Costing - Study Mode

[#106] Total transferred-out cost plus normal spoilage is divided by number of goods units produced to calculate
Correct Answer

(A) cost per good units transferred out

Explanation

Solution: Total transferred-out cost plus normal spoilage is divided by number of goods units produced to calculate cost per good units transferred out.

[#107] Type of spoilage, which is considered as controllable and can be avoided is called
Correct Answer

(A) abnormal spoilage

Explanation

Solution: Type of spoilage, which is considered as controllable and can be avoided is called abnormal spoilage. Abnormal spoilage is the amount of waste or destruction of inventory beyond what is expected in normal business processes.

[#108] Increase in the amount of creditors result in
Correct Answer

(B) increase in cash

[#109] The expenses which are incurred to increase the demand of the product are known as
Correct Answer

(A) Selling expenses

[#110] A company manufactures a single product for which cost and selling price data are as follows: Selling price per unit - Rs 12 Variable cost per unit - Rs 8 Fixed cost for a period - Rs 98,000 Budgeted sales for a period - 30,000 units The margin of safety, expressed as a percentage of budgeted sales,is:
Correct Answer

(A) 20%