Cost accounting question paper

Cost Accounting is not a branch of Financial Accounting.
Labour Turnover is the change in labour force during a period of time.
Bincard shows the Quantity of a material at any movement of time.
Operating Cycle means time required to Produce One Quantity of a Product.
While working out the EOQ, carrying cost has the element of interest cost.

Hence it can be stated that interest cost is treated as part of material cost under CAS—6.
Normal bad debt is considered as a selling overhead and included in the cost.
Carriage and Cartage expenses (inward freight) of fuel for a furnace in a factory is treated as direct material cost.

Multiple costing is suitable for banking industry. 163.
There is inverse relationship between batch size and carrying costs. 164.
Marginal costing follows the identifiability wise classification of costs. 165.
Bin card is maintained by the costing department.

Standard Costs are costs that are estimated costs that are likely in the future production period.
Variances are calculated for both material and labour.
Multiple Costing is suitable for the banking Industry.
Contact costing is variant of job costing.
Closing stock of finished goods should be valued on the basis of cost of sales.