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WorksheetsCost classification Review Quiz
Total questions: 12
Worksheet time: 6mins
Name
Class
Date
1.
All costs related to the manufacturing function in a company are
a)
prime costs
b)
period costs
c)
manufacturing overhead costs
d)
product costs
2.
Which of the following costs would be considered production overhead in the production of bread?
a)
Flour
b)
Electricity
c)
Yeast
d)
Sugar
3.
Prime costs consist of______
a)
direct labour
b)
direct labour+direct expenses
c)
direct materials+direct expenses
d)
direct materials+direct labour+direct expenses
4.
For a manufacturing company, which of the following is a period, but not a product cost?
a)
Salary of accounts executive
b)
Salary of factory supervisors
c)
Rental cost of factory building
d)
Depreciation on factory machineries
5.
Conversion costs do not include
a)
direct labour
b)
factory utilities
c)
direct materials
d)
property taxes on factory building
6.
A cost that remains constant in total but varies on a per-unit basis with changes in activity is called a
a)
fixed cost
b)
period cost
c)
product cost
d)
variable cost
7.
The direct materials and indirect materials used in the production of a motorcycle, combined with the direct labour costs and manufacturing overhead involved would be called as ______ costs
a)
direct
b)
period
c)
product
d)
conversion
8.
Which of the following is most likely to be a variable cost?
a)
Property insurance premiums.
b)
Interest on bonded indebtedness.
c)
Rental payments on IBM requirement.
d)
Payment for raw materials purchased from Company Y.
9.
Are costs that vary in total directly and proportionately with changes in the activity level.
a)
Fixed Cost
b)
Variable Cost
c)
Mixed Cost
d)
Irrelevant Cost
10.
Cost that cannot be changed by any present and future decision, therefore irrelevant cost.
a)
Variable Cost
b)
Fixed Cost
c)
Sunk Cost
d)
Relevant Cost
11.
Direct labor + Factory Overhead
a)
Conversion Cost
b)
Prime Cost
c)
Manufacturing Cost
d)
None of the answer
12.
Also known as Non-Manufacturing Cost
a)
Product Cost
b)
Period Cost
c)
Inventoriable Cost
d)
Manufacturing Cost
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