IFRS 9 explains about?

A: Inventory

B: Accounts Payable

C: Accounts Receivable

D: Expenses

Answer & Explanation Discussion
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Accounts Receivable

Consider the following data pertaining to the production of a company for a particular month :

A: Opening stock of raw material 11,570 Closing stock of raw material 10,380 Purchase of raw material during the month 1,28,450 Total manufacturing cost charged to product 3,39,165 Factory overheads are applied at the rate of 45% of direct labour cost. The amount of factory overheads applied to production is 65,025

B: 94,287

C: 95,020

D: 1,52,624

Answer & Explanation Discussion
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Opening stock of raw material 11,570 Closing stock of raw material 10,380 Purchase of raw material during the month 1,28,450 Total manufacturing cost charged to product 3,39,165 Factory overheads are applied at the rate of 45% of direct labour cost. The amount of factory overheads applied to production is 65,025

If the minimum stock level and average stock level of raw material are 4,000 and 9,000 units respectively, find out its reorder quantity.

A: 8,000 units

B: 11,000 units

C: 10,000 units

D: 9,000 units

Answer & Explanation Discussion
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10,000 units

When production is equal to sales, which of the following is TRUE?

A: No change occurs to inventories for either use absorption costing or variable costing methods

B: The use of absorption costing produces a higher net income than the use of variable costing

C: The use of absorption costing produces a lower net income than the use of variable costing

D: The use of absorption costing causes inventory value to increase more than they would though the use of variable costing

Answer & Explanation Discussion
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No change occurs to inventories for either use absorption costing or variable costing methods

An average cost is also known as________?

A: Variable cost

B: Unit cost

C: Total cost

D: Fixed cost

Answer & Explanation Discussion
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Unit cost

Costs that change in response to alternative courses of action are called___________?

A: Relevant costs

B: Differential costs

C: Target costs

D: Sunk costs

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Differential costs

The total cost incurred in the operation of a business undertaking other than the cost of manufacturing and production is known as________?

A: Direct cost

B: Variable cost

C: Commercial cost

D: Conversion cost

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Commercial cost

Which of the following bases is not appropriate for apportionment of Transport departments cost ?

A: Crane hours

B: Crane value

C: Truck Mileage

D: Truck value

Answer & Explanation Discussion
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Crane value

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