Cost Accounting Quiz

What is the definition of cost in cost accounting?

• Expenditure attributable to a given situation

• Cost plus profit

• Selling price minus profit

• Total revenue generated

Which of the following is an example of direct material in the production of a table?

• Nails

• Glue

• Wood

• Screws

What is the term used for remuneration involved in the product's production?

• Sales personnel

• Direct labour

• Indirect labour

• CEO

Which of the following is an example of indirect expenses in cost accounting?

• Royalty payments

• Rent

• Direct material

• Direct labour

What is the formula for calculating total cost using the traditional or conventional method?

• Total cost = variable cost + fixed cost

• Cost + profit = selling price

• Total cost = selling price - profit

• Total cost = direct material + direct labour

What type of cost remains constant regardless of the increase in activity?

• Variable cost

• Fixed cost

• Mixed cost

• Step cost

What is the variable cost per unit if the total cost at 3,500 units is RM19,500?

• RM5

• RM4

• RM6

• RM7

What is the total cost at 6,000 units if the fixed cost is RM12,000?

• RM30,000

• RM36,000

• RM42,000

• RM48,000

What is the total cost at 7,500 units if there is a step up in fixed cost of RM1,500 when quantity exceeds 7,000 units?

• RM34,000

• RM32,000

• RM33,500

• RM35,500

Which of the following is an example of direct material in the production of a burger?

• Spices

• Meat patty

• Chili sauce

• Butter/margarine