Cost Accounting Worksheet Questions

What is an organisation chart designed to show?

• Directions of responsibility

• Aim of the organisation

• Main items of expenditure

• Coding structure

Which of the following are advantages of using spreadsheets?

• 1, 2 and 3

• 1 and 2 only

• 1 and 3 only

• 2 and 3 only

What is meant by the classification of costs by behaviour?

• Classification of costs as prime costs and overheads

• Classification according to how costs change with activity

• Classification according to whether costs are direct or indirect

• Classification of costs as material, labour and other expenses

What is a cost unit?

• The cost per unit of a product or service

• A unit of a product or service which has costs attached to it

• A section of the business where a manager is only responsible for costs

• A number of different products combined together for cost analysis

Forecast sales and production of product P in the next period are 6,000 units and 5,800 units respectively. 50 litres of material M are used per 100 units of product P. Inventory of material M is planned to be reduced by 60 litres in the next period. What quantity of material M needs to be purchased in the next period?

• 2,960 litres

• 2,940 litres

• 2,840 litres

• 3,060 litres

To which accounts would factory wages charged to production be posted?

• Wages control, production overhead and bank

• Creditors and wages control

• Work in progress and finished goods

• Wages control, work in progress and production overhead

A direct operative in a production cost centre worked for 41 hours in week 6. The basic week is 38 hours and the basic rate of pay is $12 per hour. Extra hours are worked to meet the general needs of the business and are paid at a premium of 20% above the basic rate. How much of the direct operative's gross wages in week 6 would be charged as a direct cost?

• $456.00

• $492.00

• $499.20

• $535.20

The management accountant is trying to display a large amount of data in a spreadsheet but finding it difficult to prevent the column and row headings from scrolling off the screen. She wants to 'freeze' the first four rows and the first three columns using the freeze panes function: Where should the management accountant position the cell pointer when she clicks the 'Freeze panes' function in order to freeze the first four rows and the first three columns as illustrated?

• In cell D5

• In cell C5

• In cell C4

• In cell D4

In the cost coding system of Company A each digit of a code represents a classification, with each digit further to the right representing a smaller subset than the previous digit. What type of coding system is Company A using?

• Hierarchical

• Sequential

• Block

• Mnemonic

Which of the following would occur in a production environment where process costing is used?

• 1 and 3

• 1 and 2 only

• 1, 2 and 3

• 3 only