Higher Accounting - Overheads

What is the best description of overheads?

• Indirect costs which are not easily identifiable in a product
• Indirect costs which are easily identifiable in a product
• Direct costs which are not easily identifiable in a product
• Direct costs which are easily identifiable in a product

What is NOT an example of an overhead cost?

• Rent of premises
• Power costs
• Direct materials
• Depreciation

What is NOT an example of an overhead cost?

• Insurance of vans

• Administration costs

• Canteen costs

• Piece rate labour costs

What is being described here? A department or area of the business which costs be gathered from or charged to.

• Cost centre
• Cost unit
• Direct centre
• Direct unit

There are two types of cost centre found in an Overhead Analysis Statement. Which two below are correct?

• Direct and indirect cost centres
• Production and service cost centres
• Unit and total cost centres
• Maintenance and Mixing cost centres

The allotment of whole items of overhead costs to a cost centre is called .....

• Allocation of overheads
• Under-absorption of overheads
• Over-absorption of overheds
• Analysis of overheads

The term for the sharing out of overheads among cost centres on a fair and equitable basis is called .....

• Allocation 
• Division
• Apportionment
• Recovery

Identify the correct basis of recovery for the following overhead:-
Rent

• Floor space
• Cost of machinery
• Employee numbers
• kW hours

Identify the correct basis of recovery for the following overhead:-
Depreciation of machinery

• Floor space
• Cost of machinery
• Employee numbers
• kW hours

Identify the correct basis of recovery for the following overhead:-
Heat and Light

• Floor space
• Cost of machinery
• Employee numbers
• kW hours