The maintenance cost of a machine used in manufacturing process are not included in the cost of inventories. TRUE or FALSE

Q: Which of the following is NOT included in material handling cost at a warehouse? O A. Labor O B.…

A: Material handling costs are a form of indirect costs being incurred in production activity. It means…

Q: Is the cost of disposing of hazardous waste materials result-ing from factory operations a product…

A:

Q: Which of the following costs is not capitalized as inventory?  a. costs of delivering finished goods

A: Solution: "Costs of delivering finished goods" is not capitalized as inventory.

Q: Which of the following is correct with respect to closing out underapplied manufacturing overhead to…

A: Manufacturing Overhead can be termed as a fixed cost that is incurred as a result of normal…

Q: Depreciation of Machinery would not be an element of factory overhead? Select one: O a. True O b.…

A: Factory overheads consist of -  Factory expenses like factory rente,  Factory insurance  Energy cost…

Q: QUESTION 1: Identify the right answer for the following statements. The salary of the director of a…

A: The sum of all expenses incurred in producing an item or service that has been sold is known as the…

Q: Which of the following accounts would be a period cost rather than a product cost?     Freight out.…

A: Cost: It can be defined as the total amount that is spent by a business in manufacturing a product

Q: Which of the following would not be classified as manufacturing overhead? Select one: a. property…

A: The profitability position of the company can be arrived from the income statement of the company…

Q: Identify each of the following costs as either a product cost or a period cost. Factory maintenance…

A: Period costs: These costs are not related to inventory, hence, they are not added to inventory…

Q: Manufacturing costs that cannot be traced to the finished product are known as: *

A: Overhead means the cost incurred indirectly in production of goods . For examples , supervisor…

Q: Which of the following items is not covered by the definition of “Inventories” under PAS 2”? Goods…

A: Under "PAS 2", the inventory includes the goods that are produced and finished, the goods that are…

Q: Which of the following cost includes determining how much to order, cost of invoices, clerical labor…

A: Sunk cost refers to money that has already been spent and which can not be recovered. Sunk costs are…

Q: Depreciation of Machinery would not be an element of factory overhead? Select one: a. True b. False

A: Factory overheads include all the indirect expenses incurred in the production process.

Q: Which of the following represents the accumulated costs of incomplete jobs? O a. None of the given…

A: Following is the answer to the given questions

Q: Manufacturing costs that cannot be classified as either direct materials or direct labor are known…

A: Manufacturing costs is the cost incurred in the production of any product or unit of the company.…

Q: Who of the agreed in advance is not a cost of the product? The cost of the factory's fuel The…

A: Product cost:- Product cost is the cost which incurred to manufacture a product. It means it is a…

Q: Which of the following is not a product cost? O a. Insurance on the plant O b. Raw materials used O…

A: Product cost means the cost of producing one unit of finished goods. Period cost means the cost that…

Q: What is the unit cost of the goods transferred to the storeroom if the loss is charged to total…

A: Given is: Job units = 500 Direct materials = $80000 Direct labour = $30000 Factory Overhead = 50% of…

Q: For the purpose of calculating overapplication or overapplication of overheads, the applied…

A: In cost accounting, budgeting plays a key role in the control of the cost of the goods in the…

Q: Which of the following Overhead cost of a company is likely to have the least control a. Machine…

A: The overhead cost includes total indirect costs incurred in the production process.  It includes…

Q: “Abnormal rework costs should be charged to a loss account, not to manufacturing overhead.”Do you…

A: Rework:Rework is that type of product that is not satisfy the ultimate needs of the consumer but by…

Q: What is the adjusted balance of cost of goods sold after disposing the under-or-overapplied…

A: The balance of the manufacturing overhead control account is credit which means it is overapplied.

Q: Which of the following statements about materials is false? A. Acquisitions of materials are…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: An example of an appraisal cost would be: O Scrap O Process or product design O Product recalls O…

A: Cost of Good Quality is incurred in order to reduce the Cost of Poor Quality, so that overall Cost…

Q: Which of the following represents the accumulated costs of incomplete jobs? О а. None of the given…

A: The WIP (work in process) inventory refers to incomplete goods and materials and it includes the…

Q: Which of the following costs may be classified as non-manufacturing costs? į Fuel costs of the…

A: Non manufacturing costs are the costs that are not related to manufacturing. The following costs may…

Q: Which of the following costs would not be inventoriable?  Indirect labor cost Office rent factory…

A: Inventoriable cost means the cost which will be considered while valuing the inventories. Only the…

Q: Which of the following statements about manufacturing cost flows is false? a. Direct materials,…

A: As per our protocol we provide solution to the one question only but you have asked two multiple…

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Q: Which of the following statement(s) islare correct? I. Non-manufacturing costs are expensed as…

A: Product cost includes all the direct expenses and overheads concerned with the product. for example…

Q: The cost of is not included in the cost of production a. Abnormal loss b. Direct costs c. Normal…

A: Cost of production: Cost of production may be defined as the aggregate of all the costs incurred to…

Q: On the costs of goods manufactured schedule, depreciation on factory equipment. is not listed…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Which of the following is correct with respect to closing out overapplied manufacturing overhead to…

A: The Over Applied or Under applied Manufacturing Overhead is Difference between Manufacturing…

Q: Costs that are treated as assets until the product is sold are

A: Asset is a resource from which a entity expects future economic benefits from usage of such asset.

Q: How is the cost of units normally lost reflected in the manufacturing cost for the period?

A: Cost:   Cost can be defined as the cash and cash equivalent which is incurred against the products…

Q: The cost paid to a laborer to assemble a desk is recorded as an expense. Why is this false?

A: Labor cost: Cost of labor refers to the compensation in the form of wages made to labor for their…

Q: What would happen if a business did not use a work cost sheet? What are some of the particular…

A: This question explains about the particular components that a work cost sheet

Q: When materials are used as indirect materials, their cost is debited to Facotry or Manufacturing…

A: Factory or manufacturing overheads are all indirect cost incurred during production or manufacturing…

Q: Manufacturing costs would not include a. Sales salaries expense b. Indirect materials used c.…

A: Manufacturing cost is the cost incurred to manufacture goods. It is the cost incurred at factory.

Q: The cost of inventories shall comprise all costs of purchase, costs of conversion and other costs…

A: As per IFRS on Inventory valuation  The following  are not included  in Cost of inventory…

Q: What features of the cost accounting system would be expected to prevent the omission ofrecording…

A: Cost accounting is the branch of Accountancy associated with the cost of materials used in the…

Q: 1 For a manufacturing company, which of the following is an example of a period cost rather than a…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Which of the following statements is true regarding over-applied manufacturing overhead? O over…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Which of the following costs is not relevant when considering the closure of a department within a…

A: The decision to close a department is based on contribution and not on net profit /loss due to the…

Q: Which of the cost below is not classified as fixed cost?   a) Depreciation of machine b)…

A: Fixed cost is the cost which  remains fixed irrespective  of actual production .

Q: What are relevant and irrelevant cost of direct materials, direct labor and misconception about…

A: Direct materials can be defined as the cost of materials that is used for the production of goods or…

Q: Which of the following is correct with respect to closing out overapplied manufacturing overhead to…

A: If overhead is overapplied, more overhead has been applied to inventory than has actually been…

Q: The cost of inefficiencies caused by labour strikes is incurred in the cost of warehouse…

A: According to Para 16 of IAS 16 Property, Plant and Equipment, costs incurred that are directly…

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.