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McqMate
Chapters
1. |
An example of a production overhead would be: |
A. | Material. |
B. | Rent |
C. | Labour cost. |
D. | Supervisory cost |
Answer» D. Supervisory cost |
2. |
All such expenses which are incurred for creating and enhancing the demands for the products are |
A. | Selling expenses |
B. | Administrative expenses |
C. | Distribution expenses |
D. | All of the above |
Answer» D. All of the above |
3. |
To control costs it is essential to keep control on |
A. | Prime cost |
B. | Overheads |
C. | Indirect materials and tools cost. |
D. | All of the above |
Answer» B. Overheads |
4. |
A cost that is easily traceable to a cost object is known as: |
A. | Direct cost |
B. | Indirect cost |
C. | Variable cost |
D. | Fixed cost |
Answer» A. Direct cost |
5. |
Which of the following best describes a fixed cost? A cost which: |
A. | Represents a fixed proportion of total costs |
B. | Remains at the same level up to a particular level of output |
C. | Has a direct relationship with output. |
D. | Remains at the same level when output increases. |
Answer» A. Represents a fixed proportion of total costs |
6. |
Which of the following is a valid classification of the salary paid to the foreman in charge of the packing department? |
A. | Indirect departmental cost |
B. | Direct product cost |
C. | Direct departmental cost |
D. | Service department cost. |
Answer» D. Service department cost. |
7. |
A cost that changes in total dollar amount with the change in the level of activity is known as: |
A. | Direct cost |
B. | Indirect cost |
C. | Variable cost |
D. | Fixed cost |
Answer» C. Variable cost |
8. |
Which of the following costs is treated as indirect labour? |
A. | Idle time |
B. | Overtime premium |
C. | Fringe benefits |
D. | All of the above |
Answer» D. All of the above |
9. |
Which definition best describes indirect costs? |
A. | Indirect costs are those costs which are not controlled directly by a manager. |
B. | Indirect costs are those costs which cannot be directly associated with a product or service. |
C. | Indirect costs are always fix |
Answer» B. Indirect costs are those costs which cannot be directly associated with a product or service. |
10. |
What would be the most appropriate way of apportioning depreciation costs across different manufacturing departments in a business? |
A. | Floor space |
B. | Numbers of personnel |
C. | Value of buildings and equipment |
D. | Administration costs |
Answer» C. Value of buildings and equipment |
11. |
Which of the following cost is also known as overhead cost or on cost: |
A. | Cost of direct labour |
B. | Cost of direct material |
C. | Direct expenses |
D. | Indirect expenses |
Answer» D. Indirect expenses |
12. |
Which of the following calculate the actual cost of product: |
A. | Cost estimation |
B. | Costing |
C. | Both a and b |
D. | None of these |
Answer» D. None of these |
13. |
Costing is specialized branch of accounting which deals with: |
A. | Classification, recording, allocation, and control of asset |
B. | Classification, processing, allocation and directing |
C. | Classification, recording, planning and control of asset |
D. | Classification, recording, allocation and directing |
Answer» D. Classification, recording, allocation and directing |
14. |
In cinema halls, composite cost unit is ________________: |
A. | A seat per show |
B. | Cost of screening |
C. | Salary of staff |
D. | Rent of cinema hall |
Answer» A. A seat per show |
15. |
The stage of production at which separate products are identified is known as _______________: |
A. | Process costing |
B. | Reverse cost method |
C. | Subsequent cost |
D. | Equivalent production |
Answer» A. Process costing |
16. |
What item is not included in cost accounting? |
A. | Product costing |
B. | Profit-sharing |
C. | Planning |
D. | Controlling |
Answer» B. Profit-sharing |
17. |
A total of all the direct costs is known as |
A. | Cost of production |
B. | Cost of sales |
C. | Prime cost |
D. | Works cost |
Answer» C. Prime cost |
18. |
Which of the following is not included in functional classification of overheads? |
A. | Repairs and maintenance |
B. | Lubricating oil |
C. | Consumable stores |
D. | Chargeable expenses |
Answer» D. Chargeable expenses |
19. |
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 |
20. |
A product with a high gross profit could be an unprofitable product. |
A. | True |
B. | False |
C. | none |
D. | none |
Answer» B. False |
21. |
To control costs it is essential to keep control on |
A. | Prime cost |
B. | Overheads |
C. | Indirect materials and tools cost |
D. | All of the above |
Answer» D. All of the above |
22. |
The overhead cost for a particular job = |
A. | man hour rate x man hours spent on that job |
B. | man hour rate / man hours spent on that job |
C. | man hour rate + man hours spent on that job |
D. | man hour rate – man hours spent on that jab |
Answer» A. man hour rate x man hours spent on that job |
23. |
The following method is an improvement over the percentage on direct labour cost method. |
A. | Machine hour rate |
B. | Percentage on prime cost |
C. | Percentage on direct material cost |
D. | Man hour rate |
Answer» D. Man hour rate |
24. |
Which of the following is/are the basic object/s of job analysis? |
A. | Determination of wage rates |
B. | Ascertain the relative worth of each job |
C. | Breaking up job into its basic elements |
D. | All of the given options |
Answer» A. Determination of wage rates |
25. |
An overhead absorption rate is used to: |
A. | Share out common costs over benefiting cost canters |
B. | Find the total overheads for a cost centre |
C. | Charge overheads to products |
D. | Control overheads |
Answer» C. Charge overheads to products |
26. |
Economic Batch Quantity depends on ……………….and ……………..costs. |
A. | Material, labour |
B. | set-up costs, carrying |
C. | transportation, carrying |
D. | warehousing, labour |
Answer» B. set-up costs, carrying |
27. |
The wages paid to maintenance department workers who do repair work principally for production departments but also on the vehicles in the distribution department should be charged as |
A. | Service cost |
B. | Distribution cost |
C. | General cost |
D. | Production cost |
Answer» A. Service cost |
28. |
Which of the following costs of management is likely to have least control? |
A. | Machine breakdown cost |
B. | Wages cost |
C. | Advertising cost. |
D. | Buildings insurance cost |
Answer» A. Machine breakdown cost |
29. |
Which of the following best describes a fixed cost? A cost which: |
A. | Represents a fixed proportion of total costs. |
B. | Remains at the same level up to a particular level of output. |
C. | Remains at the same level when output increases |
D. | Has a direct relationship with output |
Answer» B. Remains at the same level up to a particular level of output. |
30. |
Which of the following would not be considered as a component of 'cost' of stock? |
A. | Transportation inward cot |
B. | Import duties |
C. | Purchase price |
D. | Salaries of selling staff |
Answer» D. Salaries of selling staff |
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