Quiz for Classifying Costs

Here’s a quick quiz on cost classifications. As you take the quiz ask yourself the following questions.

  1. Does the cost change based on an activity? If it does it is a Variable Cost. If it does not, it is a Fixed Cost.
  2. Can I trace the cost directly to one unit of production? If you can it is a Direct Cost. If you cannot it is an Indirect Cost. Indirect manufacturing costs are allocated to Manufacturing Overhead.
  3. Is this a cost linked to production or manufacturing? If it is, it is a Product cost. If it is not it is a Non-Manufacturing Period Cost.

Use the form below to complete the quiz and see your results. You can try it as often as you like.

How did you do? 7 out of 10 or less? Review the concepts again.

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