Costing - Study Mode

[#441] Fixed Cost ± Profit or Loss = . . . . . . . .
Correct Answer

(C) Contribution

[#442] . . . . . . . . Accounting is not only a positive science but also a normative science because it includes techniques of budgetary control and standard costing.
Correct Answer

(B) Cost

[#443] If provision for taxation is treated as a current liability, then payment of tax is
Correct Answer

(A) an application of funds

[#444] Basis of apportionment of stores service expenses is . . . . . . . .
Correct Answer

(A) value of materials consumed

[#445] An acquisition cost of raw material is to be used in manufacturing, and becoming a component of cost object is classified as
Correct Answer

(A) direct material costs

Explanation

Solution: An acquisition cost of raw material is to be used in manufacturing, and becoming a component of cost object is classified as direct material costs. Direct materials cost the cost of direct materials which can be easily identified with the unit of production. For example, the cost of glass is a direct materials cost in light bulb manufacturing.