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CMA I - Intro & Cost Classification

Total questions: 12

Worksheet time: 9mins

Name
Class
Date
1.

Accounting reports are prepared for the use of external users. The statement above best describes:

a)

Management Accounting

b)

Cost Accounting

c)

Financial Accounting

d)

All of the above

2.

Which of the following phrases describes Management Accounting?

a)

Under legal obligation

b)

For external users

c)

Any presentation formats

d)

By-product of financial accounting

3.

The cost increases in direct proportion to increases in number of units produced. Sketch the graph:

4.

Which ONE of the following costs would NOT be classified as a production overhead cost in a food processing company?

a)

The cost of renting the factory building.

b)

The salary of the factory manager.

c)

The depreciation of equipment located in the materials store.

d)

The cost of ingredients.

5.

Constant in total when production volume changes. Classify the cost:

(a)  

6.

The audit fee paid by a manufacturing company would be classified as:

a)

A production overhead cost

b)

A selling and distribution cost

c)

A research and development cost

d)

An administration cost

7.

Financial accounts are prepared for external stakeholders.

Management accounts are prepared for (a)   stakeholders.

8.

The direct material cost is RM20,000 and the prime cost is RM55,000, then the direct labour cost would be:

a)

RM70,000

b)

RM55,000

c)

RM20,000

d)

RM35,000

9.

The direct labour cost is RM30,000 and the direct material cost is RM65,000, then the prime cost would be:

a)

RM35,000

b)

RM95,000

c)

RM30,000

d)

RM65,000

10.

The direct labour cost is added into factory overhead cost to calculate

a)

merchandise cost

b)

conversion cost

c)

transactional cost

d)

resale cost

11.

As an alternative, the firm can pay the operators a flat salary. It would then use one machine when volume is low, two when it expands, and three during peak periods.

This means that the total operator cost would now be a:

a)

Direct cost

b)

Semi-fixed cost

c)

Variable cost

d)

Fixed cost

12.

Telephone rental plus metered call is considered as:

a)

Step cost

b)

Semi-fixed cost

c)

Variable cost

d)

Semi-variable cost