CS Quizz 1

Basic objectives of cost accounting is

• financial audit

• cost ascertainment

• profit analysis

• tax compliance

Overhead cost is the total of ____________.

• all indirect costs

• all direct costs

• indirect and direct costs

• all specific costs

Depreciation of plant and machinery is a part of

• factory overhead.

• selling overhead.

• distribution overhead.

• administration overhead

Economic Order Quantity is the quantity at which the cost of carrying is

• Equal to the cost of ordering

• Less than the cost or ordering

• Cost of over-stocking

• None of these

Reorder level =

• Maximum consumption+minimum consumption

• Reorder quality+Reorder quantity

• Maximum consumption×Maximum reorder period

• Minimum level×Maximum level