Cost Concept, Analysis, and Classification MCQs

True Tamplin

Written by True Tamplin, BSc, CEPF®
Updated on July 22, 2022

This multiple choice question (MCQs) test contains 14 questions. You need to choose the correct answer from 4 or 5 responses to move onto the next question.

If you read our article on cost accounting, this will help you to prepare for your exams, clarify the main concepts, and toget ready to appear in interviews.

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Frequently Asked Questions

What is Cost Analysis?

Cost Analysis is the process of modeling costs to support strategic planning, decision making, and cost reduction.

What is the term cost refers to?

It is used for cost-evaluation purposes when there is a lack of competition or comparable offers in the marketplace.

What is the term cost refers to?

What is the term cost refers to?

What are the Cost Analysis methods?

Cost allocation, cost-effectiveness analysis, and cost-benefit analysis represent a continuum of types of Cost Analysis that can have a place in program evaluation. They range from relatively simple program-level methods to highly technical and specialized techniques.

What are the cost classifications?

In managerial accounting, costs are classified into fixed costs, variable costs or mixed costs (based on behavior); product costs or period costs (for external reporting); direct costs or indirect costs (based on traceability); and sunk costs, opportunity costs or incremental costs (for decision-making).

True Tamplin, BSc, CEPF®

About the Author
True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.

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