Higher Accounting Manufacturing Accounts Revision

What are Direct Costs in the production process?

• Costs which do not vary with output

• Indirect Costs or Fixed Costs not directly related to production

• Costs directly attributable to the production process

• Wholesale value of current production or output

What are considered Direct Materials?

• Wages of workers directly involved in the production process

• Resources used in the actual production process

• Costs additional to production process

• Market value of production

What are Factory Overheads?

• Direct Costs attributable to the production process

• Indirect Costs or Fixed Costs not directly related to production

• Costs which vary with output

• Total or final figure in the Manufacturing Account

What does the Manufacturing Account calculate?

• Direct Costs attributable to the production process

• Indirect Costs or Fixed Costs not directly related to production

• Manufacturing cost of Output

• Selling Price of Goods Manufactured

What is the Market Value of Goods Manufactured?

• Costs directly attributable to the production process

• Indirect Costs or Fixed Costs not directly related to production

• Costs which do not vary with output

• Wholesale value of current production or output

What does Prime Cost refer to?

• The cost of storage or Inventory

• The total of all Direct Costs

• Indirect costs or fixed costs not directly related to production

• Goods returned to the supplier

What is included in Overheads?

• Direct materials and direct labour

• Indirect costs or fixed costs not directly related to production

• Payments made to the inventor or developer of a product

What are Payables?

• Expenses paid in advance for the next financial period

• Goods returned to the supplier

• Expenses unpaid or owing which should have been paid during the present financial period

• Payments made to the inventor or developer of a product

What are Receivables?

• Expenses unpaid or owing which should have been paid during the present financial period

• Expenses paid in advance for the next financial period

• Goods returned to the supplier

• Payments made to the inventor or developer of a product

When is a manufacturing account created?

• Before the income statement

• After the income statement

• As part of the income statement