Cost Accounting: Manufacturing is one of 9 topics in the Grade 11 Accounting CAPS syllabus, covered across 3 lessons on Study Vault. Below are real practice questions from this topic with full worked answers.
Sample practice questions
Easy
1. Direct material cost and direct labour cost are examples of:
Variable costs, which change in direct proportion to units produced
Fixed costs, which stay the same regardless of production
Administration costs
Selling and distribution costs only
Answer: Variable costs, which change in direct proportion to units produced — Direct material and direct labour costs rise and fall with the number of units produced, making them variable costs.
Easy
2. Factory overhead cost, such as factory rent and depreciation on factory equipment, is an example of:
A fixed cost, staying the same in total regardless of production volume, within a normal range
A variable cost that changes directly with units produced
Direct material cost
Direct labour cost
Answer: A fixed cost, staying the same in total regardless of production volume, within a normal range — Factory overhead costs like rent and depreciation typically remain the same in total regardless of how many units are produced, making them fixed costs.
Medium
3. Which of the following stock types represents products that are only partially completed?
Work-in-progress stock
Raw material stock
Finished goods stock
Consumable stores stock
Answer: Work-in-progress stock — Work-in-progress stock represents products still in the process of being manufactured, not yet complete and not yet raw material.
