Cost Accounting Essentials Quiz

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Questions and Answers

What is the primary purpose of Cost Accounting?

To manage human resources
To track and control the cost of production (correct)
To maximize sales revenue
To conduct market research

What is a potential advantage of Cost Accounting?

Increases shareholder dividends
Expedites product development
Facilitates informed decision making (correct)
Reduces employee turnover

What is a limitation of Cost Accounting?

Improves accuracy of financial forecasts
Enhances employee job satisfaction
Reduces the need for financial analysis
May lead to overemphasis on short-term goals (correct)

Match the following terms with their meaning in Cost Accounting:

Cost Accounting = Recording, analyzing, and reporting costs related to production processes Advantages of Cost Accounting = Enhanced decision-making, cost control, and performance evaluation Limitations of Cost Accounting = May lead to inaccurate cost allocation, high implementation costs, and complexity Meaning of Cost Accounting = Recording, analyzing, and reporting costs related to production processes Signup and view all the answers

Match the following advantages with their description in Cost Accounting:

Enhanced decision-making = Allows management to make informed decisions based on accurate cost data Cost control = Helps in monitoring and regulating costs to ensure efficient resource utilization Performance evaluation = Assessment of efficiency and effectiveness in utilizing resources and achieving goals Advantages of Cost Accounting = Enhanced decision-making, cost control, and performance evaluation Signup and view all the answers

Match the following limitations with their description in Cost Accounting:

Inaccurate cost allocation = Assigning costs to products or services in a way that does not reflect actual usage High implementation costs = Significant expenses associated with setting up and maintaining cost accounting systems Complexity = Difficulty in understanding and managing the intricate cost accounting methods and data Limitations of Cost Accounting = May lead to inaccurate cost allocation, high implementation costs, and complexity Signup and view all the answers