MCQOPTIONS
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MCQOPTIONS
This section includes 1375 Mcqs, each offering curated multiple-choice questions to sharpen your Commerce knowledge and support exam preparation. Choose a topic below to get started.
| 501. |
Situation in which cost object has any job, customer or product is known as |
| A. | ost application base |
| B. | ale application base |
| C. | rice application base |
| D. | irect application base |
| Answer» B. ale application base | |
| 502. |
Budgeted annual indirect costs are divided to budgeted annual quantity of cost allocation base to calculate |
| A. | xpected indirect cost rate |
| B. | xpected direct cost rate |
| C. | udgeted indirect cost rate |
| D. | udgeted direct cost rate |
| Answer» D. udgeted direct cost rate | |
| 503. |
In normal costing, budgeted rate is multiplied to an actual quantity, which have been used as allocation base to calculate |
| A. | udget overhead applied |
| B. | anufacturing overhead applied |
| C. | abour overhead applied |
| D. | one of above |
| Answer» C. abour overhead applied | |
| 504. |
Total cost of producing similar products divided by number of units produced is a technique known as |
| A. | ale costing system |
| B. | ob costing system |
| C. | rice costing system |
| D. | rocess costing system |
| Answer» E. | |
| 505. |
If budgeted indirect cost arte is $225 and budgeted cost allocation base is $750 per hour, then annual indirect cost (budgeted) would be |
| A. | 168,750 |
| B. | 148,570 |
| C. | 186,750 |
| D. | 125,680 |
| Answer» B. 148,570 | |
| 506. |
Spread of over allocated overhead and under allocated overhead among work in process, finished goods and goods sold cost is classified as |
| A. | roration approach |
| B. | ppreciation approach |
| C. | epreciation approach |
| D. | djusted approach |
| Answer» B. ppreciation approach | |
| 507. |
In a normal accounting period, allocated amount of indirect cost is $2000 and actual amount is $2200, then this is classified as |
| A. | ver allocated budget |
| B. | nder allocated budget |
| C. | nder allocated indirect cost |
| D. | ver allocated direct cost |
| Answer» B. nder allocated budget | |
| 508. |
If budgeted annual manufacturing indirect cost is $2250000 and cost allocation base is 2800 labour hour, then budgeted manufacturing overhead rate will be |
| A. | 803.571 per labour hour |
| B. | 805 per labour hour |
| C. | 905 per labour hour |
| D. | 802 per labour hour |
| Answer» B. 805 per labour hour | |
| 509. |
If budgeted indirect cost base is $115 and budgeted cost allocation base is $830 per hour, then annual indirect cost (budgeted) will be |
| A. | 93,450 |
| B. | 94,560 |
| C. | 96,450 |
| D. | 95,450 |
| Answer» E. | |
| 510. |
In an accounting system, document which supports journal entries is classified as |
| A. | ost document |
| B. | riced document |
| C. | ource document |
| D. | irect document |
| Answer» D. irect document | |
| 511. |
If an actual indirect cost incurred is $25000 and indirect cost allocated is $23000, then over allocated indirect cost would be |
| A. | 48,000 |
| B. | $2000 |
| C. | 2,000 |
| D. | $48000 |
| Answer» C. 2,000 | |
| 512. |
Procedure of assigning direct cost to any cost abject is classified as |
| A. | ales allocation |
| B. | ost tracing |
| C. | ost allocation |
| D. | ales tracing |
| Answer» D. ales tracing | |
| 513. |
If budgeted cost in indirect cost pool is $144500 and total quantity of cost allocation base is $165500, then budgeted indirect cost rate will be |
| A. | 7.30% |
| B. | 7.31% |
| C. | 5.50% |
| D. | 5.50% |
| Answer» C. 5.50% | |
| 514. |
In a normal accounting period, an allocated amount of indirect cost is $700 and an actual amount is $800, then this can be classified as |
| A. | nder allocated indirect cost |
| B. | ver allocated direct cost |
| C. | ver allocated budget |
| D. | nder allocated budget |
| Answer» B. ver allocated direct cost | |
| 515. |
Systematic way of linking group of indirect cost to a cost object is classified as |
| A. | inked allocation base |
| B. | irect allocation base |
| C. | ndirect allocation base |
| D. | ost allocation base |
| Answer» E. | |
| 516. |
Costing and allocating situation, in which indirect cost allocated amount is less than actually incurred amount is known as |
| A. | ver allocated budget |
| B. | nder allocated budget |
| C. | nder allocated indirect cost |
| D. | ver allocated direct cost |
