Top 50+ Solved Accounting of overheads (Part 1) MCQ Questions Answer
Q. . Cost apportionment involves:
a. The sharing out of overheads to service departments
b. The sharing out of common costs to departments
c. The allocation of direct costs to departments
d. The sharing out of costs to products
Q. . What would be the most appropriate way of apportioning depreciation costs acrossdifferent manufacturing departments in a business?
a. Floor space
b. Numbers of personnel
c. Value of buildings and equipment
d. Value of lan
Q. . Which of the following is a conventional method of ascertaining cost?
a. Absorption costing
b. Full Costing
c. Both a & b
d. None of the above
Q. . The total cost of a product will include:
a. Prime costs plus direct production overhead plus indirect-production overhead plus tax
b. Prime cost plus absorbed direct production overhead
c. Prime costs plus direct production overhead plus indirect production overhead
d. Prime cost only
Q. . Which of the following is not considered to be a benefit of activity-based costing?
a. More accurate product costs
b. Reduced complexity of calculating costs
c. Inclusion of non-manufacturing costs
d. More detailed understanding of what drives cost.
Q. Wages paid to a labour who was engaged in production activities can be termed as.
a. direct cost.
b. indirect cost
c. sunk cost
d. imputed cost.
Q. . The cost which is to be incurred even when a business unit is closed is a.
a. imputed cost.
b. historical cost.
c. sunk cost.
d. shutdown cost
Q. . Which of the following best describes a fixed cost? A cost which:
a. Actual direct labour time per unit being greater than budget.
b. Actual cost of direct labour being greater than budget.
c. Actual overheads incurred being less than budget.
d. The number of units produced being greater than budget.
Q. . Which of the following is most likely to be an allocated productionoverhead cost to the finishing cost centre?
a. Factory rates.
b. Salary of the finishing cost centre supervisor.
c. Power used on finishing cost centre machines.
d. Salary of the production manager.
Q. Wages paid to a office cleaning staff who was engaged in Administration activities acan be termed as.
a. direct cost.
b. indirect cost
c. sunk cost
d. imputed cost.
Q. Overhead is actually the total of:
a. Indirect materials
b. Indirect expenses
c. Indirect labour
d. All of the above
Q. Overhead costs may be classified according to the function of the organization as:
a. Production/Manufacturing overheads
b. Non-production/Non-manufacturing overheads
c. Both A&B
d. None
Q. . Production Overheads are costs related to the production process other than direct labour and materials. They are also known as factory overheads since they are incurred inside the factory, other overheads such as selling and administrative overheads are always charged to in the period in which they are incurred
a. The above statement is true
b. The above statement is false
c. none
d. none