Cost and Management Accounting Chapter 1 Quiz

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16 Questions

What is the difference between Cost Accounting, Financial Accounting, and Management Accounting?

Cost Accounting focuses on historical financial data, while Management Accounting focuses on future-oriented information

What is the primary objective of Cost and Management Accounting?

To help in decision making and control functions within the organization

What is the function of the Cost Accounting Department in an organization?

To analyze, record, and report cost information

What are the methods used to segregate semi-variable costs into fixed and variable costs?

Regression analysis and high-low method

What is the concept of cost reduction and cost control mainly focused on?

Balancing costs with quality and efficiency considerations

What does the term 'Digital Costing System' refer to?

A system for managing costs using digital technology and automation

What is the main focus of Cost Leadership as described in Porter's theory of Generic Competitive Strategies?

Producing goods or providing services at the lowest cost while maintaining quality

According to CIMA, what is the foundation of the internal financial information system for managers?

An organization's costing system

What does Cost Accounting involve according to the definition provided?

Process of ascertaining costs

How is Cost Accountancy defined?

The application of costing and cost accounting principles, methods and techniques

What is the main objective of Management Accounting according to CIMA Official Terminology?

To create, protect, preserve and increase value for stakeholders

What is the definition of Costing according to CIMA?

The technique and process of ascertaining costs

What is Cost defined as according to the text?

The amount of resource given up in exchange for some goods or services

What is included in the process of Cost Accounting according to the text?

Application of costing and cost accounting principles, methods, and techniques

What is Management Accounting according to CIMA Official Terminology?

The application of accounting and financial management principles to increase value for stakeholders.

What is Cost Accountancy according to the text?

The application of costing and cost accounting principles, methods, and techniques to control an organization's costs.

Test your knowledge on the introduction to cost and management accounting. Learn about the meaning, objective, and importance of cost and management accounting, the functions and role of cost accounting department, installation of a cost accounting system, and the differences between cost accounting, financial accounting, and management accounting.

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