Practice Based On Function (20.2.2) - Cost Accounting Basics – Types of Costs

Practice: Based on Function

Lesson 20.2.2Cost Accounting Basics – Types of Costs

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9 questions

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Exercise
6 questions · about 4 min · pass mark 70%. Hints available.
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Quiz
3 questions · about 2 min · pass mark 70%. Hints available.
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6 sample questions

Question 1.
What are manufacturing costs?
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Consider the costs involved in producing a product.
Question 2.
Name an example of an administrative cost.
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Think about the expenses for maintaining business operations.
3Question 3.
Which of the following is considered a manufacturing cost?
- Office supplies
- Factory salaries
- Marketing expenses
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Think about what costs are directly involved in making a product.
4Question 4.
True or False: Administrative costs contribute directly to producing goods.
- True
- False
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Consider which costs help run the business rather than produce it.
Question 5.
A company has an increase in administrative costs due to hiring more managerial staff. Discuss the potential impacts of this budget increase on the company's financial strategy.
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Consider how changes in administrative costs affect overall business operations.
Question 6.
A startup is struggling with high selling and distribution costs. Propose a strategy to reduce these costs while maintaining service standards.
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Think about balancing lower costs with maintaining customer satisfaction.

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