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CA Inter Cost Accounting — practice questions

Explore 75 free Cost Accounting questions in CA Inter Cost and Management Accounting. Open each question or exercise to read its content, reference answers and available explanation.

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Cost Accounting questions and exercises with answers

Showing questions 1–30 of 75.

Cost accounting is the process of recording, classifying, allocating and reporting what?Read the answer and worked solution →For whom is cost accounting principally meant to provide information?Read the answer and worked solution →Financial accounting mainly reports a business's position and results to whom?Read the answer and worked solution →Modern cost accounting originated during which period?Read the answer and worked solution →In the early industrial age, most business costs were mainly of which type?Read the answer and worked solution →Which costs tend to remain the same even during idle periods?Read the answer and worked solution →A coach needs $60 of materials and 6 labourers paid $40 each. Variable cost per coach?Read the answer and worked solution →A selling price above variable cost makes what kind of contribution?Read the answer and worked solution →Fixed costs are $1,000 a month and normal output is 40 units. Fixed cost per unit?Read the answer and worked solution →Variable cost is $300 a unit; $1,000 fixed cost is spread over 40 units. Full cost?Read the answer and worked solution →With $300 variable cost a unit and $1,000 fixed cost, output falls to 50 units. Unit cost?Read the answer and worked solution →Why does variance analysis break actual versus standard cost into components?Read the answer and worked solution →Which item is a direct material for a furniture maker?Read the answer and worked solution →Which is not a category of inventory in a manufacturer?Read the answer and worked solution →Direct labour is wages of workers directly involved in doing what?Read the answer and worked solution →Which overhead covers office staff salaries?Read the answer and worked solution →Advertising and catalogues fall under which overhead?Read the answer and worked solution →What describes a semi-variable cost?Read the answer and worked solution →Which costs can be influenced by conscious management action?Read the answer and worked solution →A factory loss from a flood is best classified as which cost?Read the answer and worked solution →Which costs arise during routine day-to-day business operations?Read the answer and worked solution →What are historical costs?Read the answer and worked solution →Marginal cost is the change in total cost from changing output by how much?Read the answer and worked solution →Which cost is the price to replace a material or asset now or later?Read the answer and worked solution →Fixed costs remain unchanged irrespective of changes in what?Read the answer and worked solution →With growth of railroads and steel, which costs became more important by late 1800s?Read the answer and worked solution →Sales are $50,000 and materials used cost $18,000. What is throughput?Read the answer and worked solution →Awareness of which theory in the 1980s led to throughput accounting?Read the answer and worked solution →Activity-based costing assigns costs to products based on what?Read the answer and worked solution →ABC gets closer to true cost by treating many indirect costs as what?Read the answer and worked solution →

Worked practice questions

Cost accounting is the process of recording, classifying, allocating and reporting what?

  1. Its shareholders' dividends
  2. Its bank loan covenants
  3. Its external audit fees only
  4. An organization's costs
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Correct answer: D. An organization's costs

Cost accounting records and reports the costs an organization incurs so managers can plan and control operations.

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For whom is cost accounting principally meant to provide information?

  1. Tax authorities
  2. Outside creditors
  3. Equity shareholders
  4. Internal management
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Correct answer: D. Internal management

Cost data is generated mainly for managers who plan, control and decide inside the business.

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Financial accounting mainly reports a business's position and results to whom?

  1. The costing department
  2. The factory foreman
  3. Shop-floor supervisors
  4. External parties
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Correct answer: D. External parties

Financial accounting serves outsiders such as investors and lenders through standard-based statements.

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More Cost and Management Accounting topics

Cost SheetProcess CostingMarginal CostingEmployee CostInventory ValuationActivity Based CostingBudgets and Budgetary ControlJob Costing