COST ACCOUNTING
COST BOOK KEEPING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Dr Overhead control account, Cr Work in progress account
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Dr Overhead control account, Cr Statement of profit or loss (income statement)
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Dr Work in progress account, Cr Overhead control account
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Dr Statement of profit or loss (income statement), Cr Overhead control account
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Detailed explanation-1: -Manufacturing overheads incurred and absorbed Any over-or under-absorption should be transferred to the income statement at the end of the accounting period. If it is Under-absorption then debited as a loss to the income statement. If it is Over-absorption then credited as a profit to the income statement.
Detailed explanation-2: -It is a system of accounting under which separate ledgers are maintained for cost and financial accounts by Accountants. This system is also referred to as cost ledger accounting system.
Detailed explanation-3: -An integrated accounting system is a type of software that combines major financial accounting functions into one application. Replacing several discrete systems or programs eliminates the need for separate books or records for ordering, costing and other management accounting purposes.