Costing Assessment- Level 1

A vibrant illustration of a factory production line with workers analyzing costs, charts displaying fixed and variable costs, and raw materials showcasing pricing components.

Costing Assessment - Level 1

Test your knowledge with our engaging Costing Assessment quiz! Designed for individuals seeking to enhance their understanding of costing principles in production, this quiz offers a comprehensive evaluation of key concepts.

In this quiz, you will:

Explore various cost types such as fixed, variable, and indirect costs.
Calculate fixed costs per unit and assess production line efficiencies.
Determine the selling price of products based on detailed cost analysis.

11 Questions3 MinutesCreated by CalculatingCosting101

----------------- are the costs that will purely vary with production volume

Fixed Cost

Semi-Variable Cost

Variable Cost

None of the above

Costs which are not directly identifiable to the products are called -----------------

Indirect Cost

Administrative Cost

Direct Cost

Variable Cost

What are the ways to Improve the Production line output? I) Increasing Standard Allowable Minute (SAM) II) Operator Efficiency improvement III) Decreasing Standard Allowable Minute (SAM)

Option I alone is correct

Option I and II are correct

Option II and III are correct

Option II alone is correct

ABC Company’s Raw Material cost is Rs. 50,00,000 with factory rent of Rs. 3,00,000 and factory insurance of Rs. 60,000 operating at existing Production volume of 25,000 Nos What is the existing company’s fixed cost per unit? What will be fixed cost per unit if the company operates at 110% production volume?

Rs. 214.40 & Rs.194.91

Rs. 14.40 & Rs.13.09

Rs. 12.00 & Rs.10.91

Rs. 15.71 & Rs. 14.79

Analyze the following cost and arrive the product selling price considering the product profit is 5% on the total cost Fabric cost – Rs. 475, Trims Sewing Cost – Rs. 75, Packing Trims Cost – Rs. 50, SAM (mins) – 25 Mins and Operating cost per min is Rs. 12

Rs.945

Rs.920

Rs.900

None of the above

XYZ Company operates Product A with SAM (Mins) of 40 Mins and SAM Cost is Rs. 480 Company’s Fixed Cost is Rs. 2,00,000 and company manufactures 2500 garments with available production time of 1,00,000 Mins If the company reduces the SAM to 35 Mins, what will be company’s SAM Cost per piece and fixed cost per unit?

Rs.480 and Rs.80

Rs.400 and Rs. 75

Rs. 480 and Rs.70

Rs. 420 and Rs. 70

Identity Worker’s welfare cost – I) Over time Cost II) Subsidy Food Cost III) Worker Conveyance Cost IV) Worker’s Wage Cost

I & II are correct

III alone is correct

I & IV are correct

II & III are correct

----------------------- forms part of Selling and Distribution Cost

Goods Outward Freight Cost

Machine Depreciation Cost

TRIMS Cost

Storage cost

Costing Assessment- Level 1

Costing Assessment - Level 1

More Quizzes