Chapter Questions
State whether the following statements are true or false:Prime $\operatorname{cost}=$ direct wages + direct material + production overheads .
_________is not included in cost sheet.(a) Research expenses(b) Security(c) Stores supervision expenses(d) Commission
State whether the following statements are true or false:Cost of production stage can be called as finished goods stage.
Choose the correct answer: Premises comes under(a) Factory overheads(b) Administrative overheads(c) Selling and distribution(d) None of the above
State whether the following statements are true or false:Cost of sales and cost of goods sold are the same.
Choose the correct answer:Depreciation of factory plant is a(a) Factory overhead(b) Administrative overhead(c) Selling overhead(d) None of the above
State whether the following statements are true or false:Secondary packing is a part of direct material.
Choose the correct answer: Twenty per cent of profit on a cost of Rs 25,350 is(a) 5,070(b) 8,607(c) 5,860(d) 2,060
State whether the following statements are true or false:Cost sheet is also known as statement of cost.
Choose the correct answer: The cost of production stage can be called as(a) Semi-finished goods stage(b) Finished goods stage(c) Both a and b(d) None of above
State whether the following statements are true or false:Cost of goods sold is a stage between cost of production and cost of sales.
Choose the correct answer:Cost sheet is also known as(a) Statement of production(b) Statement of selling(c) Statement of cost(d) None of the above
State whether the following statements are true or false: Works cost is otherwise known as factory cost.
Choose the correct answer: Reserve is an example of(a) Cost item(b) Non-cost item(c) Selling item(d) None of the above
State whether the following statements are true or false:Cost sheet is a memorandum statement.
Choose the correct answer:Cost of goods sold is the stage between(a) Cost of production and sales(b) Factory cost and cost of production(c) Prime cost and factory cost(d) None of above
State whether the following statements are true or false:Income tax is included in the cost sheet.
Choose the correct answer: Works cost is otherwise known as(a) Prime cost(b) Production cost(c) Factory cost(d) None of the above
State whether the following statements are true or false: Reserve is an example of non-cost items.
Choose the correct answer:WIP comes under(a) Factory overheads(b) Prime cost(c) Administrative overheads(d) None of the above