Test 752 Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Strategic Cost Management Total Number of Question: 40 Time: 41 Minutes Please check your email after completion of test for result. All the best... Name Phone No Email Area Pin Code 1. Which of the following helps in understanding the linkages between activities and the costs they generate? Regression Analysis. Value Chain Analysis Transfer Pricing Profit Margin Analysis None 2. Which type of cost behavior remains constant per unit but changes in total with activity level? Fixed Costs Variable Costs Mixed Costs Stepped Costs None 3. Which of the following costing techniques is focused on minimizing the cost of quality-related activities? Absorption Costing . Activity-Based Costing Cost of Quality Analysis Life Cycle Costing None 4. Which method assesses the financial impact of adopting new technology within an organization? Cost-Benefit Analysis Break-Even Analysis Payback Period Regression Analysis None 5. In Life Cycle Costing, the term 'cradle to grave' refers to: A short-term costing approach The entire lifespan of a product Cost cutting during production Activity-based budgeting None 6. Which type of cost is described as one that cannot be changed once it is incurred? Avoidable Cost Sunk Cost Incremental Cost Opportunity Cost None 7. Which of the following focuses on the integration of internal business processes to achieve strategic goals? Value Engineering Balanced Scorecard Cost Leadership Strategy Target Costing None 8. Which cost management approach emphasizes total systems analysis rather than focusing on cost cutting in isolated activities? Activity-Based Costing Total Cost Management Target Costing Absorption Costing None 9. Which of the following refers to the difference between the standard cost and actual cost? Standard Cost Variance Cost-Volume-Profit Difference Profit Margin Analysis Value Chain Difference None 10. In Strategic Cost Management, what role does sensitivity analysis play? It helps in cost reduction by analyzing external variables It evaluates how changes in cost drivers affect outcomes It helps to identify non-value-added processes It reduces production lead time None 11. Which method is used to prioritize processes that contribute the most to cost? Pareto Analysis Regression Analysis Life Cycle Analysis Break-Even Analysis None 12. What is the main focus of Business Process Reengineering (BPR)? Incremental improvements Redesigning business processes from scratch Reducing raw material costs Maintaining standard operating procedures None 13. Which of the following focuses on understanding the true cost to serve each customer segment? Cost-Volume-Profit Analysis Customer Profitability Analysis Life Cycle Costing Break-Even Analysis None 14. Which of the following is a key component of Lean Manufacturing? Reducing product customization Maximizing inventory levels Eliminating waste Increasing machine utilization None 15. Which costing method allocates costs based on a predetermined overhead rate? Absorption Costing Activity-Based Costing Standard Costing Job Costing None 16. Which of the following tools is used to visually represent the flow of materials, information, and finances in a process? Value Stream Mapping Regression Analysis SWOT Analysis Balanced Scorecard None 17. Which cost classification is used to determine the impact of different output levels on profits? Fixed and Variable Costs Direct and Indirect Costs Sunk and Opportunity Costs Avoidable and Unavoidable Costs None 18. Which of the following is an example of a non-value-added activity? Product assembly Quality inspection Packaging for customer requirements Designing a new product None 19. Which costing technique helps to determine how much cost can be reduced without affecting quality? Life Cycle Costing Value Analysis Break-Even Analysis Marginal Costing None 20. Which analysis helps in determining the degree of operating leverage? Cost-Volume-Profit Analysis Break-Even Analysis Regression Analysis ABC Analysis None 21. What is the primary objective of benchmarking in cost management? Reducing product prices Comparing against best practices Analyzing market demand Increasing product differentiation None 22. Which costing technique is used to allocate indirect costs to cost objects? Activity-Based Costing Standard Costing Marginal Costing Process Costing None 23. Which of the following refers to the impact of fixed costs on profitability when sales volume changes? Operating Leverage . Margin of Safety Break-Even Point Contribution Margin None 24. Which cost management technique aims to identify and eliminate constraints in production? Theory of Constraints (TOC) Kaizen Costing Activity-Based Budgeting Regression Analysis None 25. Which of the following helps organizations focus on key performance drivers rather than purely financial metrics? Balanced Scorecard Cash Flow Analysis Standard Costing Absorption Costing None 26. Which cost is relevant for decision-making when determining whether to add or drop a product line? Sunk Cost Opportunity Cost Fixed Overhead Cost Historical Cost None 27. Which type of analysis helps to determine the optimal mix of products to maximize profitability? Profitability Analysis Cost-Volume-Profit Analysis Break-Even Analysis Product Mix Analysis None 28. Which costing method is used when production is continuous and homogeneous? Job Costing Process Costing Activity-Based Costing Absorption Costing None 29. Which of the following helps to identify the root cause of costs and assess how they can be managed? Cost Driver Analysis Ratio Analysis Break-Even Analysis Regression Analysis None 30. Which of the following is a characteristic of a differentiation strategy? Lowest price in the market Unique product features Minimizing operating expenses Narrow market focus None 31. Which of the following is a limitation of the traditional costing system? High accuracy in cost assignment Lack of integration with financial accounting Inability to handle overhead costs accurately High costs associated with its implementation None 32. What is the key benefit of implementing a Zero-Based Budgeting (ZBB) system? Enhancing cost control by justifying all expenses from scratch Reducing the complexity of budget preparation Eliminating the need for financial forecasting Lowering variable cost None 33. Which strategic costing approach focuses on anticipating future costs during the product design stage? Target Costing Life Cycle Costing Process Costing Regression Analysis None 34. Which type of cost is related to an alternative that must be forgone in order to pursue a certain action? Sunk Cost Opportunity Cost Fixed Cost Semi-Variable Cost None 35. Which analysis identifies activities that generate costs without adding value to the customer? Value Stream Analysis SWOT Analysis Sensitivity Analysis Contribution Analysis None 36. Which of the following refers to the use of standard costs to prepare budgets and measure performance? Budgetary Control Standard Costing Target Costing . Marginal Costing None 37. What is the goal of implementing Total Productive Maintenance (TPM) in manufacturing? To enhance productivity and reduce equipment downtime To lower the direct costs of production To eliminate all types of indirect expenses To reduce the cost of quality None 38. Which costing system assigns costs based on actual costs incurred during production? Job Order Costing Process Costing Actual Costing Activity-Based Costing None 39. Which of the following is a disadvantage of using Fixed Cost allocation methods? Inaccurate assignment of costs across products Increased production costs Reduced overhead Enhanced differentiation None 40. Which analysis is used to assess how different variables impact profitability under varying conditions? Sensitivity Analysis Regression Analysis Cost-Benefit Analysis ABC Analysis None 1 out of 4 Great job on taking the INCOC Test! We appreciate your interest in test. Look out for results and future opportunities. Stay Connected !! Your quiz time is about to finish. Few seconds left. Time's upYou cannot switch tabs while taking this quiz!You are not allowed to switch tabs violation has been recorded.you cannot minimize full screen mode!You are not allowed to minimize full screen while taking this quiz, violation has been recorded.Access denied! To begin the quiz, please grant this quiz access to your camera.Time is Up!Time is Up!
