MALİYET VE YÖNETİM MUHASEBESİ - Deneme Sınavı - 2

A direct cost is a price that can be
completely assigned to the production
of specific goods or services. However,
indirect costs are costs that are not directly
responsible to a cost object.

The correct answer is question E. The areas of management accounting in decision-making can be explained in detail:

Indirect costs: These are the costs that are not directly identified with a cost object. Example: Lease cost for the company building housing the editors of The X Sports magazine

Manufacturing (product) cost is grouped under three headings:
• Direct raw material cost
• Direct labor cost
• Manufacturing (factory) overhead cost

The manufacturing overhead costs are the
costs at which all indirect costs associated
with production are monitored.

Variable costs represent cost behavior that is directly related to changes in the volume of operations
and increases when the volume of activity increases and is zero.

Fixed costs are defined as costs that are not affected by changes in operating volume at least in the short run.

Wage is defined in the Labor Act of Turkey
Law no. 4857 by Article 32 as follows; “Wage
is, in general terms, the amount of money to
be paid in cash by an employer or by a third
party to a person in return for work performed
by him”

Below the elements of labor cost are listed;
• Basic Pay
• Week and Holiday Pays
• Overtime Payment/Premium
• Night/Shift Payment/Premium
• Production and Efficiency Premium
• Holiday Pay
• Allowances (ie. traveling allowance)
• Education and Training Payments
• Social Welfare Contributions
• Health Payments
• Severance Payments
• Social Security Premiums
• Unemployment Insurance Premiums

The correct answer is question E. The first item of the table is wood.

The correct answer is D. Direct material costs are the cost of the material used in the product which can be easily traced.

The correct answer is C.

The correct answer is C. The companies use inventory flow assumptions in order to identify the cost of the material issued to production and the ending inventory. These assumptions are; 

• Specified Price
• First-in-First-Out (FIFO)
• Last-in-First-Out (LIFO)
• Highest-in-First-Out (HIFO)
• Weighted Average Cost
• Moving Average Cost
• Replacement Cost
• Standard Cost

The correct answer is question E. Hotels is a service business. Therefore they do not have stocks.

Salaries are fixed payments to employees for their performance and productivity working on a monthly basis.

Basic pay, overtime pay and production and efficiency payment are directly related to the actual work of the employee.

Direct Labor Costs:

There are three main methods to determine basic pay. Those methods are the time-based system, piece-based system (accord system) and premium-based system.

Piece Based System is also known as accord system.

Under premium-based system employee is
paid a basic wage and premium for his/her efficient work.