Costing

✅ The correct answer is A.
Cash sales, accounts receivables and rental receipts all are known as cash receipts. A cash receipt is a printed statement of the amount of cash received in a cash sale transaction.

✅ The correct answer is D.
Types of spoilage include normal spoilage and abnormal spoilage.
Normal spoilage is the kind of spoilage that happens during the production process that business owners can say is normal and acceptable.
Abnormal spoilage, on the other hand, is spoilage that is beyond the normal point wherein the level is unexpectedly high. It may be due to defective machinery, sub-standard quality of materials, and even incompetent operators.

✅ The correct answer is A.
First ranked product, in incremental revenue allocation method, is classified as primary product. Primary products are goods that are available from cultivating raw materials without a manufacturing process.

✅ The correct answer is B.

✅ The correct answer is C.
In linear cost function, which is y = a + bx, y is classified as predicted cost. It is the estimation of future cost levels based on historical cost behaviour characteristics, using such statistical techniques as linear regression.

✅ The correct answer is A.
Costs associated with storage of finished goods such as spoilage, obsolescence and insurance of goods are classified as carrying costs. Carrying costs are the costs of holding inventory and include maintenance, specifically in regard to perishable items, and storage costs.

✅ The correct answer is B.
The amount paid to sub-contractor is debited to contract a/c. Contract means a big job in which work is done at site and not in factory premises. The cost of each contract is ascertained. Thus in this method of costing, each contract is a cost unit and an account is opened for each contract in the books of contractor to ascertain profit/loss thereon.

✅ The correct answer is A.
Flexible budget = Flexible budget amount – Actual result
= $62000 – $35000 = $27,000

✅ The correct answer is D.
When cash is received from contractee Contractee a/c should be credited.

✅ The correct answer is D.
Accounting for material received is not the work of purchase department. Most major companies and even some government organizations have a purchasing or procurement department as part of everyday operations. These departments provide a service that is the backbone of many manufacturing, retail, military and other industrial organizations.