Costing Basic 1

Which are Production Cost Centres of a manufacturing business?

• Drilling Department

• Corporate Office Department

• Painting Department

• IT

  Department

Service Cost Centres are

• directly involved in production

• indirectly involved in production

• not involved in production

The Administration department supports a manufacturing business by:

• recording notes, copying, filing

• handling general enquiries

• Making cold calls to prospects

• ordering office supplies

What are normally During-Production phase activities?

• Purchase materials

• Processing

• Store goods

• Source materials

In the production process of toy cars,

there is minor amount of oil used at the cars' connecting joints.

Such oil is

• Direct Material

• Indirect Material

• Administration Overhead

• Marketing

  Overhead