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S3 Job Costing

Total questions: 14

Worksheet time: 7mins

Name
Class
Date
1.

What is the main purpose of Job Costing?

a)

To calculate the total sales of a company

b)

To calculate the cost of an individual job or task and the selling price to charge the customer

c)

To track the performance of employees

d)

To manage the company's stock inventory

2.

What does "VAT" stand for in accounting terms?

a)

Variable Accounting Technique

b)

Value Added Tax

c)

Verified Annual Turnover

d)

Volume Allocation Total

3.

What is a "Profit Markup"?

a)

The value of profit the business wishes to make from the individual job/task

b)

The value of loss the business expects to make from the individual job/task

c)

The value of sales the business wishes to make from the individual job/task

d)

The number of sales a business must make to breakeven

4.

What types of jobs may require a Job Costing Statement? There are 3 correct answers!

a)

TripAdvisor review

b)

A bespoke wedding cake

c)

Painting the exterior of a house

d)

Mechanic work done on a car

5.

Which of the following is an example of Job Costing?

a)

Calculating the cost of manufacturing a car.

b)

Calculating the cost of a monthly utility bill.

c)

Quote for a fitted kitchen/landscaping job.

d)

Calculating the cost of producing a movie.

6.

What is given to customers as an approximate charge for the workforce required to complete a job?

a)

Material costs

b)

Overheads

c)

Labour

d)

Selling and distribution overheads

7.

How are overheads applied to each job?

a)

Based on a fixed percentage

b)

Using pre-determined overhead absorption rates

c)

Equally divided among all jobs

d)

Based on the duration of the job

8.

What is the total cost of Direct Materials for JOB 835?

a)

£1,300.00

b)

£200.00

c)

£2000.00

d)

£1,600.00

9.

How much is the PROFIT (10% mark-up) on JOB 835, if the total costs equalled £3500.00?

a)

£350.00

b)

£3,500.00

c)

£770.00

d)

£400.00

10.

What is the SELLING PRICE for JOB 835, if:

Total Costs = £50

Profit Markup = £10

VAT= £3

a)

£60

b)

£57

c)

£63

d)

£603

11.

What is "Profit Markup" calculated as?

a)

A) A fixed amount added to the cost of the job

b)

B) A percentage of the cost of the job

c)

C) A percentage of the sales price

d)

D) A fixed percentage regardless of the job cost

12.

What is added to the price charged to the customer to account for the tax that the producer needs to pay to the government after the sale?

a)

A) Income Tax

b)

B) Corporate Tax

c)

C) VAT

d)

D) Service Tax

13.

What is the VAT percentage in the UK currently?

a)

10%

b)

15%

c)

20%

d)

25%

14.
Material costs in job costing must all come from the same department. True or False?
a)
True
b)
False