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WorksheetsChapter 2 : Manufacturing Cost Concept and Components
Total questions: 16
Worksheet time: 8mins
When classified according to traceability to cost objective, the cost of raw materials is considered a:
Discretionary cost
Direct cost
Product cost
Committed cost
Variable costs are costs that change regularly while fixed costs remain the same all the time.
True
False
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
The formula for calculating cost of goods sold is -
Finished goods at beginning of the year + cost of finished goods produced - finished goods at end of the year
Total manufacturing costs + work-in-progress at beginning of the year - work-in-progress at end of the year
Finished goods at beginning of the year + cost of sales - finished goods at end of the year
Finished goods at beginning of the year - cost of finished goods produced - finished goods at end of the year
cost of goods sold is equal to cost of finished goods produced when -
There is a zero balance for work-in-progress at the beginning and the end of the year.
There is a zero balance for finished goods stock at the beginning and the end of the year.
There is a zero balance for raw materials stock at the beginning and the end of the year.
At all times.
Which cost is also known as inventoriable cost?
Product cost
Period cost
Manufacturing cost
Non-manufacturing cost
It is possible for both fixed cost and variable cost to be combined in only one cost.
True
False
Fixed costs -
Increase in total with an increase in production
Decrease per unit with an increase in production
Increase per unit with an increase in production
Decrease in total with a decrease in production
Variable costs -
Increase in total with an increase in production
Increase per unit with an increase in production
Include prime costs and all factory overheads
Include all manufacturing, administrative and selling and distribution costs
Which of the following is not an element of manufacturing overhead
Sales manager's salary.
Plant manager's salary.
Factory repairman's wages
Product inspector's salary.
Which of the following costs are classified as a period cost?
Wages paid to a factory custodian
Wages paid to a production department supervisor
Wages paid to a cost accounting department supervisor
Wages paid to an assembly worker.
Indirect labor is a:
nonmanufacturing cost.
raw material cost.
product cost.
period cost.
A cost of goods manufactured schedule shows beginning and ending inventories for:
raw materials and work in process only
work in process only
raw materials only.
raw materials, work in process, and finished goods.
The formula to determine the cost of goods manufactured is:
Beginning raw materials inventory + Total manufacturing costs − Ending work in process inventory.
Beginning work in process inventory + Total manufacturing costs − Ending finished goods inventory.
Beginning finished goods inventory + Total manufacturing costs − Ending finished goods inventory.
Beginning work in process inventory + Total manufacturing costs − Ending work in process inventory.
