Cost Centre and Production Quiz

Which of the following is a production cost centre?

• Marketing Department

• Canteen Department

• Painting Department

• Finance Department

What is the main purpose of the Administration Department in a manufacturing concern?

• To manufacture goods

• To sell products

• To support the efficient operation of the business

• To plan the production process

Which of the following is considered a prime cost?

• Indirect materials

• Office rent

• Direct wages

• Factory utilities

The cost of water used in the manufacturing of bottled drinks is classified as:

• Direct materials

• Indirect materials

• Marketing overhead

• Administration overhead

Which department is responsible for promoting and selling the finished goods?

• Production Department

• Finance Department

• Marketing Department

• Administration Department

What are non-production costs also known as?

• Manufacturing costs

• Conversion costs

• Non-manufacturing costs

• Production overheads

Which of the following is classified as a financial overhead?

• Advertising expenses

• Office rent

• Bank loan interest

• Sales commission

What is the main concern when purchasing direct materials for production?

• Supplier’s reputation

• Office rent

• Depreciation on equipment

• Showroom water and electricity

Which of the following is an example of a service cost centre?

• Mixing Department

• Assembly Department

• Quality Control Department

• Painting Department

Which of the following is NOT a production cost?

• Direct materials

• Factory rent

• Marketing expenses

• Direct wages