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Commerce · Q176

Costing

Graduate and Post Graduate · Commerce · question 176

Q176

Which of the following item of expenses will not appear in cost accounting.

A.
Direct material cost
B.
Factory overheads
C.
Selling Expenses
D.
Loss on sale of fixed assets
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Loss on sale of fixed assets will not appear in cost accounting. Debit cash for the amount received, debit all accumulated depreciation, debit the loss on sale of asset account, and credit the fixed asset.