Manufacturing Economy Chapter 3

350 kg of mild steel had been used to produce 1000 components Y. If price per unit mildsteel is RM80/kg, calculate the total material cost that been used ?

• A             RM 280

• B             RM28000

• C             RM 80

• D             RM 18000

What factors affect direct and indirect material costs?

• Types of material and availability

• Product Design

• Quantity of output produced & Consumption material used.

• All of above

What is indirect labor?

• Directly involved in making products.

• Aren't directly making products.

• Who have specialized training or skills.

• Not require advanced training

Which one is correct about Element of Cost

• Expense > Materials > Labor

• Material > Labor > Expense

• Material > Expense > Labor

• Labor > Expense >Materials

What is the indirect material cost definition?

• Can be easily identified to specific work.

• Expenses that can be easily connected to specific products.

• Materials that should be fully consumed that need special handling.

• Quantity of output produced.

What are the factors that influence direct and indirect material cost

• Quantity of output produced & Consumption material used.

• Product Design

• Types of material and availability

• All of above

What are the right answer for type of Labor ?

• Skill labor,Semi skill labor& Unskill labor.

• Skilled labor,Semi skilled labor& Unskilled labor,

• Skilled labor,Semi skilled labor& Unskilled labor.

• The skilled labor,The semi skilled labor,The Unskilled labour.

Which of the following is an example of a direct expense?

• Rent for office space

• Salary of the sales manager

• Cost of raw materials

• Depreciation on office equipment

Suppose that a worker is paid at the rate of Rm7.20 per hour and he has spent 250 hours at work during a particular month. His wages for the month will be:

• Rm1600

• Rm1550

• Rm1750

• Rm1800

What is the different between the material availability & process capability?

• If the supply reduced, price will be increase while the scrap and rework process minimized, the direct material cost will be low.

• If the supply increase, the price will be reduce while the scrap and rework process can be increase and the direct material cost will be decrease.

• No different at all

• Same with other product design configuration