Manufacturing Costs Quiz

Which of the following is considered direct labour in a manufacturing process?

• Factory manager

• Factory worker operating the machinery

• Cleaner

• Security guard

Which of the following would be classified as indirect labour?

• A factory worker assembling products

• A sales representative

• A factory supervisor

• A machine operator

Which of the following is an example of direct materials in a shoe manufacturing factory?

• Shoe polish

• Leather used to make the shoes

• Factory lighting

• Office supplies

Which of the following is considered an indirect material in a manufacturing business?

• Steel used to manufacture car doors

• Cleaning supplies for the factory

• Rubber for making tyres

• Fabric used to sew clothes

Which of the following would be included in factory overhead costs?

• Wages of factory workers

• Depreciation on factory machinery

• Cost of raw materials

• Advertising expenses

Prime cost in a manufacturing business is made up of which two components?

• Direct materials and factory overheads

• Direct materials and direct labour

• Indirect labour and factory overheads

• Fixed costs and variable costs

Which of the following is an example of a variable cost in a manufacturing business?

• Factory rent

• Raw materials

• Factory supervisor salary

• Depreciation

Which of the following costs would be classified as a fixed cost?

• Cost of raw materials

• Wages paid to factory workers

• Rent of the factory building

• Electricity used in production

Work-in-progress refers to:

• Products that have been completed and are ready for sale

• Raw materials used in production

• Goods that are partially completed but not yet ready for sale

• Finished products awaiting dispatch to customers

Which of the following would be classified as a fixed cost?

• Wages for the earring makers

• Transport to and from the flea market

• Rent of the flea market stall

• Beads, wire, and stoppers