1601. The main purpose of cost accounting is to :

A. Maximise profits
B. Help in inventory valuation
C. Provide management with information for decision-making purposes *
D. Aid in the fixation of selling prices

1602. In cost planning, one of the most important tools is:

A. Direct cost
B. Cost sheet
C. Budget *
D. Marginal costing

1603. The purpose of cost accounting is to provide information for :

A. Preparing costing P and L account
B. Cost control *
C. Identifying the factors that cause waste and losses
D. Assessing the profitability and financial position of the firm

1604. Fixed cost per unit increases when :

A. Variable cost per unit increases
B. Variable cost per unit decreases
C. Production volume increases
D. Production volume decreases *

1605. Variable cost per unit :

A. Varies when output varies
B. Remains constant *
C. Increases when output increases
D. Decreases when output decreases

1606. Increase in total variable cost is due to :

A. Increase in fixed cost
B. Increase in production *
C. Increase in sales
D. Increase in total cost

1607. An example of variable cost is :

A. Property taxes
B. Direct material cost *
C. Interest on capital
D. Depreciation of machinery

1608. An example of fixed cost is :

A. Direct material cost
B. Depreciation of machinery
C. Works manager’s salary *
D. Chargeable expenses

1609. Cost accounting concepts include all of the following except :

A. Planning
B. Profit sharing *
C. Controlling
D. Product costing

1610. The three major elements of product costs are all but :

A. Direct materials
B. Direct labour
C. Factory overhead
D. Indirect labour *