531. Credit is given to the process account at a pre-determined value of the by-product under the :
A. Standard cost method
B. Reverse cost method
C. Opportunity cost method
D. Sales value method
532. The primary purpose of apportioning joint costs of a processing centre to various products produced is to :
A. Foster exact handling cost fluctuations item-wise
B. Report more correct standard product costs for comparative analysis
C. Establish inventory cost assigned to unsold units
D. Record an accurate cost of sales by product lines
533. In the sales value method of apportioning joint costs to various products, the basis of apportionment is :
A. Selling prices of each of the joint products
B. Selling cost duplicated by units sold of every one of the joint items
C. Sales value less subsequent production cost of individual products
D. Any of the above
534. A product which has practically no sales or utility value is :
A. Waste
B. By-product scrap
C. Scrap
D. Spoilage
535. Which of the following is TRUE when a piece-rate system is used for wage determination?
(A) Under this method of remuneration, a worker is paid on the basis of time taken by him to perform the work
B) Under this method of remuneration, a worker is paid on the basis of production
(C) The rate is expressed in terms of a certain sum of money for total production
(D) The rate is not expressed in terms of a certain sum of money for total production
536. Which of the following cost is linked with the calculation of the cost of inventories?
A) Product cost
(B) Period cost
(C) Both product and period cost
(D) Historical cost
537. Exchange losses or gains after the purchase transaction is complete is treated as?
(A) Product cost
(B) Overhead cost
(C) Purchase cost
D) Finance cost
538. When overtime is required for meeting urgent orders, overtime premium should be?
(A) Charged to Costing Profit and Loss A/c
(B) Charged to overhead costs
C) Charged to respective jobs
(D) None of the above.
539. Selling and distribution overhead does not include?
(A) Cost of warehousing
(B) Repacking cost
(C) Transportation cost
D) Demurrage charges.
540. CAS 8 requires each type of utility to be treated as?
A) Separate cost object
(B) Not part of cost as not included in material
(C) Not part of cost as they do not form part of the product
(D) Treated as administrative overheads.
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