Product Costing Systems MCQs
1. Which of the following costs are treated as period costs under direct costing?
2. Materials requisitioned from the storeroom included Rs. 1,000 of direct materials and Rs. 2,000 of indirect materials. Manufacturing overhead should be debited for what amount to record the transaction?
3. At what point are manufacturing costs expensed?
4. Costs a company incurs that are not product costs are referred to as?
5. Which of the following accounts does not appear on the Balance Sheet?
6. The three components of product cost include?
7. Which of the following is not classified as a fixed product cost?
8. When direct materials are used, which of the following accounts increases?
9. Finished Goods Inventory includes which of the following costs?
10. When a product is sold to a customer, which of the following inventory accounts is increased or decreased?