Bcom Bachelor of Commerce Cost Accounting

Question 1

Which costing method assigns all manufacturing costs—fixed and variable—to products?

Accepted Answer

Absorption costing

Answer

Variable costing

Answer

Activity-based costing

Answer

Standard costing

Question 2

What is the formula for calculating the Contribution Margin?

Accepted Answer

Sales Revenue – Variable Costs

Answer

Sales Revenue – Fixed Costs

Answer

Gross Profit – Operating Expenses

Answer

Net Income + Depreciation

Question 3

In a job-order costing system, costs are accumulated by:

Accepted Answer

Individual job or customer order

Answer

Department or process

Answer

Product line

Answer

Time period

Question 4

What is 'overapplied overhead'?

Accepted Answer

When applied overhead exceeds actual overhead incurred

Answer

When actual overhead exceeds applied overhead

Answer

When overhead is not allocated to products

Answer

When fixed costs exceed variable costs

Question 5

The Break-Even Point in units is calculated as:

Accepted Answer

Fixed Costs ÷ Contribution Margin per Unit

Answer

Fixed Costs ÷ Selling Price per Unit

Answer

Variable Costs ÷ Selling Price per Unit

Answer

Total Costs ÷ Units Produced

Question 6

Which cost behavior remains constant in total regardless of changes in activity level?

Accepted Answer

Fixed cost

Answer

Variable cost

Answer

Semi-variable cost

Answer

Step cost