OBJECTIVES
COST ACCOUNTING OBJECTIVE ANSWERS 100%✍🏿*
*(1) C*
*(2) B*
*(3) D*
*(4) A*
*(5) C*
*(6) B*
*(7) D*
*(8) D*
*(9) A*
*(10) B*
*(11) C*
*(12) B*
*(13) D*
*(14) A*
*(15) C*
*(16) B*
*(17) B*
*(18) C*
*(19) A*
*(20) C*
*(21) B*
*(22) A*
*(23) D*
*(24) C*
*(25) A*
*(26) D*
*(27) C*
*(28) B*
*(29) D*
*(30) A*
*(31) A*
*(32) A*
*(33) B*
*(34) B*
*(35) A*
*(36) B*
*(37) B*
*(38) D*
*(39) D*
*(40) A*
*(41) A*
*(42) D*
*(43) C*
*(44) B*
*(45) C*
*(46) A*
*(47) B*
*(48) A*
*(49) B*
*(50) C*
THEORY
SOLUTIONS
Question 1
(a) Direct expense is an expense incurred that varies directly with changes in the volume of a cost object. Examples of Direct Expenses are royalties charged on production, job charges, hire charges for use of specific equipment for a specific job, cost of special designs or drawings for a job, etc.
(b) Distribution overheads are all the expenses incurred from the time the product is finished in the factory until it is delivered to end consumers. Examples include warehouse rent, warehouse utility bills, maintenance for delivery vans, carriage on sales, and packing charges.
(c) common cost is a cost that is not attributable to a specific cost object, such as a product or process.
(d) Direct material cost is the cost of the raw materials and components used to create a product. The materials must be easily identifiable with the resulting product.
(e) Indirect labour is the cost of any labour that supports the production process, but which is not directly involved in the active conversion of materials into finished products. Examples of indirect labour positions are Production supervisors, Purchasing staff, Materials handling staff, etc.
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