Accounting revision

Question 1 of 16

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Define direct materials

Select one of the following:

  • Integral part of product that can be traced directly to it.

  • Anything that is not an indirect material

Question 2 of 16

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Define direct labour

Select one of the following:

  • Easily traced to individual units of product.

  • Anything that does not include indirect labour

Question 3 of 16

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Define manufacturing costs

Select one of the following:

  • Cannot be traced to individual product, includes indirect materials and indirect labour.

  • Includes manufacturing costs

Question 4 of 16

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Define non-manufactuing costs

Select one of the following:

  • Includes marketing and selling costs to receive the order and the delivery and also administrative costs

  • Not manufacturing costs

Question 5 of 16

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Product costs

Select one of the following:

  • They are expenses in the period in which the product is sold.

  • cost of products

Question 6 of 16

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Period costs

Select one of the following:

  • They are treated as expenses in the period they are incurred.

  • costs of the period

Question 7 of 16

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Define cost behaviour

Select one of the following:

  • How cost will react to changes in level of business activity

  • variable and fixed costs

Question 8 of 16

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Cost behaviour of variable costs

Select one of the following:

  • Varies in direct proportion to changes in level of activity

  • variable

Question 9 of 16

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Cost behaviour of fixed costs

Select one of the following:

  • Costs remain constant regardless of changes in level of activity

  • fixed

Question 10 of 16

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What are direct costs?

Select one of the following:

  • Costs that can be easily traced to unit of product

  • directly

Question 11 of 16

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What are indirect costs?

Select one of the following:

  • Costs that cannot be traced to product, common costs have a number of objective so cannot be traced to an individual.

  • not direct costs

Question 12 of 16

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What is differential costs/revenue?

Select one of the following:

  • Difference between cost/revenue between alternatives. Increase in amount is incremental, decrease in amount is decremental.

  • difference between cost products

Question 13 of 16

Medal-premium 1

What is marginal revenue or marginal cost?

Select one of the following:

  • Amount attained by one more unit of product

  • marginal amount

Question 14 of 16

Medal-premium 1

What are opportunity costs?

Select one of the following:

  • Potential benefit that is given up when one alternative is selected over another

  • costs made from opportunities

Question 15 of 16

Medal-premium 1

What are sunk costs?

Select one of the following:

  • Cannot be changed by any decision as they are not seen as differential costs.

  • costs that have decreased

Question 16 of 16

Medal-premium 1

Contribution Margin

Select one of the following:

  • Is the amount remaining from sales revenue- variable expenses

  • The margin that is contributed

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Accounting revision

Amy_B
Quiz by , created over 3 years ago

Bachelors Degree Accounting Quiz on Accounting revision, created by Amy_B on 24/05/2013.

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