Answered: Cost of abnormal wastage is. a. Charged…

Cost of abnormal wastage is. a. Charged the costing profit and loss account b. Charged partly to the product and profit and loss account c. Charged to the product cost d. Not charged at all

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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

19- Cost of abnormal wastage is. a. Charged the costing profit and loss account b. Charged partly to the product and profit and loss account c. Charged to the product cost d. Not charged at all

Definition Definition Amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item

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21. Which of the following statements is correct? a. In a variable costing income statement, sales revenue is typically higher than in absorption costing income statement. b. When production is not equal to sales, income under absorption costing differs from income under variable costing due to the difference in treatment (product cost and period cost) of the fixed overhead cost under the two costing methods. c. In a variable costing system, fixed overhead cost is included as part of the cost of inventory. d. In an absorption costing system, fixed overhead cost is treated as a period cost
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QUESTION 23 Expenses can be categorized by whether the cost incurred is directly related to production or not. If directly related, it will not change with the production level, thus called Fixed Cost. If directly related, it will change with the production level, thus called Fixed Cost. If not directly related, it will not change with the production level, thus called Variable Cost. If not directly related, it will change with the production level, thus called Variable Cost. None of the above is a correct statement.
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