Costing - Study Mode

[#296] Which method of costing is best suited for interior decoration.
Correct Answer

(D) Job costing

Explanation

Solution: Job costing is best suited for interior decoration. Job costing is defined as a method of recording the costs of a manufacturing job, rather than process.

[#297] When cash is received from contractee which a/c should be credited.
Correct Answer

(D) Contractee a/c

Explanation

Solution: When cash is received from contractee Contractee a/c should be credited.

[#298] Statement (A): It is necessary to tally current costs with current income in order to find out the correct profit. Reason (R): LIFO ensures matching of current costs with current income.
Correct Answer

(B) Both A and R are correct but R is not the correct explanation of A

[#299] Basis of apportionment of creche expenses is . . . . . . . .
Correct Answer

(B) number of female employees

[#300] Cost Accounting has been developed because of . . . . . . . . of Financial Accounting.
Correct Answer

(A) Limitations