Which one of the following items is typically an example of an indirect cost of a cost object?

Question 6 options:

	courier charges for shipment delivery
	wood used for furniture manufacture
	refundable sales tax on direct materials
	direct manufacturing labour
	manufacturing plant electricity

Question 7 (1 point)

 

Prime costs can include

Question 7 options:

	machine set up costs.
	indirect manufacturing labour.
	advertising costs.
	direct material costs.
	conversion costs.

Question 8 (1 point)

 

Which one of the following examples could be classified as a direct cost?

Question 8 options:

	The costs of an entire factory's electricity related to a product; the product line is the cost object.
	The printing costs incurred for payroll cheque processing; the payroll cheque processing is the cost object.
	The costs incurred for electricity in the office; the accounting office is the cost object.
	The salary of a maintenance supervisor in the manufacturing plant; Product A is the cost object.
	The cost of advertising the products.

Question 9 (1 point)

 

The determination of a cost as being either direct or indirect depends upon

Question 9 options:

	the allocation system.
	only the cost object chosen to determine its individual costs.
	the cost tracing system.
	the accounting system.
	the choice of the cost object, and the materiality of the cost in question.

Question 10 (1 point)

 

Cost assignment is

Question 10 options:

	the same as cost conversion.
	finding the difference between budgeted and actual costs.
	the same as cost accumulation.
	always arbitrary.
	linking actual costs to cost objects.