QUIZ 3 : TOPIC 2 [MANUFACTURING COSTS:CONCEPTS & COMPONENTS]

Factory overhead is all costs other than direct labour and direct materials.

• True

• False

The term total manufacturing costs and cost of goods manufactured are used interchangeably.

• True

• False

Fixed costs are costs that do not vary with volume.

• True

• False

Mixed costs contain both variable and fixed elements.

• True

• False

Product costs include direct labour.

• True

• False

Prime cost is the sum of _____________ and _____________.

• Direct materials

• Direct labour

• Manufacturing overhead

• Indirect materials

• Indirect labour

Cost of goods sold is beginning finished goods inventory plus _______________minus ending finished goods inventory.

• costs of goods available for sales

• costs of goods purchased

• costs of goods manufactured

• costs of direct material purchased

Cost of direct materials purchased is cost of direct material used _______________ beginning inventory _____________ ending inventory.

• plus , minus

• minus, plus

• plus, plus

• minus, minus

The sum of direct labour and manufacturing overhead is __________________.

• product costs

• period costs

• conversion costs

• direct costs

Selling and administrative expenses are

• product costs

• period costs

• prime costs

• direct costs