Q. Wages paid to a labour who was engaged in production activities can be termed as.
✅ Correct Answer: (A)
direct cost.
Cost and Works Accounting 2 MCQs and Notes
Q. . Which of the following is not considered to be a benefit of activity-based costing?
✅ Correct Answer: (D)
More detailed understanding of what drives cost.
Q. . The total cost of a product will include:
✅ Correct Answer: (C)
Prime costs plus direct production overhead plus indirect production overhead
Q. . Which of the following is a conventional method of ascertaining cost?
✅ Correct Answer: (A)
Absorption costing
Q. . What would be the most appropriate way of apportioning depreciation costs across different manufacturing departments in a business?
✅ Correct Answer: (D)
Value of land.
Q. . Cost apportionment involves:
✅ Correct Answer: (C)
The allocation of direct costs to departments
Q. Which of the following would not be considered as a component of 'cost' of stock?
✅ Correct Answer: (D)
Salaries of selling staff
Q. Which of the following best describes a fixed cost? A cost which:
✅ Correct Answer: (B)
Remains at the same level up to a particular level of output.
Q. Which of the following costs of management is likely to have least control?
✅ Correct Answer: (A)
Machine breakdown cost
Q. The wages paid to maintenance department workers who do repair work principally for production departments but also on the vehicles in the distribution department should be charged as
✅ Correct Answer: (A)
Service cost