Practice Cost Accounting Basics – Types Of Costs (20) - Cost Accounting Basics – Types of Costs

Practice: Cost Accounting Basics – Types of Costs

Lesson 20Cost Accounting Basics – Types of Costs

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11 questions

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6 sample questions

Question 1.
Define direct costs with an example.
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Think of costs that are traceable to one specific product.
Question 2.
What are fixed costs? Give one example.
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Consider costs that you must pay every month.
3Question 3.
What type of costs can be directly attributed to a product?
- Fixed Costs
- Direct Costs
- Indirect Costs
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Think about what costs you can trace back directly to a product.
4Question 4.
True or False: Sunk costs can influence future business decisions.
- True
- False
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Consider what sunk costs represent in terms of recovery.
Question 5.
A furniture company spends ₹10,000 on wood to make 100 chairs and rents a factory for ₹20,000 a month. If production increases to 200 chairs, how do variable and fixed costs influence pricing?
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Consider how total costs contribute to the cost per unit.
Question 6.
Discuss a scenario where an entrepreneur must choose between a corporate job with a salary of ₹8 LPA and starting a business that may provide uncertain returns. Analyze the opportunity cost involved.
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Think about the trade-offs between security and potential growth.

7 more questions in this section. Enroll free to practise them all.