Test 754 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. What is the goal of implementing a Balanced Scorecard? To focus on financial performance only To track performance using financial and non-financial measures To control production costs To allocate costs based on activities None 2. Which of the following tools helps to determine whether the costs of a project are justified by its benefits? Cost-Benefit Analysis Regression Analysis Sensitivity Analysis Cost Allocation None 3. Which costing system is commonly used in the construction industry for individual projects? Process Costing Job Costing Absorption Costing Variable Costing None 4. Which concept in strategic cost management focuses on gaining a competitive advantage through superior cost control? Differentiation Strategy Cost Leadership Niche Marketing Product Diversification None 5. Which analysis method is used to assess the variability of project outcomes based on changes in key assumptions? Sensitivity Analysis Regression Analysis Cost Allocation Analysis Contribution Analysis None 6. Which of the following helps reduce waste and improve efficiency in production systems? Lean Manufacturing Activity-Based Budgeting Target Costingg Absorption Costing None 7. Which method of costing is most suitable for industries where products are produced continuously, like chemicals? Process Costing Job Costing Activity-Based Costing Target Costing None 8. Which of the following defines sunk costs? Costs that can be recovered Costs incurred in the past that cannot be changed Costs that will be incurred if a particular decision is made Costs associated with future opportunities None 9. Which type of cost analysis helps to assess whether fixed costs will remain the same over a certain level of activity? Step Cost Analysis Variable Cost Analysis Contribution Analysis Mixed Cost Analysis None 10. Which of the following refers to costs that are incurred to keep machines and equipment operating efficiently? Preventive Maintenance Costs Opportunity Costs Fixed Overhead Sunk Costs None 11. Which is a benefit of implementing Total Quality Management (TQM)? Reduced quality-related costs Increased inventory levels Enhanced brand differentiation Improved employee turnover None 12. Which cost concept involves analyzing both financial and non-financial factors to determine the value of a decision? Cost-Effectiveness Analysis Contribution Margin Analysis Regression Analysis Cost-Volume-Profit Analysis None 13. Which costing technique emphasizes the cost incurred from the initial stages to the disposal of a product? Activity-Based Costing Life Cycle Costing Marginal Costing Absorption Costing None 14. Which costing method is useful for companies that produce different batches of products using the same process? Batch Costing Target Costing Process Costing Job Costing None 15. Which type of cost is incurred even when production is zero Variable Cost B. Sunk Cost Fixed Cost Mixed Cost None 16. Which costing approach allows management to determine the minimum acceptable price for a product? Marginal Costing Absorption Costing Activity-Based Costing Life Cycle Costing None 17. Which of the following refers to costs that vary in total directly and proportionately with changes in activity level? Fixed Costs Variable Costs Mixed Costs Overhead Costs None 18. Which tool helps to identify the critical elements that are the source of the majority of costs in a process? Pareto Analysis Break-Even Analysis Regression Analysis Contribution Margin Analysis None 19. Which method is used to allocate overhead costs based on activities that consume resources? Activity-Based Costing Process Costing Absorption Costing Job Costing None 20. Which is an advantage of using standard costing in manufacturing? It helps in setting benchmark costs for cost control It ignores variances in costs It is useful only for service industries It eliminates all manual tracking of costs None 21. Which type of costing method is most suitable for operations involving continuous production flows, such as refining oil? Job Costing Process Costing Activity-Based Costing Target Costing None 22. What is the primary focus of Lean Manufacturing in cost management? Increasing production costs Reducing waste and inefficiency Enhancing product differentiation Implementing fixed costs None 23. Which of the following helps managers make decisions regarding discontinuing a product or service? Opportunity Cost Analysis Cost-Volume-Profit Analysis Sunk Cost Analysis Break-Even Analysis None 24. Which cost management technique focuses on continuous improvement and involves all employees in the process? Kaizen Costing Life Cycle Costing Standard Costing Job Order Costing None 25. Which of the following is a key feature of Target Costing? Reiable costs by any means Designing products to achieve a desired cost Eliminating fixed costs Ignoring customer requirements None 26. Which analysis helps assess the impact of changes in sales volume on operating income? Cost-Benefit Analysis Contribution Margin Analysis Cost-Volume-Profit Analysis Regression Analysis None 27. Which type of cost is described as one that does not change with changes in the volume of activity? Fixed Cost Variable Cost Step Cost Mixed Cost None 28. Which cost management approach is used to evaluate whether a product’s cost aligns with customer value expectations? Life Cycle Costing Value Analysis Marginal Costing Target Costing None 29. Which of the following best describes the Theory of Constraints (TOC)? Focusing on constraints to maximize production efficiency Reducing costs by eliminating all fixed expenses Increasing inventory levels to meet demand Setting price to achieve break-even None 30. Which strategic tool helps analyze the sequence of activities that add value to a product or service? Value Chain Analysis Sensitivity Analysis SWOT Analysis Cost-Volume-Profit Analysis None 31. Which of the following involves determining the optimal level of working capital to minimize costs? Life Cycle Costing Working Capital Management Kaizen Costing Value Analysis None 32. Which costing method assigns both variable and fixed manufacturing overhead to each product? Marginal Costing Absorption Costing Target Costing Process Costing None 33. Which of the following describes the purpose of a Balanced Scorecard? Reducing production costs Evaluating financial performance only Measuring performance using both financial and non-financial metrics Setting production standards None 34. Which type of analysis is used to evaluate how profit will change with varying levels of production and sales? Break-Even Analysis Cost-Volume-Profit Analysis Cost-Volume-Profit Analysis lysis Life Cycle Analysis None 35. Which of the following is the best definition of opportunity cost? The cost of a missed opportunity Borgone The fixed cost associated with production The cost that cannot be recovered The cost of the next best alternative forgone None 36. Which method of costing is used when each unit or batch of a product is unique? Process Costing Activity-Based Costing Job Costing Absorption Costing None 37. Which cost management approach is primarily used to support strategic decision-making? Traditional Costing Activity-Based Management (ABM) Marginal Costing Process Costing None 38. Which of the following is a key advantage of using Activity-Based Costing (ABC) over traditional costing methods? Simplifies the allocation of costs Reduces the total overhead costs Provides more accurate product costing Focuses solely on direct labor None 39. Which of the following cost management techniques focuses on both cost reduction and adding customer value? Value Engineering Standard Costing Absorption Costing Regression Analysis None 40. Which costing approach is primarily used when determining how to allocate indirect costs to multiple cost objects? Job Costing Activity-Based Costing (ABC) Standard Costing Process Costing 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. 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