S3 Overhead Analysis Intro

What are overheads similar to in terms of costs?

• Variable Costs

• Direct Costs

• Fixed Costs

• Marginal Costs

Can overhead costs be easily identifiable in the product being made?

• Yes, they can be easily identified

• No, they are indirect and cannot be easily identifiable

• Yes, they are always a direct part of the product

• No, they are only identifiable in the services being provided

Which of the following costs are easy to identify when examining a cake made in a factory?

• Electricity and rent

• Cleaning costs and business rates

• Sugar, butter, flour, icing, cupcake case

• Marketing and distribution costs

What type of costs are difficult to identify within the cake?

• Material costs like sugar and flour

• Labour costs for baking the cake

• Costs such as electricity, cleaning, and rent

• Costs for ingredients and baking materials

In the context of Capital Cakes, which of the following would be classified as a direct cost?

• Factory rent

• Flour

• Factory insurance

• Machinery repair

For Finest Furniture, which cost is an example of an indirect cost?

• Wood for chairs

• Joiners' wages

• Paints and varnishes

• Office stationery

Which basis of apportionment would best suit apportioning Rent and Rates?

• Floor area

• No of employees

• No of machine hours

• No of Kilowatt Hours

Which basis of apportionment would best suit apportioning Building Insurance?

• Floor area

• No of employees

• No of machine hours

• No of Kilowatt Hours

Which basis of apportionment would best suit apportioning Canteen Costs?

• Floor area

• No of employees

• No of machine hours

• No of Kilowatt Hours

Which basis of apportionment would best suit apportioning Staff Supervision?

• Floor area

• No of employees

• No of machine hours

• No of Kilowatt Hours