Related Posts

Q. The disposal cost of abnormal loss is included in the abnormal loss account and therefore in the transfer of the cost of abnormal loss to the statement of profit or loss.

Q. Variable overhead is overhead that increases as more production work is done. Total variable overhead expenditure therefore depends on the volume of production. Variable overhead is usually calculated as an amount for each direct labour hour worked.

Q. A separate record must therefore be maintained to show the details of individual jobs. Such records are often known as job cost sheets or job cost cards.

Q. If the normal loss has no scrap value it is given a nil value.

Q. Batch costing is similar to job costing in that each batch of similar articles is separately identifiable.

Q. Identify the characteristics of services: I. Intangibility: They do not have a physical substance unlike goods. They cannot be held or seen. II. Inseparability: Consumption and creation of a service cannot be separated. Services are consumed as they are created. III. Variability: Services face the problem of maintaining consistency in the standard of output. IV. Perishability: Services cannot be stored. V. Lack of ownership: Services do not result in the transfer of property in anything.

Q. Retention money serves as a ………with the contractee.

Q. Normal loss is usually expressed as a percentage of the input units of materials.

Q. Identify the circumstances where under- or over-recovery of overhead will occur:

Q. Joint products are two or more products generated simultaneously, by a single manufacturing process using common input, and being substantially equal in value.