Costing - Study Mode
[#226] Cost of sales plus profit is _______.
Correct Answer
(A) selling price
Explanation
Solution: Cost of sales plus profit is selling price.
[#227] Prime cost includes _______.
Correct Answer
(C) direct materials, direct wages and direct expenses
Explanation
Solution: Prime cost includes direct materials, direct wages and direct expenses. Prime costs are a firm's expenses directly related to the materials and labor used in production. It refers to a manufactured product's costs, which are calculated to ensure the best profit margin for a company.
[#228] Depreciation of plant and machinery is a part of ________.
Correct Answer
(A) factory overhead
Explanation
Solution: Depreciation of plant and machinery is a part of factory overhead. Factory overhead is the costs incurred during the manufacturing process, not including the costs of direct labor and direct materials. Factory overhead is normally aggregated into cost pools and allocated to units produced during the period.
[#229] ABC analysis is used for the following
Correct Answer
(C) Inventory control
[#230] Master budget is a
Correct Answer
(C) Summary budget