Distinguish among spoilage, rework and scrap.

Q: Outline the measures used to describe possible loss accurately?

A: The success of a business depends on how accurately they predict future profit or loss arriving…

Q: With reference to IAS 16 (Property, Plant and Equipment), discuss the differences between “the cost…

A: IAS 16 relates to the accounting for property, plant, and equipment unless another standard requires…

Q: Why costing procedure is different for spoiled or defective material?

A: Spoilage means loss occurred during the production. It occurs due to sub-standard material,…

Q: Assess the purpose of identifying failure modes with relevant examples in the process of Failure…

A: Failure mode effect and criticality analysis performed as :- The basic assumption when performing…

Q: lassification costs

A: A long-term physical piece of property or equipment that a company owns and utilises in its…

Q: 1. Differentiate between spoiled and defective material, why costing procedure is different for…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Explain the term internal failure costs.

A: Internal failure costs: Internal failure costs include additional production-related costs that are…

Q: DEFINE AND INDICATE TYPES OF DUMPING.

A: Dumping: Dumping refers to the reduced price of the products at which price the exporters exports…

Q: What is the impairment loss to be allocated to the equipment?

A: An impaired loss is the loss which results to the asset of the company as a result that the market…

Q: Which of the following would be an acceptable measure of activity for a material handling activity…

A: For a material handling activity cost pool, number of material moves and weight of materials moved…

Q: What statement is loss of sold equipment on?

A: Loss on sale of Equipment is a non operating loss. Such losses are shown in Income Statement after…

Q: What are the two approaches that can be used to adjust for flotation costs?

A: The cost which is arises while issue new stock or shares in the market is commonly known as floating…

Q: Distinguish between ordinary repairs and extraordinaryrepairs. How is each accounted for?

A: Ordinary repairs:   These costs are incurred to maintain the long-term asset in good condition for…

Q: An example of an appraisal cost would be: O Scrap O Process or product design O Product recalls O…

A: Cost of Good Quality is incurred in order to reduce the Cost of Poor Quality, so that overall Cost…

Q: Explain how to determine the cost of an asset.

A:

Q: Discuss the fundamental risk and control issues associated with fixed assets that are different from…

A: Fixed Asset: The asset used by company for more than one year is known as fixed asset. Fixed asset…

Q: How do managers use information about scrap?

A: Scrap:Scrap is basically the residual material that left after the manufacturing of a product. Scrap…

Q: Which of the following would be classified as an external failure cost on a quality cost report?

A: External failure cost:   External failure costs refer to the expenses undertaken by the company…

Q: Explain briefly how with examples

A: Environmental accounting: It is the process of reporting the usage of natural resources available in…

Q: The cost of is not included in the cost of production a. Abnormal loss b. Direct costs c. Normal…

A: Cost of production: Cost of production may be defined as the aggregate of all the costs incurred to…

Q: Describe the effects of using direct and indirect material.

A: Direct materials are required directly in the production process like wood required to make…

Q: Identify events that might lead to disposal of a plant asset.

A: An asset is a resource owned by an enterprise and which can generate values in the future. Assets…

Q: Differentiate between spoiled and defective material, why costing procedure is different for both?

A: A defective good is a good in which there is a manufacturing fault or defect, but this fault can be…

Q: Replenishment planning helps to determine what materials are to be procured and when. Select on

A: Replenishment planning is a delicate balance of three factors: The amount of inventory required to…

Q: Distinguish between internal failure costs and external failure costs.

A:

Q: Explain the concept of cost allocation as it pertains to property, plant, and equipment and…

A: Property, Plant & Equipment (PPE) includes the following assets namely: Land Plant and Building…

Q: Understand property, plant, and equipment and its related costs.

A: Business have several assets such as cash, inventories, accounts receivables, investments, PPEs…

Q: Define “cost” as applied to the valuation of inventories.

A:

Q: What features of the cost accounting system would be expected to prevent the omission ofrecording…

A: Cost accounting is the branch of Accountancy associated with the cost of materials used in the…

Q: Asset disposal

A: Asset is the resources owned by a firm at a particular point of time out of which it is expected…

Q: Define the term external failure costs.

A: Quality costs: Quality costs are costs that are incurred to avoid, identify and eliminate defects…

Q: Difference between depreciation and depletion.

A: Depreciation: Depreciation is the loss in the value of the asset caused due to its usage, wear, and…

Q: Define Impairment Losses.

A: Impairment loss: An impairment loss is an expense reported on the income statement, it is the…

Q: uestion: The total cost of spoilage chargeable to Revenue is (recognized as expenses) and the total…

A: Equivalent units concept is used when opening or ending work in progress is not 100% complete but…

Q: Identify the control document for materials flow when a materials requisition slip is not used.

A: Accounting:   Accounting is a system, or a process of collecting and organizing economic…

Q: The type of process loss that should not be allowed to affect the cost of good units is called? a.…

A: Process costing is one of the method of cost accounting, which is used in industries where product…

Q: What amount should be used as the cost basis of the equipment?

A: Property, plant and equipment:   Property, plant and equipment are the tangible assets which are…

Q: Explain the accounting for loss carryforwards.

A: The Accounting For Loss Carryforwards will be explained:

Q: Explain the ethical considerations to be taken care of while maintaining cost records.

A: Ethics of professional accountant:   This is a set of principles that an accountant follow to…

Q: What are relevant and irrelevant cost of direct materials, direct labor and misconception about…

A: Direct materials can be defined as the cost of materials that is used for the production of goods or…

Q: Types of cost for quality are : (a ) Appraisal Cost (b ) Prevention Cost (c ) Appraisal Cost  (d…

A: Answer: The cost of quality is the cost that is incurred to maintain the cost of product. Types of…