Class 12 Account Model Question 2080 with Solution | Set A

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Class 12 Account Model Question 2080 with Answers 

Class 12 Account Theory Question | Important Class 12 Account Questions 

1. Write any five disadvantages of the Time Rate system of wage payment.

The five disadvantages of the Time Rate System of wage payment are as follows:

1. Efforts and rewards are not co-related because both efficient and inefficient workers get the same rate of wage. So there is no inducement for the hard work. 2. The time rate system does not encourage efficiency. It creates dissatisfaction among efficient workers who lose efficiency gradually.
2. The workers do not have any scope to increase their income by producing more; hence, idleness gradually develops in them.
3. The cost of supervision increases and output falls.
4. Labor costs cannot be estimated in advance.

2. Write any five advantages of the piece rate system of wage payment.

The five advantages of the piece rate system of wage payment are mentioned below:

1. Efficient workers produce more and hence earn more wages under the piece rate system of wage payment.
2. The output is increased because the workers try to earn more by producing more in their own interest.
3. The cost of supervision is low,
4. Less efficient workers try to develop skills and zeal to work.
5. Greater output reduces fixed overhead per unit.

3. Write any five disadvantages of the piece rate system of wage payment.

The disadvantages of the piece rate system of wage payment are furnished below:

1. The workers are always in a hurry. As a result, the quality of the product or work is likely to deteriorate and accidents may occur.
2. Speedy production work may create more scraps, defects in work, and more chances of breakdown of machinery and equipment.
3. Breakdown of machines and power failure disappoint the workers.
4. Minimum wage is not guaranteed to the workers.
5. Under this system efforts and rewards are co-related.

4. What do you mean by direct wages and indirect wages?

Direct wageareis the remuneration paid by the factory to its workers involved directly in the manufacturing process. The direct wages can be identified and allocated to the specific job, process, or product. It is a part of prime cost. It can be measured accurately on a per unit-of-output basis. Examples of direct wages are wages paid to workers such as making table printing books, manufacturing products, etc. Indirect wage is the remuneration paid by the factory to its workers who are not directly involved in production activity. It is the wages paid to such workers who assist the direct labor to complete the manufacturing process. It cannot be measured accurately on a per-unit-of-output basis. It is a part of overhead cost. For example, remuneration is paid to watchmen, sweepercleanersess, supervisors, and office staff.

5. Point out any five points of importance of the cost sheet. 

The importance of the f cost sheet is given below:

1. The cost sheet provides information on the total cost and cost per unit of the product for a particular period. W to Xoote poet bb4
2. It discloses the break-up of total cost into different heads of expenditure. These facilities exercise control over the cost of production.
3. It helps to find out the causes of variation between the elements of past cost or standard cost and take necessary corrective measures.
4. It helps to fix the selling prices of product produced.
5.  It helps the businessman to submit reliable and accurate quotations against tenders.

6. Give the meaning of unit output costing.

It is one of the methods of costing that is used when production is uniform and consists of a single two or three varieties of the same product. The main objective of this method is to ascertain the cost per unit of output. It is suitable for industries where production is continuous and units are identical. This method is used by industries like queries, oil drilling, breweries, cement, bricks and, household items such as radio. Units of measurement are a barrel of beer, a tonne of coal, one thousand 2000 bricks, a meter of cloth, a gallon of milk, etc.