Chap 1,2,3,4,5 ôn tập Final KTQT

A cost unit is

• a unit of product or service in relation to which costs are ascertained

• the cost per hour of operating a machine

• the cost per unit of electricity consumed

• a measure of output of work in a standard hour

Certain types of income and cost are of no interest to the cost accountant.

An example of such income or cost is

• indirect labour

• purchase of raw materials

• dividends received

• rent paid on a factory

Variable costs are conventionally deemed to

• be constant in total when production volume changes

• be constant per unit of output

• vary per unit of output as production volume changes

• vary, in total, from period to period when production is constant

Which of the following costs would not be the concern of the supervisor of a production department?

• Material costs

• Labour costs

• Maintenance costs for a machine

• Lease payments on a machine

The annual salary paid to a business's financial accountant would best be described as

• a variable administrative cost

• a fixed production cost

• part of prime cost

• a fixed administrative cost

• Electricity bills made up of a standing charge and a variable charge

• Bonus payments to employees when production reaches a certain level

• Sales representatives' commissions payable per unit up to a maximum amount of commission

• Bulk discounts on purchases, the discount being given on all units purchased

A company's telephone bill consists of two parts:

(1) a charge of £40 per month for line rental

(2) a charge of £0.01 per minute of call time

Which of the following equations describes the total annual telephone cost, C, if the company uses T minutes of call time in a year?

• C = 480 + 0.01T

• C = 40 + 0.01T

• C = 480 + 0.12T

• C = 40 + 0.01T/12

Which of the following would normally be classified as a direct labour cost?

• The basic pay of production line staff

• Overtime premiums paid – if the overtime is not worked at the specific request of a customer

• The basic pay of production line supervisors

• Idle time payments to production line staff

• £20

• £50

• £70

• £110

Which of the following would be classified as indirect costs for a food product manufacturer?

(1) Food label on a tin of beans

(2) Maintenance materials used to repair production machinery

(3) Cleaner's wages in the factory

• (1) only

• (2) and (3) only

• All of them

• None of them