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.
| 601. |
Difference between job time and attendance time is |
| A. | ob time |
| B. | ctual time |
| C. | ver time |
| D. | dle time |
| Answer» E. | |
| 602. |
Direct expenses are also called ________. |
| A. | ajor expenses |
| B. | hargeable expenses |
| C. | verhead expenses |
| D. | undry expenses |
| Answer» C. verhead expenses | |
| 603. |
The cost which is to be incurred even when a business unit is closed is a _____. |
| A. | mputed cost |
| B. | istorical cost |
| C. | unk cost |
| D. | hutdown cost |
| Answer» E. | |
| 604. |
Cost classification can be done in ________. |
| A. | wo ways |
| B. | hree ways |
| C. | our ways |
| D. | everal ways |
| Answer» E. | |
| 605. |
The costs of undertaken activities to support individual products are classified as |
| A. | expected sustaining |
| B. | input sustaining |
| C. | output sustaining |
| D. | product sustaining costs |
| Answer» E. | |
| 606. |
The broad averages used to assign the cost of revenue to cost objects is classified as |
| A. | refined costing system |
| B. | refined selling system |
| C. | undefined costing |
| D. | defined selling system |
| Answer» B. refined selling system | |
| 607. |
In activity based cost system, the activity, unit of work or task with differentiated purpose is classified as |
| A. | different task |
| B. | purpose cost |
| C. | activity |
| D. | allocation cost |
| Answer» D. allocation cost | |
| 608. |
The approach in which the company under-cost its one product and over-cost its at least one product is classified as |
| A. | service-cost across subsidizing |
| B. | product-price cross subsidizing |
| C. | product-cost cross subsidizing |
| D. | product cross subsidizing |
| Answer» D. product cross subsidizing | |
| 609. |
In activity based costing system, the description of activity is classified as |
| A. | activity list |
| B. | activity dictionary |
| C. | active purpose |
| D. | both a and b |
| Answer» E. | |
| 610. |
The costs of all the activities for a group of products rather than individual product are classified as |
| A. | activity level costs |
| B. | input level costs |
| C. | batch level costs |
| D. | output level costs |
| Answer» D. output level costs | |
| 611. |
The costing system in which individual activities are identified as the cost object is considered as |
| A. | manufactured costing |
| B. | activity based costing |
| C. | allocation costing |
| D. | base costing |
| Answer» C. allocation costing | |
| 612. |
The hierarchy which is based on different types of cost allocation and drivers to categorize cost pool activity is classified as |
| A. | cost hierarchy |
| B. | price hierarchy |
| C. | activity hierarchy |
| D. | purpose hierarchy |
| Answer» B. price hierarchy | |
| 613. |
In the activity based costing method implementation, the output unit level costs are classified as |
| A. | indirect costs |
| B. | direct cost |
| C. | labor cost |
| D. | raw material cost |
| Answer» B. direct cost | |
| 614. |
In the activity based costing method implementation, the indirect costs are allocated by using the |
| A. | no cost pool |
| B. | one or two cost pools |
| C. | sustained tracing |
| D. | support tracing |
| Answer» C. sustained tracing | |
| 615. |
In the activity based costing implementation, the product's diverse demand is based on |
| A. | batch size |
| B. | complexity |
| C. | process steps |
| D. | All of Above |
| Answer» E. | |
| 616. |
The type of costs that can not be traced for individual products but help in supporting the organization are classified as |
| A. | individual sustaining costs |
| B. | facility sustaining costs |
| C. | sustained tracing |
| D. | support tracing |
| Answer» C. sustained tracing | |
| 617. |
The product which requires large amount of resources but incur low per unit cost is classified as |
| A. | product under costing |
| B. | product over costing |
| C. | expected under cost |
| D. | expected over cost |
| Answer» B. product over costing | |
| 618. |
