Quiz 4 CTB Units 1, 2 and 3

Example of a direct material.

• cork stopper used in a glass bottle

• steel used in making a cooking pot

• buttons on a shirt

• sugar used in a cup of coffee

What is prime cost?

• Material cost + Wages + Factory expenses

• Direct Materials + DIrect wages + Overheads

• Indirect materials + Indirect wages + Indirect expenses

• Direct materials + Direct wages + Direct expenses

This is not part of marketing overhead.?

• Freight out

• Cost of delivery van

• Promotion expenses

• Cost of samples

When materials are issued in chronological order ie oldest materials being issued first, it is called

• Weighted Average method

• Last-in-First-out method

• First-in-First-out method

• Unit of measure method

In manufacturing soft drinks, the cost of cans are treated as

• secondary packing materials

• production overhead cost

• primary packing materials

• marketing cost

What are service cost centres?

• cost centres not directly involved in production process

• cost centres that produce only the indirect materials

• cost of services that are outsourced to external parties

• cost centres that assist in administration and marketing of products

Which deparment is not part of a retail company?

• Production department

• Administration department

• Marketing department

• Finance department

An example of Financial overhead.

• Bank charges

• Bank loan

• Stamp duty on buying a property

• Overdraft interest

Cost of renting an equipment for production purpose is a

• production overhead cost

• capital expense

• prime cost

• direct expense

Based on the information shown in the table, calculate the direct material cost.

• $2,700

• $2,800

• $2,900

• $3,300