Costing

✅ The correct answer is A.

✅ The correct answer is B.
The cost unit applicable to the Bicycle industry is per bicycle.

✅ The correct answer is B.
Costs incurred in production process that yield range of products simultaneously are known as joint costs. Joint cost is the manufacturing cost incurred on a joint production process which takes common inputs but simultaneously produces multiple products called joint-products.

✅ The correct answer is D.
Under Gantts task and bonus plan no bonus is payable to a worker if his efficiency is less than 100%. If a worker takes more time than the standard time to complete the task (i.e., his efficiency is below 100%), he is given wages for the time taken by him and if a worker takes the standard time to perform the task (i.e., efficiency is 100%), he is given wages for the standard time and a bonus of 20% on the wages earned.

✅ The correct answer is C.
Insurance is an example of purchasing costs. It is important when you decide to buy a home that you have a full understanding of the costs associated with your purchase.

✅ The correct answer is B.
ABC analysis is a way of categorizing the material on the basis of the quantity of consumption and their relative values. Some material might be consumed in lower quantities but their period may be very high. Such materials are kept in group “A”. Similarly, some material may be consumed in large quantities but their values may be lower. Such materials are kept in group ‘C’. In between these two, some materials may be consumption in moderate quantity with the moderated price. Such materials are kept in group ‘B’ under ABC analysis very close control is exercised over the material in group ‘A’ whereas a very little control is exercise is exercised over the material in group ‘C’.

✅ The correct answer is A.
Process of assigning direct or indirect cost to any cost object is known as cost assignment. Cost assignment is the allocation of costs to the activities or objects that triggered the incurrence of the costs.

✅ The correct answer is D.
Terms used in manufacturing cost systems are prime costs and conversion costs. Manufacturing cost is the sum of costs of all resources consumed in the process of making a product.

✅ The correct answer is A.
Inventory of final goods that are not yet sold is called finished goods inventory. Finished goods inventory refers to the number of manufactured products in stock that are available for customers to purchase.

✅ The correct answer is B.
Economic order quantity is that quantity at which cost of holding and carrying inventory is minimum and equal. Economic order quantity (EOQ) is the ideal order quantity a company should purchase for its inventory given a set cost of production, a certain demand rate, and other variables. This is done to minimize inventory holding costs and order-related costs.