Costing - Study Mode
[#961] Second step, in constant gross margin percentage NRV method, to allocate joint cost is to compute
Correct Answer
(D) total production cost of each product
Explanation
Solution: Second step, in constant gross margin percentage NRV method, to allocate joint cost is to compute total production cost of each product.
[#962] In a joint process of production, a product which yields high volume of sales as compared to total sales volume of other products is known as
Correct Answer
(C) main product
Explanation
Solution: In a joint process of production, a product which yields high volume of sales as compared to total sales volume of other products is known as main product. A main product is a joint output that generates a significant portion of the net realizable value within a joint production process.
[#963] Relationship based on unrelated level of activity and past data of cost is measured with help of
Correct Answer
(A) cost estimation
Explanation
Solution: Relationship based on unrelated level of activity and past data of cost is measured with help of cost estimation. Cost estimation is the art of assigning value.
[#964] Model which states decline in extra time needed to produce last unit, every time for cumulative quantity of doubled units produced is classified as
Correct Answer
(C) incremental unit time learning model
Explanation
Solution: Model which states decline in extra time needed to produce last unit, every time for cumulative quantity of doubled units produced is classified as incremental unit time learning model. Incremental unit-time learning model can be defined as Learning curve model in which the incremental unit time (the time needed to produce the last unit) is reduced by a constant percentage each time the cumulative quantity of units produced is doubled.
[#965] A helpful technique, for accurate forecasts about costs to be incurred in future is a part of
Correct Answer
(C) cost estimation
Explanation
Solution: A helpful technique, for accurate forecasts about costs to be incurred in future is a part of cost estimation. Cost estimation is the art of assigning value.