Practice Classification of Costs - 20.2 | 20. Cost Accounting Basics – Types of Costs | Management 1 (Organizational Behaviour/Finance & Accounting)
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Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What type of cost is directly attributed to the production of a product?

💡 Hint: Think about costs that can be traced to a specific item.

Question 2

Easy

What are costs such as office rent classified as?

💡 Hint: These are costs that cannot be traced back to a specific product.

Practice 4 more questions and get performance evaluation

Interactive Quizzes

Engage in quick quizzes to reinforce what you've learned and check your comprehension.

Question 1

What is an example of a direct cost?

  • Electricity bill
  • Raw materials
  • Office rent

💡 Hint: Think of costs that you can easily assign to a product.

Question 2

True or False: Fixed costs increase with production volume.

  • True
  • False

💡 Hint: Recall the definition of fixed costs.

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Challenge Problems

Push your limits with challenges.

Question 1

A software development project has fixed costs of $3000 per month and variable costs of $100 per hour of labor. If the team works 150 hours this month, what are the total costs?

💡 Hint: Calculate fixed and variable costs separately before adding.

Question 2

Consider a company that found that its direct costs included $2000 in materials, while their indirect costs were $5000 last month. What percentage of the total costs were direct?

💡 Hint: Calculate total costs first before determining the percentage.

Challenge and get performance evaluation