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Direct and Indirect Cost

Total questions: 16

Worksheet time: 16mins

Name
Class
Date
1.

The cost directly linked to the making of a product or service.

a)

financial cost

b)

direct cost

c)

indirect cost

d)

company cost

2.

Is it a direct or indirect cost?

Computers

a)

Direct Cost

b)

Indirect Cost

3.

Is it a Direct or Indirect Cost?

Labor

a)

Direct Cost

b)

Indirect Cost

4.

Direct costs are...

a)

Costs that do not change with output

b)

Costs directly involved with making the product

c)

Costs that are essential but not directly related to manufacturing

d)

money spent on a regular basis

5.

Indirect costs are...

a)

Costs that do not change with output

b)

Costs directly involved with making the product

c)

Costs that are essential but not directly related to manufacturing

d)

money spent on a regular basis

6.

Fixed Costs are the same as Indirect Costs

a)

True

b)

False

7.
Any cost that cannot be traced back to a product
a)
standard cost
b)
indirect cost
c)
direct cost
d)
period cost
8.

The formula for Total Cost is

Total Cost = Fixed Cost + Variable Costs

a)

True

b)

False

9.

Direct Cost or Indirect Cost?

Staff Uniform

a)

Direct Cost

b)

Indirect Cost

10.

Direct Cost or Indirect Cost?

Cake Flour

a)

Direct Cost

b)

Indirect Cost

11.

Span has 10 workers. Each worker is paid $5,000.00 every month. Workers wages/salary is an example of a ___.

a)

Fixed Cost

b)

Variable Cost

12.

Materials used to produce goods are an example of ___.

a)

Fixed Costs

b)

Variable Costs

13.

Nicole has rented a building to setup her factory. Rent is an example of a ___.

a)

Fixed Cost

b)

Variable Cost

14.

Fixed or Variable?

Office rent

a)

Fixed

b)

Variable

15.

Fixed or Variable?

Insurance

a)

Fixed

b)

Variable

16.

A loan payment is a fixed expense.

a)

True

b)

False