12 Questions
Which of the following is NOT a characteristic of relevant cost from a manager's perspective?
Sunk cost
Which of the following costs is NOT considered to be a direct product cost?
Factory overhead
What is the relationship between product cost and cost of goods sold?
Product cost is only expensed as cost of goods sold when the units are sold
Which of the following is NOT a component of prime cost?
Factory overhead
What is the key difference between direct department costs and indirect department costs?
Direct costs are directly identified with the department, while indirect costs are not
Which of the following is NOT a type of period cost?
Direct materials
What is the primary focus of Management Accounting?
Reducing expenses and increasing profit
Which of the following is an example of a Capital Expenditure (CapEx)?
Construction of a new factory
What is the primary purpose of Operating Expenditures (OpEx)?
To support normal operating activities
Which of the following is included in the Cost of Goods Manufactured?
Direct labor costs
What is the purpose of the Cost of Goods Sold?
To match the production cost to the revenue earned
Which of the following expenses are included in Distribution Expenses?
Shipping costs for delivering products
Learn about profit management in Management Accounting, focusing on operating performance, increasing profit through sales and expense reduction, and the accountant's perspective. Explore the concept of Capital Expenditure (CapEx) in traditional Management Accounting practices.
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