• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer
  • Increase Sales
  • Effective Ads
  • Employee Selection
  • Leaderships Quality
  • Business Creativity
  • Small Start-ups

Googlesir

  • Employee Training
  • Marketing and Sales
  • Investment & Earning
  • Managerial Economics
  • Entrepreneurship and Career

Top 13 Process Costing Question & Answer (Cost Accounting)

Updated on: February 2, 2019 Leave a Comment

Following are the problems and solutions of Process Costing (Cost Accounting).

Process Costing Question & Answer (Cost Accounting)
Process Costing Question & Answer (Cost Accounting)

Page Contents

  • Process Costing Question & Answer (Cost Accounting)
      • 1. What do mean by Process costing method?
      • 2. Explain the objective of Process Costing method?
      • 3. Define Joint Product?
      • 4. What do mean Joint Cost?
      • 5. What is Scrap?
      • 6. What is Abnormal Wastage?
      • 7. What is represented by the excess of Actual wastage over Normal Wastage?
      • 8. What do you mean by abnormal Effective?
      • 9. What are the main products and by-Products in the dairy industry and coke industry?
      • 10. What is the difference between By Product and Scrap?
      • 11. What journal Entry is Passed for Accounting Abnormal Effective?
      • 12. Differentiate between Abnormal Waste and Abnormal Effective?
      • 13. What is Interprocess Profit?
    • Process Costing Question & Answer (Cost Accounting)

Process Costing Question & Answer (Cost Accounting)

1. What do mean by Process costing method?

Answer: It is a method of cost determination and is used manufacturing concern where raw material passes through many processes up to finished goods.

2. Explain the objective of Process Costing method?

Answer: It is useful to determine the cost of the process, to ascertain wastage in each process, to ascertain the price of by-product and join product and to segregation total expenses.

  • Job And Contract Costing: Top Q&A
  • Unit Costing: Top Q&A [Cost Accounting]

3. Define Joint Product?

Answer: Joint products are produced by the same type of raw material in the same process having nearly equal importance and value as of main product and require further processing.

4. What do mean Joint Cost?

Answer: Cost prior to segregation point is known as joint cost as it related to the main product, joint product & by-product.

Related: 10 Concept of Entrepreneurship (Updated).

5. What is Scrap?

Answer: It is incidental residue material from certain manufacturing operation. It is measurable but having relatively minor recovery value then by-products.

6. What is Abnormal Wastage?

Answer: When actual wastage is more than normal wastage the difference is termed as abnormal wastage.

7. What is represented by the excess of Actual wastage over Normal Wastage?

Answer: Excess of actual wastage over normal wastage is abnormal is wastage.

  • Operating Costing: Top Best Q&A [Cost Accounting]
  • Cost Accounting: Integrated and Non-Integrated Accounting System [Q&A]

8. What do you mean by abnormal Effective?

Answer: When actual wastage is less than normal wastage the difference Is termed as abnormal effectiveness the balance of this account is transferred to profit or loss.

9. What are the main products and by-Products in the dairy industry and coke industry?

Answer:

Industry: dairy industry, coke industry.

Main products: butter, cheese, coke.

By-products: skimmed milk, gas coal tar, benzol, ammonia.

10. What is the difference between By Product and Scrap?

Answer: Joint product is an incidental product of the main product of the main product having saleable value while scrap is a loss of material during production.

Related: 15 Importance of Entrepreneurship (in Modern Economy).

11. What journal Entry is Passed for Accounting Abnormal Effective?

Answer: Accounting entry for sales value of abnormal effective is made as follows:

Abnormal effective account.

     To Normal wastage account.

At the end of the year balance of abnormal effective is transferred to costing profit & loss account:

Abnormal effective account.

     To Costing profit& loss account.

12. Differentiate between Abnormal Waste and Abnormal Effective?

Answer: When actual loss is more than the normal loss it is called as the abnormal loss while if actual loss is less than the normal loss it is called as an abnormal effective abnormal loss is transferred in the debit side of costing profit and loss account.

While abnormal effective is transferred is the credit side of costing profit and loss account. Abnormal loss and abnormal effective is reduced by sale value of scrap.

Related: 16 Need and Importance of Business Environment (Updated).

13. What is Interprocess Profit?

Answer: When the transfer of manufacturing goods from one process to another is being done after adding a certain percentage of profit. This creates a problem of interprocess profit main advantage is that efficiency of every process is ascertained.

Valuation of finished stock and work in process will not be realistic as it includes interprocess profit and loss account will not exhibit the correct amount of profit this problem can be eliminated if a reserve for unrealized profit is made.

Process Costing Question & Answer (Cost Accounting)

Read More:

  • Reconciliation of Cost and Financial Accounts: Top Q&A
  • Cost Volume Profit Analysis or Marginal Costing: Top 12 Q&A
  • Standard Costing: Top Best 20+ Q&A
  • Budgetary Control: Top Best Q&A [Cost Accounting]
  • Cost Accounting – An Introduction [15 Most Q&A]
  • Cost Accounting: Elements of Cost [Short Q&A for Exams]
  • Overheads: Short Q&A [Cost Accounting]
  • Cost Accounting: Material Cost [Q&A]
  • Labour Cost – Short Q&A [Cost Accounting]
  • Managerial Economics: Definition, Nature, Scope

Share Now:

  • Share
  • WhatsApp
  • Tweet

Leave a Comment

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

E-mail Newsletter

More to See

tools and techniques of career development of employees

21 Tools and Activities of Career Development of Employee

how to achieve workers participation in management

17 Primary Methods of Workers Participation in Management (WPM)

What are main reasons of industrial disputes

15 Reasons for the Occurrence of Industrial Conflicts

How to Make a Successful Participative Management

How to Make a Successful Participative Management

challenges of workers' participation in management

10 Basic Limitations of Workers Participation in Management

Footer

FREE Exclusive Notes via Email

Enter your email below to get access to Our All helpful Tips and Articles

Search

DMCA.com Protection Status

Join Us

  • Home
  • Contact Us
  • Privacy Policy
  • About us
  • Sitemap

© 2021Copyright www.Googlesir.com