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WorksheetsClassification of Costs and Cost sheets
Total questions: 12
Worksheet time: 7mins
Form of specific order costing where work is undertaken to customer's special requirements and each order is comparatively of short duration.
Job Order Costing
Batch Costing
Contract Costing
Process Costing
Which one of the following items is not excluded while preparing a cost sheet?
Goodwill written off
Provision for taxation
Property tax on factory building
Transfer to reserves
A company has to pay Rs. 10,000 per unit royalty to the designer of a product which it manufactures and sells. The royalty charge would be classified as a
Direct expense
Production overhead
Administrative overhead
Selling overhead
Research and development cost relating to an existing product
shall be treated as Capital Expenditure
shall be treated as deferred revenue expenditure
shall be treated as Direct Expenses
shall be ignored
Which of the following is not a component of prime cost?
Direct materials
Direct labour
Direct expenses
Overhead
Recruitment costs
shall form part of Prime Cost
shall form part of Works Cost
shall form part of Overheads
shall be ignored
In the cost sheet, abnormal costs eg. due to accident shall be
added to cost of production
deducted from cost of production
deducted from sales
ignored
Prime Cost + Factory Overhead =
Fixed Cost
Works Cost
Cost of Production
Cost of goods sold
Total Cost - Selling and distribution overheads =
Cost of goods sold
Closing stock
Cost of production
Net Profit
Cost of Production - Administration Overheads =
Prime Cost
Cost of Sales
Works Cost
Work- in- Progress
Prime Cost + Overheads =
Works Cost
Total Cost
Cost of Sales
Cost of Production
Prime Cost is
all cost incurred in manufacturing a product
the total of direct costs
the material cost of a product
the cost of operating a department
