MATS Lesson 5 - Plenary

A ​ ​ (a)   ​ cost consists of only direct materials, direct labour and direct expenses

• prime
• absorption
• marginal
• indirect

International Accounting Standard 2 (IAS) - Inventories stipulates that inventory valuation is normally made at the ​ ​ (a)   ​ ​ of cost and net realisable value

• lower
• higher

Using the information from the image, the marginal cost per table will be​ ​ (a)   ​

• £38.00
• £20.00
• £10.00
• £30.00
• £42.00
• £44.00

Using the information from the image, the absorption cost per table will be​ ​ (a)   ​

• £42.00
• £20.00
• £10.00
• £30.00
• £44.00
• £38.00

Match the following terms with the method of costing that would be most appropriate

• Service costing

• 
• Job costing

• 
• Batch costing

• 

Match the following terms with the correct definition

• Job Costing

• Unavoidable waste during the manufacturing process

• Work in Progress (WIP)

• Part finished goods at a particular point in time

• Normal wastage

• Money received from the sale of normal and abnormal wastage

• Scrap sales

• A type of costing method used for specific orders - each order can be separately identified

• Abnormal wastage

• A variation from the normal wastage

Reorder the following items - in the correct order that they would appear in a manufacturing account:

• Fixed production overheads

• Prime cost

• Direct materials

• Variable production overheads