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cost control introduction

Total questions: 25

Worksheet time: 13mins

Name
Class
Date
1.

Choose the correct definition of cost control

a)

the practice of identifying and reducing business expenses to increase profits, and it starts with the budgeting process.

b)

the practice of finding the cost and profit for a business while maintaining a certain budget

c)

controlling a cost to maintain an expenses for a business to prosper

d)

to control the output and input of a business

2.

What is a purchase ?

a)

The buying of everything

b)

The buying of our needs and wants

c)

The buying of our personal needs

d)

the buying of goods or services

3.

Why is Cost Control important ?

a)

To achieve a target set for the sales of the businesses

b)

To avoid the deviations, easily analyzed and take some corrective actions

c)

A method to reduce expenses / costs as low as possible and to get the targeted profit

d)

All answers are correct

4.

What is the meaning of Cost Control ?

a)

A particular regulation by certain executive actions which result in the cutting of costs in uncertain operations of the company

b)

A particular system by certain executive actions which result in the expenses of the company

c)

A particular regulation by certain executive actions which result in the cutting of costs in certain operations of the company

d)

A particular policy by certain executive actions which result in the cutting of costs in certain operations of the company

5.

Why is Purchasing important ?

a)

To meet their needs on a regular basis

b)

To get competitive performance, profitability and overall efficiency

c)

To get the optimal benefit from the value for money spent

d)

All answers are correct

6.

What are the advantages of implementing Cost Control?

Which of the four brothers below is wrong....

a)

Provides a yardstick for measuring performance

b)

Allows comparison

c)

Decreases debt

d)

Reduces the employees

7.

The opposite of a purchase is .............

a)

a Buying

b)

a Procuring

c)

a Shopping

d)

a sale

8.

I am the person who is responsible for buying goods for an operation. Who am I?

a)

Supplier

b)

Seller

c)

Operator

d)

Purchaser

9.

It serves as the receiving copy and proof of receipt.

a)

Purchase order

b)

Statement

c)

Delivery Receipt

d)

Order Slip

10.

It is a form listing of the products to be purchased, their price, delivery date, and other important details.

a)

Purchase Order

b)

Delivery receipt

c)

Notes

d)

Invoice

11.

I am responsible for receiving and checking for items. Who am I?

a)

Purchaser

b)

Receiving Clerk

c)

Supplier

d)

Room attendant

12.

It is a bill that accompanies the delivery of goods, to determine the correct amount to pay the supplier.

a)

Invoice or statement of account

b)

Notes

c)

Purchase order

13.

The following includes some of the important features in purchase order form, except

a)

Date Issue

b)

Details of goods

c)

Names and Contact

d)

Assets

14.

Which of the following is not included as a characteristic of an Ideal Purchaser?

a)

Honest

b)

Creative

c)

Reliable

d)

Trustworthy

15.

The purchaser is the one who creates a purchase order.

a)

True

b)

False

16.

A purchase order is necessary while Official Receipts are not

a)

True

b)

False

17.

After creating a purchase order, the supplier will be the one to send the purchase order to the buyer or purchaser.

a)

True

b)

False

18.

A purchaser must at all times honest and reliable.

a)

True

b)

False

19.

COSTING is analyzing the amount required to produce a product or ___________.

a)

service

b)

price

c)

item

20.

COST CONTROLLING is focused on ___________ expenditure to increase profits.

a)

increasing

b)

reducing

c)

producing

21.

Which of the following states why COST CONTROLLING is important?

a)

Helps to maximize profits

b)

Helps to stay within budget

c)

Helps to increase expenditure

d)

both a & b

e)

both a & c

22.

A product DOES NOT require cost controlling.

a)

TRUE

b)

FALSE

23.

Both products and services in a restaurant REQUIRE cost controlling.

a)

TRUE

b)

FALSE

24.

Which of the following is an an example of a PRODUCT(s) in a restaurant that requires costing and cost controlling?

a)

disposable plates

b)

napkins

c)

employee labor

d)

both a and b

e)

both a and c

25.

Safe, secure place in which items are placed until they are needed.

a)

purchasing

b)

receiving

c)

storage

d)

inventory