins

Name
Class
Date
1.

Which one of the following is least likely to be an objective of cost accounting system?

a)

Product Costing and Inventory Valuation

b)

Sales Commission Determination

c)

Department Efficiency

d)

Income Determination

2.

It is sacrificed resource to achieve a specific objective

a)

Losses

b)

Cost

c)

Expenses

d)

Expenses

3.

It is expired costs with producing any revenue benefit.

a)

Cost

b)

Losses

c)

Expenses

d)

Income

4.

Financial accounting provides the primary source of information for:

a)

decision making in the finishing department

b)

improving customer service

c)

preparing the income statement for shareholders

d)

planning next year's operating budget

5.

Costs that remain the same in total regardless of changes in the activity level.

a)

Variable Cost

b)

Fixed Cost

c)

Relevant Cost

d)

Sunk Cost

6.

Are costs that vary in total directly and proportionately with changes in the activity level.

a)

Fixed Cost

b)

Variable Cost

c)

Mixed Cost

d)

Irrelevant Cost

7.

Cost that cannot be changed by any present and future decision, therefore irrelevant cost.

a)

Variable Cost

b)

Fixed Cost

c)

Sunk Cost

d)

Relevant Cost

8.

What is/are the importance(s) of cost management?

a)

To improve overall business profitability.

b)

To explore opportunity through cost optimization.

c)

To analyze and improve internal and external cost driver.

d)

I think all answers are correct.

9.
Cost unit is calculated as
a)
Total Expense/Quantity
b)
Quantity/Total Cost
c)
Total Cost/Quantity
d)
Quantity/Total Expense
10.
Cost is classified into:
a)
Cost and expense
b)
Expense and revenue
c)
Indirect expense and Overheads
d)
Direct cost and Indirect cost
11.
Costs that possess characteristics of both fixed and variable cost are called...
a)
Semi-variable cost
b)
Step cost
c)
variable cost
d)
fixed cost
12.
Remains fixed cost until production increases above certain limit:
a)
Step Cost
b)
Fixed Cost
c)
Semi-variable cost
d)
Variable cost
13.
Total Variable Cost is ____________ Production
a)
inversely proportional to
b)
equal to
c)
half of
d)
proportional to
14.

Loss is an (a)   cost.

15.

Distinguish between direct cost and indirect cost.

4 lines