Which of the following is a quality of good cost accounting information?

A quality of good cost accounting information is the ability to

• A. adapt to changing needs.
• B. interfere with the existing systems.
• C. be presented from the government's point of view.
• D. be presented from the viewpoint of the business.

The correct option is A.
Good cost accounting information must be flexible and relevant to be useful for management decisions, meaning it can adapt to changing needs.

The distinction between cost accounting and financial accounting is by preparing cost account

• A. for shareholders.
• B. on an annual basis.
• C. as and when projects are completed.
• D. in accordance with statutory requirement.

The correct option is C.
Cost accounting provides information for internal management decisions and can be prepared as and when projects are completed or as needed, unlike financial accounting which is typically for external users, prepared annually, and follows statutory requirements.

Cost accounting information is useful for decision making if it is

• A. subjective.
• B. standard.
• C. presented on time.
• D. economical to produce.

The correct option is C.
For cost accounting information to be useful for decision-making, it must be presented on time (timely) to allow management to make relevant and effective decisions.

Cost incurred in running a business and cannot be recovered is

• A. imputed cost.
• B. sunk cost.
• C. direct cost.
• D. fixed cost.

The correct option is B.
A sunk cost is a cost that has already been incurred and cannot be recovered, making it irrelevant for future decision-making.

Cost is classified as prime cost when it

• A. is direct production cost.
• B. has already been incurred.
• C. is incurred in the production process.
• D. varies with the volume of production.

The correct option is A.
Prime cost is defined as the sum of direct materials and direct labor, which are both categories of direct production costs.