COST ACCOUNTING
INTRODUCTION TO COST ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Works overhead control accountsuspense account
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Works overhead suspense account
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Work in progress ledger control account
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Stores ledger account
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Detailed explanation-1: -(c) Work-in-Process Ledger-This ledger is also known as job ledger, it contains accounts of unfinished jobs and processes. All material costs, wages and overheads for each job in process are posted to the respective job account in this ledger.
Detailed explanation-2: -Solution. Abnormal gain is recorded on the Debit side of the Process Account.
Detailed explanation-3: -Overhead costs, also called “overhead expenses” or “operating expenses", are expenses associated with running a business that can’t be linked to creating or producing a product or service. They are the expenses the business incurs to stay in business, regardless of its success level.
Detailed explanation-4: -Overhead is also known as ongoing cost.