Which of these terms is defined as ‘The sum of all direct manufacturing costs’?
A: Contribution
B: Marginal cost
C: Absorption cost
D: Prime cost
A: Contribution
B: Marginal cost
C: Absorption cost
D: Prime cost
举一反三
- Which of the following costs belongs to Selling and Administrative Costs? A: Direct Labor Cost B: Direct Material Cost C: Depreciation of manufacturing equipment D: Sales Commissions
- With scarcity, the price would equal only the ( ). A: marginal user cost B: marginal cost of extraction C: the sum of marginal extraction cost and marginal user cost. D: fixed costs
- 2. Direct costs are A: Costs which can be identified with a cost center but not identified to a single cost unit B: Costs which can be economically identified with a single cost unit C: Costs which can be identified with a single cost unit, but it is not economic to do so D: Costs incurred as a direct result of a particular decision.
- Research has to focus on the cost benefit of factors such as reliability because ______. A: as reliability increases, manufacturing final cost may increase B: as reliability increases, manufacturing costs and the final cost will decrease C: as reliability decreases, manufacturing costs and the final cost will decrease D: as reliability increases, manufacturing costs and the final cost may increase
- The total of direct materials, direct labour and direct expenses is known as: A: Production cost B: Overhead C: Prime cost D: Total cost