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Q. An example of composite unit in transport costing is:

Q. Cost plus pricing means that a desired profit margin is added to total costs to arrive at the selling price.

Q. Work certified in a subsequent year is always ……………… than that the in preceding year.

Q. Identify the characteristics of services: I. Intangibility: They do not have a physical substance unlike goods. They cannot be held or seen. II. Inseparability: Consumption and creation of a service cannot be separated. Services are consumed as they are created. III. Variability: Services face the problem of maintaining consistency in the standard of output. IV. Perishability: Services cannot be stored. V. Lack of ownership: Services do not result in the transfer of property in anything.

Q. The normal loss is something that is unavoidable in order to get the good output. The cost of the lost units is part of the cost of obtaining the good output.

Q. Specific order costing methods are appropriate for organizations which produce cost units which are separately identifiable from one another.

Q. When the abnormal has a scrape value the net cost of abnormal loss (cost of abnormal loss minus its scrap value) is then transferred as a cost to the cost accounting income statement at the end of the accounting period.

Q. Operating costing system is more suitable to :

Q. Job costing is a costing method applied where work is undertaken to customers’ special requirements and each order is of comparatively short duration.

Q. What would be the most appropriate way of apportioning depreciation costs across different manufacturing departments in a business?