Podcast
Questions and Answers
Which of the following best defines overheads?
Which of the following best defines overheads?
- Direct costs identified with the product manufactured
- Total of all direct costs
- Indirect costs not identified with the product manufactured (correct)
- Total of all indirect costs
What is the total of all direct costs known as?
What is the total of all direct costs known as?
- Prime cost (correct)
- Overhead cost
- Indirect cost
- Direct cost
What is another term for overheads?
What is another term for overheads?
- Direct material costs
- Indirect expenses (correct)
- Prime costs
- Direct labor costs
What does prime cost include?
What does prime cost include?
How are overhead costs classified?
How are overhead costs classified?
What is the total of all indirect costs termed as?
What is the total of all indirect costs termed as?
Which term refers to costs that can be identified with the product manufactured?
Which term refers to costs that can be identified with the product manufactured?
What is the total of direct material cost, direct labour cost, and direct expenses known as?
What is the total of direct material cost, direct labour cost, and direct expenses known as?
Which term refers to costs that cannot be identified with the product manufactured?
Which term refers to costs that cannot be identified with the product manufactured?
What is another term for indirect expenses?
What is another term for indirect expenses?
What is the total of all indirect costs termed as?
What is the total of all indirect costs termed as?
Which of the following is another term for overheads?
Which of the following is another term for overheads?
What does the term 'prime cost' include?
What does the term 'prime cost' include?
How are overhead costs classified according to behavior?
How are overhead costs classified according to behavior?
Which of the following best defines overheads?
Which of the following best defines overheads?
What is the total of all direct costs, i.e. direct material cost, direct labour cost, and direct expenses known as?
What is the total of all direct costs, i.e. direct material cost, direct labour cost, and direct expenses known as?
Which term refers to costs that cannot be identified with the product manufactured?
Which term refers to costs that cannot be identified with the product manufactured?
What is another term for indirect expenses?
What is another term for indirect expenses?
What does prime cost include?
What does prime cost include?
Which term refers to costs that can be identified with the product manufactured?
Which term refers to costs that can be identified with the product manufactured?
Study Notes
Costs in Manufacturing
- Overheads refer to costs that cannot be identified with a specific product or department.
- The total of all direct costs is known as Prime Cost.
- Another term for overheads is Indirect Costs or Indirect Expenses.
Cost Classification
- Overhead costs are classified as Fixed or Variable according to their behavior.
Direct and Indirect Costs
- Costs that can be identified with the product manufactured are known as Direct Costs.
- Costs that cannot be identified with the product manufactured are known as Indirect Costs or Overheads.
Prime Cost
- Prime Cost includes Direct Material Cost, Direct Labour Cost, and Direct Expenses.
Cost Terms
- Indirect Costs or Overheads refer to the total of all indirect costs.
- Another term for Indirect Expenses is Overheads.
- Direct Costs refer to costs that can be identified with the product manufactured.
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Description
Test your knowledge of overhead costs with this review quiz. Explore the meaning, classification, and controllability of overheads with multiple choice questions. Brush up on your understanding of this essential accounting concept.
