Reference no: EM132971470

Problem 1: Which one of the following statements about cost is not correct?

a.  Production cost comprises all direct costs plus production overheads.

b. Prime cost is the total of all direct costs.

c. Direct costs include materials, labour and production overhead costs.

d. 'Indirect costs' and 'overheads' mean the same thing.

Problem 2: Interview questions are asked to determine

Select one:

a. the relative amount of time spent on each activity by individual workers.

b. possible activity drivers for assigning costs to products.

c. what activities are being performed.

d. All of these.

e. who performs the activities.