COST ACCOUNTING AND COST MANAGEMENT

COST ACCOUNTING AND COST MANAGEMENT Easy 1. Refers to the income or benefit sacrificed or foregone when an alternative is selected over another [A] avoidable cost [B] postponable cost [C] out-of-po cket cost [D] opportunity cost. 2. The following are the functions of controllership, except: [A] reporting and interpreting decisions made by management [B] planning and control [C]tax administration and compliance with all the requirements of governmental regulatory bodies [D] protection of assets. 3. The collection, presentation and analysis of cost data should serve the following essential uses or aims, except: [A] planning profit by means of budgets [B] controlling costs via responsibility accounting [C] assisting in establishing selling prices and a pricing policy [D] furnishing relevant cost data for evaluation of decisions made by management. 4. The following are examples of variable cost, which one is the exception: [A] sales commission [B] depreciation [C] royalties [D] overtime premiums. 5. The following are examples of factory overhead, which is not included: [A] overtime premiums [B] cost of spoilage and rework not chargeable to a particular job [C] power used in machine operation [D] all of the choices are considered factory overhead.