The factors that accelerate the process of refining a costing system includes |
| A. | increase in product diversity |
| B. | increase in indirect costs |
| C. | product market competitions |
| D. | All of Above |
| Answer» E. | |
| 619. |
The cost pool category which have the similar cause and effect relationship with each cost driver used as allocation base is classified as |
| A. | heterogeneous price pool |
| B. | homogenous cost pool |
| C. | heterogeneous cost pool |
| D. | homogenous price pool |
| Answer» C. heterogeneous cost pool | |
| 620. |
The costs of all the activities for individual products or services are classified as |
| A. | purpose level costs |
| B. | output-unit level costs |
| C. | input-unit level costs |
| D. | activity level costs |
| Answer» C. input-unit level costs | |
| 621. |
The product which requires low amount of resources but incur high per unit cost is classified as |
| A. | expected under cost |
| B. | expected over cost |
| C. | product under costing |
| D. | product over costing |
| Answer» E. | |
| 622. |
Type of spoilage, which is considered as controllable and can be avoided is called~! |
| A. | abnormal spoilage |
| B. | normal spoilage |
| C. | transferred-in spoilage |
| D. | transferred-out spoilage |
| Answer» B. normal spoilage | |
| 623. |
Total transferred-out cost plus normal spoilage is divided by number of goods units produced to calculate~! |
| A. | cost per good units transferred out |
| B. | cost per good units transferred in |
| C. | revenue per good units transferred out |
| D. | revenue per good units transferred in |
| Answer» B. cost per good units transferred in | |
| 624. |
In production, variables such as level of activity or volume of company activity are known as%! |
| A. | cost drivers |
| B. | timed drivers |
| C. | variable drivers |
| D. | fixed drivers |
| Answer» B. timed drivers | |
| 625. |
Which of following is an example of purchasing costs?%! |
| A. | incoming freight |
| B. | storage costs |
| C. | insurance |
| D. | spoilage |
| Answer» D. spoilage | |
| 626. |
Required rate of return, is multiplied per unit cost of purchased units to calculate%! |
| A. | irrelevant inventory carrying costs |
| B. | relevant opportunity cost of capital |
| C. | relevant purchase order costs |
| D. | relevant inventory carrying costs |
| Answer» C. relevant purchase order costs | |
| 627. |
If demand in units is 18000, relevant ordering cost for each year is $150 and an order quantity is 1500, then annual relevant ordering cost would be%! |
| A. | $200 |
| B. | $190 |
| C. | $160 |
| D. | $180 |
| Answer» E. | |
| 628. |
An average inventory in units is multiplied with annual relevant carrying cost of each unit to calculate%! |
| A. | annual irrelevant ordering costs |
| B. | annual relevant carrying costs |
| C. | annual relevant ordering costs |
| D. | annual irrelevant carrying costs |
| Answer» C. annual relevant ordering costs | |
| 629. |
Prime cost is $50000 and direct manufacturing labour is $10000, then direct material cost will be%! |
| A. | $40,000 |
| B. | $60,000 |
| C. | $52,000 |
| D. | $20,000 |
| Answer» B. $60,000 | |
| 630. |
An acquisition cost of raw material is to be used in manufacturing, and becoming a component of cost object is classified as%! |
| A. | direct material costs |
| B. | indirect material costs |
| C. | direct labour costs |
| D. | indirect labour costs |
| Answer» B. indirect material costs | |
| 631. |
Costs which are considered as expenses in accounting period are also known as%! |
| A. | inventory costs |
| B. | period costs |
| C. | timed costs |
| D. | labour overheads |
| Answer» C. timed costs | |
| 632. |
If conversion cost is $25000 and direct manufacturing labour cost is $17000, then manufacturing overhead cost would be%! |
| A. | $14,700 |
| B. | $68,000 |
| C. | $8,000 |
| D. | $42,000 |
| Answer» D. $42,000 | |
| 633. |
Cost, which is related to specific cost object and economically traceable, will be classified as%! |
| A. | direct cost |
| B. | indirect cost |
