Cost Accounting Quiz

What is the main purpose of cost accounting?

• To identify all variable and fixed costs associated with the production process

• To calculate tax liabilities

• To present a company's financial position to external sources

• To track employee salaries

What are fixed costs in cost accounting?

• Costs tied to a company's level of production

• Costs associated with day-to-day operations

• Costs that don't vary depending on the level of production

• Costs specifically related to producing a product

What are variable costs in cost accounting?

• Costs tied to a company's level of production

• Costs that don't vary depending on the level of production

• Costs specifically related to producing a product

• Costs associated with day-to-day operations

What are direct costs in cost accounting?

• Costs specifically related to producing a product

• Costs tied to a company's level of production

• Costs associated with day-to-day operations

• Costs that don't vary depending on the level of production

What are indirect costs in cost accounting?

• Costs specifically related to producing a product

• Costs associated with day-to-day operations

• Costs tied to a company's level of production

• Costs that cannot be directly linked to a product