Top 150+ Solved Cost and Works Accounting 2 MCQ Questions Answer
Q. The reciprocal apportionment and can be done using:
a. Repeated distribution method
b. Simultaneous equations method
c. Both A&B
d. None
Q. A single overhead absorption rate might be used for all the productiondepartments in the factory.
a. True
b. False
c. none
d. none
Q. Single overhead absorption rate is also known as:
a. Blanket rate
b. Factory-wide absorption rate
c. Both A&B
d. None
Q. Blanket overhead rates are not appropriate in the following circumstances.
a. There is more than one department
b. Jobs do not spend an equal amount of time in each department
c. Both A&B
d. None
Q. Administration overheads and sales and distribution overheads are not absorbed into product costs. Instead, they are treated in full as an expense in the financial period to which they relate.
a. The above statement is correct
b. The above statement is incorrect
c. none
d. none
Q. Non-production overhead costs are never added to the value of inventory.
a. False
b. True
c. none
d. none
Q. A predetermined overhead absorption rate is also known as:
a. Fixed overhead absorption rate
b. The fixed overhead recovery rate
c. The fixed overhead applied
d. All of the above
Q. If the amount of production overheads absorbed into product costs is more thanthe actual production overhead expenditure, there is:
a. Over-absorbed overhead
b. Under-absorbed overhead
c. Neither A or B
d. None
Q. The over-absorbed overhead is accounted for as an adjustment to the profit inthe period, and is added to profit in the cost accounting income statement.
a. Correct
b. Incorrect
c. none
d. none