Cost Sheet Analysis
21 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the primary function of a cost sheet?

  • To show the various components that make up total cost (correct)
  • To display only the total cost of a product
  • To prepare financial statements for external use
  • To calculate workforce efficiency
  • How does a cost sheet benefit management in pricing?

  • By eliminating the need for any price adjustments
  • By fixing selling price in advance based on cost (correct)
  • By allowing comparison with competitors' prices
  • By providing historical selling prices
  • Which of the following is NOT an advantage of using a cost sheet?

  • Improving production policy formulation
  • Eliminating the need for cost management entirely (correct)
  • Identifying inefficiencies in production
  • Helping in submitting accurate quotations
  • What can be analyzed using a cost sheet for cost reduction?

    <p>Percentage of different overheads on total cost</p> Signup and view all the answers

    Which basis can a cost sheet be prepared on?

    <p>Actual or estimated basis</p> Signup and view all the answers

    What are considered direct costs in the total cost calculation?

    <p>Direct material, direct labor, and direct expenses</p> Signup and view all the answers

    Which of the following is not included in the factory overheads?

    <p>Depreciation office building</p> Signup and view all the answers

    Which expense is categorized under selling and distribution overheads?

    <p>Sales office expenses</p> Signup and view all the answers

    What is added to prime cost to calculate the factory cost?

    <p>Factory overheads</p> Signup and view all the answers

    Which item directly affects the total cost calculation?

    <p>All of the above</p> Signup and view all the answers

    What is the correct sequence to arrive at the total cost from prime cost?

    <p>Add factory overheads, then administrative overheads, then selling overheads</p> Signup and view all the answers

    Which of the following elements is typically not included when calculating the cost of production?

    <p>Sales man salary</p> Signup and view all the answers

    What is the role of administrative overhead in total cost calculation?

    <p>It is added to factory cost to compute total cost</p> Signup and view all the answers

    What is the primary purpose of training existing accounting staff in costing methods?

    <p>To broaden their job scope and create new opportunities.</p> Signup and view all the answers

    Which statement describes the effect of implementing a new financial accounting system on existing staff?

    <p>It will enhance the role of accountants by providing new skills.</p> Signup and view all the answers

    What is essential for gaining worker’s confidence in the new accounting system?

    <p>Educating employees on the system's benefits.</p> Signup and view all the answers

    How should a cost system be tailored to meet the needs of a specific organization?

    <p>It should be flexible and avoid unnecessary additional work.</p> Signup and view all the answers

    What is a key characteristic of job costing?

    <p>Each job's costs are collected and accumulated separately.</p> Signup and view all the answers

    What distinguishes contract costing from job costing?

    <p>Contract costing is applied for large and long-duration jobs.</p> Signup and view all the answers

    What is the primary focus of batch costing?

    <p>Manufacturing large quantities of parts as batches.</p> Signup and view all the answers

    What role does proper supervision play in cost system implementation?

    <p>It helps maintain system efficiency and achieves cost control goals.</p> Signup and view all the answers

    Study Notes

    Cost Accounting Syllabus

    • UNIT-I: Accounting information and managerial decision-making, Financial Accounting vs. Cost and Management Accounting, Role of Management Accountant, Basic Cost terms and Concepts, Relevant Cost, Statement of Cost.
    • UNIT -2: Absorption Costing and Marginal Costing, Break Even Analysis, Cost-Volume-Profit analysis, Managerial Application of CVP Analysis.
    • UNIT-3: Job order Cost Systems, Cost Allocation and Activity Based costing, Process Cost System, Normal Loss and Abnormal Loss, Joint Product and By Products, Equivalent Production.
    • UNIT – 4: Segment performance Analysis, Responsibility Accounting System, Variance Analysis, Evaluation of Cost and Sales Variances.
    • UNIT-5: Budgetary Control System, Operating and Functional Budgets, Financial Budgets, Master Budgets, Zero-Base Budgeting, Strategy and Balanced Score Card.

    Syllabus Details

    • UNIT-1 ACCOUNTING: Learning objectives, Introduction, Accounting Information and Managerial Decision-making, Concept of Decision-making, Concept of Differential Costs, Steps in Decision-making, Make or Buy Decision, Operate or Shutdown, Expand or Reduce Capacity Decisions, Key Factor, Special orders, Sell or process further, Accept or Reject Decisions, Difference between Cost Accounting and Management Accounting, Difference between Financial Accounting and Cost Accounting, Role of Management Accountant, Basic Cost Terms and Concepts, Relevant Cost, Statement of Cost, Meaning of Cost Sheet, Importance of Cost Sheet, and Questions and Exercises.
    • UNIT - 2 ABSORPTION COSTING AND MARGINAL COSTING: Learning Objectives, Introduction, Meaning of Marginal Cost, Marginal Costing, Absorption Costing, Special Terms for Marginal Cost, Contribution, Cost Volume Profit Analysis, Break-Even Point, Angle of Incidence, Margin of Safety and Key or Limiting factor, Assumptions underlying CVP Analysis/ Break - Even Charts, Managerial Application of CVP Analysis, Summary, Key Terms, and Questions and Exercises.
    • UNIT -3 JOB ORDER COST SYSTEMS: Learning Objectives, Introduction, Job Costing, Cost Allocation and Activity - Based Costing, Process Cost System, Normal Loss and Abnormal Loss, Joint product and By-products, Equivalent Production, Summary, Key Terms, and Questions and Exercises.
    • UNIT-4 SEGMENT PERFORMANCE ANALYSIS: Learning Objectives, Introduction, Responsibility Accounting System, Variance Analysis, Evaluation of Cost and Sales Variances, Summary, Key Terms, and Questions and Exercises.
    • UNIT-5 BUDGETARY CONTROL SYSTEM: Learning Objectives, Introduction, Meaning of Budget, Meaning of Budgetary Control, Budgetary Control as a Management Tool, Limitations of Budgetary Control, Forecasts and Budgets, Budgetary Control System, Kinds of Budgets: Functional Budgets, Flexibility Budgets, Period Budgets, Condition Budgets, Zero-Base Budgeting Strategy, Balanced Scorecard, Summary, Key Terms, and Questions and Exercises, including detailed explanations of each concept.

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Related Documents

    Cost Accounting PDF

    Description

    This quiz explores the primary functions and benefits of cost sheets in management decision-making, particularly in pricing strategies. It also covers direct costs, overheads, and the overall calculation of total costs. Test your knowledge on how cost sheets can facilitate effective financial analysis and cost reduction.

    More Like This

    Cost Sheet Analysis
    5 questions

    Cost Sheet Analysis

    ReachableSynecdoche9507 avatar
    ReachableSynecdoche9507
    Cost Sheet Study Notes
    5 questions

    Cost Sheet Study Notes

    ReachableSynecdoche9507 avatar
    ReachableSynecdoche9507
    Use Quizgecko on...
    Browser
    Browser