Cost Accounting
If a firm experiences an under absorption of overheads then the closing stock should be adjusted in which way?
Shortfall should be added to closing stock value
A provision equivalent to amount should be deducted from value
Shortfall should be subtracted from closing stock value
No adjustment should be made
No adjustment should be made
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Where the applied FOH cost is greater than the actual FOH cost it is:A. Unfavorable variance
B. Favorable variance
C. Normal variance
D. Budgeted variance
Cost accounting department prepares ___________ that helps the in preparing final accounts.
A. Cost sheets
B. Cost of goods sold statement
C. Cost of production Report
D. Material requisition form
Net sales = Sales less:
A. Sales returns
B. Sales discounts
C. Sales returns and allowances
D. Sales returns and allowances and sales discounts
The journal entry of purchase of stock under periodic inventory system would be?
A. Inventory to Cash
B. Cash to Purchases
C. Purchases to Inventory
D. None of the given options
If, Gross profit = Rs. 40,000 GP Margin = 20% of sales What will be the value of cost of goods sold?
A. Rs. 160,000
B. Rs. 120,000
C. Rs. 40,000
D. Rs. 90,000
Which of the following is to be called product cost
A. Material cost
B. Labor cost
C. FOH cost
D. All of these
The Process of cost apportionment is carried out so that:
A. Cost may be controlled
B. Cost unit gather overheads as they pass through cost centers
C. Whole items of cost can be charged to cost centers
D. Common costs are shared among cost centers
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