721. Which of the following is considered as the basic systems of remunerating labor?
A. Time rate system
B. Piece rate system
C. Halsey premium plan
D. Both time rate and piece rate system
722. The FIFO inventory costing method (when using a perpetual inventory system) assumes that the cost of the earliest units purchased is allocated in which of the following ways?
A. First to be allocated to the ending inventory
B. Last to be allocated to the cost of goods sold
C. Last to be allocated to the ending inventory
D. First to be allocated to the cost of goods sold
723. The components of total factory cost are:
A. Direct Material + Direct Labor
B. Direct Labor + FOH
C. Prime Cost only
D. Prime Cost + FOH
724. Under the perpetual Inventory system, the Inventory is treated as:
A. Assets
B. Liability
C. Income
D. Expense
725. The cost that is subject to actual payment or will be paid for in the future is called:
A. Fixed cost
B. Step cost
C. Explicit cost
D. Imputed cost
726. The difference over the period of time between actual and applied FOH will usually be minimal when the predetermined overhead rate is based on:
A. Normal capacity
B. Designed capacity
C. Direct Labor hours
D. Machine hours
727. Overapplied FOH will always result when a predetermined FOH rate is applied and:
A. Production is greater than defined capacity
B. Actual overhead costs are less than budgeted
C. Budgeted capacity is less than normal capacity
D. Actual overhead incurred is less than applied Overhead
728. If the debit side of a bank account is greater than the credit side, it indicates which of the following?
A: Cash at bank
B. Bank understatement
C. Bank overdraft
D. Balance overstatement
729. _ will be credited if goods are given as charity?
A: Purchases
B: Charity
C: Sales
D: Cash
730. Which of the following is a liability?
A: Cash
B: Equipment
C: Debtors
D: Creditors
Admin