21. What is the primary purpose of a cost-benefit analysis in cost accounting?
A. Analyzing Employee Morale
B. Evaluating the Economic Feasibility of a Decision or Project
C. Assessing Market Trends
D. Setting Production Targets
22. How does relevant costing assist in decision-making?
A. Focusing on Historical Costs
B. Ignoring Future Costs
C. Considering Only Costs That Differ Among Alternatives
D. Relying Solely on Fixed Costs
23. What is the role of a cost accountant in budgeting?
A. Managing Public Relations
B. Conducting Market Research
C. Estimating and Controlling Costs Within Budgetary Limits
D. Employee Training and Development
24. How does cost-volume-profit (CVP) analysis aid in decision-making?
A. Setting Employee Compensation
B. Calculating Fixed Costs
C. Analyzing the Relationship Between Costs, Sales Volume, and Profit
D. Evaluating Market Share
25. What is the significance of the payback period in cost accounting?
A. Determining Market Demand
B. Assessing Employee Performance
C. Estimating the Time Required to Recover an Investment
D. Analyzing Competitor Pricing Strategies
26. How does target costing contribute to competitive pricing strategies?
A. Focusing on Cost-Plus Pricing
B. Setting Prices Based on Customer Value and Market Conditions
C. Ignoring Competitor Prices
D. Relying Solely on Variable Costs
27. What is the role of cost behavior analysis in cost accounting?
A. Setting Advertising Budgets
B. Analyzing Market Trends
C. Understanding How Costs React to Changes in Activity Levels
D. Employee Satisfaction Assessment
28. How does cost accounting support decision-making in pricing strategies?
A. Ignoring Variable Costs
B. Considering Both Variable and Fixed Costs in Pricing Decisions
C. Relying Solely on Historical Costs
D. Assessing Employee Turnover
29. What is the purpose of a cost hierarchy in activity-based costing?
A. Calculating Variable Costs
B. Grouping Costs According to Their Relationship With Activities
C. Setting Sales Targets
D. Analyzing Market Share
30. How does the concept of life-cycle costing impact product design and development?
A. Ignoring Long-Term Costs
B. Focusing on Short-Term Profits
C. Considering Costs Throughout the Entire Life Cycle of a Product
D. Excluding Indirect Costs
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