McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Management Studies (BMS) , Bachelor of Accounting and Finance (BAF) , Bachelor of Commerce (B Com) .
| 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 | |
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