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Q. In a costing system, a job account is similar to a work in progress account, except that it is for one job only. In a company that specialises in jobbing work, the work in progress account is the total of all the individual job accounts.

Q. The disposal cost of abnormal loss is included in the abnormal loss account and therefore in the transfer of the cost of abnormal loss to the statement of profit or loss.

Q. What would be the effect of inaccurate estimation of overhead absorption rates on a Job?

Q. When cash ratio is …….. retention money is 13%.

Q. When there is closing work in progress, costs are shared between finished units and inventory by calculating a cost per equivalent unit.

Q. . Cost apportionment involves:

Q. Since a by-product does not have any substantial value, there is no sense in charging it with a share of the common processing costs.

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. Overhead is the cost incurred in the course of making a product, providing a service or running a department, but which cannot be traced directly and in full to the product, service or department.

Q. Cost of defective materials should be……………………to costing P/L account and……………….to contract account.