Match the following cost components in List – I with their examples in List – II.List – I List – II a. Food costs i. Equipment repair b. Labour costs ii. Electricity c. Overhead costs iii. Raw materials d. Maintenance costs iv. Employee uniforms
Cost Components Matching: List I & II
This section explains the matching of cost components from List I with their corresponding examples in List II.
Analysis of Matches
- a. Food costs: These are direct costs related to the primary inputs. The most fitting example from List II is iii. Raw materials.
- b. Labour costs: These represent expenses incurred for employees. iv. Employee uniforms is a cost directly associated with the workforce.
- c. Overhead costs: These are indirect expenses necessary for business operations. ii. Electricity is a common example of such costs.
- d. Maintenance costs: These costs pertain to the upkeep of assets. i. Equipment repair clearly falls under this category.
Final Matching
Based on the analysis, the correct pairings are:
- a - iii
- b - iv
- c - ii
- d - i
These matches align with the first option provided.
Important Questions from Cost accounting
Which of the following business would most likely use job order costing:
The following are the two statements regarding concept of profit. Indicate the correct code of the statements being correct or incorrect. Statement (I) : Accounting profit is a surplus of total revenue over and above all paid-out costs, including both manufacturing and overhead expenses.
Statement (II) : Economic or pure profit is a residual left after all contractual costs have been met, including the transfer costs of management, insurable risks, depreciation and payments to shareholders sufficient to maintain investment at its current level.
Highest in price first out method of valuation is used:
A Biscuit manufacturing concern employs:
Which of the following items is not included in cost accounting?
