Costing MCQs

Question 1

The process of redistribution of service department costs to production departments is ________.

Accepted Answer

secondary distribution

Answer

departmentalization

Answer

primary distribution

Answer

classification

Question 2

Depreciation of plant can be apportioned on the basis of ________.

Accepted Answer

plant value

Answer

plant size

Answer

working days

Answer

output produced

Question 3

Indirect materials can be apportioned on the basis of ________.

Accepted Answer

direct material

Answer

prime cost

Answer

direct labour hour

Answer

machine hour

Question 4

A cost unit is ________.

Accepted Answer

a unit of production or service in relation to which costs are ascertained

Answer

the cost per machine hour

Answer

the cost per labour hour

Answer

a measure of work output in a standard hour

Question 5

Factory overhead is also called as ________.

Accepted Answer

works overhead

Answer

sundry overhead

Answer

extra overhead

Answer

total overhead

Question 6

Sundry overhead expenses may be apportioned in the ratio of ________.

Accepted Answer

labour hours

Answer

material consumed

Answer

number of employees

Answer

machine hours

Question 7

Departmentalization of overhead is known as ________.

Accepted Answer

primary distribution

Answer

secondary distribution

Answer

absorption

Answer

allocation

Question 8

When the actual overhead is less than the absorbed overhead it is ________.

Accepted Answer

over absorption

Answer

under absorption

Answer

equal absorption

Answer

major absorption

Question 9

Factory overhead is Rs 3,00,000 and direct material cost is Rs 5,00,000 What is the overhead rate under direct material cost method?

Accepted Answer

60%

Answer

25%

Answer

30%

Answer

75%