MCQOPTIONS
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MCQOPTIONS
This section includes 55 Mcqs, each offering curated multiple-choice questions to sharpen your Bachelor of Commerce (B Com) knowledge and support exam preparation. Choose a topic below to get started.
| 51. |
Indirect production costs are incurred in three main ways: Production activities: costs arising in production departments such as fuel, depreciation, supervision Service activities: the cost of operating non-producing departments such as materials handling, canteen Establishment costs: general production overheads such as factory rent/rates, heating and lighting |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» B. False | |
| 52. |
Job costing is used when a business entity carries out tasks or jobs to meet specific customer orders. |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» B. False | |
| 53. |
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» B. Reverse cost method | |
| 54. |
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» D. Departmentalization | |
| 55. |
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» E. | |