Complete the following statements by choosing the correct answer:
IFRS refers to paid time off as Blank 1
compensated absences
.
clearance
A Blank 2 account is a temporary
account in which costs are held until they can be transferred to
another account.
Question 2
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Consider the following statements and state whether they are true or false.
Answer 1
Prime costs refer to the cost of materials and labour.
False
The flow of the cost of direct materials is through the Inventory of
Answer 2
Materials Account, the Work-in-Progress Account, the Inventory of
True
Finished Goods Account and the Cost of Sales Account.
Question 3
Correct
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Question text
Spotless (Pty) Ltd provides cleaning services. In determining the cost of providing a cleaning
service to a particular client. Classify the following costs as direct or indirect.
Answer 1
The cost of carpet shampoo used by the cleaner.
direct
Advertising expenses incurred in attracting more clients to Spotless Answer 2
(Pty) Ltd business. Indirect
Question 4
Partially correct
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Complete the following statement by choosing the correct answer:
material inventory control
In a perpetual inventory system, the Blank 1 account
credited finished goods inventory
is Blank 2 , and the Blank 3 control
debited
account is Blank 4 every time completed goods are transferred from the factory
floor to the finished goods store.
Question 5
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Complete the following statements by choosing the correct answer:
Blank 1
Employees’ retirement contribution
i
s not deductible from an employee’s salary or wage
According to the perpetual inventory system, Blank 2
a cost of sales account is updated throughout the year
Question 6
Partially correct
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Complete the following statements by choosing the correct answer from the options provided:
marginal costing
When using the Blank 1 method, only
variable manufacturing costs are included in the inventory
valuation.
Factory overhead is an example of a Blank 2 .
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