5.5 Language practice
1. By behaviour costs can be divided into direct and indirect.
2. By time costs can be divided into fixed and variable.
3. Fixed costs are constant within the relevant range as the activity output varies.
4. Overhead is a budget that reveals planned expenditures for all indirect manufacturing items.
5. A semi-variable cost is an expense which contains both a fixed cost component and a variable cost component.
6. Advertising expenses represent indirect variable costs.
7. Components represent indirect variable costs.
8. Electricity to run machines represents direct fixed costs.
9. Electricity for heating represents indirect variable costs.
10. Factory canteen represents indirect variable costs.
11. Overtime pay represents direct fixed costs.
12. Property tax represents indirect fixed costs.
13. Absorption costing as well as manufacturing costs (materials and labour) allocates part of fixed and variable manufacturing overheads to the cost of every product.
14. Selling costs are the costs necessary to market and distribute a product or service.
15. Fixed costs are expenses that are clearly related to production or manufacturing.
16. Cost centre is a unit of activity in an organization for which costs are calculated separately.
17. Variable costs do not change according to the production volume.
18. Breakeven point is the sales volume at which a company makes neither a profit nor a loss.
19. Rent represents direct fixed costs.
20. Target costing is a method of determining the cost of a product or service based on the price that customers are willing to pay.
- 5.1 Getting started
- 5.2 Look through the following vocabulary notes which will help you understand the text and discuss the topic.
- 5.3 Reading Costs and Costing Methods
- 5.4 Comprehension
- 5.4.1 Answer the questions using the active vocabulary and Unit 5 Glossary.
- 5.4.2 Mark these statements t(true) or f(false) according to the information in the Text and Unit 5 Glossary. If they are false say why.
- 5.5 Language practice
- 5.5.1 Match the English terms in the left-hand column with the definition in the right-hand column.
- 5.5.2 Complete the following texts using the suitable words or phrases from the box.
- Budgetary Control
- 5.5.3 Complete the text. Replace the Russian words and phrases by the English equivalents. Planning
- 5.5.4 Text for discussion.
- Control
- 5.6 Render the passage in English using the English equivalents of the italicised phrases given in Russian. Express the main idea of the passage in one sentence.