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Commerce · Q66

Costing

Graduate and Post Graduate · Commerce · question 66

Q66

Which one of the following is not considered for preparation of cost sheet?

A.
Factory cost
B.
Goodwill written off
Answer
C.
Labour cost
D.
Selling cost

Answer: Option B

Solution

Answer: Option B
Solution:
Goodwill written off is not considered for preparation of cost sheet. A firm will write off goodwill when it wants to shrink the balance sheet and if it thinks that the goodwill doesnt represent anything.