Costing

✅ The correct answer is B.
Costs that are incurred in last department, where product has been processed and will be carried to next department for further processing are called transferred-in costs. Transferred-in costs are costs accumulated during the upstream production processes within a company. Transferred-in costs are the costs accumulated by the product at any given point in production.

✅ The correct answer is A.
Allotment of overhead incurred for a particular cost centre to that specific cost centre is allocation. Allocation and apportionment are accounting methods for attributing cost to certain cost objects for budgeting, planning, and financial reporting.

✅ The correct answer is D.
Flexible budget = Actual result – Flexible budget amount
= $25000 – $11000 = $14,000

✅ The correct answer is B.
Capital gearing ratio is Long-term solvency ratio. The term capital gearing refers to describe the relationship between fixed interest and/or fixed dividend bearing securities and the equity shareholders’ fund.

✅ The correct answer is A.
Flexible budget variable = Number of units × per unit price
= 3000 × $500 = $1,500,000

✅ The correct answer is A.
Worse fit between estimated cost and actual observations is shown on regression line with larger residual terms.

✅ The correct answer is A.
Expenditure over and above prime cost is known as overhead. Overhead is those costs required to run a business, but which cannot be directly attributed to any specific business activity, product, or service.

✅ The correct answer is D.
Hybrid costing system, which is applied to batches of similar products, but are not identical is classified as operation costing system. Operation costing, also known as service costing, is a costing method that combines process costing and job costing.

✅ The correct answer is B.
Estimation of cost functions, an ignoring information from all points but considering two observation points can be classified as disadvantage of high low method.

✅ The correct answer is B.
The following that are the characteristics of service costing are High levels of indirect costs as a proportion of total costs and Use of composite cost units.