McqMate
| 401. |
Unavoidable cause of labour turnover is: |
| A. | Low wages |
| B. | Unsatisfactory working conditions |
| C. | Long hours of work |
| D. | Retrenchment due to shortage of work |
| Answer» D. Retrenchment due to shortage of work | |
| 402. |
Personal cause of labour turnover is: |
| A. | Unfair method of promotion |
| B. | Dislike for the job or place |
| C. | Unsatisfactory working conditions |
| D. | None of the above |
| Answer» B. Dislike for the job or place | |
| 403. |
Which of the following is a mechanical method of time keeping? |
| A. | Time recording clock |
| B. | Metal disc method |
| C. | Attendance register method |
| D. | None of the above |
| Answer» A. Time recording clock | |
| 404. |
Payment on the basis of the work done irrespective of the time taken by the worker is called: |
| A. | Time rate system |
| B. | Premium plan |
| C. | Piece rate system |
| D. | Bonus plan |
| Answer» C. Piece rate system | |
| 405. |
How many piece rates are set for each job in Taylor’s differential piece rate system? |
| A. | Two |
| B. | Three |
| C. | Four |
| D. | Many |
| Answer» A. Two | |
| 406. |
Overhead expenses can be classified according to |
| A. | Functions |
| B. | Elements |
| C. | Behavior |
| D. | All of the above |
| Answer» D. All of the above | |
| 407. |
The process of distribution of overheads allotted to a particular department or cost center over the units produced is called: |
| A. | Allocation |
| B. | Apportionment |
| C. | Absorption |
| D. | Departmentalization |
| Answer» C. Absorption | |
| 408. |
If an item of overhead expenditure is charged specifically to a single department this would be an example of: |
| A. | Apportionment |
| B. | Allocation |
| C. | Re-apportionment |
| D. | Absorption |
| Answer» B. Allocation | |
| 409. |
Example of semi-variable overhead items include the following except: |
| A. | Telephone |
| B. | Repairs and maintenance |
| C. | Depreciation of plant and machinery |
| D. | Insurance of plant and building |
| Answer» D. Insurance of plant and building | |
| 410. |
Which of the following costs is not a factory overhead expense? |
| A. | Indirect wages |
| B. | Depreciation of plant and machinery |
| C. | Audit fees |
| D. | Machine maintenance labour cost |
| Answer» C. Audit fees | |
| 411. |
The total of all indirect costs is known as |
| A. | Total cost |
| B. | Overhead |
| C. | Prime cost |
| D. | Work cost |
| Answer» B. Overhead | |
| 412. |
The bases of apportionment for electric power is |
| A. | Number of machine hours |
| B. | Floor area |
| C. | Direct labour hours |
| D. | Number of workers |
| Answer» A. Number of machine hours | |
| 413. |
When the amount of overhead absorbed is less than the amount of overhead incurred it is known as |
| A. | Over-absorption |
| B. | Under-absorption |
| C. | Allocation |
| D. | Apportionment |
| Answer» B. Under-absorption | |
| 414. |
Fixed overhead costs are also called as: - |
| A. | Period cost |
| B. | Flexible cost |
| C. | Economic cost |
| D. | Sunk cost |
| Answer» A. Period cost | |
| 415. |
Which materials do not normally form a past of finished goods: - |
| A. | Indirect materials |
| B. | Direct materials |
| C. | Indirect labor |
| D. | None of these |
| Answer» A. Indirect materials | |
| 416. |
Warehousing cost is an item of: - |
| A. | Office overhead |
| B. | Distribution overhead |
| C. | Material cost |
| D. | None of these |
| Answer» B. Distribution overhead | |
| 417. |
The excess of overheads absorbed over the actual amount of overheads incurred is called: - |
| A. | Under absorption |
| B. | Over absorption |
| C. | Allocation |
| D. | None of these |
| Answer» B. Over absorption | |
| 418. |
Lighting expenses are apportioned on the basis of: - |
| A. | Floor Area |
| B. | Light Points |
| C. | No. of Workers |
| D. | Capital Values |
| Answer» B. Light Points | |
| 419. |
Absorption costing is closely related to which of the following cost elements? |
| A. | Total Costs |
| B. | Overheads |
| C. | Prime Costs |
| D. | Direct labor |
| Answer» B. Overheads | |
| 420. |
To control costs it is essential to keep control on: - |
| A. | Prime Cost |
| B. | Overheads |
| C. | Indirect materials |
| D. | All of these |
| Answer» D. All of these | |
| 421. |
Which of the following is variable cost? |
| A. | Salaries of higher officers |
| B. | Prime cost |
| C. | Insurance cost |
| D. | Repair cost |
| Answer» B. Prime cost | |
| 422. |
Departmentalization of overhead is |
| A. | Secondary distribution |
| B. | Primary distribution |
