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.
| 751. |
*/*_Depreciation of plant and machinery is a part of ________.? |
| A. | factory overhead |
| B. | selling overhead |
| C. | distribution overhead |
| D. | administration overhead |
| Answer» B. selling overhead | |
| 752. |
*/*_Defectives ________.? |
| A. | cannot be rectified and made into good units |
| B. | can be rectified and mad made into good units |
| C. | can be a part of finished product |
| D. | can be termed as spoilage |
| Answer» C. can be a part of finished product | |
| 753. |
*/*_Multiple costing is a technique of using two or more costing methods for ascertainment of cost by _______.? |
| A. | the same firm |
| B. | the several firms |
| C. | the same industry |
| D. | the several industries |
| Answer» B. the several firms | |
| 754. |
*/*_Contract a/c is _______.? |
| A. | a nominal a/c |
| B. | a real a/c |
| C. | a personal a/c |
| D. | either nominal or real a/c |
| Answer» B. a real a/c | |
| 755. |
*/*_Operating costing is suitable for _______.? |
| A. | job order business |
| B. | contractors |
| C. | sugar industries |
| D. | service industries |
| Answer» E. | |
| 756. |
*/*_If an unexplained variation is 350050 and total variation is 700505, then coefficient of determination would be? |
| A. | 3 |
| B. | 0.5003 |
| C. | 0.7003 |
| D. | 2 |
| Answer» C. 0.7003 | |
| 757. |
*/*_Method, which considers cost and cost drivers of departments such as employee relations and process engineering is termed as? |
| A. | pricing method |
| B. | manufacturing method |
| C. | conference method |
| D. | inference method |
| Answer» D. inference method | |
| 758. |
*/*_Function used to measure decline in labour hours per unit as units of production increases is called? |
| A. | fixed curve |
| B. | learning curve |
| C. | linear curve |
| D. | mixed curve |
| Answer» C. linear curve | |
| 759. |
*/*_Formula of 1 - unexplained variation / total variation is used to calculate? |
| A. | coefficient of determination |
| B. | coefficient of index |
| C. | coefficient of residual |
| D. | coefficient of prediction |
| Answer» B. coefficient of index | |
| 760. |
*/*_In a given scenario, if cost is considered as indirect cost then independent variable will be considered as? |
| A. | demand allocation base |
| B. | supply allocation base |
| C. | cost allocation base |
| D. | price allocation base |
| Answer» D. price allocation base | |
| 761. |
*/*_In regression analysis, if observed cost value is 62 and predicted cost value is 29, then disturbance term would be? |
| A. | 33 |
| B. | 91 |
| C. | 81 |
| D. | 43 |
| Answer» B. 91 | |
| 762. |
*/*_An estimation of relationship between two or more independent variables and dependent variable is classified as? |
| A. | One variable series |
| B. | multiple regression |
| C. | simple regression |
| D. | Two way regression |
| Answer» C. simple regression | |
| 763. |
*/*_If an unexplained variation is 456870 and total variation is 955000, then coefficient of determination will be? |
| A. | 0.4528 |
| B. | 0.4783 |
| C. | 0.5216 |
| D. | 0.5425 |
| Answer» D. 0.5425 | |
| 764. |
*/*_Statistical method used to measure average change in dependent variable, with respect to change of one unit in independent variable is called? |
| A. | times series method |
| B. | time horizon method |
| C. | aggression method |
| D. | regression method |
| Answer» E. | |
| 765. |
*/*_In adjustment issues and data collection, inflation affects the? |
| A. | cost driver and cost |
| B. | cost object and cost |
| C. | heterogeneous cost |
| D. | homogenous cost |
| Answer» B. cost object and cost | |
| 766. |
*/*_If difference between costs linked to highest and lowest observation of cost driver is $36000 and observation of cost driver is 30 machine hours, then slope coefficient would be? |
| A. | $1,200 |
| B. | $1,400 |
| C. | $1,600 |
| D. | $1,800 |
| Answer» B. $1,400 | |
| 767. |
*/*_Slope coefficient of linear cost function is? |
| A. | zero |
| B. | one |
| C. | two |
| D. | three |
| Answer» B. one | |
| 768. |
*/*_In multicollinearity, correlation coefficient between two independent variables must be greater than? |
| A. | 0.7 |
| B. | 0.6 |
| C. | 0.5 |
| D. | 0.4 |
| Answer» B. 0.6 | |
| 769. |
*/*_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 | |
| 770. |
*/*_Total cost related to work in process inventory is divided by total units of work done is used to calculate? |
| A. | Gross weighted margin |
| B. | weighted average revenue |
| C. | weighted average cost |
| D. | weighted average conversion cost |
| Answer» D. weighted average conversion cost | |
| 771. |
*/*_A unit cost calculated in costing system, by assigning total costs incurred to many similar units is categorized as? |
| A. | accounting period costing system |
| B. | process costing system |
| C. | job costing system |
| D. | none of above |
| Answer» C. job costing system | |
| 772. |
*/*_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. | Second incremental product |
| B. | First incremental product |
| C. | step down product |
| D. | by-product |
| Answer» E. | |
| 773. |
*/*_Direct expenses are also called ________.? |
| A. | major expenses |
| B. | chargeable expenses |
