Costing - Study Mode

[#971] Graphical representation of cost driver data and costs is considered as
Correct Answer

(A) plotting data

Explanation

Solution: Graphical representation of cost driver data and costs is considered as plotting data.

[#972] Evaluation criteria of regression equation must be considered as
Correct Answer

(D) all of above

Explanation

Solution: Evaluation criteria of regression equation must be considered as goodness of fit, economic plausibility and significance of independent variable.

[#973] Material abstract is also known as . . . . . . . .
Correct Answer

(A) material issue analysis sheet

[#974] A bill of material is prepared in case of a . . . . . . . . job.
Correct Answer

(B) non-standardized job

Explanation

Solution: A bill of material is prepared in case of a non-standardized job. A bill of material (BOM) is a comprehensive list of materials, components, and instructions required to construct, manufacture, or repair a product or service. It includes detailed information about the quantity and type of each item used in the process. Non-standardized jobs are unique and customized tasks that require specific materials and components tailored to the job's requirements. Hence, a BOM is essential for non-standardized jobs to ensure all necessary materials are accounted for and available during production or execution. Incorrect Options: Option A: standard job This option is incorrect because standard jobs typically follow a set pattern and use predefined materials and components. A BOM may not be necessary for such tasks as the required materials are already known and standardized. Option C: Both A and B This option is incorrect because a BOM is specifically crucial for non-standardized jobs. While it can be used for standardized jobs, it is not always necessary. Option D: None of these This option is incorrect because a BOM is indeed prepared for non-standardized jobs to ensure proper material planning and management. Example of correct usage: When a company receives an order to build a custom piece of machinery, a bill of material is prepared to list all the unique parts and materials required for that specific job. This helps in efficient procurement and assembly processes. Understanding when and why a BOM is prepared is crucial in cost accounting and project management, ensuring that all resources are accurately tracked and managed.

[#975] For a work order, standard time and time taken are 20 hours and 15 hours respectively. Time rate being Rs. 2 per hour, total wages payable under Rowan Premium Plan will be:
Correct Answer

(B) 37.50