Manufacturing - 6

The direct material costs are added into direct manufacturing costs, to calculate

• discuss costs

• prime costs

• resale cost

• merchandise costs

The term "variable costs" refers to:

• All costs which are likely to respond to the amount of attention devoted to them by a specified manager

• All costs which are associated with marketing, shipping, warehousing, and billing activities

• All costs which fluctuate in total in response to small changes in the rate of utilization of capacity.

• All manufacturing costs incurred to produce units of output.

A cost that is easily traceable to a cost object is known as:

• Direct cost

• Indirect cost

• Variable cost

• Fixed cost

The term "cost" refers to:

• An asset that has given benefit and is now expired.

• The price of products sold or services rendered.

• An asset that has not given benefit and is now expired

• The value of the sacrifice made to acquire goods or services.

Step costs are classified as a:

• Variable costs.

• Fixed cost.

• Mixed cost.

• Prime cost.

Which one of the following is not covered while considering the types of costs involved in quality control?

• Preventive costs

• Manufacturing costs

• Inspection costs

• Failure costs