Costing - Study Mode

[#236] . . . . . . . . is a technique of material cost control which leads to low carrying cost as a result of low investment in inventory.
Correct Answer

(B) JIT Inventory System

[#237] Volume Variance =
Correct Answer

(D) All of the above

[#238] Loss on incomplete contract is transferred to-
Correct Answer

(A) Profit and loss account

[#239] A unit cost calculated in costing system, by assigning total costs incurred to many similar units is categorized as
Correct Answer

(B) process costing system

Explanation

Solution: A unit cost calculated in costing system, by assigning total costs incurred to many similar units is categorized as process costing system. Process costing is a type of operation costing which is used to ascertain the cost of a product at each process or stage of manufacture.

[#240] If beginning work in process equivalent units is 2500 units, work done in current period equivalent units is 3800 units and units completed in current period are 4000, then ending work in process equivalent units will be
Correct Answer

(B) 2300 units

Explanation

Solution: Equivalent units in current period = Beginning work in process equivalent units + Work done in current period equivalent units - Ending work in process equivalent units = 2500 + 3800 - 4000 = 2300 units