cost accounting Quiz Practice Quiz | Cost Accounting

Q: What is the primary goal of cost accounting?

To provide information for decision-making and performance evaluation. — Cost accounting focuses on providing information to help managers make informed decisions.

Q: Which of the following is a direct cost in manufacturing an electrical component?

Direct materials (e.g., copper wire) — Direct materials are directly traceable to the product.

Q: What are indirect costs also known as?

Manufacturing overhead — Indirect costs are also referred to as manufacturing overhead.

Q: Which cost accounting method assigns overhead costs to products based on a predetermined overhead rate?

Absorption costing — Absorption costing uses a predetermined overhead rate to assign overhead costs.

Q: What is the formula for calculating the cost of goods sold (COGS)?

Beginning Inventory + Purchases - Ending Inventory — COGS reflects the cost of items sold during a period, calculated as shown.

Question 1 of 5

What is the primary goal of cost accounting?

Cost accounting focuses on providing information to help managers make informed decisions.

Question 2 of 5

Which of the following is a direct cost in manufacturing an electrical component?

Direct materials are directly traceable to the product.

Question 3 of 5

What are indirect costs also known as?

Indirect costs are also referred to as manufacturing overhead.

Question 4 of 5

Which cost accounting method assigns overhead costs to products based on a predetermined overhead rate?

Absorption costing uses a predetermined overhead rate to assign overhead costs.

Question 5 of 5

What is the formula for calculating the cost of goods sold (COGS)?

COGS reflects the cost of items sold during a period, calculated as shown.

cost accounting Quiz