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 State 1. Which is the most important feature of Activity-Based Budgeting (ABB)? It is based on activities that consume resources It only considers fixed expenses It uses financial accounting dat It is solely aimed at increasing sales None 2. Which cost reduction strategy targets achieving savings by adjusting supplier relationships? Supplier Partnership Product Mix Analysis Life Cycle Costing Absorption Costing None 3. Which costing system is appropriate when individual products are produced in small quantities? Job Order Costing Process Costing Life Cycle Costing Target Costing None 4. Which type of analysis assesses the cost-effectiveness of different strategies to achieve a certain outcome? Sensitivity Analysis Cost-Effectiveness Analysis Regression Analysis Life Cycle Analysis None 5. Which of the following best describes Kaizen? Continuous improvement involving everyone in the organization Cutting costs drastically through reengineering Minimizing inventory levels to reduce holding costs Outsourcing production to low-cost countries None 6. Which component of Value Chain Analysis helps identify areas where additional value can be created? Support Activities Primary Activities Differentiation Analysis Competitive Advantage Analysis None 7. Which costing approach aims to ensure the organization remains profitable while reducing costs below target levels? Target Costing Marginal Costing Absorption Costing Job Costing None 8. Which of the following analyses focuses on the relationship between cost, revenue, and profit at different levels of production? Cost-Volume-Profit Analysis Life Cycle Analysis SWOT Analysis ABC Analysis None 9. Which method is used to improve processes by breaking them down into their core components? Business Process Reengineering Benchmarking Regression Analysis Value Stream Mapping None 10. What is the objective of conducting a product portfolio analysis? To determine the profitability of each product To reduce the cost of production To analyze employee performance To allocate overhead costs None 11. Which method of costing is used to determine the cost of each process or department in mass production? Job Costing Activity-Based Costing Process Costing Standard Costing None 12. Which approach to strategic cost management encourages the production of goods only as they are needed? Total Quality Management (TQM) Just-In-Time (JIT) Lean Manufacturing Life Cycle Costing None 13. Which tool helps managers to understand how costs vary with different levels of activity? Contribution Margin Analysis Regression Analysis Cost-Volume-Profit Analysis Balanced Scorecard None 14. Which type of cost is not directly attributable to a specific cost object Direct Cost Variable Cost Indirect Cost Step Cost None 15. Which costing approach is best suited for short-term decision-making and incremental analysis? Marginal Costing Absorption Costing Target Costing Job Costing None 16. Which financial metric helps to determine the time needed to recover the investment in a project? Payback Period Net Present Value (NPV) Internal Rate of Return (IRR) Return on Investment (ROI) None 17. Which method aims to continuously reduce costs while maintaining or improving quality? Total Quality Management Kaizen Costingg Value Analysis Benchmarking None 18. Which performance measure helps assess the effectiveness of cost management strategies? Profit Margin Balanced Scorecard Inventory Turnover Ratio Operating Income None 19. Which method aims at reducing product costs by considering the entire value chain? Value Engineering Target Costing Value Stream Mapping Life Cycle Costing None 20. Which type of analysis helps in determining the breakeven point for a new product? Contribution Margin Analysis Cost-Volume-Profit Analysis Regression Analysis Value Analysis None 21. Which costing system is suitable for industries where homogeneous products are manufactured continuously? Job Costing Process Costing Activity-Based Costing Marginal Costing None 22. Which of the following best defines standard costing? Allocating costs based on direct labor hours Measuring performance by comparing actual costs to predetermined costs Calculating costs for each individual job Setting the price to achieve desired profit margins None 23. Which tool helps managers identify and eliminate inefficiencies in the production process? SWOT Analysis Value Stream Mapping Sensitivity Analysis Regression Analysis None 24. Which strategy aims to achieve cost advantage through efficient production techniques? Cost Leadership Differentiation Focus Strategy Product Mix Strategy None 25. Which type of costing is particularly suitable for decision-making regarding pricing in competitive markets? Target Costing Absorption Costing Marginal Costing Job Costing None 26. Which cost management approach incorporates the involvement of suppliers to achieve cost efficiency? Supplier Relationship Management Total Quality Management Value Chain Analysis Product Mix Optimization None 27. Which method is used to allocate indirect costs to products based on multiple cost drivers? Activity-Based Costing Absorption Costing Standard Costing Marginal Costing None 28. Which cost is often considered irrelevant in decision-making because it cannot be recovered? Opportunity Cost Sunk Cost Fixed Cost Direct Material Cost None 29. Which of the following strategies focuses on offering unique products that command a premium price? Differentiation Strategy Cost Leadership Strategy Market Penetration Strategy Focus Cost Strategy None 30. Which method helps organizations optimize their resources by focusing on critical areas of improvement? Pareto Analysis Cost-Benefit Analysis Regression Analysis Profitability Index None 31. Which cost management technique involves reducing complexity and improving efficiency by focusing on a limited number of cost drivers? Pareto Analysis Regression Analysis Cost-Volume-Profit Analysis Target Costing None 32. Which of the following cost elements is used to calculate the Economic Order Quantity (EOQ)? Purchase Cost Ordering Cost Fixed Overhead Sunk Cost None 33. What is the key objective of implementing Lean Accounting? Reducing waste in accounting processes Simplifying financial reports Aligning accounting with Lean production practices \Reducing inventory levels None 34. Which of the following is an example of a period cost? Direct Materials Rent Expense Production Wages Direct Labor None 35. Which cost behavior pattern changes in total with activity but remains constant per unit? Mixed Cost Variable Cost Fixed Cost Step Cost None 36. What is the purpose of using transfer pricing within a multi-divisional organization? To minimize tax liability To allocate overhead costs To set product prices for external customers To encourage divisional autonomy and performance None 37. Which type of budgeting involves adjusting budget allocations based on changing activity levels? Zero-Based Budgeting Flexible Budgeting Incremental Budgeting Activity-Based Budgeting None 38. Which analysis tool is used to determine the impact of different pricing strategies on profitability? Contribution Margin Analysis Sensitivity Analysis Cost-Volume-Profit Analysis Break-Even Analysis None 39. Which cost classification is used for decision-making and involves costs that differ between alternatives? Sunk Costs Opportunity Costs Relevant Costs Committed Costs None 40. Which of the following is true about variable costs? They change in total with changes in activity levels They are fixed regardless of activity levels They remain constant per unit regardless of production volume Both A and C 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!
