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- 1. Multiple Choice
Bad debts are considered to be a -
Administrative costs
Overhead costs
Selling and distribution costs
Cost of sales
- 2. Multiple Choice
Depreciation on office furniture is considered to be a -
Administrative costs
Selling and distribution costs
Overhead costs
Negative asset
- 3. Multiple Choice
Factory insurance is considered to be a -
Overhead costs
Prime costs
Administrative costs
Operating income
- 4. Multiple Choice
Carriage on sales affects -
Selling and distribution costs
Direct materials costs
Raw materials costs
Administrative costs
- 5. Multiple Choice
Customs duties increase -
Raw material costs
Overhead costs
Selling and distribution costs
Sales
- 6. Multiple Choice
Prime costs are made up of -
Raw materials costs + direct labour costs
Direct labour costs + Indirect labour costs
Factory overheads + administrative costs
Selling and distribution costs + administrative costs
- 7. Multiple Choice
The formula for calculating cost of sales is -
Finished goods at beginning of the year + cost of finished goods produced - finished goods at end of the year
Total manufacturing costs + work-in-progress at beginning of the year - work-in-progress at end of the year
Finished goods at beginning of the year + cost of sales - finished goods at end of the year
Finished goods at beginning of the year - cost of finished goods produced - finished goods at end of the year
- 8. Multiple Choice
Variable costs -
Increase in total with an increase in production
Increase per unit with an increase in production
Include prime costs and all factory overheads
Include all manufacturing, administrative and selling and distribution costs
- 9. Multiple Choice
Fixed costs -
Increase in total with an increase in production
Decrease per unit with an increase in production
Increase per unit with an increase in production
Decrease in total with a decrease in production
- 10. Multiple Choice
Cost of sales is equal to cost of finished goods produced when -
There is a zero balance for work-in-progress at the beginning and the end of the year.
There is a zero balance for finished goods stock at the beginning and the end of the year.
There is a zero balance for raw materials stock at the beginning and the end of the year.
At all times.
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