Costing - MoB

What are the two Classifications of Costing?

• Direct and Interesting

• Direct Labour

• Indirect Labour

• Direct and Indirect

Direct costs consist of four different subgroups

• True

• False

How many sub-groups is indirect cost divided into?

• 2

• 4

• 3

• 6

Paying rent for the factory is an example of indirect expenses

• True

• False

Cost Remaining constant regardless of the level of production is

• Fixed Costs

• Indirect Costs

• Direct Costs

• Direct Costs

Variable costs vary with the level of input

• True

• False

What cost is composed of a mix of both fixed and variable components

• Fixed Costs

• Direct Costs

• Semi - Variable Costs

• Variable Costs

Marginal costing includes fixed cost in production cost

• True

• False

An advantage of marginal costing is that managers do not use the information to make decision

• True

• False

A disadvantage of marginal costing is that it is recognized for external reporting purposes

• True

• False