untitled

Which of the following are examples of indirect costs? (There are THREE correct answers to select!)

• Factory heat and light

• Factory manager salary

• Factory rent and rates

• Machine operator wages

Which of the following elements of a manufacturing account matches the definition below:

The wages of those workers actually engaged in the manufacturing process (e.g. wages of a sewing machine operator)

• Direct materials

• Direct wages

• Indirect wages

• Profit on manufacture

Which of the following elements of a manufacturing account matches the definition below:

The raw materials actually used to manufacture the product (e.g. cloth used to produce shirts, flour used to produce bread)

• Direct materials

• Direct wages

• Indirect materials

• Direct expenses

Which is NOT an example of a manufacturing company?

• Washing machines

• Fridges

• Cars

• IT software

Direct costs are...

• Costs that do not change with output

• Costs directly involved with making the product

• Costs that are essential but not directly related to manufacturing

• money spent on a regular basis

Indirect costs are...

• Costs that do not change with output

• Costs directly involved with making the product

• Costs that are essential but not directly related to manufacturing

• money spent on a regular basis

Any cost that cannot be traced back to a product

• standard cost
• indirect cost
• direct cost
• period cost

The formula for Total Cost is

Total Cost = Fixed Cost + Variable Costs

• True

• False

Direct Cost or Indirect Cost?

Cake Flour

• Direct Cost

• Indirect Cost

Materials used to produce goods are an example of ___.

• Fixed Costs

• Variable Costs