Cost Accounting MCQ Multiple Choice Questions Answers - Page 2 for Practice

Correct Answer is: Setting a product price based on the cost of production plus a markup

Correct Answer is: The goods that are partially completed during the production process

Correct Answer is: Fixed costs / Contribution margin per unit

Correct Answer is: Costs that are avoidable and differ between alternatives

Correct Answer is: Rent for factory premises

Correct Answer is: Direct materials for a specific product

Correct Answer is: A cost that changes with the level of production

Correct Answer is: All of the above

Correct Answer is: To compare actual costs with budgeted costs

Correct Answer is: The level of production or activity

Correct Answer is: A method where only variable costs are assigned to products

Correct Answer is: Managing and reducing costs without affecting production

Correct Answer is: Determining the cost reduction required to achieve a desired profit margin

Correct Answer is: A department responsible for generating profits

Correct Answer is: Wages and salaries of workers directly involved in production

Correct Answer is: Costs that increase or decrease with production levels

Correct Answer is: Costs are assigned to specific jobs or orders

Correct Answer is: Pricing based on cost of production plus a markup

Correct Answer is: The number of units that need to be sold to cover costs

Correct Answer is: The ability to generate profits from fixed costs

Correct Answer is: To assign costs to specific products or departments

Correct Answer is: By department or process

Correct Answer is: Direct materials for production

Correct Answer is: Pricing and product selection

Correct Answer is: A unit or item to which costs are assigned

Correct Answer is: To determine the profit from a given sales volume

Correct Answer is: Sales - Total variable costs

Correct Answer is: Pre-determined costs

Correct Answer is: Absorption costing includes fixed costs in the cost of products; variable costing does not

Correct Answer is: The cost that has already been incurred and cannot be recovered