Within a manufacturing company's cost system select, from the following types of expenses, the one that is not a Production Cost is:
a. Holiday pay of machine operatives.
b. Cost of oils used to lubricate production machinery.
c. Trade discount obtained from raw material suppliers.
d. Salary of security guard in finished products warehouse.
e. All presented costs are Production Costs.
2. If a company maintains their production with an increase in their productivity, their Labour Costs per unit will:
a. Increase.
b. Decrease.
c. Maintain.
d. None of the presented answers is correct.
3. Under Marginal Costing System, if total contribution is greater than the fixed costs:
a. A profit is made.
b. Neither a profit or loss is made.
c. There will be a loss.
d. None of the presented answers is correct