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WorksheetsMA1 - Chapter 1 to Chapter 3
Total questions: 25
Worksheet time: 16mins
overhead means-----
the aggregate of indirect materials, indirect labour, and indirect expenses
all expenses with respect to materials
all expenses with respect to labour
all indirect expenses
Which type of company below is unlikely to use service costing?
Taxi company
Hairdresser
Private hospital
House builder
What are the elements of PRIME COST?
Direct Material
Manufacturing Overheads
Direct Labour
Direct Expense
Period cost
A publishing company pays an author a fee of $5,000 on delivery of a completed manuscript plus a royalty of $1.50 per book sold.
Fixed
Stepped Fixed
Mixed / Semi Variable
Variable
Marginal cost is also known as
Absorption cost
Standard cost
Variable cost
None of the above
Under marginal costing inventory is valued at _____.
Total Cost
Variable Production Cost
Total Production Cost
Total Variable Cost
Marginal or Variable costing is the most useful costing technique for the…
Shareholders
Management
Auditors
Creditors
What distinguishes absorption costing from marginal costing?
Product costs include both prime cost and production overhead.
Product costs include both production and non-production costs
Stock valuation includes a share of all production costs.
Stock valuation includes a share of all costs.
Fixed cost is also referred to as ________ in the marginal costing technique.
Total Cost
Product Cost
Period Cost
None
Define Management Information System (MIS)
•Identifying the system that is needed for effective conclusion in organizations
•Identifying the management that is needed for efficient decision making in organizations
Identifying the information that is needed for effective decision making in organizations
•Identifying the information that is needed for user acceptance in organizations
As volume/unit decreases, total fixed costs
are constant and cost per unit decreases
are constant and cost per unit increases
increase
decrease
What is increasing when you have a variable cost?
Total cost when production level increases
Cost per unit when production level increases
What is correct when you have a mixed cost?
Total cost remains the same when production level increases
Total cost increases when production level increases
Cost per unit decreases when production level increases
Cost per unit remains the same when production level increases
Which of the following can be included when valuing inventory?
i direct material
ii direct labour
iii administrative
iv production
i, ii and iv
i,ii and iii
ii, iii and iv
i, iii and iv
A firm has to pay a 0.50$ per unit royalty of a device which it manufactures and sells.
How would royalty charge be classified in the firm's accounts?
selling expenses
direct expense
production overhead
administrative overhead
Which type of cost is water used in making ice?
Direct cost
Indirect cost
Manufacturing overhead includes:
all direct material, direct labor and administrative costs.
all manufacturing costs except direct labor.
all manufacturing costs except direct labor and direct materials.
all selling and administrative costs.
Which of the following is NOT a period cost?
Monthly depreciation of the equipment in a fitness room used by factory workers.
Salary of a billing clerk.
Insurance on a company showroom, where current and potential customers can view new products.
Cost of a seminar concerning tax law updates that was attended by the company's controller.
The total fixed costs is
12,557
14,125
10,250
FIND THE TOTAL OF FIXED COST:
At 3,500 units the total cost is £24,000
At 6,000 units the total cost is £34,000
2.85
£5.60
£10,000
£4.00
Direct materials and direct labour are the only product costs.
TRUE
FALSE
What distinguishes absorption costing from marginal costing?
Product costs include both prime cost and production overhead.
Product costs include both production and non-production costs
Stock valuation includes a share of all production costs.
Stock valuation includes a share of all costs.
Which type of cost is electricity used in the production of ice cream?
Direct cost
Indirect cost
