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

Question 6 options:

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

Question 7 (1 point)

 

Prime costs can include

Question 7 options:

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

Question 8 (1 point)

 

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

Question 8 options:

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

Question 9 (1 point)

 

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

Question 9 options:

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

Question 10 (1 point)

 

Cost assignment is

Question 10 options:

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

Answer rating: 100% (QA)

For Question 6 an example of an indirect cost could be manufacturing plant electricity For Question 7 prime costs typically include direct material costs and direct manufacturing labor For Question 8 ... View the full answer