IV. Comprehension check

1) Answer the following:

1. The text says that “direct costs vary directly with production”. What does this sentence suggest about indirect costs?

2. Complete these sentences according to the information in the text.

The largest element of direct costs is usually ______________________.

All raw material costs are included in the direct costs of a product except ________________________.

Those raw materials of which only very small quantities are used ___________.

3. Finish the statement below with the best ending according to the text.

Wages are part of direct costs when:

a) they are linked to the speed of production.

b) they are related to the quantity of output started.

c) they depend entirely on the quantity produced.

d) they are partly fixed and partly linked to output.

4. Which of the following statements are not true about overheads?

a) They include all costs of a business.

b) They exclude those costs which can be directly related to a product’s production.

d) They relate to certain aspects of the business only.

e) They are difficult to relate to individual products of a company.

5. a) How do management accounts use “cost centers” in dividing a company’s costs?

b) What important division can be made between types of cost centre within a business?

6. According to the text what is the difference between a “product centre” and “profit centre”? Can a product centre also be a profit centre?

Oral activity.

Discuss the following questions taking into account the subjects of your specialization.

1) Do we have overheads in our daily life or only in official financial sphere? What about you?

2) What examples of direct costs do you know?

3) Have you or anybody from your familiars ever referred to costs centers? Why?

V. Language activity

Look at the terms in the left-hand column and find the correct synonyms or definitions in the right-hand column. Copy the corresponding letters in the blanks.

1) element/part _____________ a) split up

2) justify/make worthwhile ___ b) precise

3) payment ________________ c) two -fold

4) fixed/known _____________ d) merit

5) given an additional amount __ e) of a like nature

6) different kinds/various ______ f) specific

7) divided __________________ g) topped up

8) similar/the same ___________ h) remuneration

9) exact ____________________ i) unit

10) having two stages _________ j) diverse

<== попередня сторінка	\|	наступна сторінка ==>
Cost centers	\|	Translate the sentences.

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