Cost Management and Pricing Decisions MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Cost Management and Pricing Decisions, a fundamental topic in the field of Cost Accounting. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Cost Management and Pricing Decisions MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Cost Management and Pricing Decisions mcq questions that explore various aspects of Cost Management and Pricing Decisions problems. Each MCQ is crafted to challenge your understanding of Cost Management and Pricing Decisions principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace Cost Accounting tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Cost Management and Pricing Decisions MCQs are your pathway to success in mastering this essential Cost Accounting topic.

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Cost Management and Pricing Decisions MCQs | Page 10 of 15

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Q91.
The cost such as dispose value of an old machine is $6000 is classified as

a.

irrelevant

b.

depreciated cost

c.

salvages

d.

relevant

Discuss
Answer: (d).relevant
Q92.
The costs which are related to different functions of the value chain of company, such as marketing and manufacturing costs are considered as

a.

value costs

b.

future function costs

c.

business function costs

d.

sunk function costs

Discuss
Answer: (c).business function costs
Q93.
The type of outcomes that can be measured in numerical terms are classified as

a.

qualitative factors

b.

quantitative factors

c.

expected factors

d.

recorded factors

Discuss
Answer: (b).quantitative factors
Q94.
The low level managers in organizations are to make decisions about

a.

net income irrelevancy

b.

operating income maximization

c.

operating income minimization

d.

operating income relevancy

Discuss
Answer: (b).operating income maximization
Q95.
The second step in decision making process is

a.

multi-collinearity information

b.

quantitative information

c.

qualitative analysis

d.

obtaining information

Discuss
Answer: (d).obtaining information
Q96.
The costs that behaves as irrelevant costs in process of decision making are classified as

a.

past costs

b.

future costs

c.

expected costs

d.

sunk costs

Discuss
Answer: (a).past costs
Q97.
An amount of additional cost incurred for any particular activity is classified as

a.

incremental cost

b.

differential cost

c.

dependent cost

d.

independent cost

Discuss
Answer: (a).incremental cost
Q98.
In today's global world, an outsourcing of products or services from lower cost countries is classified as

a.

differential in-sourcing

b.

off-shoring

c.

incremental outsourcing

d.

differential outsourcing

Discuss
Answer: (b).off-shoring
Q99.
The costs that are unavoidable and remain unchanged no matter what done are classified as

a.

sunk costs

b.

bunked costs

c.

unrecorded costs

d.

recorded costs

Discuss
Answer: (a).sunk costs
Q100.
When an essential information for calculation of income statement is missing, then the costs that can be considered for this purpose is called

a.

expected cost

b.

expected revenues

c.

irrelevant costs

d.

relevant costs

Discuss
Answer: (d).relevant costs
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