| Answer» D. ver allocated direct cost | |
| 517. |
If budgeted annual indirect cost is $850000 and budgeted annual quantity of cost allocation base is $7500, then budgeted indirect cost rate would be |
| A. | 12.34 per piece |
| B. | 13.33 per piece |
| C. | 11.34 per piece |
| D. | 10.34 per piece |
| Answer» C. 11.34 per piece | |
| 518. |
If an actual manufacturing overhead costs is $485000 and actual total quantity of cost allocation base is 4500 labour hours, then overhead rate would be |
| A. | 09.87 |
| B. | 107.78 |
| C. | 106.56 |
| D. | 104.34 |
| Answer» C. 106.56 | |
| 519. |
In normal costing, manufacturing overhead allocated is also called |
| A. | anufacturing overhead applied |
| B. | abour overhead applied |
| C. | ost overhead applied |
| D. | udget overhead applied |
| Answer» B. abour overhead applied | |
| 520. |
Costing technique, in which actual direct rates are multiplied to quantity of direct cost inputs is classified as |
| A. | riced costing |
| B. | ctual costing |
| C. | irect costing |
| D. | ndirect costing |
| Answer» C. irect costing | |
| 521. |
If an actual manufacturing overhead costs is $225000 and actual total quantity of cost allocation base is 2500 labour hours, then overhead rate will be |
| A. | 60 |
| B. | 90 |
| C. | 80 |
| D. | 70 |
| Answer» C. 80 | |
| 522. |
In accounting system, a document which consists of all assigned cost for specific job is classified as |
| A. | ob cost record |
| B. | ob cost sheet |
| C. | ource document |
| D. | oth a and b |
| Answer» E. | |
| 523. |
If budgeted total direct labour hours are 5500 and budgeted direct labour cost is $755000, then budgeted direct labour cost rate is |
| A. | 138 per labour hour |
| B. | 137.27 per hour |
| C. | 140 per labour hour |
| D. | 142 per labour hour |
| Answer» C. 140 per labour hour | |
| 524. |
If budgeted total direct labour hours are 3800 and budgeted direct labour cost is $480000, then budgeted direct labour cost rate will be |
| A. | 126.32 per labour hour |
| B. | 128.32 per labour hour |
| C. | 130 per labour hour |
| D. | 132 per labour hour |
| Answer» B. 128.32 per labour hour | |
| 525. |
A document which consists information about labour time usage, for specific job in a specific department, is known as |
| A. | elling time record |
| B. | abour time record |
| C. | uying time record |
| D. | irect time record |
| Answer» C. uying time record | |
| 526. |
If an overhead cost of operating a machine is $500000 for 1000 hours, then cost allocation rate will be |
| A. | 1500 per machine hour |
| B. | 250 per machine hour |
| C. | 500 per machine hour |
| D. | 1000 per machine hour |
| Answer» D. 1000 per machine hour | |
| 527. |
If budgeted direct labour hours are 4550 and direct labour cost rate is $600 per labour hour then, total direct labour cost would be |
| A. | 4,730,000 |
| B. | 3,730,000 |
| C. | 2,730,000 |
| D. | 1,730,000 |
| Answer» D. 1,730,000 | |
| 528. |
An average unit cost, applicable to each similar produced units is classified as |
| A. | er unit cost |
| B. | er post cost |
| C. | er price cost |
| D. | pplication cost |
| Answer» B. er post cost | |
| 529. |
Process of assigning direct or indirect cost to any cost object is known as |
| A. | ost assignment |
| B. | ost expectation |
| C. | vent assignment |
| D. | robability assignment |
| Answer» B. ost expectation | |
| 530. |
In a joint process of production, product which yields low volume of sales as compared to total sales of other products is known as |
| A. | econd incremental product |
| B. | irst incremental product |
| C. | tep down product |
| D. | y-product |
| Answer» E. | |
| 531. |
A joint cost allocation method is based on relative value of total sales, at point of split off is classified as |
| A. | ales value at split off method |
| B. | oint costs at split off point method |
| C. | oint products value at split off method |
| D. | ain product cost at split off method |
| Answer» B. oint costs at split off point method | |
| 532. |
An additional cost, incurred for some specific activity to bring processed product on to next production stage is |
| A. | artial cost |
| B. | elevant cost |
| C. | ncremental cost |
| D. | rrelevant cost |
| Answer» D. rrelevant cost | |
| 533. |
Total cost related to work in process inventory is divided by total units of work done is used to calculate |
| A. | ross weighted margin |
| B. | eighted average revenue |
| C. | eighted average cost |
