Costing - Study Mode
[#446] Wages and other benefits, provided to assembly line workers and operators of machine are classified under
Correct Answer
(D) indirect manufacturing labour costs
Explanation
Solution: Wages and other benefits, provided to assembly line workers and operators of machine are classified under indirect manufacturing labour costs. Indirect manufacturing costs are production costs that cannot be directly associated with a produced unit.
[#447] Conversion cost is subtracted from manufacturing overhead cost is to calculate the
Correct Answer
(C) direct manufacturing labour costs
Explanation
Solution: Conversion cost is subtracted from manufacturing overhead cost is to calculate the direct manufacturing labour costs. Conversion costs is a term used in cost accounting that represents the combination of direct labor costs and manufacturing overhead costs.
[#448] Labour which works as forklift truck, plant guards and rework labour is classified as
Correct Answer
(D) manufacturing overhead
Explanation
Solution: Labour which works as forklift truck, plant guards and rework labour is classified as manufacturing overhead. Manufacturing overhead is all indirect costs incurred during the production process. This overhead is applied to the units produced within a reporting period.
[#449] Inventory of final goods that are not yet sold is called
Correct Answer
(A) finished goods inventory
Explanation
Solution: Inventory of final goods that are not yet sold is called finished goods inventory. Finished goods inventory refers to the number of manufactured products in stock that are available for customers to purchase.
[#450] Costs which are considered as expenses in accounting period are also known as
Correct Answer
(B) period costs
Explanation
Solution: Costs which are considered as expenses in accounting period are also known as period costs. A period cost is any cost that cannot be capitalized into prepaid expenses, inventory, or fixed assets.