This quiz works best with JavaScript enabled. Home > Accounting > Cost Accounting > Cost Terminology > Cost Terminology – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Cost Terminology Quiz 1 (8 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is NOT part of the production costs? A) Production royalties. B) Direct materials. C) Salary of factory supervisors. D) Salary of office clerks. Show Answer Correct Answer: D) Salary of office clerks. 2. Which of the following is NOT a manufacturing overhead? A) Direct materials. B) Factory supervisor. C) Factory rentals. D) Indirect materials. Show Answer Correct Answer: A) Direct materials. 3. Which heading a "production royalties" will be recorded in a cost statement? A) Prime costs. B) Administration Overhead. C) Manufacturing Overhead. D) Finance Overhead. Show Answer Correct Answer: A) Prime costs. 4. An example of indirect material in making nasi lemak is ..... A) Slice of cucumber. B) Boiled egg. C) Rice. D) Water. Show Answer Correct Answer: D) Water. 5. Which of the following is fixed costs? A) Cost of direct materials consumed in production. B) Salary of production operators paid in unitary basis. C) Production royalties incurred in production. D) Depreciation on factory machinery. Show Answer Correct Answer: D) Depreciation on factory machinery. 6. Which heading a "Factory Rental Cost" will be recorded in a cost statement? A) Prime Costs. B) Manufacturing Overhead. C) Administration Overhead. D) Sales and distribution Overhead. Show Answer Correct Answer: B) Manufacturing Overhead. 7. A cleaner who work in a factory, may best be classified as ..... A) Direct expenses. B) Direct labour. C) Indirect labour. D) Indirect expenses. Show Answer Correct Answer: C) Indirect labour. 8. Direct materials + Direct labour + Direct expenses = ..... ? A) Manufacturing overhead costs. B) Production costs. C) Prime costs. D) Total Costs. Show Answer Correct Answer: C) Prime costs. Related QuizzesCost Accounting QuizzesAccounting Quizzes 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books