Cost Classification by nature Quiz

Which of the following costs can be directly traced to individual units of production?

• Rent of the factory

• Wages of supervisors

• Metal used in production

• Telephone charges

What are indirect costs also known as?

• Direct costs

• Overheads

• Expenses

• Labour costs

Which of the following costs cannot be linked to individual units of production?

• Direct materials

• Direct labour

• Direct expenses

• Rent for the factory

What is the term used to refer to the total direct cost?

• Prime cost

• Indirect cost

• Overhead cost

• Production cost

Which of the following costs fall outside the range of this exam?

• Direct materials

• Direct labour

• Royalties paid for each unit produced

• Rent for the factory

In the context of cost classification, what does the term 'overhead' refer to?

• Direct costs

• Indirect costs

• Expenses

• Labour costs

What type of costs are the wages of supervisors in Dorf's factory?

• Direct costs

• Indirect costs

• Direct materials

• Direct labour

What type of costs are the food purchases for the hotel restaurant?

• Direct costs

• Indirect costs

• Direct materials

• Direct labour