| C. | Absorption |
| D. | Allocation |
| Answer» B. Primary distribution | |
| 423. |
Absorption means |
| A. | Charging of overhead to cost centres |
| B. | Charging if overhead to cost units |
| C. | Charging of overhead to cost centres or units |
| D. | None of the above |
| Answer» C. Charging of overhead to cost centres or units | |
| 424. |
A statement prepared to provide detailed cost of a cost centre or cost unit is |
| A. | Cost account |
| B. | Cost sheet |
| C. | Reconciliation statement |
| D. | Profit & loss a/c |
| Answer» B. Cost sheet | |
| 425. |
Over valuation of ________ in cost accounts is deducted to costing profit to find out financial profit. |
| A. | Closing stock |
| B. | Opening stock |
| C. | Factory OH |
| D. | Office OH |
| Answer» A. Closing stock | |
| 426. |
An aggregate of indirect material, indirect labourand indirect expenses is called |
| A. | Capacity cost |
| B. | Set-up cost |
| C. | Depreciation |
| D. | Overheads. |
| Answer» D. Overheads. | |
| 427. |
Production Manager’s salary is; |
| A. | Factory overhead |
| B. | Office overhead |
| C. | Selling and distribution overheads |
| D. | Administrative overhead |
| Answer» A. Factory overhead | |
| 428. |
Allotment of whole items of overheads to cost centres is known as; |
| A. | allocation |
| B. | apportionment |
| C. | classification |
| D. | absorption |
| Answer» A. allocation | |
| 429. |
Under absorption of overhead expense in cost accounting results in _______. |
| A. | decrease in costing profit. |
| B. | decrease in financial accounts profit |
| C. | increase in costing profit |
| D. | increase in financial accounts profit |
| Answer» C. increase in costing profit | |
| 430. |
The overheads which remain unaffected in total amount by fluctuations in volume of output. |
| A. | Variable Overhead |
| B. | Fixed Overhead |
| C. | Semi-variable Overhead |
| D. | None of the above |
| Answer» B. Fixed Overhead | |
| 431. |
Material costs which cannot be allocated but which are to be apportioned or absorbed by cost centres or cost units. |
| A. | Direct Material |
| B. | Indirect Material |
| C. | Materials in progress |
| D. | None of the above |
| Answer» B. Indirect Material | |
| 432. |
Certain overhead costs cannot be directly charged to a department or cost centres. The process of distribution of such overhead costs to various departments is called |
| A. | Apportionment |
| B. | Absorption |
| C. | Allocation |
| D. | None of the above |
| Answer» A. Apportionment | |
| 433. |
Rent and other building expenses may be apportioned to various departments on the basis of |
| A. | Direct wages |
| B. | Number of workers |
| C. | Floor Area |
| D. | Cost of Plant |
| Answer» C. Floor Area | |
| 434. |
The method of re-apportionment of overhead costs which is used when service department renders its services to other service departments but does not receive services of the other service departments. |
| A. | Stepladder Method |
| B. | Trial and Error Method |
| C. | Repeated Distribution Method |
| D. | All of the above |
| Answer» A. Stepladder Method | |
| 435. |
When the amount of overheads absorbed is less than the amount of overheads actually incurred. |
| A. | Over absorption |
| B. | Under Absorption |
| C. | Excess Absorption |
| D. | None of the above |
| Answer» B. Under Absorption | |
| 436. |
In case the amount of under or over absorbed overheads is significant, this rate is calculated to adjust the amount in the cost. |
| A. | Additional rate |
| B. | Secondary rate |
| C. | Supplementary rate |
| D. | Primary rate |
| Answer» C. Supplementary rate | |
| 437. |
When the under or over absorbed amount is quite negligible, it is transferred to |
| A. | Costing P/L A/c |
| B. | Costing Expenditure A/c |
| C. | Costing Balance Sheet |
| D. | Costing trading A/c |
| Answer» A. Costing P/L A/c | |
| 438. |
Classification of overheads into indirect material, indirect labour and indirect expenses come under: |
| A. | Functional classification |
| B. | Behaviour-wise classification |
| C. | Nature-wise classification |
| D. | Element-wise classification |
| Answer» D. Element-wise classification | |
| 439. |
Labour employed in time office and security office is an example of: |
| A. | Direct labour |
| B. | Indirect labour |
| C. | Indirect expenses |
| D. | Direct expenses |
| Answer» B. Indirect labour | |
| 440. |
Depreciation of plant and machinery is apportioned on the basis of: |
| A. | Technical estimates |
| B. | Direct labour hours |
| C. | Kilowatt hours |
