Costing - Study Mode
[#826] The control ratios used by the management to know whether the deviations of the actual performance from the budgeted performance are favourable or unfavourable are . . . . . . . .
Correct Answer
(C) Both A and B
[#827] Factory overhead can be charged on the basis of _______.
Correct Answer
(C) prime cost
Explanation
Solution: Factory overhead can be charged on the basis of prime cost . In costing, prime cost is the sum of direct materials cost , direct labor cost , and direct expenses involved in the production process. Therefore, factory overhead can be allocated based on the prime cost, which represents the direct costs associated with production. Therefore, the correct answer is Option C: prime cost.
[#828] Office and administrative expenses can be charged on the basis of _______.
Correct Answer
(C) prime cost
Explanation
Solution: Office and administrative expenses can be charged on the basis of prime cost. Administrative expenses are the expenses that an organization incurs not directly tied to a specific function such as manufacturing, production or sales.
[#829] Job costing used in ________.
Correct Answer
(C) printing works
Explanation
Solution: Job costing used in printing works. The purpose of any business is to make money, and job costing is the most effective way to ensure that occurs. In a job costing system, costs may be accumulated either by job or by batch.
[#830] A document which provides for the detailed cost centre and cost unit is _______.
Correct Answer
(B) cost sheet
Explanation
Solution: A document which provides for the detailed cost centre and cost unit is cost sheet. Cost sheet is a statement in which the details of expenses incurred on a particular product or job, during a specific period are presented.