Costing

11. Document, which contains information about used material sequence, detail and quantity of raw material is classified as

bill of materials
bill of sequence
bill of detail
bill of raw materials

Detailed SolutionDocument, which contains information about used material sequence, detail and quantity of raw material is classified as

12. Cost of previous department is a part of

transferred-in costs
transferred-out costs
FIFO costs
LIFO costs

Detailed SolutionCost of previous department is a part of

13. Cash from operation is equal to

net profit plus decrease in current assets
net profit plus increase in current assets
net profit minus decrease in current assets
None of the above

Detailed SolutionCash from operation is equal to

14. In an activity based costing implementation, product’s diverse demand is based on

batch size
complexity
process steps
all of above

Detailed SolutionIn an activity based costing implementation, product’s diverse demand is based on

15. “Process B had no opening inventory. 13,500 units of raw material were transferred in at Rs 4.50 per unit. Additional material at Rs1.25per unit was added in process. Labour and overheads were Rs 6.25 per completed unit and Rs 2.50 per unit incomplete. If 11,750completed units were transferred out, what was the closing inventory in Process B?”

Rs 6562.50
Rs 12,250.00
Rs 14,437.50
Rs 25,375.00

Detailed Solution“Process B had no opening inventory. 13,500 units of raw material were transferred in at Rs 4.50 per unit. Additional material at Rs1.25per unit was added in process. Labour and overheads were Rs 6.25 per completed unit and Rs 2.50 per unit incomplete. If 11,750completed units were transferred out, what was the closing inventory in Process B?”

16. Direct material cost is $75000 and direct manufacturing labour is $20000, then prime cost would be

$55,000
$37,500
$95,000
$26,000

Detailed SolutionDirect material cost is $75000 and direct manufacturing labour is $20000, then prime cost would be

17. An amount of spoilage that is not natural in a specific production process is categorized as

normal scrap
normal spoilage
abnormal spoilage
weighted spoilage

Detailed SolutionAn amount of spoilage that is not natural in a specific production process is categorized as

18. Budgeted total cost in indirect cost pool is divided by budgeted total quantity of cost allocation base is to calculate by

budgeted direct cost rate
budgeted indirect cost rate
expected indirect cost rate
direct budget percentage

Detailed SolutionBudgeted total cost in indirect cost pool is divided by budgeted total quantity of cost allocation base is to calculate by

19. Those cost which is incurred to prevent the labour turnover __________.

management cost
replacement cost
preventive cost
compensation cost

Detailed SolutionThose cost which is incurred to prevent the labour turnover __________.

20. Cost which is related to specific cost object and cannot be economically traceable is classified as

line cost
staff cost
direct cost
indirect cost

Detailed SolutionCost which is related to specific cost object and cannot be economically traceable is classified as

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