Costing - Study Mode
[#311] Which of the following method of wage payment is most suitable where the speed of production is beyond the control of worker?
Correct Answer
(A) Time rate system
Explanation
Solution: Time rate system method of wage payment is most suitable where the speed of production is beyond the control of worker. The time rate system is that system of wage payment in which the workers are paid on the basis of time spent by them in the factory.
[#312] Under which method of wage payment, wages are influenced by idle time?
Correct Answer
(D) Time wage rate
Explanation
Solution: Under Time wage rate method of wage payment, wages are influenced by idle time. Under time wage system, wages are paid on the basis of time spent on the job irrespective of the amount of work done.
[#313] The allotment of whole item of cost to cost centre or cost units is called _________.
Correct Answer
(A) cost allocation
Explanation
Solution: The allotment of whole item of cost to cost centre or cost units is called cost allocation. The term allocation means the allotment of the whole item without division to a particular department or cost centre.
[#314] Packing cost is ________.
Correct Answer
(D) distribution cost
Explanation
Solution: Packing cost is distribution cost. Packaging cost is a significant factor in pricing a product.
[#315] Directors remuneration and expenses form part of ________.
Correct Answer
(B) administrative overhead
Explanation
Solution: Directors remuneration and expenses form part of administrative overhead. Administrative overhead includes the expenses related to the administration and general operations of the business.