1. First Class Quizz
Prepare and Analyse Management
Accounting Information

2. 1. List the three main components of the Manufacturing Process.

3. 1. List the three main components of the Manufacturing Process.
ANSWER Direct Material, Direct Labour and Factory Overhead

4. 2. Actual Overheads are debited to the Factory Overhead Control Account? True or False?

5. 2. Actual Overheads are debited to the Factory Overhead Control Account? True or False?
ANSWER True

6. 3. Overheads are applied to WIP by obtaining the budgeted rate and using the Actual Activity to charge the cost of Overheads to the production run?
True or False?

7. 3. Overheads are applied to WIP by obtaining the budgeted rate and using the Actual Activity to charge the cost of Overheads to the production run?
True or False?
ANSWER True

8. 4. When we apply or charge overheads we credit the WIP account?
True or False?

9. 4. When we apply or charge overheads we credit the WIP account?
True or False?
ANSWER False

10. 5. If we have over applied our overheads Actual Overhead costs will be less than what we have charged to WIP?
True or False?

11. 5. If we have over applied our overheads Actual Overhead costs will be less than what we have charged to WIP?
True or False?
ANSWER True

12. 6. If we have under applied our overheads Actual Overhead costs will be less than what we have charged to WIP?
True or False?

13. 6. If we have under applied our overheads Actual Overhead costs will be less than what we have charged to WIP?
True or False?
ANSWER FALSE

14. 7. Period Costs are charged against revenue in the period in which they are incurred?
True or False?

15. 7. Period Costs are charged against revenue in the period in which they are incurred?
True or False?
ANSWER True

16. 8. Product Costs are treated as an asset and added or attached to the value of Inventory?
True or False?

17. 8. Product Costs are treated as an asset and added or attached to the value of Inventory?
True or False?
ANSWER True

18. 9. Fixed Costs per unit will drop as we produce more?
True or False?

19. 9. Fixed Costs per unit will drop as we produce more?
True or False?
ANSWER True

20. 10. Fixed Costs in total will change over the relevant range?
True or False?

21. 10. Fixed Costs in total will change over the relevant range?
True or False?
ANSWER False

22. 11. Variable Costs per unit will stay the same?
True or False?

23. 11. Variable Costs per unit will stay the same?
True or False?
ANSWER True

24. 12. Total Variable costs will stay the same as we produce more?
True or False?

25. 12. Total Variable costs will stay the same as we produce more?
True or False?
ANSWER False

26. 13. Direct costs such as direct labour and Direct Material are charged directly to WIP?
True or False?

27. 13. Direct costs such as direct labour and Direct Material are charged directly to WIP?
True or False?
ANSWER True

28. 14. Indirect Costs are charged to Factory Overhead then later applied to WIP based on budget figures?
True or False?

29. 14. Indirect Costs are charged to Factory Overhead then later applied to WIP based on budget figures?
True or False?
ANSWER True

30. 15. An example of Indirect Material would be Glue or Sandpaper?
True or False?

31. 15. An example of Indirect Material would be Glue or Sandpaper?
True or False?
ANSWER True

32. 16. A Supervisors wages would be Direct Labour?

33. 16. A Supervisors wages would be Direct Labour?
ANSWER False

34. 17. Some Overhead Costs are Fixed and some are Variable?
True or False?

35. 17. Some Overhead Costs are Fixed and some are Variable?
True or False?
ANSWER True

36. 18. Give an Example of Fixed Overhead and an example of Variable Overhead

37. 18. Give an Example of Fixed Overhead and an example of Variable Overhead
ANSWER Fixed – Rent or Insurance of Factory Building Variable – Power costs of machinery

38. 19. Prime Cost is Direct Labour and Direct Material?
True or False?

39. 19. Prime Cost is Direct Labour and Direct Material?
True or False?
ANSWER True

40. 20. Conversion cost is the Cost of Converting the Raw Material and equals DM, DL and Overheads?

41. 20. Conversion cost is the Cost of Converting the Raw Material and equals DM, DL and Overheads?
ANSWER – the first part is true – but it only includes DL and Overheads