981. Which of the following is to be called a product cost?
(A) Material cost
(B) Labor cost
(C) FOH cost
(D) All of the given options
982. Direct material opening inventory add net purchases is called?
(A) Material consumed
(B) Material available for use
(C) Total material purchased
(D) Material ending inventory
983. Which of the following costs is part of the prime cost for a manufacturing company?
(A) Cost of transporting raw materials from the supplier’s premises
(B) Wages of factory workers engaged in machine maintenance
(C) Depreciation of a truck used for deliveries to customers
(D) Cost of indirect production materials
984. __ are future costs that affect current management decision?
(A) Sunk Cost
(B) Standard Cost
(C) Relevant Cost
(D) Irrelevant Cost
985. Cost accounting concepts include all of the following EXCEPT:
(A) Planning
(B) Controlling
(C) Sharing
(D) Costing
986. Which of the following cannot be used as a base for the determination of the overhead absorption rate?
(A) Number of units produced
(B) Prime cost
(C) Conversion cost
(D) Discount Allowed
987. Which of these errors affect only one account?
A: Errors of casting
B: Errors of carry forward
C: Errors of posting
D: All the three
988. Which of these errors affect two or more accounts
A: Errors of complete omission
B: Errors of principle
C: Errors of posting to the wrong account
D: All the three
989. Which of the following errors is an error of principle
A: 5,000 received from Sham credited to Ram A/c
B: 5,000 incurred on the installation of new plant debited to traveling expenses A/c
C: 500 paid for wages debited to salary A/c
D: 500 being the purchase of raw material debited to purchase A/c ` 50
990. Which of the following is a one-sided error?
A: 500 purchases of old equipment not recorded in the books of A/c at all
B: 500 being an expense on traveling expense credited to traveling expenses
C: Both
D: None
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