1. Tick the correct one: which type of companies have no or very low levels of inventory?

Manufacturing/service/merchandising

2. Three types of inventory are: ______________,_____________,_______________
3. Formula for calculation of cost of goods:

In a merchandising company=____________________________________

In a manufacturing company =____________________________________

4. Complete the formula: in a merchandising or manufacturing company,

Gross profit = _____________________

Operating profit=___________________

5. Complete the formula:

Prime cost= ________________,____________________

Conversion cost=_________________,________________

6. Tick the correct one: which type of companies have no or very low levels of inventory?

Manufacturing / service / Merchandising

7. You are most likely to find all three types of inventory in which companys balance sheet?____________________
8. Circle the correct answer: Costs that can be traced to a product manufactured are called direct costs/indirect costs
9. Circle the correct answer: Costs that can not be traced to a product manufactured are called direct costs / indirect costs
10. Direct costs are classified into _____________and __________________
11. Examples of indirect costs are ___________________________________
12. From the internet, find:

Examples of direct costs:______________________

Examples of indirect costs:______________________

Examples of manufacturing overheads:______________________

13. Circle the correct answer: direct costs involved in product manufacture are called period costs/product costs
14. Circle the correct answer: Costs that are not tied to production process are called period costs/product costs
15. From the internet find:

Examples of period costs___________________________

Examples of product costs___________________________