A. Which of the following costs is not a product cost? Depreciation on the plant installed in the factoryThe electricity cost of the office of factory foreman The cost of shipping finished products to customersThe cost of fuel used in the factoryB. Which of the following costs is not a period cost?Advertising costSales commissionInterestDirect laborC. Which of the following would not be classed as a service department? The maintenance department The canteen The finance department The assembly departmentD. Job costing is the most suitable method for? Oil processing units Transport Companies Sugar Industry Repair shopsE. Paper mills are must adopt? Unit costing Process costing Job costing Contract costing

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Which of the following costs is not a product cost? Depreciation on the plant installed in the factory The electricity cost of the office of factory foreman The cost of shipping finished products to customers The cost of fuel used in the factory

Which of the following costs is not a product cost? Depreciation on the plant installed in the factory The electricity cost of the office of factory foreman The cost of shipping finished products to customers The cost of fuel used in the factory

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 4PA: Listed as follows are various costs found in businesses. Classify each cost as a fixed or variable...

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Concept explainers

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.

Question

A. Which of the following costs is not a product cost?

Depreciation on the plant installed in the factory
The electricity cost of the office of factory foreman
The cost of shipping finished products to customers
The cost of fuel used in the factory

B. Which of the following costs is not a period cost?

Advertising cost
Sales commission
Interest
Direct labor

C. Which of the following would not be classed as a service department?

The maintenance department
The canteen
The finance department
The assembly department

D. Job costing is the most suitable method for?

Oil processing units
Transport Companies
Sugar Industry
Repair shops

E. Paper mills are must adopt?

Unit costing
Process costing
Job costing
Contract costing

Definition Definition Operation costing method employed to determine the value of a product at each process or stage of the production process, applicable where goods produced from a series of continuous operations or procedure. Process costing is employed by businesses that manufacture goods and where production is in repetitive inflow.

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