Costing Basics Unit 1 to 4 Quiz 24 Jan 24

Abnormal idle time of production workers is considered as

• (A) financial overheads.

• (B) marketing overheads.

• (C) production overheads.

• (D) administration overheads.

The department which reaches out to the prospects and manages brands is

• (A) service department.

• (B) marketing department.

• (C) production department.

• (D) administration department.

When the work performed by a production worker cannot be connected to a specific production, the wages paid are considered as

• (A) direct wages.

• (B) indirect wages.

• (C) financial overheads.

• (D) marketing overheads.

Primary packing materials for manufactured goods will include

• (A) drink bottles and drink cans.

• (B) jam, jam bottles and cartons.

• (C) chips, crisp packets and cardboard boxes.

• (D) chocolate bar wrappers and cardboard boxes.

The value of unused indirect materials is considered as current

• (A) costs.

• (B) assets.

• (C) products.

• (D) production costs.

The apportionment of rent expenses of a building to the production overheads, administration overheads and marketing overheads is based on the

• (A) area occupied by the departments.

• (B) number of employees in the departments.

• (C) depreciation of the building and area occupied.

• (D) water and electricity consumed by the departments.

In a manufacturing business, costs are classified into

• (A) production costs and service costs.

• (B) manufacturing and production costs.

• (C) production and non-production costs.

• (D) manufacturing costs and non-production costs.

An example of administration overheads is bank

• (A) charges.

• (B) loan interest.

• (C) interest revenue.

• (D) interest expense.

An example of direct expenses in a manufacturing company is

• (A) fabrics.

• (B) materials.

• (C) rent.

• (D) royalty.

XYZ Company uses the First-In-First-Out method to value direct material cost for production. Rising prices will lead to

• (A) high cost of closing stock.

• (B) average cost of closing stock.

• (C) high direct material costs charged to production.

• (D) no different in direct material costs charged to production.