COST ACCOUNTING QUES
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Accounting and Financial Management for Bankers — JAIIB.
One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
What is cost accounting primarily concerned with?
Cost accounting is concerned with the recording, classification, and analysis of costs incurred in producing goods or services to aid management in planning and control decisions.
What is the formula for calculating total cost in cost accounting?
Total cost equals prime cost plus factory overhead plus administration overhead.
How does cost accounting differ from financial accounting?
Cost accounting focuses on internal cost analysis for management decision-making, while financial accounting records financial transactions for external reporting to stakeholders as per statutory requirements.
What is 'idle time cost' and how does it affect production cost?
Idle time cost is wages paid for non-productive hours, increasing overhead.
What is meant by 'cost centre' in cost accounting?
A cost centre is a department, function, or unit of an organisation to which costs are allocated and for which cost data is collected separately to facilitate cost control and accountability.
What is 'scrap value' in the context of cost accounting?
Scrap value is residual sale value of waste material from manufacturing process.
What is the difference between a cost centre and a profit centre?
A cost centre is responsible only for costs incurred, whereas a profit centre is responsible for both costs and revenues, enabling measurement of profitability for that unit.
What is 'job costing' and when is it typically used?
Job costing assigns costs to specific jobs or orders produced individually.
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