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

Absorption costing (also called full costing) includes both fixed and variable manufacturing overhead in the product cost.

Question 2

What is the formula for calculating the Contribution Margin?

Accepted Answer

Sales Revenue – Variable Costs

Answer

Contribution margin equals sales revenue minus all variable costs and shows how much revenue contributes toward covering fixed costs and profit.

Question 3

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

Accepted Answer

Individual job or customer order

Answer

Job-order costing tracks direct materials, direct labor, and overhead for each distinct job, making it ideal for custom or unique products.

Question 4

What is 'overapplied overhead'?

Accepted Answer

When applied overhead exceeds actual overhead incurred

Answer

Overapplied overhead occurs when the amount of overhead assigned to products using the predetermined rate is greater than actual overhead costs incurred.

Question 5

The Break-Even Point in units is calculated as:

Accepted Answer

Fixed Costs ÷ Contribution Margin per Unit

Answer

The break-even point in units equals total fixed costs divided by the contribution margin per unit, showing how many units must be sold to cover all costs.

Bcom Bachelor of Commerce Practice Test

Bcom Bachelor of Commerce Practice Test

Bcom Bachelor of Commerce Cost Accounting