Cost Accounting Quiz 1-Group Discussion-15 Minutes (5 Marks)

1. Identify and give examples of each of the three basic cost elements involved in the manufacture of a
product.
2. Classify the following costs as either fixed or variable
i. Depreciation on a straight line basis
ii. Wages paid to casual workers – on piece rate basis
iii. Salary paid to stores manager
3. Are fixed costs always fixed?