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    Chapter 3 Test 2

    Uploaded by

    Fatima Khaqan
    This document contains a 10 question multiple choice test on cost accounting concepts. The questions cover topics such as fixed vs variable costs, direct vs indirect costs, prime costs, classification of costs by function for management control and financial reporting. The correct answers are not provided.

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    © All Rights Reserved
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    Chapter 3 Test 2

    Uploaded by

    Fatima Khaqan
    17 views2 pages
    This document contains a 10 question multiple choice test on cost accounting concepts. The questions cover topics such as fixed vs variable costs, direct vs indirect costs, prime costs, classification of costs by function for management control and financial reporting. The correct answers are not provided.

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    Chapter 3 Test 2.docx

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    This document contains a 10 question multiple choice test on cost accounting concepts. The questions cover topics such as fixed vs variable costs, direct vs indirect costs, prime costs, classification of costs by function for management control and financial reporting. The correct answers are not provided.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    17 views2 pages

    Chapter 3 Test 2

    Uploaded by

    Fatima Khaqan
    This document contains a 10 question multiple choice test on cost accounting concepts. The questions cover topics such as fixed vs variable costs, direct vs indirect costs, prime costs, classification of costs by function for management control and financial reporting. The correct answers are not provided.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    Chapter 3 Test 2

    1. Which of the following cost is not directly related to production of goods?


    a) Product cost
    b) Period cost
    c) Semi variable cost
    d) Stopped cost

    2. Which of the following remain un-changed in per unit?


    a) Fixed cost
    b) Variable cost
    c) Semi variable cost
    d) Production cost

    3. A fixed cost will remain un-changed only for a fixed level of activity is an
    example of
    a) Fixed cost
    b) Direct cost
    c) Relevant range
    d) Indirect cost

    4. Which of the following is most likely to be treated as an indirect cost for


    vehicles manufacturer?
    a) Raw material for vehicles
    b) Labour cost
    c) Lubricant oil
    d) None of the above

    5. A product that a company makes require 5kg of material A costing $6 per kg


    and 6kg of material B costing $5.60 per kg. The product requires 3 hours of
    labour at a cost of $8.40 per hour. The product is sold in packs of 20 and
    packaging cost is $44 for 20 units. Fixed production cost is $60000 and admin
    cost is $28000. What is the prime cost of the product?
    a) $91.00
    b) $93.68
    c) $72.00
    d) $97.43

    6. Indirect costs are also referred to as


    a) Production overheads
    b) Product cost
    c) Period cost
    d) None of the above

    7. Which of the following would not be a prime cost?


    a) Factory rent
    b) Labour cost of product
    c) Material input for product
    d) Hire charge for specialize machine
    8. Which of the following would be most likely illustrated by this diagram given
    below?

    a) Factory Rent
    b) Material cost
    c) Supervisor Salary
    d) Telephone cost

    9. Classification of cost by Function is used by management to—


    (i) Produce the financial statement
    (ii) Control cost

    a) Only (i)
    b) Only (ii)
    c) Both (i) & (ii)
    d) None of these

    10. Line rental is an example of which cost in telephone bill?


    a) Semi-variable cost
    b) Stepped fixed cost
    c) Fixed cost
    d) Prime cost

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