WorksheetsManufacturing Accounting Crawford College Grade 10
Total questions: 10
Worksheet time: 5mins
Name
Class
Date
1.
What are raw materials called in accounting terms, that which is purchased and directly used in the production of a product?
a)
Raw materials
b)
Indirect materials
c)
Manufacturing overheads
d)
Direct materials
2.
Direct Labour is sometimes called
a)
touch labour
b)
physical labour
c)
hard labour
d)
in labour
3.
Prime costs are made up of?
a)
Direct Labour costs and Direct Material Costs
b)
Direct and Indirect costs
c)
All the costs of production
d)
Only direct material costs
4.
Telephone costs for the office forms part of the factory overheads?
a)
True
b)
False
5.
Toilet paper costs for the factory employees falls part of manufacturing overheads?
a)
False
b)
True
6.
The rent portion for the office attached to the factory is 15% of the total rent expense of R2000. What is the cost of rent to be included in the production cost statement?
a)
R2000
b)
R300
c)
R1700
d)
R0
7.
Cleaning expense for the factory is included in the production cost statement?
a)
True
b)
False
8.
Manufacturing overheads comprises of?
a)
Direct costs and Indirect costs
b)
Prime costs and Indirect costs
c)
Indirect costs and all other factory costs not directly related to the product
d)
Direct Labour and Direct Materials
9.
Variable Costs...
a)
change with the volume of production.
b)
remain the same irrespect of the number of units produced
c)
are all the valueable cost items in production
d)
are rent and insurance costs
10.
Doubling production volume will
a)
Double profits
b)
Half profits
c)
increase profits by more than 50%
d)
increase fixed costs
100 %
