Classifications of cost

Multiple choice questions (MCQs) quiz

1. A cost that is easily traceable to a particular cost object is known as:

2. A cost that is not easily or conveniently traceable to a cost object is known as:

3. Which of the following terms is used to denote the response of a cost to the change in business activity?

4. A cost that changes in total dollar amount with the change in the level of activity is known as:

5. A cost that does not change in total with the change in activity is called:

6. Mixed cost is also known as:

7. According to cost formula Y = $20,000 + $4X, total cost at an activity level of 15,000 units would be:

8. Which of the following costs is not a product cost?

9. Which of the following costs is not a period cost?

10. The costs incurred to acquire or manufacture a product is known as:

11. Prime cost = ?

12. Conversion cost = ?

13. Manufacturing cost = ?

14. The cost of alternative ‘A’ is $25,000, and the cost of alternative ‘B’ is $20,000. In managerial accounting, the difference of $5,000 in costs of two alternatives would be termed as:

15. Which of the following costs is treated as indirect labor?

16. The term quality cost refers to:

17. The costs that are incurred to avoid defects at first place are known as:

18. Which of the following costs is an example of external failure cost?

19. The benefit forgone when one alternative is selected over another is known as:

20. Washington Company incurred $50,000 to ship 22,000 liters and $42,000 to ship 18,000 liters. If the company ships 20,000 liters, its expected shipping expense would be closest to:

21. Which of the following terms refers to a cost that has already been incurred and cannot be changed by any decision?

22. Within the relevant range: