Top 50+ Solved Overheads MCQ Questions Answer
Q. 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.
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. Administration costs
Q. 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
Q. Which of the following calculate the actual cost of product:
a. Cost estimation
b. Costing
c. Both a and b
d. None of these
Q. 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
Q. 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
Q. 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
Q. What item is not included in cost accounting?
a. Product costing
b. Profit-sharing
c. Planning
d. Controlling
Q. A total of all the direct costs is known as
a. Cost of production
b. Cost of sales
c. Prime cost
d. Works cost
Q. 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
Q. The process of distribution of overheads allotted to a particular department or costcenter over the units produced is called:
a. Allocation
b. Apportionment
c. Absorption
d. Departmentalization
Q. A product with a high gross profit could be an unprofitable product.
a. True
b. False
c. none
d. none
Q. 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
Q. 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
Q. The following method is an improvement over the percentage on direct labour costmethod.
a. Machine hour rate
b. Percentage on prime cost
c. Percentage on direct material cost
d. Man hour rate