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Q. Indirect production costs are incurred in three main ways: • Production activities: costs arising in production departments such as fuel, depreciation, supervision • Service activities: the cost of operating non-producing departments such as materials handling, canteen • Establishment costs: general production overheads such as factory rent/rates, heating and lighting

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

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. Escalation clause is generally included in case of …………..contract agreement .

Q. When cash ratio is …….. retention money is 13%.

Q. Overhead costs may be classified according to the function of the organization as:

Q. In transport service, cost sheet depreciation cost are grouped under:

Q. Which of the following is not included in functional classification of overheads?

Q. A job is a cost unit which consists of a single order or contract.

Q. Allocation is where overheads are allocated to cost centres. If a cost centre is responsible for the entire cost of an item of expenditure, the entire cost is charged directly to the cost centre.