Podcast
Questions and Answers
What is the main focus of cost accounting?
What is the main focus of cost accounting?
- Analyzing financial statements
- Forecasting market trends
- Managing human resources
- Determining the cost of a product and services (correct)
What does cost accounting measure and report?
What does cost accounting measure and report?
- Only non-financial information
- Both financial and non-financial information relating to the cost of acquiring or consuming resources (correct)
- Information related to marketing strategies
- Only financial information
What does cost accounting identify, define, measure, and analyze?
What does cost accounting identify, define, measure, and analyze?
- Competitor pricing strategies
- Customer preferences
- Various elements of costs associated with producing and marketing goods and services (correct)
- Employee satisfaction levels
What does cost accounting focus on preparing in good form for a manufacturing concern?
What does cost accounting focus on preparing in good form for a manufacturing concern?
What type of firms does cost accounting compare the flow of costs for?
What type of firms does cost accounting compare the flow of costs for?
What is the main focus of cost accounting?
What is the main focus of cost accounting?
What does cost accounting measure and report?
What does cost accounting measure and report?
What does cost accounting identify, define, measure, and analyze?
What does cost accounting identify, define, measure, and analyze?
In what form does cost accounting prepare the cost of goods manufactured and sold for a manufacturing concern?
In what form does cost accounting prepare the cost of goods manufactured and sold for a manufacturing concern?
What does cost accounting compare/distinguish in terms of income statement for service, trading, and manufacturing firms?
What does cost accounting compare/distinguish in terms of income statement for service, trading, and manufacturing firms?
Flashcards
Main focus of cost accounting
Main focus of cost accounting
Determining the cost of products and services.
Cost accounting measures
Cost accounting measures
Both financial and non-financial information related to costs.
Elements of costs
Elements of costs
Components associated with producing and marketing goods/services.
Cost of goods manufactured
Cost of goods manufactured
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Forms of cost accounting reports
Forms of cost accounting reports
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Types of firms for cost accounting
Types of firms for cost accounting
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Cost analysis purpose
Cost analysis purpose
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Income statements comparison
Income statements comparison
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Acquisition of resources
Acquisition of resources
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Focus area of cost accounting
Focus area of cost accounting
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Study Notes
Cost Accounting Overview
- The main focus of cost accounting is to determine the cost of goods manufactured and sold.
- Cost accounting measures and reports the costs of products, services, or activities.
Cost Analysis
- Cost accounting identifies, defines, measures, and analyzes the costs of business operations.
- It identifies and classifies costs as direct or indirect, fixed or variable, and controllable or uncontrollable.
Manufacturing Concerns
- Cost accounting prepares the cost of goods manufactured and sold in a manufacturing concern in a comprehensive and detailed form.
- It prepares the cost of goods manufactured and sold report, which includes the costs of direct materials, direct labor, and overhead.
Comparison of Firms
- Cost accounting compares the flow of costs for manufacturing, service, and trading firms.
- It distinguishes between the costs of these firms in terms of income statement, highlighting the differences in cost structures and profit margins.
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Description
Test your knowledge of cost concepts and classifications with this quiz. Learn about the relationship between financial and cost accounting, different cost classifications, flow of costs in service, trading, and manufacturing firms, actual vs. normal costing methods, and separating variable and fixed components of mixed costs. This quiz will also cover preparing cost of goods manufactured.
