Font size
WorksheetsCOST ACCOUNTING - COST CONCEPTS
Total questions: 39
Worksheet time: 21mins
State objectives of cost accounting
A.Determination of cost
B. Fixing selling price
C. Cost control and cost reduction
D.Helps in managerial decision-making
E. All of the above
Cost accounting refers to
(a)
Inventory includes
A. Finished goods
B. Raw materials
C. Work-in-progress
D. All of the above
E. None of the above
Indirect expenses include
A. Direct materials
B. Factory overheads
C. Administrative overheads
D. A&B
E. B&C
Managers salary is a part of
A. Factory over heads
B. Administration overheads
C. Selling and distribution overheads
D.A &C
E. B&C
Advertising expenses are a part of
A. Factory overheads
B. Administrative overheads
C. selling and distribution overheads
D. None of the above
Dividends are a part of
A. Factory overheads
B. Administrative overheads
C. Selling and distribution overheads
D. None of the above
Prime cost comprises of
A. Direct labour
B. Direct expenses
C. Direct material
D. B,C
E. A,B,C
Which of the following statements are correct.
a. Prime cost is the total of direct wages and variable overheads.
b. Abnormal cost is uncontrollable.
c. Contract costing method is used in ship building.
d. Cost accounting is a techinique of managerial control.
All statements are correct
Statements A , C & D are correct
Except statement 'C' is correct
Only statements 'C' & 'D' are correct
Which one of the following is not a limitation of cost accounting?
a. Cost of installation of costing system is very high.
b. Difficult to be implemented by small business concerns.
c. Involves an element of judgement or estimation.
d. Cost accounting is not a pure science but is an art.
Statements A & C
Statement D only
Statements B & D
None of the above
Prime cost =
Indirect materials + Indirect labour + Indirect expenses
Total material + Total labour + Other expenses
Total cost + selling costs + distribution costs
Direct material + Direct labour + Direct expenses
Which one of the following is not treated as a method of costing?
Job costing & Operating costing
Batch costing & Contract costing
Marginal costing & Absorption costing
Process costing & Unit costing
variable overhead----
remains constant per unit
remains varies per unit
remains constant total cost
remains varies total cost
standing charges are also known as-----expenses
variable
semi-variable
fixed
semi-fixed
for exercising control over cost, the best system is ------costing
estimated
standard
marginal
historical
can we plan, control and reduce cost with cost accounting
yes
no
may be
not sure
When classified according to traceability to cost objective, the cost of raw materials is considered a:
Discretionary cost
Direct cost
Product cost
Committed cost
Variable costs are costs that change regularly while fixed costs remain the same all the time.
True
False
Budgeted costs belong to which cost classification?
Planning and control
Decision making and other analytical purposes
Managerial influence
Time-frame perspective
Which of the following is a variable cost in an insurance company?
Office space rental fee
Salary of the company president
Property taxes
Sales commissions
Which cost is also known as inventoriable cost?
Product cost
Period cost
Manufacturing cost
Non-manufacturing cost
If direct materials = RM200, direct labor = RM150, and manufacturing overhead = RM100, how much is the total conversion cost?
RM350
RM300
RM250
RM200
Not in the choices
Future costs can never be sunk costs.
True
False
These are all the costs that are expensed on the income statement when they are incurred.
Product costs
Operating expenses
Period costs
Manufacturing costs
Non-manufacturing costs
The cost of inventory classified according to financial statement
Income statement
Raw material inventory cost
Statement of financial position
Inventoriable cost
Statement of cash flows
If we need to order 1,000 units, we will have higher total ordering cost if we order 200 units every time compared to if we order 250 units every time.
True
False
It is possible for both fixed cost and variable cost to be combined in only one cost.
True
False
The cost raw materials is recorded as product cost when:
the raw materials are bought.
the raw materials are sold.
the raw materials are processed even if it is not yet finished.
the finished goods are available.
the finished goods are sold.
