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Subjects · Leaving Cert Accounting

Leaving Cert Accounting: Cost classification

How often Cost classification comes up on the Accounting papers, every year it was asked, and questions to try.

HL Asked on 3 of the last 10 Higher Level papers, most recently in 2025.

OL Asked on 5 of the last 10 Ordinary Level papers, most recently in 2026.

Cost classification, Higher Level(6 marks)

Quick ones on Cost classification.

(a)Direct costs are costs that…
  1. Are shared between departments
  2. Can be traced directly to a product
  3. Are always fixed
(b)Indirect costs are also called…
  1. Direct expenses
  2. Prime costs
  3. Overheads
(c)As output rises, total fixed costs…
  1. Stay the same
  2. Fall
  3. Rise in proportion
Show the answers

(a) Can be traced directly to a product

(b) Overheads

(c) Stay the same

Your turn: Higher Level questions on Cost classification.

Higher Level

Asked on 3 of the last 10 Higher Level papers, most recently in 2025.

Every paper, year by year

YearWhere it came up
2026Not asked
2025Q8
2024Not asked
2023Q8
2022Not asked
2021Not asked
2019Not asked
2018Not asked
2017Q8
2016Not asked

Links open the State Examinations Commission’s paper for that year.

More Cost classification questions

Cost classification, 2 marks

In making decisions, sunk costs are…

  1. Always included
  2. Treated as variable costs
  3. Ignored — they cannot be changed
Show the answer

Ignored — they cannot be changed

A sunk cost has already been spent and won't change whatever is decided, so it is irrelevant to future choices.

Cost classification, 2 marks

Glue and screws used in making furniture are usually treated as…

  1. Period costs
  2. Indirect materials
  3. Direct materials
Show the answer

Indirect materials

They are small and hard to trace to each item, so they are treated as factory overheads rather than direct materials.

Cost classification, 2 marks

Direct labour is the wages of…

  1. Workers who make the product
  2. Office staff in the business
  3. Managers and supervisors
Show the answer

Workers who make the product

Their wages can be traced to the units they make, so they are part of prime cost. Office staff wages are overheads.

Ordinary Level

Asked on 5 of the last 10 Ordinary Level papers, most recently in 2026.

Every paper, year by year

YearWhere it came up
2026Q8
2025Not asked
2024Q8
2023Not asked
2022Q8
2021Not asked
2019Not asked
2018Q8
2017Not asked
2016Q8

Links open the State Examinations Commission’s paper for that year.

More Cost classification questions

Cost classification, 2 marks

Which of these is a variable cost?

  1. Rent of premises
  2. Annual insurance
  3. Raw materials used
Show the answer

Raw materials used

Raw materials rise directly with the number of units made. Rent and insurance stay the same (fixed).

Cost classification, 3 marks

Fixed costs €12,000; 3,000 units made. Fixed cost per unit?

  1. €36
  2. €4
  3. €0.25
Show the answer

€4

€12,000 ÷ 3,000 units = €4 per unit. Making more units would spread the fixed cost further.

Cost classification, 3 marks

Variable cost €5 per unit; 2,000 units made. Total variable cost?

  1. €10,000
  2. €400
  3. €2,005
Show the answer

€10,000

Total variable cost = units × variable cost per unit = 2,000 × €5 = €10,000.

Other Accounting topics

All of Leaving Cert Accounting