CA Inter P4 · Chapter 6 · Question 5 of 9
Which of the following items is excluded from the cost sheet?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Loss on sale of an old machine
Explanation
A loss on sale of a fixed asset is a purely financial item that does not form part of the cost of producing or selling goods, so it appears only in the financial accounts. Depreciation of machinery and supervisor's salary are factory overheads, and carriage outward is a distribution overhead.
More Cost Sheet MCQs
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