Manufacturing Costing

Raw materials cost $2000, Carriage inwards on materials cost $500 and Supervisor salaries cost $1500. What is prime cost?

• 2500

• 4000

• 500

• 1500

Which account contains overheads and prime cost?

A cost that cannot be easily traced back to production is called

A cost that changes when output changes is called

A cost that does not change when output changes is called

Which of the following is calculation of prime cost?

• Direct materials + Direct Labour + Factory Overheads

• Direct materials + Direct Labour + Royalties

• Direct materials + Direct Labour + Indirect Labour

• Direct materials + Direct Labour + Factory Overheads+ WIP

Which of the following are examples of variable costs?

• raw materials

• rent

• insurance

Production cost of goods completed is transferred to the income statement after being completed is this true or false?

• True

• False

Areas where costs are absorbed differently within an organization are called

Accounting that is used primarily for internal use is called