Manufacturing Costs Quiz

Which of the following is NOT a basic manufacturing cost category?

• Direct materials

• Direct labor

• Selling expenses

• Manufacturing overhead

Which cost classification refers to constant costs regardless of activity level?

• Variable costs

• Fixed costs

• Mixed costs

• Sunk costs

Which of the following is considered a product cost?

• Administrative salaries

• Sales commissions

• Wages of assembly workers

• Advertising expenses

Indirect costs are:

• Costs that can be traced to a specific cost object

• Costs that cannot be easily and conveniently traced to a specific cost object

• The same as direct costs

• Always fixed costs

Which cost is included in manufacturing overhead?

• Direct materials

• Direct labor

• Depreciation on factory equipment

• Advertising expenses

The term "prime cost" refers to:

• Direct materials and direct labor

• Manufacturing overhead and direct labor

• Direct labor and indirect labor

• Selling and administrative expenses

Which of the following is an example of a variable cost?

• Factory rent

• Supervisor's salary

• Direct materials

• Insurance

Fixed costs:

• Vary in total as production levels change

• Remain constant in total regardless of production levels

• Are always direct costs

• Decrease per unit as production increases

Which of the following is considered a product cost?

• Sales commission

• Depreciation on office equipment

• Factory janitor's wages

• Rent on office space

Which of the following is an example of a period cost?

• Factory worker's wages

• Direct materials

• Advertising expenses

• Factory maintenance