Q. Which of the following costs is treated as indirect labour?
✅ Correct Answer: (D)
All of the above
Cost and Works Accounting 2 MCQs and Notes
Q. A cost that changes in total dollar amount with the change in the level of activity is known as:
✅ Correct Answer: (C)
Variable cost
Q. Which of the following is a valid classification of the salary paid to the foreman in charge of the packing department?
✅ Correct Answer: (D)
Service department cost.
Q. Which of the following best describes a fixed cost? A cost which:
✅ Correct Answer: (A)
Represents a fixed proportion of total costs
Q. A cost that is easily traceable to a cost object is known as:
✅ Correct Answer: (A)
Direct cost
Q. To control costs it is essential to keep control on
✅ Correct Answer: (B)
Overheads
Q. All such expenses which are incurred for creating and enhancing the demands for the products are
✅ Correct Answer: (D)
All of the above
Q. An example of a production overhead would be:
✅ Correct Answer: (D)
Supervisory cost