TECH 303

Question 1

Refers to the measure of the cost output relationship. It is concerned with determining money value of inputs (labor, raw material) called as the overall cost of production which helps in deciding the optimum level of production

Answer 1

COST ANALYSIS

Question 2

Classifications of Costs

Answer 2

According to Elements
According to Traceability
According to Function
According to Behavior
According to Reporting
According to Normality
According to Controllabiility

Question 3

Amount spent on materials and supplies used to produce the product (Direct)

Answer 3

Material Cost

Question 4

Amount spent on the salary and wages of the labor to produce a product

Answer 4

Labor Cost

Question 5

Amount spent in the manufacturing other than materials and labor

Answer 5

Overhead

Question 6

Cost spent on the manufacturing or production of the product

Answer 6

Production Cost

Question 7

Costs that are spent in formulating business policies, directing organization and controlling the operation.

Answer 7

Administrative Cost

Question 8

Cost to create and stimulate demand and secure orders

Answer 8

Selling Cost

Question 9

Costs that are directly traced to product

Answer 9

Direct Cost

Question 10

Costs that are indirectly traced to a product

Answer 10

Indirect cost

Question 11

Sum cost in producing the product. Also called inventoriable sale

Answer 11

Product cost

Question 12

All cost other than product cost

Answer 12

Period Cost

Question 13

Cost that remains fixed for a certain volume of output

Answer 13

Fixed Cost

Question 14

Have the characteristics of both gixed and variable costs

Answer 14

Mixed Cost

Question 15

Cost proportionally related to the level od output .

Answer 15

Variable Cost

Question 16

Under to According to Elements

Answer 16

1. Material Cost
2. Labor Cost
3. Overhead

Question 17

Under to According to Function

Answer 17

1. Production Cost
2. Administrative Cost
3. Selling Cost

Question 18

Under to Acoording to Traceability

Answer 18

1.

Question 19

Under to According to Behavior

Answer 19

1. Fixed Cost
2. Varoable Cost
3. Mixed Cost

Question 20

Under to According to Reporting

Answer 20

1. Product Cost
2. Period Cost

Question 21

Under of According to Normality

Answer 21

1. Normal Cost (Unavoidable Cost)
2. Abnormal Cost (Aviodable Cost)

Question 22

Under of According to Controllabiility

Answer 22

1. Controllable Cost
2. Uncontrollable Cost

Question 23

Your Opportunity Cost is your

Answer 23

Opportunity Loss

Question 24

Is the total cost cost incurred in production and is comprised of business cost, opportunity cost and normal profit

Answer 24

Full cost

Question 25

Also called as actual cost is the cost actually incirred by the firm for making all the physical payments and contractual obligations

Answer 25

Explicit Cost

Question 26

Imputed cost is the implied cost that does not take a form of cash outlatand neither is recorded in the books of account

Answer 26

Implicit Cost

Question 27

Includes all the cost (fixed, varoable, direct and indirect) incurred in carrying out the operation of the business

Answer 27

Business Cost