CIMA - Chapter 2.5 - Introduction to costing - Cost classification for control

Question 1

What is Classification by Responsibility

Answer 1

Classification by responsibility refers to grouping costs based on the organizational unit or person accountable for incurring and managing them.

Question 2

What are the Key Features of Classification by Responsibility

Answer 2

Question 3

What are the Types of Responsibility Centers

Answer 3

1. Cost Centers
2. Revenue Centers
3. Profit Centers
4. Investment Centers

Question 4

What are Cost Centers?

Answer 4

Question 5

what are Revenue Centers

Answer 5

Question 6

What are Profit Centers

Answer 6

Question 7

what are Investment Centers

Answer 7

Question 8

What are Controllable Costs

Answer 8

Question 9

What are Uncontrollable Costs

Answer 9

Question 10

what are the Key Differences Between Controllable and Uncontrollable Costs

Answer 10

Question 11

what is the Relationship Between Controllable and Uncontrollable Costs

Answer 11

Question 12

what are the Key Factors Influencing the Controllability of Fixed Costs

Answer 12

1. Time Frame
2. Long-Term
   3.Level of Control
   4.Nature of the Fixed Cost
   5.Committed Fixed Costs

Question 13

Explain Controllability of Fixed Costs - Time Frame

Answer 13

Question 14

Explain Controllability of Fixed Costs - Level of Control

Answer 14

Question 15

Explain Controllability of Fixed Costs - Nature of the Fixed Cost

Answer 15