Try this practice exam Basic Costing. Basic Costing is an important part of the level 2 certificate in accounting.
A company has significant variance for direct materials. Name two managers that should be advised of this fact?
- Transport Manager, Finance Manager
- Personnel Manager, Warehouse Manager
- Sales Manager, Production Manager
- Purchasing Manager, Production Manager
You are employed in a company that manufactures ladies clothing. As part of your accountancy training you are asked to classify the following items and state
- whether the item should be classified as material, labour or expense
- whether the item is direct or indirect
- whether the item is a fixed, variable or semi-variable cost
Cloth for making jackets
Sewing Machinist who is paid on a piecework basis
Fuel for delivery vehicle
Power for sewing machines, charged at flat rate , plus an amount per unit of power.
Royalties paid to the designer of the clothes
A factory uses a piecework method to pay its’ labour force. It pays £1.50 per unit produced. If Tommy Jones produced 400 units what would his gross wage be
A factory uses a time-rate method with a bonus to pay its work force. The time rate used is £11 per hour and a worker is expected to produce 9 units per hour, if the worker exceeds this he is paid a bonus of £0.75 per unit.
If Billy Smith worked 31 hours and produced 290 units, then what would be his gross wage?