Types of Inventory Costs Classification Quiz

What is the cost associated with goods partially completed at the end of the period?

What type of costs are associated with physical handling of goods, insurance, security, and IT hardware?

Which of the following costs involves storing inventory before it is sold?

Which of the following is a major cost under Inventory risks costs?

What type of cost includes the opportunity cost of the money invested in inventory?

What type of costs occur when businesses become out of stock for any reason?

Which factor is highlighted as the frontline for preventing spoilage and waste?

Which cost is essentially incurred every time you place an order from your supplier?

Which of the following best describes 'imputed cost'?

What would be an example of an 'out of pocket cost' based on the provided context?

In the context of this case, which cost can be avoided by reducing the number of classes offered?

What category does 'utilities cost' fall under in the context of cost classifications?

Direct costs are costs that can be easily traced to a specific cost object, such as a product or department.

Uncontrollable costs include direct materials, direct labor, and some overhead expenses.

In an organization, more costs are controllable at lower levels of management compared to higher levels.

Uncontrollable costs refer to costs that can be directly influenced or managed by a specific manager or department.

Controllable costs are mostly fixed costs that cannot be influenced by the management's actions.

Fixed costs are costs that change in direct proportion to the level of production or sales.

Direct material cost per unit is an example of a fixed cost.

Uncontrollable costs are costs that can be influenced or changed by the actions of a specific responsibility center.

Controllable costs refer to costs that a manager can influence through decisions and actions within their control.

Fixed costs are costs that vary in total with changes in the level of activity, but remain constant per unit.