Cost classification - Jamb Accounts - Principles of Accounts Past Questions and Answers

Question 6:

• JAMB 2000

A fixed cost is fixed only in relation to?

A. The quality of goods produced
B. The quantity of goods sold
C. A given period of time and a range of activities
D. A given period of time and the nature of activity

Question 7:

• JAMB 2002

Costs that vary in proportion to the level of production in a manufacturing environment are known as?

A. Control costs
B. Overheads
C. Direct costs
D. Indirect costs

Question 8:

• JAMB 2003

four broad classifications of overheads are?

A. Production, selling, distribution and material
B. Production, selling, distribution and administration
C. Selling, distribution and production and wages
D. Distribution, selling, administration and material

Question 9:

• JAMB 2004

Cost classification in relation to charges is determined by the level of?

A. Raw materials
B. Labour
C. Activity
D. Profitability

Question 10:

• JAMB 2011

The product cost that does not form part of the product but is incidental to product and facilitates the production activities is the?

A. Prime cost
B. Indirect cost
C. Total cost
D. Direct cost