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Cost Accounting 1 Quiz

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Prime cost can be define as:

a)

The total costs of manufacturing a product

b)

The total direct cost of manufacturing a product

c)

The total cost of operating the production department where the product is

d)

The total cost of Direct Material and Direct labour

2.

One of the below is not an element of the manufacturing cost

a)

Factory Overheads

b)

Direct material

c)

Auditing Expense

d)

Direct labour

3.

The Non-manufacturing cost consist of

a)

Marketing expense, Indirect material and Marketing expense

b)

Indirect labour, Indirect material and Marketing expense

c)

Marketing expense, Administration Expense and selling expense

d)

Direct material direct labour and manufacturing overheads

4.

One of the following is not an Ethics of cost and management accounting

a)

Loyalty

b)

Transparency

c)

Beauty

d)

Respect

5.

An example of manufacturing overheads cost would be:

a)

Office Rent

b)

Raw material used in production

c)

Indirect material

d)

Advertising expense

6.

Fixed cost per unit is R9 when 20 000 units are produced, and R6 When 30 000 units are produced.

What is the total fixed cost when nothing is produced?

a)

R120 000

b)

R270 000

c)

R150 000

d)

R180 000

7.

Buddy uses the High-low method of estimating costs. Bud had total cost of R50 000 at it's lowest level of activity, when 5000 units where sold. When at it's highest level of activity, sales equalled 12 000 units, total cost were R78 000.

Bud would estimate variable cost per unit as

a)

R10.00

b)

R6.50

c)

R4.00

d)

R7.53

8.

A Cost that remains constant regardless of out-put is a

a)

Variable cost

b)

Fixed cost

c)

Product cost

d)

Period cost

9.

Marketing cost is an example of

a)

Manufacturing cost

b)

Non-manufacturing cost

c)

Direct labour

d)

Indirect labour

10.

Management accounting is used by

a)

Shareholder

b)

Internal manager

c)

Employees

d)

Non-of the above