(A) Prime costs
(B) Period costs
(C) Product costs
(D) Indirect labour
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Production overheads are absorbed into production units by the use of an overhead absorption rate. Which one of the following best describes how the absorption rate is calculated?
(A) Total number of units produced divided by the total cost centre overheads.
(B) Total number of units produced multiplied by the unit overhead cost.
(C) otal cost centre overheads divided by the cost centre activity level.
(D) Total indirect costs for the business divided by the total number of units produced.
Which of the following is a direct labour cost?
(A) Supervisors‘ salaries in the factory.
(B) Costs of the payroll accounting section.
(C) A bonus paid to the storeman.
(D) The wages of an operative paid on the basis of output achieved.
Which of the following is not a method of pricing raw material issues from stock?
(A) Standard costing.
(B) Unit cost.
(C) Marginal cost.
(D) Continuous weighted average.
The first in, first out method of pricing raw material issues, exhibits which one of the following features?
(A) The issue price is recalculated each time new deliveries are made into stock.
(B) The issue price is always at the latest price.
(C) The goods are always issued strictly in the physical order in which they are received.
(D) The issue price is always at the earliest price.
Which of the following is likely to be classified as a direct material cost of a motor car wheel?
(A) The metal used to manufacture it.
(B) The metal used to manufacture one of the tools used in the car wheel factory.
(C) The cost of operating the raw material stores in the factory.
(D) The cost of the quality operation on the finished car wheels.
The Economic order quantity can be calculated by?
(A) Formula Method
(B) Table Method
(C) Graph Method
(D) All of the given
Which of the following would be considered a major aim of a job order costing system?
(A) To determine the costs of producing each job or lot
(B) To compute the cost per unit
(C) To include separate records for each job to track the costs
(D) All of the given option.