| C. | line cost |
| D. | staff cost |
| Answer» B. indirect cost | |
| 634. |
Cost which remains unchanged, in proportion to level total volume of production is classified as%! |
| A. | total cost |
| B. | infeasible cost |
| C. | fixed cost |
| D. | variable cost |
| Answer» D. variable cost | |
| 635. |
Direct expenses are also called ________.%! |
| A. | major expenses |
| B. | chargeable expenses |
| C. | overhead expenses |
| D. | sundry expenses |
| Answer» C. overhead expenses | |
| 636. |
Production units that do not meet customer specification, but can be sold to other customers as finished goods are classified as%! |
| A. | reduced work |
| B. | spoilage |
| C. | rework |
| D. | scrap |
| Answer» D. scrap | |
| 637. |
If beginning work in process inventory units are 2600, units started are 9000, ending work in process units are 2300 and completed good units are 8000 then total spoilage will be%! |
| A. | 1200 units |
| B. | 990 units |
| C. | 1100 units |
| D. | 1000 units |
| Answer» D. 1000 units | |
| 638. |
If units of normal spoilage are 150 and total good units manufactured are 1500, then normal spoilage rate would be%! |
| A. | 14.00% |
| B. | 15.00% |
| C. | 10.00% |
| D. | 12.00% |
| Answer» D. 12.00% | |
| 639. |
Point in joint production process, in which two or more products are separately identifiable is termed as%! |
| A. | step down point |
| B. | incremental point |
| C. | split off point |
| D. | inseparability point |
| Answer» D. inseparability point | |
| 640. |
Approaches used to allocate joint costs include%! |
| A. | sales value at split off method |
| B. | net realizable value method |
| C. | constant gross margin percentage NRV method |
| D. | all of above |
| Answer» E. | |
| 641. |
If net realizable value is $20000 and separable costs are $18000, then final sales will be%! |
| A. | $20,000 |
| B. | $18,000 |
| C. | $2,000 |
| D. | $38,000 |
| Answer» E. | |
| 642. |
Which one of following is an example of spoilage?%! |
| A. | short lengths from wood work |
| B. | defective aluminium cans recycled by manufacturer |
| C. | detection of defective pieces before shipment |
| D. | all of above |
| Answer» C. detection of defective pieces before shipment | |
| 643. |
An expected future revenue, which diverges in unconventional course of action is classified as%! |
| A. | partial revenue |
| B. | total revenue |
| C. | relevant revenues |
| D. | irrelevant revenues |
| Answer» D. irrelevant revenues | |
| 644. |
Value of normal loss is charged to ________.%! |
| A. | other good product |
| B. | trading a/c |
| C. | profit and loss a/c |
| D. | costing profit and loss a/c |
| Answer» B. trading a/c | |
| 645. |
50 units are processed at a cost of Rs 80, normal loss is 10%, each unit carries a scrap value of 25 paise If output is 40 units, the value of abnormal loss will be _________.%! |
| A. | Rs. 1.25 |
| B. | Rs. 800 |
| C. | Rs. 875 |
| D. | Rs. 888 |
| Answer» D. Rs. 888 | |
| 646. |
Inter process profits are ________.%! |
| A. | credited to each process a/c |
| B. | debited to respective process a/c |
| C. | shown only in the finished stock a/c |
| D. | shown in the balance sheet |
| Answer» C. shown only in the finished stock a/c | |
| 647. |
Contract costing is most appropriate method of costing for ________.%! |
| A. | construction industry |
| B. | banking industry |
| C. | textile mills |
| D. | cement industry |
| Answer» B. banking industry | |
| 648. |
In case of complete contract, the whole amount of profit is transferred to ________.%! |
| A. | contract a/c |
| B. | work in progress a/c |
| C. | profit and loss a/c |
| D. | contractee a/c |
| Answer» D. contractee a/c | |
| 649. |
Insurance and garage rent is ________.%! |
| A. | fixed charges |
| B. | maintenance charges |
| C. | operating charges |
| D. | running charges |
| Answer» B. maintenance charges | |
| 650. |
When cash is received from contractee which a/c should be credited.%! |
| A. | Cash a/c |
| B. | Contract a/c |
| C. | Contractor a/c |
| D. | Contractee a/c |
| Answer» E. | |