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CA Inter Cost Accounting — practice questions — page 2

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 31–60 of 75.

Which drawback is noted for activity-based costing?Read the answer and worked solution →Lean accounting supports which type of manufacturing?Read the answer and worked solution →Lean accounting applied to accounting processes aims to eliminate what?Read the answer and worked solution →The term lean accounting grew from companies using which production system?Read the answer and worked solution →Contribution margin is sales revenue in excess of which costs?Read the answer and worked solution →Sales are $500,000 and variable costs $300,000. Contribution margin ratio?Read the answer and worked solution →Another name for the contribution margin ratio is what?Read the answer and worked solution →Contribution margin ratio is 35% on sales of $200,000. Variable costs are?Read the answer and worked solution →Cost-volume-profit analysis examines the relationship between prices, volumes, costs and what?Read the answer and worked solution →Management accounting provides what to managers?Read the answer and worked solution →Compared with financial accounting, management accounting is mainly what?Read the answer and worked solution →Who normally uses confidential management accounting information?Read the answer and worked solution →Financial accounting information is computed by reference to what?Read the answer and worked solution →Traditional standard costing dates back to which decade?Read the answer and worked solution →Grenzplankostenrechnung (GPK) is a costing methodology from which country?Read the answer and worked solution →Throughput accounting measures contribution per unit of which resource?Read the answer and worked solution →Variance analysis compares actual costs with which costs?Read the answer and worked solution →Management accountants usually have what type of reporting relationship?Read the answer and worked solution →Management accounting gives detail broken down by what?Read the answer and worked solution →Variance analysis compares what for materials and labour?Read the answer and worked solution →In activity-based costing, manufacturing costs are mainly driven by what?Read the answer and worked solution →Machine lubricants are classed as which kind of material?Read the answer and worked solution →Which inventory category sits between raw materials and finished goods?Read the answer and worked solution →Unlike variable costs, which cost stays the same in idle periods?Read the answer and worked solution →With a 30% rate on materials of 1,000, material plus overhead is?Read the answer and worked solution →A job has labour cost 500 and a 20% labour rate. Labour plus overhead?Read the answer and worked solution →Which industry is the classic user of the material cost rate?Read the answer and worked solution →Overheads are absorbed into product cost mainly for what purpose?Read the answer and worked solution →Overheads apportioned on measurable benefit received follow which basis?Read the answer and worked solution →Under FIFO, 100 units at $50 and 110 at $55 are expensed. Cost of sales?Read the answer and worked solution →

Worked practice questions

Which drawback is noted for activity-based costing?

  1. It ignores all activities
  2. It cannot trace any costs
  3. It can be slow and costly
  4. It needs no staff input
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Correct answer: C. It can be slow and costly

Pinning costs to every activity takes much effort and can introduce errors.

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Lean accounting supports which type of manufacturing?

  1. Lean manufacturing
  2. Batch dumping
  3. Job-lot hoarding
  4. Mass stockpiling
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Correct answer: A. Lean manufacturing

Lean accounting provides measurement and control methods suited to lean thinking.

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Lean accounting applied to accounting processes aims to eliminate what?

  1. Waste and errors
  2. Customer demand
  3. Sales orders
  4. Useful output
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Correct answer: A. Waste and errors

The aim in lean methods is to cut waste, free capacity and remove errors and defects.

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More Cost and Management Accounting topics

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