Cash a/c
Contract a/c
Contractor a/c
Contractee a/c
✅ The correct answer is D.
When cash is received from contractee Contractee a/c should be credited.
When cash is received from contractee Contractee a/c should be credited.
Costing mcqs
Types of spoilage include
normal spoilage
abnormal spoilage
weighted spoilage
both a and b
✅ 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.
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.
First ranked product, in incremental revenue allocation method, is classified as
primary product
First incremental product
Second incremental product
Third incremental product
✅ 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.
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.
A worker is allowed 60 hours to complete the job on a guaranteed wage of Rs 10 per hour Under the Rowan Plan, he gets an hourly wage of Rs 12 per hour For the same saving in time, how much he will get under the Halsey Plan?
Rs. 720
Rs. 540
Rs. 600
Rs. 900
✅ The correct answer is B.
In linear cost function, which is y = a + bx, y is classified as
predicted fixed cost
predicted variable cost
predicted cost
predicted price
✅ 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.
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.
Costs associated with storage of finished goods such as spoilage, obsolescence and insurance of goods are classified as
carrying costs
purchasing costs
stock-out costs
ordering costs
✅ 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.
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.
50 units are processed at a cost of Rs 80, normal loss is 10%, each unit carries a scrap value of 25 paise If output is 40 units, the value of abnormal loss will be _________.
Rs. 1.25
Rs. 8.00
Rs. 8.75
Rs. 8.88
✅ The correct answer is C.
VALUE OF ABNORMAL LOSS = (Total cost – scrap value)/No of unit produced × Abnormal Issue
VALUE OF ABNORMAL LOSS = (Total cost – scrap value)/No of unit produced × Abnormal Issue
=(80-(5×.25))/(50-5) × 5
=8.75
If difference between costs linked to highest and lowest observation of cost driver is $36000 and observation of cost driver is 30 machine hours, then slope coefficient would be
$1,200
$1,400
$1,600
$1,800
✅ The correct answer is A.
Slope coefficient = Difference between costs linked to highest and lowest observation of cost driver ÷ Observation of cost driver
= $36000 ÷ 30 = $1,200
Slope coefficient = Difference between costs linked to highest and lowest observation of cost driver ÷ Observation of cost driver
= $36000 ÷ 30 = $1,200
Cost Unit is defined as:
Unit of quantity of product, service or time in relation to which costs may be ascertained or expressed
A location, person or an item of equipment or a group of these for which costs are ascertained and used for cost control
Centres having the responsibility of generating and maximising profits
Centres concerned with earning an adequate return on investment
✅ The correct answer is A.
Cost Unit is defined as Unit of quantity of product, service or time in relation to which costs may be ascertained or expressed. A cost unit refers to the unit of quantity of product, service or time (or combination of these) in relation to which costs may be ascertained or expressed.
Cost Unit is defined as Unit of quantity of product, service or time in relation to which costs may be ascertained or expressed. A cost unit refers to the unit of quantity of product, service or time (or combination of these) in relation to which costs may be ascertained or expressed.
If beginning work in process equivalent units are 2500 units, work done in current period equivalent units are 3800 units and ending work in process equivalent units are 5000, then complete equivalent units in current period are
1800 units
1500 units
1300 units
1500 units
✅ The correct answer is C.
Equivalent units in current period = Beginning work in process equivalent units + Work done in current period equivalent units – Ending work in process equivalent units
= 2500 + 3800 – 5000 = 1300 units
Equivalent units in current period = Beginning work in process equivalent units + Work done in current period equivalent units – Ending work in process equivalent units
= 2500 + 3800 – 5000 = 1300 units