MATS Lesson 6 starter

Which item do we use the scrap value for ?​ (a)  

• Normal loss
• Abnormal wastage
• Abnormal gain

What is the difference between an estimated cost and an actual cost called ?

(a)  

How is the Prime cost of production calculated ?

• Indirect materials + Indirect labour

• Direct materials - Direct labour

• Direct Materials + Direct Labour

• Indirect materials - Indirect Labour

How is the marginal cost of production calculated ?

• Direct materials + Direct labour + Fixed production overheads

• Direct materials + Direct labour + Variable production overheads

• Indirect materials + Indirect labour + Fixed production overheads

• Direct materials + Direct labour + Variable production overheads + Fixed production overheads

How is the absorption cost of production calculated

• Prime cost + Variable production overheads

• Direct materials + Direct labour + Fixed production overheads

• Marginal cost + Fixed production overheads

• Marginal cost + variable production overheads

What are the two types of costing methods used for specific orders ?

• Batch costing

• service costing

• Job costing

• Unit costing

Which of these would be a good basis of apportionment for Light, heat and power at the premises ?

• Carrying Amount

• Planned number of miles

• Floor space

• Production machinery power usage (KwH)

Which one of these is a period cost ?

• Direct labour

• Direct materials

• Administration costs

• Production overheads

Which one of these is an example of an accounting technician applying the ethical principle of integrity ?

• Preparation of management accounting information that is inaccurate

• Making estimates of management accounting information in order to get the job done quickly

• Preparation of management accounting information without reference to source data

• Preparation of management accounting information in a straightforward and honest way

Which of these is a product cost ?

• Production overheads

• Selling and distributing costs

• Finance costs

• Administration costs