9:04 O till 30% Read Only - You can't save changes to this f... PART A (15 MARKS) 1. Prime cost is: A. All costs incurred in manufacturing a product B. The total of direct costs C. The material cost of a product D. Production overhead 2. Which of the following would be classified as indirect labour? A. Assembly workers in a company manufacturing televisions B. A store assistant in a factory store C. Plasterers in a construction company D. Crane driver in a haulage company 3. A company employs four supervisors to oversee the factory production of all its pro salaries paid to these supervisors are: A. A direct labour cost B. A direct production expense C. A production overhead D. An administration overhead 4. Which of the following would be classified as direct materials? A. plastic used as ice-cream packaging Page 3 of 13 30% 9:04 4. Which of the following would be classified as direct materials? A plastic used as ice-cream packaging Page 3 of 13 : Select All AFAS Smart Look-up B. paper used in printing a book C. sand paper used in making iture D. needles used in making clos 5. A salesman is paid a salary of RM2,000 per month, plus an extra 10% for his monthly sale revenue. This labour cost is best described as: A. A variable cost B. A fixed cost C. A step cost D. A semi-variable cost 6. A cost centre is A. A unit of output or service for which costs are ascertained B. A function or location for which costs are ascertained C. A segment of the organization for which budgets are prepared D. An amount of expenditure attributable to a particular activity 7. Which of the following are acceptable bases for absorbing production overheads? (1) Direct labour hours (ii) Machine bours (1) Volume (iv) Per unit 9:04 d. 30% 10. Fixed costs are normally deemed to be A. constant per unit of activity B.constant in total when activity changes C. outside the control of management D. unaffected by inflation Select suitable word words given below and fill in the lanks Page 5 of 13 IL AFA3343 fixed variances coordinate principal favourable variable standard 11. When the actual results are better than expected results, we have a varian 12. costing is a technique which uses standards for costs and revenues for purpose of control through variance analysis. 13 costs are costs that change in direct proportion to the volume 14. An important purpose of a budget is to the activities of different departmen towards a single plan. 15. A cost remains unchanged when production activity changes over a certain relevant range