Costing - Study Mode
[#291] The physical distance covered by a vehicle is measured in terms of ________.
Correct Answer
(D) running kilometers or miles
Explanation
Solution: The physical distance covered by a vehicle is measured in terms of running kilometers or miles.
[#292] Insurance and garage rent is ________.
Correct Answer
(A) fixed charges
Explanation
Solution: Insurance and garage rent is fixed charges. A fixed charge is any type of expense that recurs on a regular basis, regardless of the volume of business.
[#293] Which of the following item of expenses will not appear in cost accounting.
Correct Answer
(D) Loss on sale of fixed assets
Explanation
Solution: Loss on sale of fixed assets will not appear in cost accounting. Debit cash for the amount received, debit all accumulated depreciation, debit the loss on sale of asset account, and credit the fixed asset.
[#294] The term cost refers to ________.
Correct Answer
(B) the value of sacrifice made to acquire goods or services
Explanation
Solution: The term cost refers to the value of sacrifice made to acquire goods or services. The price of product sold or services rendered.
[#295] Cost accounting differs from financial accounting in respect of ________.
Correct Answer
(B) ascertainment of cost
Explanation
Solution: Cost accounting differs from financial accounting in respect of ascertainment of cost. Cost Accounting refers to that branch of accounting which deals with costs incurred in the production of units of an organization. On the other hand, financial accounting refers to the accounting concerned with recording financial data of an organization, in order to exhibit exact position of the business.