What does COGS stand for?

• Cost of Goods in Stock

• Cost of goods stored

• Cost of goods sold

COGS is used to calculate what?

• Net profit

• Gross profit

• Corporation tax

• Tax on profits

Work in progress is.....?

• Finished goods

• Raw materials

• A list of jobs to do

• Part finished goods

Inventory is held for the following reasons - identify which are true (there are 3 correct answers)

• To act as a buffer

• To avoid stock-outs

• To ensure money is tied up in assets

• To take advantage of bulk buying discounts

In the Manufacturing Account Direct Costs are made up of?

• raw materials and direct labour

• raw materials and manufacturing overheads

• opening and closing work in progress

• opening and closing finished goods

There are 3 methods of absorbing overheads - which are they?

• units, labour hours, overheads

• units, machine hours, inventory

• machine hours, labour hours, units of production

• units of production, raw materials, overheads

If a manufacturing process is very automated which method of calculating OAR would you use?

• Labour hour basis

• Unit basis

• Machine hour basis

To calculate OAR we always use budgeted figures

• TRUE

• FALSE

What do we divide to find the overhead absorption rate?

• budgeted inventory

• budgeted overheads

• actual inventory

• actual overheads

What are the 2 methods of calculating employee's pay?

• time related and output related

• time related and overtime

• overtime and output related

• pay as you earn