Start learning →

AAT Accounting Cost Classification — practice questions

Explore 29 free Cost Classification questions in AAT Accounting Accounting. Open each question or exercise to read its content, reference answers and available explanation.

Practise Cost Classification with Quill →

Cost Classification questions and exercises with answers

Showing questions 1–29 of 29.

Components whose cost can be traced to each item produced are classified as direct:Read the answer and worked solution →Production costs that cannot economically be traced to material or labour are grouped as manufacturing:Read the answer and worked solution →Direct materials plus direct labour together are called:Read the answer and worked solution →Direct labour plus factory overhead together are called:Read the answer and worked solution →A cost that moves in direct proportion to the level of activity is a:Read the answer and worked solution →Raw materials, direct production labour and activity-driven overhead are typical examples of costs that are:Read the answer and worked solution →As output rises, the total variable cost rises. What happens to the variable cost per unit?Read the answer and worked solution →Total cost is worked out by adding total variable costs to total:Read the answer and worked solution →The activity band inside which fixed costs stay unchanged, bounded by a minimum and a maximum, is the:Read the answer and worked solution →Fixed costs that cannot be removed if the business is to keep functioning are described as:Read the answer and worked solution →Some costs are neither purely fixed nor purely variable. Those are classified as:Read the answer and worked solution →A cost that changes with activity but not in a straight line, jumping at intervals, is a:Read the answer and worked solution →Three techniques are named for estimating cost behaviour: regression analysis, the scatter graph and the:Read the answer and worked solution →Once fixed and variable elements are known, future costs can be predicted with the total cost:Read the answer and worked solution →Labour costs incurred but not directly converting materials into products are classified as:Read the answer and worked solution →Materials used in production that are not traced to individual units are classified as:Read the answer and worked solution →All costs associated with acquiring or producing goods are known as:Read the answer and worked solution →Those costs sit in the finished goods inventory until the goods are:Read the answer and worked solution →Selling and administrative expenses, being everything that is not a product cost, are:Read the answer and worked solution →A business that buys finished products and resells them to consumers is a:Read the answer and worked solution →Costing in service firms differs from the others because service firms do not purchase or:Read the answer and worked solution →Catch the product costsRead the answer and worked solution →Pop the cost behavioursRead the answer and worked solution →Run the costing gatesRead the answer and worked solution →Slice the costing wordsRead the answer and worked solution →Product or periodRead the answer and worked solution →Sort the cost wordsRead the answer and worked solution →Type the numberRead the answer and worked solution →Costing bingoRead the answer and worked solution →

Worked practice questions

Components whose cost can be traced to each item produced are classified as direct:

  1. Materials
  2. Meetings
  3. Mailings
  4. Margins
Show answer and solution

Correct answer: A. Materials

1. They go into the product itself. 2. Cost is measured per item. 3. They are direct materials. _Source: OpenStax Principles of Managerial Accounting, Chapter 2, Building Blocks of Managerial Accounting._

Open this question →

Production costs that cannot economically be traced to material or labour are grouped as manufacturing:

  1. Ordering
  2. Overhead
  3. Ownership
  4. Outsourcing
Show answer and solution

Correct answer: B. Overhead

1. Tracing them is not worth the effort. 2. They still belong to production. 3. They are manufacturing overhead. _Source: OpenStax Principles of Managerial Accounting, Chapter 2, Building Blocks of Managerial Accounting._

Open this question →

Direct materials plus direct labour together are called:

  1. Prime costs
  2. Step costs
  3. Period costs
  4. Sunk costs
Show answer and solution

Correct answer: A. Prime costs

1. Only the two direct costs are combined. 2. Overhead is left out. 3. They are prime costs. _Source: OpenStax Principles of Managerial Accounting, Chapter 2, Building Blocks of Managerial Accounting._

Open this question →

How to practise

  1. Choose a Cost Classification question and try to work out your answer.
  2. Open the question to check the correct answer and read its worked solution.
  3. Continue in the app for bite-sized lessons, explanations and review with Quill. You can start without creating an account.

More Accounting topics

AccountingCost AccountingManagement Accounting