| D. | Capital value of assets |
| Answer» D. Capital value of assets | |
| 441. |
Supervision is charged on the basis of: |
| A. | Number of employees |
| B. | Direct material |
| C. | Direct wages |
| D. | Area of department |
| Answer» A. Number of employees | |
| 442. |
Power charges are: |
| A. | Fixed overhead |
| B. | Variable overhead |
| C. | Semi-variable overhead |
| D. | Semi-fixed overhead |
| Answer» B. Variable overhead | |
| 443. |
Overheads classified as Manufacturing, Administrative, Selling and Distribution come under: |
| A. | Function-wise classification |
| B. | Element-wise classification |
| C. | Behavior-wise classification |
| D. | Industry-wise classification |
| Answer» A. Function-wise classification | |
| 444. |
Depreciation of office equipments is an example of: |
| A. | Factory overheads |
| B. | Administrative overheads |
| C. | Selling overheads |
| D. | Manufacturing overheads |
| Answer» B. Administrative overheads | |
| 445. |
Allotment of overhead to a cost unit is called: |
| A. | Apportionment |
| B. | Absorption |
| C. | Allocation |
| D. | Departmentation |
| Answer» B. Absorption | |
| 446. |
In ________ costing the cost of a group of products is ascertained. |
| A. | Process |
| B. | Job |
| C. | Batch |
| D. | Service |
| Answer» C. Batch | |
| 447. |
________ costing is suitable for mines, quarries, cement works etc. |
| A. | Process |
| B. | Contract |
| C. | Batch |
| D. | Operation |
| Answer» D. Operation | |
| 448. |
________ is an extension of job costing. |
| A. | Process costing |
| B. | Batch costing |
| C. | Contract costing |
| D. | Operation costing |
| Answer» B. Batch costing | |
| 449. |
When job is very big and spread over long periods of time the method of costing adopted is |
| A. | Process |
| B. | Job |
| C. | Contract |
| D. | Batch |
| Answer» C. Contract | |
| 450. |
Continuous costing is also called |
| A. | Operation costing |
| B. | Process costing |
| C. | Batch costing |
| D. | Contract costing |
| Answer» B. Process costing | |
| 451. |
In this type of costing works are carried out at factory premises: |
| A. | Job |
| B. | Contract |
| C. | Batch |
| D. | Process |
| Answer» A. Job | |
| 452. |
Under this method, homogeneous products are taken as cost unit |
| A. | Job |
| B. | Contract |
| C. | Batch |
| D. | Process |
| Answer» C. Batch | |
| 453. |
The costing method which can be used in industry where the product passes through different processes is known as |
| A. | Job costing |
| B. | Operating costing |
| C. | Batch costing |
| D. | Process costing |
| Answer» D. Process costing | |
| 454. |
Under which method costs are collected & accumulated for each job: - |
| A. | Job Costing |
| B. | Contract Costing |
| C. | Batch Costing |
| D. | None of these |
| Answer» A. Job Costing | |
| 455. |
The basis of collection of costs are:- |
| A. | Materials |
| B. | Wages |
| C. | Overheads |
| D. | All of these |
| Answer» D. All of these | |
| 456. |
Which method is adopted to calculate the cost of each batch? |
| A. | Contract Costing |
| B. | Job Costing |
| C. | Batch Costing |
| D. | Job sheet |
| Answer» C. Batch Costing | |
| 457. |
In what basis of work, the contractor is made payment? |
| A. | Certified Work |
| B. | Uncertified Work |
| C. | National Profit |
| D. | None of these |
| Answer» A. Certified Work | |
| 458. |
Ascertainment of cost of the product at each process is called: - |
| A. | Job Costing |
| B. | Contract Costing |
| C. | Process Costing |
| D. | Batch Costing |
| Answer» C. Process Costing | |
| 459. |
A contract account is a _______ account in nature. |
| A. | Real a/c |
| B. | Personal a/c |
| C. | Nominal a/c |
| D. | All of these |
| Answer» C. Nominal a/c | |
| 460. |
Identify the types of specific order costing. |
| A. | Job Costing |
| B. | Batch Costing |
| C. | Both (a) & (b) |
| D. | Process Costing |
| Answer» C. Both (a) & (b) | |
| 461. |
Which of the following is known as Terminal Costing? |
| A. | Job Costing |
| B. | Batch Costing |
| C. | Process Costing |
| D. | Contract Costing |
| Answer» D. Contract Costing | |
| 462. |
The costing method which can be used in industry where the product pass through different processes is known as______. |
| A. | job costing |
| B. | operating costing |
| C. | batch costing |
| D. | process costing |
| Answer» D. process costing | |
| 463. |
Process Account is _____. |
| A. | Nominal A/c |
| B. | Real A/c |
| C. | Personal A/c |
| D. | either Nominal or Real A/c |
| Answer» A. Nominal A/c | |
| 464. |
