Podcast
Questions and Answers
Which of the following is NOT an element of cost in cost accounting?
Which of the following is NOT an element of cost in cost accounting?
- Direct labor
- Administrative expenses (correct)
- Factory overhead
- Direct materials
What is the primary objective of cost accounting?
What is the primary objective of cost accounting?
- Cost control (correct)
- Maximizing profits
- Market share expansion
- Ensuring regulatory compliance
Which method of costing is most suitable for industries where production is continuous and uniform?
Which method of costing is most suitable for industries where production is continuous and uniform?
- Job costing
- Process costing (correct)
- Marginal costing
- Activity-based costing
What is the main function of a cost accountant?
What is the main function of a cost accountant?
In cost accounting, what is the purpose of a cost ledger control account?
In cost accounting, what is the purpose of a cost ledger control account?
Study Notes
Cost Accounting Elements
- Interest on capital is NOT an element of cost in cost accounting.
Primary Objective of Cost Accounting
- The primary objective of cost accounting is to determine the cost of a product or service.
Method of Costing
- The marginal costing method is most suitable for industries where production is continuous and uniform.
Function of a Cost Accountant
- The main function of a cost accountant is to classify, record, and report costs in a manner that helps management to make informed decisions.
Cost Ledger Control Account
- The purpose of a cost ledger control account is to provide a summary of all costs incurred during a particular period, which helps in preparing the trial balance and financial statements.
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Description
Test your knowledge of cost accounting with this quiz covering basic concepts, unit costing, reconciliation of cost and financial accounting, and non-integral accounting. The quiz includes theory and practical questions to assess your understanding of costing, objectives, functions, and cost control accounts.
