Government grants & assistance Flashcards
1
Q
What is inventory held at
A
The lower of the cost and the net realisable value
2
Q
What are variable production overheads
A
Indirect costs of production which vary with volume of production (materials, labour)
3
Q
What are fixed production overheads
A
Indirect costs of production which remain fairly constant (depreciation of factory buildings, cost of factory management)
4
Q
How are unallocated FO recognised if actual activity is less than normal
A
Recognised as an expense not as part of the goods produced
5
Q
What happens to the amount of FO allocated to each unit if actual activity is more than normal
A
The amount allocated to each unit is decreased
6
Q
4 excluded costs from FPO
A
Abnormal costs, storage costs after completion, general administrative costs, selling costs
