Product Costing (Leaving Cert Accounting): Quizzes
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Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What is a key reason businesses use product costing?
What is a key reason businesses use product costing?
To calculate selling prices
Where do non-manufacturing costs appear in financial accounts?
Where do non-manufacturing costs appear in financial accounts?
Profit and loss account
Which of these is an indirect cost?
Which of these is an indirect cost?
Factory rent
What is the key characteristic of fixed costs?
What is the key characteristic of fixed costs?
Remain constant regardless of output
Which example best demonstrates a mixed cost?
Which example best demonstrates a mixed cost?
Telephone bill with rental + calls
Why should managers only be assessed on controllable costs?
Why should managers only be assessed on controllable costs?
To ensure fair performance evaluation
At what value should stock always be recorded?
At what value should stock always be recorded?
Lower of cost or net realisable value
Under FIFO, which prices are used to value closing stock?
Under FIFO, which prices are used to value closing stock?
Most recent purchase prices
What is the third step in absorption costing?
What is the third step in absorption costing?
Reapportionment
What happens to profits when over-absorption of costs occurs?
What happens to profits when over-absorption of costs occurs?
Profits are greater than expected