Costing - Study Mode
[#196] Indirect materials can be apportioned on the basis of ________.
Correct Answer
(A) direct material
Explanation
Solution: Indirect materials can be apportioned on the basis of direct material. Indirect materials are materials used in the production process, but which cannot be linked to a specific product or job.
[#197] A cost unit is ________.
Correct Answer
(C) a unit of production or service in relation to which costs are ascertained
Explanation
Solution: A cost unit is a unit of production or service in relation to which costs are ascertained. A cost unit refers to the unit of quantity of product, service or time (or combination of these) in relation to which costs may be ascertained or expressed.
[#198] Factory overhead is also called as ________.
Correct Answer
(C) works overhead
Explanation
Solution: Factory overhead is also called as works overhead. Factory overhead, also called manufacturing overhead or work overhead or American English factory burden, is the total cost involved in operating all production facilities of a manufacturing business that cannot be traced directly to a product. It generally applies to indirect labor and indirect cost.
[#199] . . . . . . . . helps in ascertaining costs beforehand.
Correct Answer
(B) Cost accounting
[#200] Assertion (A): Only the relevant costs should be taken into consideration for decision-making. Reason (R): All variable costs are relevant costs, and all fixed costs are irrelevant costs.
Correct Answer
(B) (A) is correct, but (R) is incorrect