11. What is the main objective of cost control in cost accounting?
A. Maximizing Sales Revenue
B. Minimizing Employee Turnover
C. Managing and Reducing Costs
D. Enhancing Brand Image
12. What is the formula for calculating the contribution margin?
A. Sales – Fixed Costs
B. Variable Costs / Sales
C. Sales – Variable Costs
D. Fixed Costs / Variable Costs
13. In cost accounting, what does the term “Sunk Cost” refer to?
A. Future Expenses
B. Variable Production Costs
C. Costs That Have Already Been Incurred and Cannot Be Recovered
D. Direct Materials Costs
14. What is the purpose of a cost allocation base in allocating indirect costs?
A. Determining Selling Prices
B. Distributing Indirect Costs to Cost Centers
C. Employee Performance Evaluation
D. Calculating Variable Costs
15. How does absorption costing treat fixed manufacturing overhead costs?
A. Excludes Them from Product Costs
B. Allocates Them Only to Direct Costs
C. Includes Them in the Cost of Each Unit Produced
D. Ignores Them in Cost Calculations
16. What is the significance of the cost of production report in process costing?
A. Assessing Market Demand
B. Summarizing the Costs Incurred in Each Production Department
C. Analyzing Competitor Strategies
D. Setting Sales Targets
17. What is the purpose of a standard cost in cost accounting?
A. Determining Market Share
B. Establishing a Benchmark for Evaluating Actual Performance
C. Calculating Profit Margins
D. Analyzing Economic Trends
18. What role does a cost variance play in performance evaluation?
A. Assessing Market Competitiveness
B. Calculating Tax Liabilities
C. Highlighting the Difference Between Actual and Standard Costs
D. Employee Satisfaction Analysis
19. What is the significance of the cost of quality in cost accounting?
A. Analyzing Customer Feedback
B. Measuring the Costs Incurred to Ensure Quality Products
C. Estimating Variable Costs
D. Setting Advertising Budgets
20. How does marginal costing differ from absorption costing?
A. Ignores Variable Costs
B. Treats Fixed Manufacturing Overhead as a Period Cost
C. Allocates Variable Costs to Products
D. Excludes Direct Labor Costs
Admin