Autonomous costs
Service costs
Supporting cost
Subsidiary costs
Correct answer is B
Service costs are the costs incurred to provide or deliver a service. They have the element of manufacturing cost but are not directly involved in production. They include cost such as the use of power and water; fee for use of furniture carpeting/curtains, costs such as cleaning of common areas, costs of concierge or maintenance of common garden.
Which of the following is an item in the debit side of the sales ledger control account?
Interest charged by suppliers
Bills receivable honored
Transfer of credit balances from credit control account
Transfer of debit balance from creditors control account
Correct answer is A
Recall sales ledger control account are used to track trade debtors, that is goods sold on credit. We already know that we debit all income and credit expenses. The debit side of the account contains interest charged by suppliers because the goods were sold on credit and its considered an income.
Which of the following is a debit item in the purchases ledger control account?
Balance b/d
Cheque dishonoured
Purchases
Balance c/d
Correct answer is D
No explanation has been provided for this answer.
Apart from the common control accounts, a control account can also be opened for?
Sales account
Purchases account
Cash account
Wages account
Correct answer is C
No explanation has been provided for this answer.
N11,500
N17,000
N16,500
N28,500
Correct answer is C
In this method of stock valuation, the average unit cost is calculated by multiplying the total of the unit costs by the number of receiving.
| issue price method | Date | Receipt | Issue | Balance | |||||
| Simple average | Qty | price | Value | Dispatch Qty | Balance | ||||
| 1/1 | 1000 | 10 | 10000 | - | 1000 | ||||
| 2/1 | 2000 | 12 | 24000 | - | 3000 | ||||
| 3/1 | - | - | - | 1500 | 1500 | ||||
| 4/1 | 1000 | 11 | 11000 | - | 2500 | ||||
| 5/1 | - | - | - | 1000 | 1500 | ||||
| Total | 4000 | 33 | 2500 | 1500 | |||||
The closing stock using simple average =
(33 ÷ 3) x 1500 = 16500