Costing and Job Costing Quiz

Which of the following is not included in a cost sheet?

• Direct material

• Office rent

• Sales revenue

• Factory overhead

Prime cost includes:

• Factory overheads only

• Direct expenses only

• Direct materials + Direct labor + Direct expenses

• Indirect materials + Indirect labor

Which of the following is a part of factory (works) cost?

• Selling expenses

• Office expenses

• Factory rent

• Interest on capital

Total cost of production =

• Prime cost + Factory overheads

• Works cost + Office and administrative expenses

• Selling expenses + Distribution expenses

• Factory cost – Selling expenses

In a cost sheet, net profit is calculated after subtracting:

• Factory cost

• Selling and distribution expenses

• Total cost

• Prime cost

Cost of goods sold =

• Works cost – Opening stock + Closing stock of finished goods

• Cost of production – Closing stock of finished goods

• Cost of production + Opening stock of finished goods – Closing stock

• Prime cost + Administrative expenses

Which one is not a direct expense?

• Wages paid to machine operator

• Hire charges for special plant

• Factory manager’s salary

• Royalty paid per unit produced

Selling and distribution overheads are part of:

• Prime cost

• Works cost

• Cost of production

• Total cost

Which cost is shown first in a cost sheet?

• Direct labour

• Prime cost

• Direct materials consumed

• Factory cost

Office and administration overhead is added to:

• Prime cost

• Factory cost

• Selling expenses

• Cost of goods sold