Cost Accounting MCQ Multiple Choice Questions - Page 2 for Practice

Correct Answer is: Setting a price based on market demand

Correct Answer is: The cost of direct labor

Correct Answer is: Contribution margin per unit / Fixed costs

Correct Answer is: Costs that are not considered in the decision-making process

Correct Answer is: Sales commission

Correct Answer is: Rent for the factory

Correct Answer is: The direct cost of labor

Correct Answer is: The cost of defects, repairs, and scrap

Correct Answer is: To compute contribution margin

Correct Answer is: The fixed costs

Correct Answer is: A method used for external financial reporting

Correct Answer is: Allocating overhead costs to products

Correct Answer is: Calculating the cost of direct materials

Correct Answer is: A unit where costs are controlled and allocated

Correct Answer is: The cost of factory rent

Correct Answer is: Costs related to selling expenses

Correct Answer is: Costs are averaged across all units produced

Correct Answer is: Pricing based on competition

Correct Answer is: The best pricing strategy

Correct Answer is: The ability to allocate costs to departments

Correct Answer is: To compute the gross margin

Correct Answer is: Based on the sales price

Correct Answer is: Depreciation on factory machinery

Correct Answer is: Internal tax calculations

Correct Answer is: The fixed costs of production

Correct Answer is: To compute sales revenue

Correct Answer is: Sales - Operating expenses

Correct Answer is: Historical costs

Correct Answer is: There is no difference between the two

Correct Answer is: The cost that can be avoided in the future