Costing - Study Mode
[#531] Batch costing is useful to determine ________.
Correct Answer
(C) economic batch quantity
Explanation
Solution: Batch costing is useful to determine economic batch quantity. In each batch, there are a number of units. The ascertainment of economic batch quantity is very useful. Economic batch quantity may be calculated by using the formula meant for calculating Economic Order Quantity (EOQ) in case of material control.
[#532] The basis for the payment of cash by contractee under contract is ________.
Correct Answer
(A) work certified
Explanation
Solution: The basis for the payment of cash by contractee under contract is work certified. During the period of contract, Contractee has to pay sums of amount to contractor especially where a contractor is engaged in a big and long term contract. This amount is paid on the basis of certification of work done by surveyors or architects on behalf of the Contractee, who certified the value of the work done by the contractor.
[#533] Contract a/c is _______.
Correct Answer
(A) a nominal a/c
Explanation
Solution: Contract a/c is a nominal a/c. Nominal Accounts are accounts related and associated to losses, expenses, income or gains.
[#534] Taylors differential piece rate system provides for higher rate to . . . . . . . . workers.
Correct Answer
(B) efficient
[#535] 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 units, then complete equivalent units 8 in current period are
Correct Answer
(C) 1300 units