Costing - Study Mode

[#881] On what basis are the selling and distribution overheads absorbed?
Correct Answer

(C) Per unit rate

[#882] A group items in ABC system of inventory control are
Correct Answer

(A) Small number of items with large rupee investment

[#883] Works cost is a total of . . . . . . . .
Correct Answer

(B) direct material, direct labour, direct or chargeable expenses and works expenses

[#884] Fund flow refers to changes in
Correct Answer

(D) working capital

[#885] Input is 10,000 units and normal loss is 20% of input and abnormal loss is 400 units What is actual output?
Correct Answer

(A) 7600 units

Explanation

Solution: Output after normal loss = 10000 - (10000 × 20%) = 8000 units. Output after abnormal loss = 8000 - 400 = 7600 units.