(A) Opening stock Less purchases plus closing stock
(B) Closing stock plus purchases plus opening stock
(C) Sales less gross profit
(D) Purchases plus closing stock plus opening stock plus direct labor
Which of the given cost is NOT required to prepare Cost of Production Report?
(A) Period cost
(B) Material cost
(C) Labour cost
(D) Factory overhead cost
Which of the following product cost is Included in prime cost and conversion cost?
(A) Direct labor
(B) Manufacturing overhead
(C) Direct material
(D) Work in Process
Profit under absorption costing will be higher than under marginal costing if :
(A) Produced units > Units sold
(B) Produced units < Units sold
(C) Produced units = Units sold
(D) Profit cannot be determined with given statement
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Correct Option is: A
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What would be the attitude of the management in treating Sunk costs in decision making?
(A) A periodic investment of cash resources that has been made and should be relevant for decision making
(B) It is a past cost which is not directly relevant in decision making
(C) Management will treat it as variable cost each time in decision making
(D) None of the given options
All of the following are essential requirements of a good wage system EXCEPT:
(A) Reduced labor and overhead costs
(B) Reduced per unit variable costs
(C) Increased production
(D) Increased operating costs
Assuming no returns outwards or carriage inwards, the cost of goods sold will be equal to:
(A) Opening stock Less purchases plus closing stock
(B) Closing stock plus purchases plus opening stock
(C) Sales less gross profit
(D) Purchases plus closing stock plus opening stock plus direct labor
Cost of finished goods inventory is calculated by:
(A) Deducting total cost from finished goods inventory
(B) Multiplying units of finished goods inventory with the cost per unit
(C) Dividing units of finished goods inventory with the cost per unit
(D) Multiplying total cost with finished goods inventory