Costing - Study Mode
[#526] The expenses relating to a particular process is ________.
Correct Answer
(A) debited to that process a/c
Explanation
Solution: The expenses relating to a particular process is debited to that process a/c. It is credited to Process A/c and calculated as a % on the input quantity.
[#527] Normal loss in the manufacturing process leads to _______.
Correct Answer
(B) increase in unit price of other good units
Explanation
Solution: Normal loss in the manufacturing process leads to increase in unit price of other good units. These normal losses are expected in the manufacturing process and cannot be avoided. Due to this our total cost of production will increase.
[#528] Actual loss is more than the predetermined normal loss, it is ________.
Correct Answer
(B) abnormal loss
Explanation
Solution: Actual loss is more than the predetermined normal loss, it is abnormal loss. Abnormal loss is the extra loss resulting when actual loss is greater than normal or expected loss, and it is given a cost. The abnormal loss is valued at the some unit rate as 'good' units and do not affect the the cost of good production. The cost is analysed separately in an abnormal loss account.
[#529] Classification and accumulation of costs by fixed and variable costs is of special importance in ________.
Correct Answer
(D) operating costing
Explanation
Solution: Classification and accumulation of costs by fixed and variable costs is of special importance in operating costing. Operating costing applies where standardized services are provided by an undertaking.
[#530] Process cost is ascertained and recorded in ________.
Correct Answer
(D) separate ledger a/c
Explanation
Solution: Process cost is ascertained and recorded in separate ledger a/c. Process costing is an accounting methodology that traces and accumulates direct costs, and allocates indirect costs of a manufacturing process. Costs are assigned to products, usually in a large batch, which might include an entire month's production.