Management Accounting - Study Mode
[#401] In accounting, possibility of deviation of actual amount from an expected amount is classified as
Correct Answer
(C) uncertainty
Explanation
Solution: In accounting, possibility of deviation of actual amount from an expected amount is classified as uncertainty. Uncertainty refers to epistemic situations involving imperfect or unknown information. It applies to predictions of future events, to physical measurements that are already made, or to the unknown.
[#402] Expenditure incurred on material, labour, machinery, production and inspection are summed up to find the
Correct Answer
(A) factory cost of product
[#403] Marginal cost is computed as
Correct Answer
(B) Prime cost + All variable overheads
[#404] Which of the following statement is not correct?
Correct Answer
(B) Contribution is also known as gross margin
[#405] Which one of the following cost would not be termed as product cost?
Correct Answer
(A) Administrative salaries