CMA B

Works cost is a total of direct materials, direct labour, and direct expenses.

• True

• False

Overheads are costs which can be directly identified with a particular cost centre or cost unit.

• True

• False

Fixed costs are costs which do not vary with variation in output.

• True

• False

Loss of material due to fire is treated as overhead and included for calculating cost of production.

• True

• False

All cost are controllable.

• True

• False

Factory overhead costs are always indirect manufacturing cost.

• True

• False

Selling overheads form a part of cost of production.

• True

• False

(a)   costs are partly fixed and partly variable.

Variable cost per unit remains, (a)   with changes in the level of output.

Salary of a foreman is a fixed overhead.

• True

• False