The direct manufacturing labor costs is added to manufacturing overhead cost to calculate

The direct manufacturing labor costs is added to manufacturing overhead cost to calculate

transaction costs

conversion costs

resale costs

merchandise costs

Which method gives the lowest cost of materials and high cost of ending inventory and highest gross profit?

LIFO                                                                

Average cost method

Specific identification                                    

FIFO

The decision model to calculate optimal quantity of inventory to be ordered is called

Efficient order quantity                                 

Rational order quantity         

Optimized order quantity                             

Economic order quantity

The most suitable costing system where the product differ in type of materials used

Process costing                                              

Job costing

Activity Base costing                                      

Absorption costing Answer B

In cost terms, the direct manufacturing labor cost is included in

manufacturing costs

prime costs

conversion costs

Both B and C Answer D

The partial or completed units of manufactured goods that does not meet customer specifications and are sold at reduced price or simply discarded are called

Rework                                                           

Scrap

Spoilage                                                         

None of the above

The potential benefit that is given up when one alternative is selected over another

Opportunity cost                                           

Differential cost

Sunk cost                                                       

Process cost

Which of the following incentive method of wage payment is most suitable where quality and accuracy of work  is of primary importance

Time rate system                                         

Piece rate system

Halsey premium system                                

Differential piece work system

Cost that are always relevant in decision making are

Fixed costs                                                     

Sunk costs      

Variable costs                                                

Avoidable costs

The calculation of product cost, gathering information for planning and analyzing information for decisions are features of

information accounting

cost accounting

analyzing accounts

marketing costs

The inventory which consists of partially worked goods or work in progress is called

direct materials inventory

work in process inventory

finished goods inventory

indirect material inventory

 In balance sheet, all the costs of the product that must be considers as assets in it and it is said to be

factory overhead costs

manufacturing overhead costs

Inventoriable costs

finished costs

 In the income statement of manufacturing companies, the period cost consists of

inventory costs

product costs

non-manufacturing costs

manufacturing costs

 The acquisition cost of raw material to be used in the manufacturing and become component of cost object is classified as

direct material costs

indirect material costs

direct labor costs

indirect labor costs

 The wages and other benefits provided to assembly line workers and operators of machine is classified as

work in process cost

finished costs

direct manufacturing labor costs

indirect manufacturing labor costs

 The labor which works as forklift truck, plant guards and the rework labor is classified as

prime overhead

conversion overhead

factory overhead

manufacturing overhead

The inventory of the final goods that are not yet sold is called

finished goods inventory

indirect material inventory

direct materials inventory

work in process inventory

In costing of project, the wages paid to workers for the unproductive work at the time of material shortages is classified as

indirect wages

health wages

idle time wages

shortage time wages