Solution:
An acquisition cost of raw material is to be used in manufacturing, and becoming a component of cost object is classified as direct material costs. Direct materials cost the cost of direct materials which can be easily identified with the unit of production. For example, the cost of glass is a direct materials cost in light bulb manufacturing.

Solution:
Costing system, which is a combination of process costing and job costing system is classified as hybrid costing system. Hybrid costing is used to separate costs and allocate costs to individual products or groups of products.

Solution:
Rs. 540000 divided by Rs. 90,000 = 6 times per year. Since there were 365 days during the recent year, the average collection period is 365 days divided by the turnover ratio of 6 = 60.8333 days or 61 days.

Solution:
Balance of abnormal gain a/c is transferred to costing profit and loss a/c. Abnormal loss is transferred to the costing P&L.

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Solution:
Flexible budget = Actual result - Flexible budget amount = $25000 - $11000 = $14,000

Solution:
Costing technique, in which actual direct rates are multiplied to quantity of direct cost inputs is classified as actual costing. Actual costing is the recording of product costs based on the following factors: Actual cost of materials.