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WorksheetsAbsorption and Marginal Costing Quiz
Total questions: 10
Worksheet time: 10mins
What does "costing" mean?
Calculating selling price
Finding the cost of making a product or service
Counting the number of products made
Deciding the profit margin
In costing, bread and vegetables in a burger are examples of fixed costs.
True
False
Which of the following is a variable cost?
Rent of kitchen
Chef salary
Direct materials
Insurance
Write one example of a fixed cost in a business.
Marginal cost of a unit includes:
Only fixed costs
Direct materials, direct labour, and variable overheads
Advertising cost
Interest on loan
Absorption costing includes both direct costs and a share of production overheads.
True
False
Which method values each unit at the cost to produce it, including overheads?
Marginal costing
Absorption costing
Variable costing
None of the above
What is the main difference between marginal costing and absorption costing?
When inventory levels change, the profit under marginal costing and absorption costing will be:
Always the same
Different
Zero
None
In marginal costing, fixed production costs are included in unit cost.
True
False