| D. | eighted average conversion cost |
| Answer» D. eighted average conversion cost | |
| 534. |
Costing system, which classify cost into cost categories in a way when an expense is incurred in process is called |
| A. | onversion expense costing system |
| B. | nventory costing system |
| C. | rocess costing system |
| D. | ob costing system |
| Answer» D. ob costing system | |
| 535. |
Hybrid costing system, which is applied to batches of similar products, but are not identical is classified as |
| A. | ncremental costing system |
| B. | plit off costing system |
| C. | nventoriable costing system |
| D. | peration costing system |
| Answer» E. | |
| 536. |
Third step in process costing system is to |
| A. | ummarize flow of output |
| B. | ompute output in units |
| C. | ummarize total costs |
| D. | ompute cost for each equivalent unit |
| Answer» D. ompute cost for each equivalent unit | |
| 537. |
If total incurred cost in a production process are $30000 and number of output units are 5000 units, then units cost will be |
| A. | 16 |
| B. | 60 |
| C. | 6 |
| D. | 26 |
| Answer» D. 26 | |
| 538. |
Standardized technique that is performed repetitively on different kind of materials to convert them into different finished products is known as |
| A. | onversion process |
| B. | peration |
| C. | ybridization |
| D. | oth a and b |
| Answer» C. ybridization | |
| 539. |
Second step in processing costing system is to |
| A. | ummarize total costs |
| B. | ompute cost for each equivalent unit |
| C. | ummarize flow of output |
| D. | ompute output in units |
| Answer» E. | |
| 540. |
Total indirect cost in pool by an actual quantity of cost allocation base is used to calculate |
| A. | ctual manufacturing overhead rate |
| B. | anufacturing overhead costs |
| C. | verhead rate |
| D. | irect rate |
| Answer» B. anufacturing overhead costs | |
| 541. |
A group of individual indirect cost item is defined as |
| A. | irect pool |
| B. | ost pool |
| C. | ndirect pool |
| D. | tem pool |
| Answer» C. ndirect pool | |
| 542. |
In normal costing, situation in which allocated amount of indirect cost is greater than incurred cost, is considered as |
| A. | ncurred indirect cost |
| B. | ver allocated indirect cost |
| C. | pplied indirect cost |
| D. | pplied direct cost |
| Answer» C. pplied indirect cost | |
| 543. |
An under allocated indirect cost is also called |
| A. | nder applied indirect cost |
| B. | nder absorbed indirect cost |
| C. | bsorbed indirect cost |
| D. | oth a and b |
| Answer» E. | |
| 544. |
Fifth step in process costing system is to |
| A. | llocate separable costs |
| B. | llocate joint costs |
| C. | ompute gross margin |
| D. | ssign total cost to completed units |
| Answer» E. | |
| 545. |
In process costing method, when work done in current accounting period and beginning inventory before current accounting period, is classified as |
| A. | artial inventory costing method |
| B. | urrent period inventory method |
| C. | ast-in, first-out method |
| D. | irst-in, first-out method |
| Answer» E. | |
| 546. |
Costs that are incurred in last department, where product has been processed and will be carried to next department for further processing are called |
| A. | artial work costs |
| B. | ransferred-in costs |
| C. | ransferred-out costs |
| D. | eighted average costs |
| Answer» C. ransferred-out costs | |
| 547. |
First step in process costing system is to |
| A. | ummarize flow of output |
| B. | ompute output in units |
| C. | ummarize total costs |
| D. | ompute cost for each equivalent unit |
| Answer» B. ompute output in units | |
| 548. |
A unit cost calculated in costing system, by assigning total costs incurred to many similar units is categorized as |
| A. | ccounting period costing system |
| B. | rocess costing system |
| C. | ob costing system |
| D. | one of above |
| Answer» C. ob costing system | |
| 549. |
If beginning work in process equivalent units are 2500 units, work done in current period equivalent units are 3800 units and ending work in process equivalent units are 5000, then complete equivalent units in current period are |
| A. | 800 units |
| B. | 500 units |
| C. | 300 units |
| D. | 500 units |
| Answer» D. 500 units | |
| 550. |
Total costs incur in a production process, is divided by total number of output units to calculate the |
| A. | ost of indirect labour |
| B. | ost of direct labour |
| C. | ost of direct material |
| D. | nit costs |
| Answer» E. | |