(A) Manufacturing Cost/Cost of Goods Sold
(B) Direct Method plus factory overheads
(C) Direct labour + Direct Material
(D) None of these
Tag: Cost accounting Mcqs
Expenses such as rent and depreciation of a building are shared by several departments these are:
(A) Indirect expenses
(B) Direct expenses
(C) Joint expenses
(D) All of the above
The time lag between indenting and receiving material is called:
(A) Lead time
(B) Idle time
(C) Stock out time
(D) None of these
A credit balance remaining in FOH Control account is called:
(A) Over-applied overhead
(B) Under-applied overhead
(C) Actual overhead
(D) None of these
Direct material cost plus direct labour cost is called:
(A) Prime cost
(B) Conversion cost
(C) Product cost
(D) All of these
What would be the effect on the cost of a department in case of normal Loss?
(A) Decreased
(B) Increased
(C) No effect
(D) Increase to the %age of loss
All the given statements regarding job cost sheets are incorrect EXCEPT:
(A) Job cost sheet shows only direct materials cost on that specific job
(B) Job cost sheet must show the selling costs associated with a specific job
(C) Job cost sheet must show the administrative costs associated with a specific job
(D) Job cost sheet shows direct materials cost, direct labour cost and factory overhead costs associated with a specific job
A fixed cost:
(A) May change in total when such change is not related to changes in production
(B) Will not change in total because it is not related to changes in production
(C) Is constant per unit for each unit of change in production
(D) May change in total, depending on production with the relevant range