Costing

Manufacturing Costs also known as

• Production Cost

• Discretionary cost

• Direct Cost

• Committed Cost

• Cost of main raw materials that is used in producing products and can be traced to the finished product.

• Direct Labour

• Direct Material

• Period Cost

• Manufacturing Overhead

Prime Cost =

• Manufacturing Overhead + Direct Material

• Administrative Expenses + Selling Expenses

• Manufacturing Overhead + Direct Labour

• Direct Labour + Direct Material

Conversion Cost =

• Direct Labour + Direct Material

• Direct Labour + Manufacturing Overhead

• Period Cost

• Direct Material + Manufacturing Overhead

Factory Manager Salaries is ...................................

• Direct Labour Cost

• Direct Material Cost

• Indirect Material Cost

• Indirect Labour Cost

Which of the following is manufacturing indirect cost?

• Depreciation of Office Supplies

• Office Secretary Salary

• Depreciation of factory machinery

• Sales commission

1) Selling Expenses

2) Administration Expenses

These two expenses are ......................

• Period Cost

• Manufacturing Overhead Cost

• Direct Material Cost

• Direct Labour Cost

Which of the following is direct labour cost

• Salary for security guard

• Wages for assembly line workers

• Salary for Managing director

• Salary for accountant

Predetermined overhead rate =

• Budgeted overhead / Actual Direct Materials

• Budgeted overhead / Budgeted Direct Labour

• Budgeted overhead / Budgeted Activity

• Budgeted overhead / Actual Activity

Total Manufacturing Cost =

• Direct Material + Direct Labour + Manufacturing Overhead

• Indirect Material + Indirect Labour + Manufacturing Overhead

• Period Cost + Indirect Cost

• Prime Cost + Period Cost