In Cost Accounting there are various costing systems. Different types of costing systems are necessary for different types of businesses. Here are some costing systems defined and at the end you can find an interesting quiz to learn with fun.
Unit costing refers to the costing procedure, which is ideally used in case of concerns producing a single article on large scale by continuous manufacture. The cost units are identical with identical costs. The cost incurred during a period is divided by the total output for ascertaining the cost per unit.
Batch costing system is used when production is in batches.
Job costing is a costing system which considers job a cost unit. A job is a cost unit which consists of a single order or contract.
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Question 1 of 10
1. Question1 points
Production account comprises ofCorrect
Production account is prepared in three parts. The first part gives the cost of production, the second part gives the cost of goods
sold and the third part shows cost of sales or total cost for the period.Incorrect
Question 2 of 10
2. Question1 points
Maintaining separate cost accounts under Unit Costing System is not necessary.Correct
Unit costing is suited for concerns producing a single product.Cost per unit in that case can be calculated by dividing the total expenditure incurred by the number of units produced.Incorrect
Question 3 of 10
3. Question1 points
If the details of cost sheet or production statement are shown in the form of a ledger account, it is known as production accountCorrect
If the details of cost sheet or production statement are shown in the form of a ledger account, it is known as production account.Incorrect
Question 4 of 10
4. Question1 points
Cost unit can be understood asCorrect
Cost unit can be understood as unit of product or services in relation to which costs are ascertained.Incorrect
Question 5 of 10
5. Question1 points
Cost sheet is aCorrect
Cost sheet is prepared as a statement.Incorrect
Question 6 of 10
6. Question1 points
Basic method of costing is/areCorrect
Basic methods of costing are Continuous operation/Process costing and Specific order/Job costing .Incorrect
Question 7 of 10
7. Question1 points
Unit costing system is preferable forCorrect
Unit costing system is best suited for industries which have homogeneous products. Above industries are example of such industries.Incorrect
Question 8 of 10
8. Question1 points
Net Income before Interest and tax is also calledCorrect
Net Income before Interest and tax is also called Operating Income/Profit.Incorrect
Question 9 of 10
9. Question1 points
Production Account is based onCorrect
Production Account is based on actual figures.Incorrect
Question 10 of 10
10. Question1 points
An account giving details of cost of production, cost of sales and profit made during a particular period is calledCorrect
An account giving details of cost of production, cost of sales and profit made during a particular period is called production account.Incorrect