Costing

✅ The correct answer is D.
An under allocated indirect cost is also called under applied indirect cost and under absorbed indirect cost.

✅ The correct answer is A.
If the actual loss is more than the estimated normal loss, then it is abnormal loss. Abnormal loss is the extra loss resulting when actual loss is greater than normal or expected loss, and it is given a cost.

✅ The correct answer is B.
Type of accounting, which focuses on whom should be asked for information and whom not will be categorized as responsibility accounting. Responsibility Accounting is a system of control where responsibility is assigned for the control of costs. The persons are made responsible for the control of costs.

✅ The correct answer is B.

✅ The correct answer is A.
Costing method, which calculates per equivalent unit cost of all production related work done till calculate date is termed as weighted average method. The Weighted Average Cost (WAC) method of inventory valuation uses a weighted average to determine the amount that goes into COGS.

✅ The correct answer is A.
Insurance and garage rent is fixed charges. A fixed charge is any type of expense that recurs on a regular basis, regardless of the volume of business.

✅ The correct answer is C.
If overtime is resorted to at the desire of the customer, then the overtime premium should be charged to the job directly. Overtime premium is paid to the workers for the extra time worked than the normal working hours specified in the Factories Act, 1948 or work agreement with the union.

✅ The correct answer is A.
In a normal accounting period, an allocated amount of indirect cost is $700 and an actual amount is $800, then this can be classified as under allocated indirect cost because the allocated amount is less than actual amount.

✅ The correct answer is A.

✅ The correct answer is D.
Approaches used to allocate joint costs include sales value at split off method, net realizable value method and constant gross margin percentage NRV method.