Test Android StudyStack App
Please help StudyStack get a grant! Vote here.
or...
Reset Password Free Sign Up


incorrect cards (0)
correct cards (0)
remaining cards (0)
Save
0:01
To flip the current card, click it or press the Spacebar key.  To move the current card to one of the three colored boxes, click on the box.  You may also press the UP ARROW key to move the card to the Correct box, the DOWN ARROW key to move the card to the Incorrect box, or the RIGHT ARROW key to move the card to the Remaining box.  You may also click on the card displayed in any of the three boxes to bring that card back to the center.

Pass complete!

Correct box contains:
Time elapsed:
Retries:
restart all cards



Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.

  Normal Size     Small Size show me how

CMA/3-1

Costs Classification

QuestionAnswer
Costs are classified based on purpose for which these are to be used? Ture
Why are costs grouped into various categories, is it to done because we need to use these costs for different purposes? Yes
What are the various purposes for which costs are grouped into various categories? Decision making, planning, budgeting, forecasting, and external reporting as well. Internal reporting & external reporting
How to control costs? To control costs, first understand meaning of costs, types & grouping of costs, then control its cost driver.
What is cost ascertainment and cost estimation? Calculate actual cost is cost ascertainment. To tender if cost is estimated, is cost estimation
What is a cost object? Cost unit : Doors, kitchen cabinets, wardrobes, suits, any thing for which cost is calculated. It may be a department, one segment of a company, a branch, production, selling department, etc. etc.
Give some examples of cost object? It may be a person, department, single item or batch, any thing for which cost is calculated and assigned. It may be a project, sub-contract agreement, etc. etc. I said "Any thing for which cost is calculated & assigned.
Give some more examples of cost object? It may be a job-order. It may be a product, project, a department, person, activity, a single item or batch. Anything. Anything for which cost (estimated / actual) is calculated.
What is cost? Any sacrification to achieve anything. I sacrified leisure time and used in study to pass CMA. This time is my cost. Cost may be any resource / benefit (time, money, efforts) sacrified to achieve a specific object. CMA
Is it ture that in different professions the same term cost has different meanings? Yes. It has different meaning if used in Economics, Accounting and Finance, Engineering.
Is it ture that even within Accounting, cost term has differenct meaning? Yes, if it is used for different purposes like fixed cost, variable cost, differential cost, marginal cost. In one case like wood to make door is direct material if cost of a door is to be calculated.
Give some more examples of cost meaning differnet in different situations? In other case, same wood material is variable cost if object is to control cost. In anther case , same wood is FG cost or CGS if reported for external financial reporting.
What is cost driver? Anything which generate cost or which incurs cost is cost driver? Yes
Give some examples of cost drivers? Project, production, department, activity, business segment, branch, individual, item
How to control costs? To control costs, first understand meaning of costs, types & grouping of costs, then control its cost driver.
What is the thumb rule to control costs? Identify cost item and its cost driver, cost purpose, and control mainly big cost items. Like production salaries is cost, factory is cost driver, look at big salaries and lazy workers. Try to eliminate non-value added cost items.
Created by: maq123 on 2013-03-10



Copyright ©2001-2014  StudyStack LLC   All rights reserved.