Managment And Accounting Y2

Question 1

What type of cost is Direct labour

Answer 1

semi-variable

Question 2

What type of cost is Depreciation on machinery

Answer 2

fixed

Question 3

What type of cost is Factory rental

Answer 3

fixed

Question 4

What type of cost are Supplies and other indirect materials

Answer 4

variable

Question 5

What type of cost is Advertising

Answer 5

fixed

Question 6

What type of cost is the Maintenance of machinery

Answer 6

semi-variable

Question 7

What type of cost is the Factory manager’s salary

Answer 7

fixed

Question 8

What type of cost is Supervisory personnel

Answer 8

semi-fixed

Question 9

What type of cost are Royalty payments?

Answer 9

variable

Question 10

What is a period cost?

Answer 10

Period costs are those costs which are treated as expenses in the period in which they are incurred. That is not attached
to the product

Question 11

What is a product cost?

Answer 11

Product costs are those costs associated with goods or services purchased or produced for sale

Question 12

What is an example of indirect costs?

Answer 12

Rent, repairs for machinery and safety procedures