Elements of Cost Accounting

1. Materials Requisition Note

• authorises and records the issue of materials for use

• records the return of unused materials

• records the transfer of materials from one store to another

• a classified record of materials, issues, returns and transfers

2)  Direct cost incurred can be identified with

• each department.

• each unit of output.

• each month.

• each executive

3)   Overhead cost is the total of

• all indirect costs.

• all direct costs.

• indirect and direct costs.

• all specific costs.

4)  Cost accounting was developed because of the_____

• limitations of the financial accounting.

• limitations of the management accounting.

• limitations of the human resource accounting.

• limitations of the double entry accounting.

5)  Wages paid to a labour who was engaged in production activities can be termed as.

• direct cost.

• indirect cost.

• sunk cost

• imputed cost.

6)  Which of the following is a service department?

• Refining department.

• Machining department.

• Receiving department.

• Finishing department.

7)  Which of the following items is not included in preparation of cost sheet?

• Purchase returns.

• Carriage inwards.

• Sales commission.

• Interest paid.

8)  Idle time is

• Time spent by workers in office.

• Time spent by workers in factory.

• Time spent by workers off their work.

• Time spent by workers on their job.

9)  Warehouse expense is an example of

• Production overhead.

• Administration overhead.

• Selling overhead.

• Distribution overhead.

10)  Indirect material scrap is adjusted along with ________.

• prime cost.

• factory cost.

• labour cost.

• cost of goods sold.