English for accounting

Question 1

In job-order costing, what is the primary characteristic of a job that makes it suitable for this costing method?

Accepted Answer

2

Question 2

True or False: In process costing, costs are accumulated by department.

Accepted Answer

o

Question 3

What is the main goal of Cost-Volume-Profit (CVP) analysis?

Accepted Answer

Understand how costs, volume, and profit are related.

Question 4

Which of the following is an example of a fixed cost?

Accepted Answer

2

Question 5

True or False: Variable costs change in total as the level of activity changes.

Accepted Answer

o

Question 6

What is the break-even point?

Accepted Answer

Sales level where profit is zero.

Question 7

Which of the following is a primary benefit of budgeting?

Accepted Answer

1

Question 8

True or False: A master budget includes all of the individual budgets of an organization.

Accepted Answer

o

Question 9

What is the starting point for most budgeting processes?

Accepted Answer

Sales budget

Question 10

Which of the following is an example of a relevant cost for a decision?

Accepted Answer

1

Question 11

True or False: Opportunity costs are always irrelevant to decision-making.

Accepted Answer

x

Question 12

What is a sunk cost?

Accepted Answer

An unrecoverable past cost.

Question 13

Which costing system is best suited for producing thousands of identical products?

Accepted Answer

1

Question 14

True or False: In job-order costing, each job is assigned unique costs.

Accepted Answer

o

Question 15

What is the contribution margin?

Accepted Answer

Sales revenue minus variable costs.

Question 16

Which of the following is a component of CVP analysis?

Accepted Answer

3

Question 17

True or False: A budget helps in controlling expenses.

Accepted Answer

o

Question 18

What is the purpose of a production budget?

Accepted Answer

To determine units to be produced.

Question 19

Which of the following is an example of a relevant cost for a 'make or buy' decision?

Accepted Answer

1

Question 20

True or False: A company should always discontinue a product line that is generating a loss.

Accepted Answer

x