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Quiz 1_ Introduction to Cost Accounting

The document is a quiz on cost accounting, covering key concepts such as the primary objective of cost accounting, components of total cost, cost behavior, cost drivers, and various costing methods. It includes multiple-choice questions that test knowledge on fixed and variable costs, period costs, and the break-even point. The quiz aims to assess understanding of fundamental principles in cost accounting.

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Chennalyn Alojado
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26 views2 pages

Quiz 1_ Introduction to Cost Accounting

The document is a quiz on cost accounting, covering key concepts such as the primary objective of cost accounting, components of total cost, cost behavior, cost drivers, and various costing methods. It includes multiple-choice questions that test knowledge on fixed and variable costs, period costs, and the break-even point. The quiz aims to assess understanding of fundamental principles in cost accounting.

Uploaded by

Chennalyn Alojado
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Quiz 1: Introduction to Cost Accounting

1.​ What is the primary objective of cost accounting?​


a) Tax calculation​
b) Financial reporting​
c) Cost control and decision-making​
d) Compliance with GAAP
2.​ Which of the following is NOT a component of total cost?​
a) Direct materials​
b) Indirect labor​
c) Selling expenses​
d) Manufacturing overhead
3.​ In cost accounting, which cost changes with the level of production?​
a) Fixed cost​
b) Variable cost​
c) Sunk cost​
d) Opportunity cost
4.​ What is a cost driver?​
a) A factor that affects cost behavior​
b) A person responsible for cost allocation​
c) A method of reducing costs​
d) A fixed cost
5.​ Which of the following is an example of period cost?​
a) Direct labor​
b) Depreciation on factory equipment​
c) Factory rent​
d) Advertising expense
6.​ Which costing method assigns all manufacturing costs to products?​
a) Variable costing​
b) Absorption costing​
c) Standard costing​
d) Marginal costing
7.​ Direct labor and direct materials together are called:​
a) Manufacturing overhead​
b) Conversion cost​
c) Prime cost​
d) Sunk cost
8.​ Which of the following is an example of indirect cost?​
a) Steel used in car production​
b) Wages of factory workers​
c) Factory supervisor salary​
d) Assembly line labor
9.​ The break-even point is the level where:​
a) Revenue exceeds total cost​
b) Revenue equals total cost​
c) Revenue is less than total cost​
d) Profit is maximized
10.​Which of the following statements is TRUE?​
a) Cost accounting is only used in manufacturing companies​
b) Fixed costs remain unchanged per unit​
c) Variable costs per unit change with production​
d) The contribution margin is sales minus variable costs

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