Question 1
Which costs are not included in the absorption costing of inventory?
a.
Direct labour
b.
Direct materials
c.
Variable production overheads
d.
Variable selling costs
Feedback
The correct answer is:
Variable selling costs
Question 2
Question text
A detailed financial plan is known as a/an …
a.
performance report.
b.
organisation chart.
c.
financial report.
d.
budget.
Feedback
The correct answer is:
budget.
,Question 3
Within the relevant range, variable costs are expected to...
a.
increase per unit as the output level increases.
b.
increase per unit as the output level decreases.
c.
vary in total in direct proportion to changes in the output level.
d.
remain constant in total as the output level changes.
Feedback
The correct answer is:
vary in total in direct proportion to changes in the output level.
Question 4
Which one represents the frequency with which inventory records can be updated?
a.
Periodic method
b.
Standard costing method
c.
Fist-in-first-out (FIFO) method
d.
Cash method
Feedback
The correct answer is:
Periodic method
,Question 5
Question text
Overtime premium is best described as …
a.
the payment for all hours in excess of the normal working hours.
b.
the bonus paid to skilled workers.
c.
a premium paid to workers to compensate for fatigue.
d.
the difference between the overtime rate and the normal rate per hour, multiplied
by the overtime hours.
Feedback
The correct answer is:
the difference between the overtime rate and the normal rate per hour, multiplied by the
overtime hours.
Question 6
The … would not typically appear on a Goods Received Note?
a.
Quantity received
b.
Date received
c.
Description of goods
d.
Price of the goods
Feedback
The correct answer is:
Price of the goods
Question 7
Direct labour is an example of …
, a.
period cost.
b.
product cost.
c.
administrative cost.
d.
non-manufacturing cost.
Feedback
The correct answer is:
product cost.
Question 8
Which one is a method used for apportioning production overheads?
a.
Standard costing method
b.
Traditional costing method
c.
Process costing method
d.
Job costing method
Feedback
The correct answer is:
Traditional costing method
Question 9
As the level of output increases, a mixed cost will...
a.
increase in total but have no effect per unit.
Which costs are not included in the absorption costing of inventory?
a.
Direct labour
b.
Direct materials
c.
Variable production overheads
d.
Variable selling costs
Feedback
The correct answer is:
Variable selling costs
Question 2
Question text
A detailed financial plan is known as a/an …
a.
performance report.
b.
organisation chart.
c.
financial report.
d.
budget.
Feedback
The correct answer is:
budget.
,Question 3
Within the relevant range, variable costs are expected to...
a.
increase per unit as the output level increases.
b.
increase per unit as the output level decreases.
c.
vary in total in direct proportion to changes in the output level.
d.
remain constant in total as the output level changes.
Feedback
The correct answer is:
vary in total in direct proportion to changes in the output level.
Question 4
Which one represents the frequency with which inventory records can be updated?
a.
Periodic method
b.
Standard costing method
c.
Fist-in-first-out (FIFO) method
d.
Cash method
Feedback
The correct answer is:
Periodic method
,Question 5
Question text
Overtime premium is best described as …
a.
the payment for all hours in excess of the normal working hours.
b.
the bonus paid to skilled workers.
c.
a premium paid to workers to compensate for fatigue.
d.
the difference between the overtime rate and the normal rate per hour, multiplied
by the overtime hours.
Feedback
The correct answer is:
the difference between the overtime rate and the normal rate per hour, multiplied by the
overtime hours.
Question 6
The … would not typically appear on a Goods Received Note?
a.
Quantity received
b.
Date received
c.
Description of goods
d.
Price of the goods
Feedback
The correct answer is:
Price of the goods
Question 7
Direct labour is an example of …
, a.
period cost.
b.
product cost.
c.
administrative cost.
d.
non-manufacturing cost.
Feedback
The correct answer is:
product cost.
Question 8
Which one is a method used for apportioning production overheads?
a.
Standard costing method
b.
Traditional costing method
c.
Process costing method
d.
Job costing method
Feedback
The correct answer is:
Traditional costing method
Question 9
As the level of output increases, a mixed cost will...
a.
increase in total but have no effect per unit.
