COST ACCOUNTING (462)

OBJECTIVES
Fill in the blanks
1) Sales force training cost is not A MANUFACTURING cost.
2) The variable cost does not change with the change in OPERATING
EXPENSES.
3) The cost of glue & tape not traceable, is type of INDIRECT COST.
4) All expenses and costs incurred for a furnished goods is called
SELLING EXPENSES.
5) PRIME COST is sum total of direct production cost, mainly
comprised of direct material + direct labour.
6) For material purchased the PURCHASE A/C is EXPENSE & account
payable is A LIABILITY.
7) Under FIFO method the ________ are priced at the rate of __________
purchased lot in hand.
8) In advanced countries __________ to staff are ________ by ________.
9) At the end of month and ________ should be prepared to work out
__________ per passenger per K.M.
10)
Difference between the budgeted FOH and applied FOH is
IDLE CAPACITY variance.
11)
________ is a foregoing, measureable in terms of money for
achieving on objective.
12)
A debit note is send to the SUPPLIER along with material if
it is rejected or returned.
13)
The fixed cost does not change, with the change in
PRODUCTION.
14)
FIXED cost remain same in total, regardless of production or
sales.
15)
The wage _______ sheet are very useful for making ________
and _______ entires in books.
16)
Cost of materials PURCHASED does not consists of payment
made to the SUPPLIER only.
17)
Expenses incurred in the admin section will be OPERATING
EXPENSE as ACTUAL overhead
18)
Materials having in 2 types.
19)
_______cost is not manufacturing cost.
20)
_______ cost does not change, with the change of volume.
21)
Direct cost are hard to determine for _________.

True or false
1) cost of goods manufactured statement tells us the net profit or
the net loss of the business.
(F).
2) For production in job ordermany department are involved.
(T).

3) In process costing, the goods are produced in many

departments.
(T).
4) Conversion cost is the other name of cost of good sold statement
(F).
5) Variable cost is remain fixed by increasing units manufactures.
(F).
6) Difference between actual FOH and applied FOH are over or under.
(T).
7) In cost of production, normal losses are adjusted on the good
units
(T).
8) Training is not a manufacturing cost.
(T).
9) It is said that cost changes in total is direct proportion to change
in volume it is
(T/F).
10)
Plastic parts in the product, easy to track is direct material
cost
(T).
11)
Part of making the product, easy to determine, how much it
is required is a
Direct cost.
(T).
12)
Sales force training is not a manufacturing cost.
(T).
13)
Semi-variable cost does not change with the change in
volume
(F).
14)
Glue & tape, not traceable is an example of direct material
cost.
(T/F).
15)
Direct labor + manufacturing overhead is known as
conversion cost.
(T).
16)
Direct costs are hard to determine for one product.
(F).
17)
Fixed cost is uncontrollable cost.
(T).
18)
Difference between actual FOH and budgeted FOH are called
spending variance(T).
19)
In cost of production abnormal loss is adjusted to the good
units.
(F).
20)
Nail & threats are the example of direct materials.
(F).
21)
Rent of factory building is not considered as manufacturing
cost.
(T).
22)
Fixed cost remains unchanged irrespective of change in
volume production
(T).