Cost Accounting Questions and Answers in Quiz Form 7 for Practice

Correct Answer is: The amount of profit each sale generates after covering variable costs

Correct Answer is: To assess the viability of new projects

Correct Answer is: Marginal costing considers only variable costs; absorption costing includes both fixed and variable costs

Correct Answer is: Starting from scratch and justifying all costs

Correct Answer is: To accumulate costs for a specific job or order

Correct Answer is: Analyzing costs for pricing decisions and budgeting

Correct Answer is: The way in which a cost changes with the level of activity

Correct Answer is: The specific activities that drive costs

Correct Answer is: A cost that does not change with the level of production

Correct Answer is: A pricing strategy where a markup is added to the cost of production