cost accounting

Question 1

structure

administration

Answer 1

oversees and supervisors the operations of a business

admistration costs

Question 2

structure

factory

Answer 2

a manufacturing plant is an industrial site often consisting of several building filled with machinery

direct and indirect costs

Question 3

structure

selling and distrabution

Answer 3

the activities of both selling and delivering products and services from manufacturer to customer. ie, packing and inventory

selling and distrabution costs

Question 4

costs

variable costs

Answer 4

these are dependent on the number units produced

as porduction increases these costs increase

includes direct and selling and dristrabution costs

Question 5

fixed costs

Answer 5

irrespective of the number of units produced these costs will be the same

indirect and admistraive costs

Question 6

costs of production

direct costs

what are the two types

Answer 6

(necesary for production)
direct materials : all the raw materials used in production of the final product

direct labour costs : wages for labourers who work on the production line / directly on the manufacturing product

Question 6

costs of production

direct costs

what are the two types

Answer 6

(necesary for production)
direct materials : all the raw materials used in production of the final product

direct labour costs : wages for labourers who work on the production line / directly on the manufacturing product

Question 7

costs of production

indirect costs

whta are the types

Answer 7

indirect material costs: all consumabke stores used on the fatory floor. ie.cleaning material, fuel, lubrictaing oil.

indrect labour costs : wages and salaries for employees whose work is important but not necessary for production. ie. factory manager , cleaner , foreman, mainance crew

factory head costs : all othe costs involved in the running of the factory. ie. rent,insurance , depreciation on plant , water n elec ( these are fixed costs )