marginal costing

Process cost accounting focuses on the process involved in mass-producing products that are very similar in nature.

• True

• False

In a process cost system, total costs are determined at the end of a month or year.

• True

• False

Standard quantity for material A is 30 kg with a price of ` 20 Actual quantity is 44 kg with a price of ` 25 if actual output is 90 kgs against the standard of 45 kgs the standard quantity for actual output is ________

• 35 kg

• 40 kg

• 50 kg

• 60 kg

__________ variance is favourable when actual price is less than standard price.

• Material Cost

• Material Usage

• Material Price

• Material

Margin of safety is?

• The number of units sold above the break even point

• Sales - variable costs

• Fixed costs / contribution per unit

Standard cost is decided for ________

• materials

• labour

• overheads

• all the elements

The change in the labour force during a specified period of time. This statement indicates the definition of

• Labour turnover

• Overtime premium

• Flat rate system

• Piecework system

Cost per unit under Marginal Costing is higher than Absorption Costing

• TRUE

• FALSE

The value of opening stock under Marginal Costing is higher than Absorption Costing.

• TRUE

• FALSE

Telephone bill is an example of

• Fixed cost

• Stepped cost

• Variable cost

• Semi-variable cost