A company makes a product where all the direct costs are of equal importance.Which of the following would be the best basis on which to calculate the absorption rate for this product?
A. Labour hours
B. Material cost
C. Prime cost
D. Machine hours
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On what basis would a business apportion the following costs?Employee restaurant
A. Floor area
B. Number of employees
Rent
A. Floor area
B. Number of employees
Which of the following is an example of a normal loss?
A. Machine down time
B. Expected evaporation in the process
C. Staff holiday
D. Sale of scrap material
A process results in scrap which has no sale value. Which of the following is the correct way to make the entry into the process account for scrap?
A. No entry required
B. Dr Process account Cr Scrap account
C. Dr Scrap account Cr Process account
Dr Process account Cr Sales account