Make or But Decisions are involved before and after different……………….

Related MCQs

• Under or over absorption is caused by the actual fixed overhead and production volume being different from those figures used to calculate the predetermined rate.
• 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.
• What would be the most appropriate way of apportioning depreciation costs across different manufacturing departments in a business?
• . What would be the most appropriate way of apportioning depreciation costs across different manufacturing departments in a business?
• The wages paid to maintenance department workers who do repair work principally for production departments but also on the vehicles in the distribution department should be charged as
• In some cases, a company might have to pay to dispose of losses in a process. The cost of disposal represents an additional cost to the process. To reflect this in the process account the normal loss is measured at zero but the expected costs of disposal are debited to the process account.
• . Production Overheads are costs related to the production process other than direct labour and materials. They are also known as factory overheads since they are incurred inside the factory, other overheads such as selling and administrative overheads are always charged to in the period in which they are incurred
• The apportionment of production overhead costs might be in two stages: • sharing (or dividing) general costs between production centres and service centres; and • then sharing the costs of the service centres between the production centres.
• A blanket overhead absorption rate is an absorption rate used throughout a factory and for all jobs and units of output irrespective of the department in which they were produced.
• Administration overheads and sales and distribution overheads are not absorbed into product costs. Instead, they are treated in full as an expense in the financial period to which they relate.