Costing

✅ The correct answer is D.
Any output that has total positive sales is a joint product, main product and product.

✅ The correct answer is C.
Collection of cost data, according to accounting system in an organized way is classified as cost accumulation. Cost accumulation involves the use of a formal cost accounting system to collect cost information.

✅ The correct answer is D.
Stage in manufacturing cycle at which journal entries are made in system of accountancy is known as trigger point. Trigger points are established to align with a company’s Vital Factors, the specific, key indicators of a business’ health.

✅ The correct answer is B.
Costs of issuing purchase orders, making of delivery records for tracking payments and costs of inspection of items are classified as ordering costs. Ordering costs are the expenses incurred to create and process an order to a supplier.

✅ The correct answer is D.
Joint cost allocation method for joint products, which is based on achievable value is known as net realizable value method. The net realizable value method allocates joint costs on the basis of the final sales value less separable costs.

✅ The correct answer is B.
Direct material costs are added into direct manufacturing costs to calculate prime costs. Direct materials cost the cost of direct materials which can be easily identified with the unit of production.

✅ The correct answer is B.
Direct manufacturing labour costs is added into manufacturing overhead cost to calculate conversion costs. Conversion costs is a term used in cost accounting that represents the combination of direct labor costs and manufacturing overhead costs.

✅ The correct answer is D.
In income statement of merchandising costs, period cost includes all costs which are not related to cost of purchased goods. The cost of goods purchased is the net cost of merchandise acquired.

✅ The correct answer is D.
Job costing is best suited for interior decoration. Job costing is defined as a method of recording the costs of a manufacturing job, rather than process.

✅ The correct answer is D.
Relationship between independent variable and dependent variable must be economically plausible. The cost function shows a positive economically plausible relationship between machine-hours and maintenance costs.