Costing - Study Mode
[#626] Overhead cost is the total of ________.
Correct Answer
(A) all indirect costs
Explanation
Solution: Overhead cost is the total of all indirect costs. Overhead costs refer to those expenses associated with running a business that can't be linked to creating or producing a product or service.
[#627] Operating costing is suitable for _______.
Correct Answer
(D) service industries
Explanation
Solution: Operating costing is suitable for service industries. Operating costs are expenses associated with the maintenance and administration of a business on a day-to-day basis.
[#628] Wages paid to a labour who was engaged in production activities can be termed as _______.
Correct Answer
(A) direct cost
Explanation
Solution: Wages paid to a labour who was engaged in production activities can be termed as direct cost. A direct cost is a price that can be completely attributed to the production of specific goods or services.
[#629] Classification of cost is useful ________.
Correct Answer
(C) to identify costs
Explanation
Solution: Classification of cost is useful to identify costs. All the costs of a business can be classified into production costs, administration costs, finance costs, selling costs, distribution costs, research and development costs.
[#630] The purpose of financial accounting is to provide information for ________.
Correct Answer
(D) assessing the profitability and financial position of the firm
Explanation
Solution: The purpose of financial accounting is to provide information for assessing the profitability and financial position of the firm. The general purpose of the financial statements is to provide information about the results of operations, financial position, and cash flows of an organization.