Cost Accounting Quiz 2 - Classification of Costs

___________ is the cost of selecting one course  of action and the losing of other opportunities to carry out that course of action.

• Sunk Cost

• Opportunity Cost

• Differential Cost

• Joint Cost

___________ Is the one that has already been incurred and cannot be avoided by decisions taken in the future.

• Sunk Cost

• Opportunity Cost

• Differential Cost

• Joint Cost

___________ Relates to two or more products produced from a common production process or element-material, labour or overhead or any combination there of  or so locked together that one cannot be produced without producing the other.

• Sunk Cost

• Opportunity Cost

• Differential Cost

• Joint Cost

___________ Is the difference in total cost between alternatives, calculated  to assist decision making.

• Sunk Cost

• Opportunity Cost

• Differential Cost

• Joint Cost

______________ The cost of replacing  an asset at the Current Market Value

• Imputed Cost

• Common Cost

• Marginal Cost

• Replacement Cost

______________ The cost which can be easily associated with a product, process or department

• Imputed Cost

• Traceable Cost

• Marginal Cost

• Conversion Cost

___________ These costs are not incurred and are useful while taking a decision pertaining to a particular situation. Eg. Salaries of Owners of Proprietorship or Partnership, Interest on internally generated funds.

• Imputed Cost

• Common Cost

• Marginal Cost

• Replacement Cost

___________ Are those costs which are incurred for more than one product, job, territory or any other specific costing object. Eg Rent of a factory

• Imputed Cost

• Common Cost

• Marginal Cost

• Replacement Cost

___________ Aggregate of Variable Costs; ie Prime Cost  + Variable Overheads

• Imputed Cost

• Common Cost

• Marginal Cost

• Replacement Cost

______________ Ascertainment  of whether income from a particular project will at least cover the expenditure for the project.

• Imputed Cost

• Out of Pocket Cost

• Marginal Cost

• Replacement Cost