Costing

✅ The correct answer is A.

✅ The correct answer is D.
In cost terms, direct manufacturing labour cost is included in prime costs and conversion costs. Direct labor cost is the total cost of employing workers that work directly on a manufacturing product.

✅ The correct answer is B.
Piece workers are paid on the basis of output produced. Piece rate system is the method of remunerating the workers according to the number of unit produced or job completed. It is also known as payment by result or output.

✅ The correct answer is D.
ABC analysis methods of stock control aims at concentrating efforts on selected items of material. ABC method of inventory control involves a system that controls inventory and is used for materials and throughout the distribution management.

✅ The correct answer is A.
Annual indirect cost (budgeted) = Budgeted indirect cost × Budgeted cost allocation
= $225 × $750 = $168,750

✅ The correct answer is B.

✅ The correct answer is C.
If any by-product is produced and sold it is credited to process a/c.

✅ The correct answer is A.
Contract costing is most appropriate method of costing for construction industry. Contract costing is the tracking of costs associated with a specific contract with a customer.

✅ The correct answer is B.
Budgeted total cost in indirect cost pool is divided by budgeted total quantity of cost allocation base is to calculate by budgeted indirect cost rate. The budgeted indirect cost rate formula is calculated by dividing the budgeted annual indirect costs by the budgeted annual quantity of the cost allocation base.

✅ The correct answer is B.
Calculation of product cost, gathering information for planning and analyzing information for decisions making are features of cost accounting. Cost accounting is an accounting method that aims to capture a company’s costs of production by assessing the input costs of each step of production as well as fixed costs, such as depreciation of capital equipment.