WorksheetsACOF014 - REVISION QUESTION WEEK 2
Total questions: 15
Worksheet time: 8mins
Which of the following is an example of an unexpired cost?
Cost of goods sold
Raw materials inventory
Sales commission
Utility expenses
Which cost is treated as an expense when it is incurred?
Product cost
Period cost
Prime cost
Direct material cost
What is included in prime costs?
Direct materials, direct labor, direct expenses
Indirect materials and labor
Selling and distribution costs
Administrative expenses
Which of the following is an example of process costing?
Custom-made furniture manufacturing
Vehicle repair shop
Electronic assembly line
Tailor-made suits
What kind of cost remains constant regardless of production volume?
Variable cost
Fixed cost
Semi-variable cost
Marginal cost
Which of the following is considered a sunk cost?
Rent for a new factory
Depreciation of an old machine
Future advertising expense
Raw material costs
Which of the following is a relevant cost in decision-making?
Sunk cost
Fixed overhead
Opportunity cost
Depreciation
Which is an example of a controllable cost?
Factory rent
Sales manager’s commission
Property tax
Depreciation expense
What best describes opportunity cost?
Cost of hiring new employees
Cost of choosing one alternative over another
Historical cost of an asset
Additional expense incurred in production
In responsibility accounting, which center is accountable for both revenues and expenses?
Cost center
Profit center
Investment center
Service center
Unexpired costs are recorded as assets on the balance sheet.
True
False
Period costs are included in stock valuation for finished goods.
True
False
Job costing is more suitable for identical mass-produced items.
True
False
Semi-variable costs have both fixed and variable components.
True
False
Sunk costs are relevant when making future business decisions.
True
False
