ACCA Applied Skills Practice Questions — All Questions
AllFinancial AccountingManagement AccountingFinancial Reporting (IFRS)Audit & AssuranceFinancial Management
4 questions
Management Accounting
Under marginal costing, which cost is treated as a period cost?
- a.Direct labor
- b.Variable overhead
- c.Fixed production overhead✓
- d.Direct materials
Marginal costing writes off fixed production overhead as a period cost.
Management Accounting
Contribution is calculated as sales less:
- a.Fixed costs
- b.Tax
- c.All costs
- d.Variable costs✓
Contribution = sales - variable costs.
Management Accounting
A cost that has already been incurred and is irrelevant to a decision is a:
- a.Opportunity cost
- b.Marginal cost
- c.Variable cost
- d.Sunk cost✓
Sunk costs are past and irrelevant to future decisions.
Management Accounting
The value of the next-best alternative forgone is the:
- a.Fixed cost
- b.Standard cost
- c.Sunk cost
- d.Opportunity cost✓
Opportunity cost is the benefit given up by choosing one option over another.