…………… are produced from the same basic raw materials.

Related MCQs

• In Units basis, Common costs are apportioned between joint products on the basis of the total number of units produced. The cost per unit is the same for all the joint products. (This is also described as the physical quantities basis).
• It is possible to have abnormal loss and abnormal gain on the same process account in the same period.
• . 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
• Production overheads represent indirect materials, indirect wages and indirect expenses attributable to:
• Indirect production costs are incurred in three main ways: • Production activities: costs arising in production departments such as fuel, depreciation, supervision • Service activities: the cost of operating non-producing departments such as materials handling, canteen • Establishment costs: general production overheads such as factory rent/rates, heating and lighting
• Cost of defective materials should be……………………to costing P/L account and……………….to contract account.
• Normal loss is usually expressed as a percentage of the input units of materials.
• The process of distribution of overheads allotted to a particular department or cost center over the units produced is called:
• Overheads can be absorbed into cost units by means of: • Physical unit produced • Percentage of prime cost • Percentage of direct wages • Direct labour hour rate • Machine hour rate
• 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.