Below Cost concept quiz are Multiple Choice Questions (MCQs) type Quiz. These Cost concept MCQ Questions helps you to refresh your Cost concept, you can see the correct option by clicking on it. .
1. Lake Appliance produces washers and dryers in an assembly-line process. Labor costs incurred during a recent period were: corporate executives, $500,000; assembly-line workers, $180,000; security guards, $45,000; and plant supervisor, $110,000. The total of Lake's direct labor cost was
2. Which one of the following is not considered as material costs?
Partially completed motor engines for a motorcycle plant
Bolts used in manufacturing the compressor of an engine
Rivets for the wings of a new commercial jet aircraft
Lumber used to build tables
3. The wages of a janitor in the factory would be classified as..
a period cost
direct labour cost
indirect labour cost
4. Which one of the following is not a cost element in manufacturing a product?
5. Which one of the following is not a direct material?
A tire used for a lawnmower.
The plastic used in the covered case for a home PC.
The steel used in the manufacturing of steel-radial tires.
Lubricant for a ball-bearing joint for a large crane.
6. Cotter pins and lubricants used irregularly in a production process are classified as..
7. A manufacturing company calculates the cost of goods sold as follows: .....(FG = finished goods)