1051. The measurable value of an alternative use of resources is referred to as :

A. An oppotunity cost *
B. An imputed Cost
C. A differential cost
D. A sunk cost
E. None of these

1052. A cost center is :

A. unit of production from which costs are calculated
B. A location which is responsible for controlling directs costs
C. Part of the processing plant above framework by which expenses are accumulated *
D. Any location of department which incurs cost

1053. A fixed cost :

A. May change is total when it is unrelated to production change.
B. It won’t change at all because it has nothing to do with changes in production *
C. Production stays the same per unit for every unit of change.
D. May change altogether ,contingent upon creation with the pertinent reach

1054. Completing of a job is a result in :

A. DR Finished goods CRWIP *
B. CR finished goods DR cost of goods
C. DR WIP CR FOH applied

1055. Operating cost is often named as :

A. Manufacturing cost plus commercial expenses
B. Prime cost plus factory overheads
C. Direct Materials plus direct labour
D. Selling plus administrative expenses *

1056. Several departments share costs like rent and building depreciation, including:

A. Indirect expenses
B. Direct expenses
C. Joint expenses *
D. All of the above

1057. If under-applied FOH is closed to cost of goods sold, the Journal entry is :

A. Control CR FOH cost of goods sold
B. Control DR FOH CR the cost of goods sold *
C. Control DR FOH CR profit and loss account
D. None of these

1058. Based on this data Re-order level is :

A. 4500 Units *
B. 3900 Units
C. 1200 Units
D. 400 Units

1059. A credit balance remaining in FOH control is called :

A. Over applied overhead *
B. Under-applied over head
C. Actual Overhead
D. None of these

1060. Direct material cost plus direct labour cost is called :

A. Prime Cost *
B. Conversion Cost
C. Product Cost
D. All of these