Manufacturing Accounts
Accounts · 50 practice questions
Cost classification; cost apportionment; preparation of the manufacturing account.
- Identify the reasons for preparing a manufacturing account.
- Calculate prime cost, overhead cost, production cost and total cost.
- Determine the basis of cost apportionment among production, administration, selling and distribution.
Try a few questions
- Practice question 1
Cost apportionment specifically involves allocating shared overhead costs between departments, such as production and administration, on
- A.a deliberately unfair, arbitrary basis, contrary to the actual purpose of apportionment
- B.a factor entirely unrelated to the fairness of cost allocation
- C.no particular basis of any kind, despite the need for apportionment
- D.a fair basis
Show the answer
D. a fair basis
Cost apportionment specifically involves allocating shared overhead costs between departments on a fair basis.
- Practice question 2
A manufacturing account specifically is a working account, from which figures are transferred into the trading account rather than being shown as
- A.a factor entirely unrelated to being shown as a separate financial statement
- B.an internal, confidential document never used for any purpose at all
- C.the only financial statement a manufacturing business is ever required to prepare
- D.a separate financial statement to external users
Show the answer
D. a separate financial statement to external users
A manufacturing account specifically is a working account, rather than being shown as a separate financial statement to external users.
- Practice question 3
Factory rent, as an overhead, specifically can be apportioned between the factory and administration office based on
- A.a factor entirely unrelated to the floor area occupied by each department
- B.the floor area each occupies
- C.the personal preference of the factory's own individual supervisor
- D.the exact number of units produced by the factory alone
Show the answer
B. the floor area each occupies
Factory rent, as an overhead, specifically can be apportioned between the factory and administration office based on floor area.
More UTME Accounts topics
- Nature and Significance of Bookkeeping and Accounting
- Principles of Double Entry
- Ethics in Accounting
- Cash Book
- Bank Transactions and Reconciliation Statements
- Final Accounts of a Sole Trader
- Stock Valuation
- Control Accounts and Self-Balancing Ledgers
- Incomplete Records and Single Entry
- Accounts of Not-For-Profit-Making Organizations
- Departmental Accounts
- Branch Accounts
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