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QUIZ 1 : TOPIC 2 [COSTS : CONCEPT, CLASSIFICATION & COMPONENT]

Total questions: 20

Worksheet time: 20mins

Name
Class
Date
1.

Which of the following costs would a computer manufacturer include in manufacturing overhead?

a)

the costs of the disk drive

b)

the wages earned by computer assemblers

c)

the costs of memory chips

d)

depreciation of testing equipment

2.

Which of the following is not an element of manufacturing overhead?

a)

Sales manager's salary

b)

Plant manager's salary

c)

Factory repairman's salary

d)

Product inspector's salary

3.

Indirect labour is a :

a)

non-manufacturing cost

b)

raw material cost

c)

product cost

d)

period cost

4.

Which of the following costs are classified as a period cost?

a)

wages paid to a factory custodian

b)

wages paid to a production department supervisor

c)

wages paid to a cost accounting department supervisor

d)

wages paid to an assembly worker

5.

Costs of goods available for sale is a step in the calculation of cost of goods sold of :

a)

a merchandising company but not a manufacturing company

b)

a manufacturing company but not a merchandising company

c)

a merchandising company and a manufacturing company

d)

neither a manufacturing company nor a merchandising company

6.

A costs of goods manufactured schedule shows beginning and ending inventories for :

a)

raw materials and work in process

b)

work in process only

c)

raw materials only

d)

raw materials, work in process and finished product

7.

The formula to determine the costs of goods manufactured is :

a)

Beginning raw materials inventory + Total manufacturing costs - Ending work in process inventory

b)

Beginning work in process inventory + Total manufacturing costs - Ending finished goods inventory

c)

Beginning finished goods inventory + Total manufacturing costs - Ending finished goods inventory

d)

Beginning work in process inventory + Total manufacturing costs - Ending work in process inventory

8.

Direct material are :

a)

Product costs and Manufacturing overhead

b)

Product costs

c)

Product costs, Manufacturing overhead and period costs

d)

None of above

9.

Direct materials costs and indirect materials costs are manufacturing overhead.

a)

TRUE

b)

FALSE

10.

Manufacturing costs that cannot be classified as direct materials or direct labour are classified as manufacturing overhead.

a)

TRUE

b)

FALSE

11.

Raw materials are equal to direct materials minus indirect materials.

a)

TRUE

b)

FALSE

12.

Raw materials that can be conveniently and directly associated with a finished product are called materials overhead.

a)

TRUE

b)

FALSE

13.

The total cost of a finished product does not generally contain equal amounts of materials, labour, and overhead costs.

a)

TRUE

b)

FALSE

14.

Both direct labour cost and indirect labour cost are product costs.

a)

TRUE

b)

FALSE

15.

Indirect materials and indirect labour are both inventoriable costs.

a)

TRUE

b)

FALSE

16.

Direct materials and direct labour are the only product costs.

a)

TRUE

b)

FALSE

17.

Period costs are not inventoriable costs.

a)

TRUE

b)

FALSE

18.

The beginning work in process inventory appears on both the Statement of Financial Position and the Statement of Cost of Goods Manufacturing.

a)

TRUE

b)

FALSE

19.

Which one of the following would not be classified as manufacturing overhead?

a)

Indirect labour.

b)

Direct materials

c)

Insurance on factory building

d)

indirect materials.

20.

Which of the following are period costs?

a)

Raw materials

b)

Direct materials and direct labor

c)

Direct labor and manufacturing overhead

d)

Selling expenses