20 - Cost Accounting Basics – Types of Costs
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Practice Questions
Test your understanding with targeted questions
Define direct costs with an example.
💡 Hint: Think of costs that are traceable to one specific product.
What are fixed costs? Give one example.
💡 Hint: Consider costs that you must pay every month.
4 more questions available
Interactive Quizzes
Quick quizzes to reinforce your learning
What type of costs can be directly attributed to a product?
💡 Hint: Think about what costs you can trace back directly to a product.
True or False: Sunk costs can influence future business decisions.
💡 Hint: Consider what sunk costs represent in terms of recovery.
3 more questions available
Challenge Problems
Push your limits with advanced challenges
A furniture company spends ₹10,000 on wood to make 100 chairs and rents a factory for ₹20,000 a month. If production increases to 200 chairs, how do variable and fixed costs influence pricing?
💡 Hint: Consider how total costs contribute to the cost per unit.
Discuss a scenario where an entrepreneur must choose between a corporate job with a salary of ₹8 LPA and starting a business that may provide uncertain returns. Analyze the opportunity cost involved.
💡 Hint: Think about the trade-offs between security and potential growth.
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