These are true/false questions ____ 26. Average rate of return equals estimated average annual income divided by average investment. ____ 27. If direct materials cost per unit increases, the break-even point will increase. ____ 28. A production supervisor's salary that does not vary with the number of units produced is an example of a fixed cost. ____ 29. The difference between the standard cost of a product and its actual cost is called a variance. ____ 30. Both process and job order cost systems maintain perpetual inventory accounts with subsidiary ledgers.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
These are true/false questions
____ 26. Average
____ 27. If direct materials cost per unit increases, the break-even point will increase.
____ 28. A production supervisor's salary that does not vary with the number of units produced is an example of a fixed cost.
____ 29. The difference between the
____ 30. Both process and
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