Cash concepts Keywords

Question 1

Direct labour?

Answer 1

Those labour costs that can be easily targeted to individual units of the product.

Question 2

Manufacturing overheads?

Answer 2

Manufacturing costs that cannot be traced directly to specific units produced.

Question 3

What are the two types of manufacturing overheads?

Answer 3

Indirect labour
Indirect materials

Question 4

Indirect labour?

Answer 4

Wages paid to employees who are not directly involved in the production work

Question 5

Indirect materials?

Answer 5

Materials used to support the production process

Question 6

Direct materials?

Answer 6

Those materials that become an integral part of the product and that can be conveniently traced directly to it

Question 7

What are the two types of non-manufacturing costs?

Answer 7

Marketing and selling costs
Administrative costs

Question 8

Marketing and selling costs?

Answer 8

Costs necessary to get the order and deliver the product

Question 9

Administrative costs?

Answer 9

All executive organisational and clerical costs

Question 10

Fixed costs?

Answer 10

Costs that don’t change no matter the level of output

Question 11

Variable costs?

Answer 11

Costs that vary with the level of output

Question 12

Mixed costs?

Answer 12

Costs that contain both a fixed cost and variable cost as part of their component

Question 13

Stepped cost?

Answer 13

Costs that don’t vary according to the level of activity or output up to a specific limit