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Q. Indirect production costs are incurred in three main ways: • Production activities: costs arising in production departments such as fuel, depreciation, supervision • Service activities: the cost of operating non-producing departments such as materials handling, canteen • Establishment costs: general production overheads such as factory rent/rates, heating and lighting

Q. The cost of abnormal loss is built into inventory.

Q. If the normal loss has no scrap value it is given a nil value.

Q. Which of the following costs is treated as indirect labour?

Q. A cost that is easily traceable to a cost object is known as:

Q. Variable overhead is overhead that increases as more production work is done. Total variable overhead expenditure therefore depends on the volume of production. Variable overhead is usually calculated as an amount for each direct labour hour worked.

Q. Which of the following best describes a fixed cost? A cost which:

Q. The contract undertaken are completed away from the ………………premises.

Q. Cost -plus- contract are undertaken for production of ……………….products.

Q. Which of the following is/are the basic object/s of job analysis?