Cost Accounting Quiz

What is the primary objective of cost accounting?

• To calculate profit

• To control costs

• To maintain financial records

• To assess market share

Which of the following best defines cost accounting?

• Recording all financial transactions

• Planning and control of business operations

• Systematic recording and analysis of costs

• Predicting future profits

The scope of cost accounting does NOT include:

• Budgetary control

• Cost control

• Tax planning

• Inventory control

Which of the following is a key nature of cost accounting?

• Legal requirement

• Historical data only

• Internal decision-making tool

• Public reporting

One of the principles of cost accounting is:

• Double-entry system

• Uniform cost terminology

• Accrual basis of accounting

• Following stock exchange norms

Which accounting system provides data for preparing financial statements?

• Cost Accounting

• Management Accounting

• Financial Accounting

• Budgetary Accounting

What distinguishes cost accounting from financial accounting?

• Legal requirement

• Focus on internal use

• Preparing balance sheet

• External reporting

Which of the following focuses on long-term strategic decisions?

• Cost Accounting

• Financial Accounting

• Management Accounting

• Tax Accounting

Cost accounting primarily aids in:

• Decision-making

• Filing tax returns

• External audits

• Preparing cash flow statements

What is the first step in the installation of a costing system?

• Hiring a cost accountant

• Selecting the cost method

• Designing cost reports

• Training the staff