1. Which of the following best describes cost analysis?

a) Evaluating the financial impact of business decisions.

b) Determining the total expenses incurred by a company.

c) Calculating the profit margin of a product or service.

d) Assessing the market value of an asset.

Answer: a) Evaluating the financial impact of business

decisions.

Rationale: Cost analysis involves the examination and

assessment of the financial consequences of various

decisions to determine their viability and profitability.

2. What is the purpose of a cost management system?

a) To track and control expenses.

b) To determine the market value of a product.

c) To forecast sales revenue.

d) To calculate the return on investment (ROI).

Answer: a) To track and control expenses.

Rationale: The primary goal of a cost management system

is to monitor and regulate expenses to ensure they align

with the organization's budget and objectives.

3. Which of the following is an example of an opportunity

cost?