AA025 QUIZ TOPIC 3,4 AND 6

Depreciation on office furniture is considered to be a -

• Administrative costs

• Selling and distribution costs

• Overhead costs

• Negative asset

Factory insurance is considered to be a -

• Overhead costs

• Prime costs

• Administrative costs

• Operating income

Prime costs are made up of -

• Raw materials costs + direct labour costs

• Direct labour costs + Indirect labour costs

• Factory overheads + administrative costs

• Selling and distribution costs + administrative costs

Customs duties increase -

• Raw material costs

• Overhead costs

• Selling and distribution costs

• Sales

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

How is Prime Cost calculated on a manufacturing account?

• Prime Cost = Direct Materials + Direct Wages + Direct Expenses

• Prime Cost = Direct Materials - Direct Wages - Direct Expenses

• Prime Cost = Direct Materials x Direct Wages

• Prime Cost = Direct Materials / Direct Expenses

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

This account is used to summarize the cost of direct materials, direct labor and factory overhead incurred in producing the goods.

• Manufacturing costs

• Manufacturing overhead

• Cost of goods manufactured

• Cost of goods sold

It is the cost of products that have been completed and are waiting to be sold to customers.

• Finished goods

• Work in process

• Cost of goods sold

• Raw materials

• Manufacturing cost

This cost represents the total expenses incurred in the production of goods that are not yet completed.

• Direct materials

• Cost of goods sold

• Finished goods

• Work in process