Which of the following is a key objective of cost control?
a) Increasing expenses
b) Reducing efficiency
c) Maintaining cost within budget
d) Eliminating all costs
What is the primary aim of cost reduction?
a) Minimizing cost without affecting quality
b) Increasing cost to improve quality
c) Ignoring cost analysis
d) Focusing only on profit maximization
Which of the following is a cost control technique?
a) Standard costing
b) Ignoring expenses
c) Overproduction
d) Increasing waste
Which tool helps in reducing costs by analyzing value-added and non-value-added activities?
a) Value Analysis
b) Benchmarking
c) Cost-plus pricing
d) Market segmentation
Which cost reduction method focuses on reducing material wastage?
a) Kaizen costing
b) Lean manufacturing
c) Job costing
d) Cost-plus pricing
Which of the following is NOT a cost control method?
a) Budgetary control
b) Standard costing
c) Financial leverage
d) Ratio analysis
Which costing method helps in identifying deviations from planned expenses?
a) Standard costing
b) Marginal costing
c) Absorption costing
d) Job costing
Which of the following is a benefit of cost control?
a) Increased profitability
b) Higher wastage
c) Reduced productivity
d) Increasing production cost
What is the main purpose of budgetary control?
a) To control costs within planned limits
b) To increase costs continuously
c) To focus only on revenue generation
d) To eliminate all fixed costs
Which of the following is a cost reduction strategy?
a) Process automation
b) Increasing raw material costs
c) Hiring more employees than needed
d) Delaying production schedules
Which technique is used for continuous cost improvement?
a) Kaizen costing
b) Job costing
c) Cost-plus pricing
d) Financial gearing
Which of the following is an example of variable cost control?
a) Reducing machine breakdown time
b) Increasing overtime wages
c) Purchasing more raw materials than required
d) Hiring excess staff
Which costing technique involves cost comparison with competitors?
a) Target costing
b) Standard costing
c) Marginal costing
d) Job costing
Which of the following is a component of total cost?
a) Fixed cost
b) Variable cost
c) Semi-variable cost
d) All of the above
Which process helps in identifying areas for cost savings?
a) Cost-benefit analysis
b) Price skimming
c) Profit maximization
d) Revenue budgeting
Which of the following is an essential step in cost reduction?
a) Eliminating inefficiencies
b) Increasing cost per unit
c) Ignoring material wastage
d) Increasing product defects
Which cost control technique helps in reducing production cycle time?
a) Just-in-time (JIT) inventory
b) Increasing storage costs
c) Delayed order processing
d) Increasing production downtime
What is the role of a cost accountant in cost control?
a) Analyzing cost deviations
b) Ignoring cost reports
c) Increasing expenses
d) Reducing efficiency
Which of the following helps in reducing procurement costs?
a) Negotiating supplier contracts
b) Purchasing excessive inventory
c) Ignoring vendor relationships
d) Avoiding bulk purchases
Which method focuses on eliminating waste in production?
a) Lean manufacturing
b) Price discrimination
c) Cost-plus pricing
d) Premium pricing
Which of the following costs should be controlled for better profitability?
a) Overhead costs
b) Advertising costs
c) Administration costs
d) All of the above
Which cost control technique focuses on setting predefined cost limits?
a) Standard costing
b) Break-even analysis
c) Direct costing
d) Cash accounting
What is the goal of Six Sigma in cost reduction?
a) Minimizing defects
b) Increasing production errors
c) Ignoring quality improvements
d) Increasing overall costs
Which tool is used for setting cost reduction goals?
a) Benchmarking
b) Price gouging
c) Increasing advertising expenses
d) Lowering product quality
Which of the following is a non-financial measure of cost control?
a) Reducing defect rates
b) Increasing raw material costs
c) Delaying supplier payments
d) Extending production time
Which costing method is used to set the maximum allowable cost of a product?
a) Target costing
b) Job costing
c) Absorption costing
d) Marginal costing
Which of the following is NOT a cost control method?
a) Unplanned overtime
b) Budgetary control
c) Process automation
d) Value engineering
Which of the following strategies helps in effective cost control?
a) Regular cost audits
b) Increasing indirect costs
c) Delayed financial reporting
d) Ignoring cost variances
