Higher Accounting - Process Costing

Process costing is a method of costing used in what type of industries?

• Manufacturing
• Construction
• Transportation
• Hospitality

In process costing products go through a number of different ________  before they are complete.

• Jobs
• Stages
• Services
• Allocations

Normal losses reduce the number of good units produced thereby increasing the cost per unit.

True or False

• True

• False

The costs of a process are known as ...

• Overheads
• Materials
• Inputs
• Labour costs

Normal loss is the name given to ...

• Losses which happen due to exceptional circumstances
• Losses due to efficiency and continual improvement
• Avoidable losses which should be investigated
• Unavoidable losses which can be expected

Abnormal loss is the name given to ...

• Losses which happen due to regular, day to day  circumstances
• Losses due to efficiency and continual improvement
• Avoidable losses which should be investigated
• Unavoidable losses which can be expected

Which is NOT a cause of normal loss?

• Evaporation during brewing process
• Repeated machinery break-down increasing number of faulty products
• Scrap from cutting cloth with a pattern
• Chemical changes when adding new materials to a solution

Normal loss is always valued the same as good output. True or false?

• True
• False

Normal loss output which can be sold for some value is called ...

• Scrap
• Waste
• Rubbish
• Abnormal

Normal loss output which has no value and should be disposed of is called ...

• Scrap
• Waste
• Rubbish
• Abnormal