Profit to be transferred to P& L A/c , if the contract is complete to the extent of only 20% is _____. |
| A. | nil |
| B. | 20% |
| C. | 25% |
| D. | 75% |
| Answer» A. nil | |
| 465. |
If the actual loss is more than the estimated normal loss, then it is |
| A. | abnormal loss |
| B. | normal loss |
| C. | seasonal loss |
| D. | abnormal gain |
| Answer» A. abnormal loss | |
| 466. |
The sum of value of work certified and uncertified appearing in the Contract Account is called |
| A. | Work in Progress |
| B. | Work in Process |
| C. | Work completed |
| D. | Work done |
| Answer» A. Work in Progress | |
| 467. |
Contract costing is specialized system of job costing applies to _____ contracts. |
| A. | Short-term |
| B. | Medium-term |
| C. | Long-term |
| D. | Continuous process |
| Answer» C. Long-term | |
| 468. |
Each job has a ______ prepare for it that bears the job number and which is used to collect all cost data relating to job. |
| A. | Job time sheet |
| B. | Job Cost Card |
| C. | Job ticket |
| D. | Job Account |
| Answer» B. Job Cost Card | |
| 469. |
The first step in a job order cost procedure is |
| A. | Receiving of order |
| B. | Estimation of the price of the job |
| C. | Production order |
| D. | Receiving an enquiry |
| Answer» D. Receiving an enquiry | |
| 470. |
Job Costing is suitable for |
| A. | Ship-builders |
| B. | Furniture makers |
| C. | Printing presses |
| D. | All of the above |
| Answer» D. All of the above | |
| 471. |
Batch costing is a form of specific order/job costing where the cost per unit is ascertained by _________ the total cost of a batch by the number of items produced in that batch. |
| A. | dividing |
| B. | multiplying |
| C. | subtracting |
| D. | adding |
| Answer» D. adding | |
| 472. |
The determination of EBQ is influenced by the following factors: |
| A. | Rate of consumption |
| B. | Manufacturing cost |
| C. | Storage cost |
| D. | All of the above |
| Answer» D. All of the above | |
| 473. |
Work which has been done but not certified is called |
| A. | Work uncertified |
| B. | Work certified |
| C. | Extra work |
| D. | None of the above |
| Answer» A. Work uncertified | |
| 474. |
The sum of value of work certified and uncertified appearing in the contract account is called |
| A. | Work in process |
| B. | Work completed |
| C. | Work in progress |
| D. | None of the above |
| Answer» A. Work in process | |
| 475. |
Loss which unavoidable on account of inherent nature of production processes is |
| A. | Abnormal loss |
| B. | Normal loss |
| C. | Process loss |
| D. | None of the above |
| Answer» B. Normal loss | |
| 476. |
In process costing when the actual loss is less than the normal loss then it is |
| A. | Abnormal gain |
| B. | Abnormal loss |
| C. | Process gain |
| D. | None of the above |
| Answer» A. Abnormal gain | |
| 477. |
What we prepare for each job that bears the job number and which is used to collect all cost data relating to job is: |
| A. | Job time sheet |
| B. | Job cost card |
| C. | Job ticket |
| D. | Job account |
| Answer» B. Job cost card | |
| 478. |
An automobile service unit uses: |
| A. | Batch costing |
| B. | Contract costing |
| C. | Job |
| D. | Specific order |
| Answer» B. Contract costing | |
| 479. |
Where the work is undertaken to customer’s special requirements and each order is of comparatively short duration, then it is called: |
| A. | Job costing |
| B. | Batch costing |
| C. | Operation costing |
| D. | Output costing |
| Answer» A. Job costing | |
| 480. |
Printing industry uses: |
| A. | Job costing |
| B. | Batch costing |
| C. | Operation costing |
| D. | Output costing |
| Answer» B. Batch costing | |
| 481. |
Batch costing is a form of: |
| A. | Process costing |
| B. | Continuous process costing |
| C. | Specific order costing |
| D. | Operation costing |
| Answer» C. Specific order costing | |
| 482. |
Batch costing is applied in: |
| A. | Pharmaceutical industries |
| B. | Computer industries |
| C. | Toy making |
| D. | All of the above |
| Answer» D. All of the above | |
| 483. |
Batch costing is used for which type of product? |
| A. | Heterogeneous product |
| B. | By-product |
| C. | Homogeneous product |
| D. | All of the above |
| Answer» C. Homogeneous product | |
| 484. |
Contract costing is a specialized system of Job costing applies to: |
| A. | Short term contracts |
| B. | Medium term contracts |
| C. | Long term contracts |
| D. | Continuous process |
| Answer» C. Long term contracts | |
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