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Questions and Answers
Which of the following is a characteristic of cost accounting?
Which of the following is a characteristic of cost accounting?
- Emphasizes external financial reporting
- Focuses on internal decision-making (correct)
- Mainly concerned with market analysis
- Primarily used for tax reporting
What is the main purpose of a cost allocation system in cost accounting?
What is the main purpose of a cost allocation system in cost accounting?
- To calculate total fixed costs
- To determine variable costs per unit
- To estimate future production volumes
- To assign indirect costs to products or services (correct)
Which of the following is an example of a variable cost in cost accounting?
Which of the following is an example of a variable cost in cost accounting?
- Depreciation of factory equipment
- Property taxes on factory building
- Salary of production supervisor
- Direct materials for production (correct)
Study Notes
Characteristics of Cost Accounting
- Identifying, recording, and reporting costs is a characteristic of cost accounting.
Cost Allocation System
- The main purpose of a cost allocation system in cost accounting is to assign indirect costs to cost objects, such as products, departments, or projects.
Types of Costs
- Variable costs in cost accounting are costs that vary directly with changes in the level of activity, such as direct materials and direct labor costs.
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Description
Test your knowledge of cost accounting with this quiz designed for the exam of audit officer in the government of Sindh. Explore characteristics of cost accounting, the purpose of cost allocation systems, and examples of variable costs. Prepare for the exam by mastering key concepts and terminology in cost accounting.
