Cost accounting 2 marks imp questions with answers

1)What is costing?

Ans: Costing is the technique and process of ascertaining cost.

2) what is cost unit?

Ans: The cost unit is a defined as the unit of product, services, time, activity or combination in a relation to which cost is estimated.

3) What is indirect material cost?

Ans: Indirect materials are materials used in the production process, but which cannot be linked to a specific product or job.

4) What are the components of prime cost?

     * Direct materials

     * Direct wages

     * Direct expenses 

5) What is the piece wage system?

Ans: peace wage system is a system where workers wages are paid on the basis of output turned out by him. 

6) Mention 2 features of halsey bonus plan.

Ans:   *Guaranteed time wage.

           * Bonus @50% of time saved.

           * Standard time in fixed a well in                            advance.

7) What is Idle time?

Ans: Idle time is the period of time in which a worker is ready to work but unable work due to control lable or noncontrollable reasons.

8) What is machine hour rate?

Ans: Machine hour rate (MHR) is the cost of running a machine for 1 hour.

         MHR= Total overheads

                     -------------------------- × 100

                    Total Machine hours 

9) what is over recovery of overheads?

Ans: overhead absorbed, more than actual overhead cost.

10) What is cost?

Ans: cost is the expenditure required to create and cell products and services, the term cost refers to the monetary value of expenditures for raw materials, equipment, supplies, services, labour, products, etc.

11) What is prime cost?

Ans: prime costs are a firm's expenses directly related to the materials and labour used in production. It is the sum total of all Direct material+ Direct labour+ Direct expenses.

12) What is a material requisition?

Ans: A Material Requisition from list that items to be picked from inventory and used in the production process or in the provision of a service to a customer, usually for a specific job. 

                             Or

Material requisition refers to the document which authorises the material to be drawn from storage or warehouse for further manufacturing.

13) What is Bin card?

Ans: In cost accounting, Bin card is used to mean a document that keeps a record of the items help in stores. Bin implies a container or space to keep materials, and with each bin, a card is a placed.

14) What is labour turnover ratio?

Ans: Labour turnover is the ratio of the number of persons living in a period to the average number employed. P it is the change in the composition of the labour force in an organisation.

15)  What is time booking?

Ans: Time booking is the recording of time spent by a worker on different jobs for work orders carried out by him during his period of attendance in the factory.

16) What is labour hour rate?

Ans: Labour hour rate to the cost of labour, usually on an hourly basis, used to derive the cost of various activities or products.

17) In which incentive plan employer takes 50% of benefit of workers?

Ans: Halsey's plan.

18)  What is time booking ?

Ans: time booking is the recording of time spend by our car on different jobs or work orders carried out by him during his period of attendance in the factory.

19) How do you calculate time saved in case of incentive plans?

Ans: If the actual time taken by workers are lesser than standard time allotted by company. Then the difference between standard Time and time taken is the time saved. Bonus is a paper to those workers who saves time.

20) What is a primary overheaded distribution summary?

Ans: the allocation and the apportionment of overheads to production and service department is also known as a 'departmentalization or primary distribution of overheads'. It is done by preparing an overheads distribution summary.