| C. | overhead expenses |
| D. | sundry expenses |
| Answer» C. overhead expenses | |
| 774. |
*/*_"State which of the following are the characteristics of service costing.1. High levels of indirect costs as a proportion of total costs2. Use of composite cost units3. Use of equivalent units"? |
| A. | (1) only |
| B. | (1) and (2) only |
| C. | (2) only |
| D. | (2) and (3) only |
| Answer» C. (2) only | |
| 775. |
*/*_A process costing system for J Co used an input of 3,500Kg of materials at Rs20 per Kg and labour hours of 2,750 at Rs 25 per hour. Normal loss is 20% and losses can be sold at a scrap value of Rs5 per Kg. Output was 2,950 Kg. What is the value of the output?? |
| A. | Rs 142,485 |
| B. | Rs 146,183 |
| C. | Rs 149,746 |
| D. | Rs 152,986 |
| Answer» B. Rs 146,183 | |
| 776. |
*/*_The actual output of 162,500 units and actual fixed costs of Rs 87000 were exactly as budgeted. However, the actual expenditure of Rs 300,000 was Rs 18,000 over budget. What was the budget variable cost per unit?? |
| A. | Rs 1.20 |
| B. | Rs 1.31 |
| C. | Rs1.42 |
| D. | Rs 1.50 |
| Answer» B. Rs 1.31 | |
| 777. |
*/*_"Which of the following would explain an adverse variable production overhead efficiency variance?1 Employees were of a lower skill level than specified in the standard2 Unexpected idle time resulted from a series of machine breakdown3 Poor Quality material was difficult to process"? |
| A. | (1), (2) and (3) |
| B. | (1) and (2) |
| C. | (2) and (3) |
| D. | (1) and (3) |
| Answer» E. | |
| 778. |
*/*_Service departments costs should be allocated to:? |
| A. | Only Service departments |
| B. | Only Production departments |
| C. | Both Production and service departments |
| D. | None of the production and service departments |
| Answer» D. None of the production and service departments | |
| 779. |
*/*_"Calculate the labour turnover rate according to Separation method from the following:No of workers on the payroll:- At the beginning of the month: 500- At the end of the month: 600During the month, 5 workers left, 20 workers were discharged and 75 workers were recruited Ofthese, 10 workers were recruited in the vacancies of those leaving and while the rest were engaged for an expansion scheme"? |
| A. | 0.0455 |
| B. | 182 |
| C. | 6 |
| D. | 3 |
| Answer» B. 182 | |
| 780. |
*/*_Which of the following is not an avoidable cause of labour turnover:? |
| A. | Dissatisfaction with Job |
| B. | Lack of training facilities |
| C. | Low wages and allowances |
| D. | Disability, making a worker unfit for work |
| Answer» E. | |
| 781. |
*/*_"Calculate re-order level from the following:Safety stock: 1000 unitsConsumption per week: 500 unitsIt takes 12 weeks to reach material from the date of ordering"? |
| A. | 1000 units |
| B. | 6000 units |
| C. | 3000 units |
| D. | 7000 units |
| Answer» E. | |
| 782. |
*/*_Third ranked product in incremental revenue-allocation method is known as? |
| A. | primary product |
| B. | First incremental product |
| C. | Second incremental product |
| D. | Third incremental product |
| Answer» E. | |
| 783. |
*/*_Support department cost allocation method which makes no difference between variable and fixed costs is classified as? |
| A. | sales mix allocation method |
| B. | dual-rate cost-allocation method |
| C. | single rate cost allocation method |
| D. | quantity variance allocation method |
| Answer» D. quantity variance allocation method | |
| 784. |
*/*_Considering dual rate method, if employees work for 8500 budgeted hours at $120 per hour and work for 9500 actual hours at $110 per hour, then total cost would be? |
| A. | $2,078,000 |
| B. | $3,078,000 |
| C. | $2,065,000 |
| D. | $3,065,000 |
| Answer» D. $3,065,000 | |
| 785. |
*/*_Method of revenue allocation, which ranks products included in bundle according to predetermined criteria of management is known as? |
| A. | step down allocation method |
| B. | stand-alone revenue allocation method |
| C. | incremental revenue allocation method |
| D. | revenue mix allocation method |
| Answer» D. revenue mix allocation method | |
| 786. |
*/*_In incremental cost allocation method, cost object user who is ranked second in ranking order is known as? |
| A. | First incremental user |
| B. | primary user |
| C. | secondary user |
| D. | second incremental user |
| Answer» B. primary user | |
| 787. |
*/*_Conversion cost is $20000 and manufacturing overhead cost is $7000, then direct manufacturing labour cost will be? |
| A. | $27,000 |
| B. | $13,000 |
| C. | $130,000 |
| D. | $29,500 |
| Answer» C. $130,000 | |
| 788. |
*/*_In accounting, resources sacrifice for achieving or fulfil specific objective is known as? |
| A. | source cost |
| B. | sacrifice cost |
| C. | treated cost |
| D. | cost |
| Answer» E. | |
| 789. |
*/*_Collection of cost data, according to accounting system in an organized way is classified as? |
| A. | system accumulation |
| B. | accumulated data |
| C. | cost accumulation |
| D. | organized accumulation |
| Answer» D. organized accumulation | |
| 790. |
*/*_Activities related to coordinating, controlling and planning flow of inventory are classified as? |
| A. | decisional management |
| B. | throughput management |
| C. | inventory management |
| D. | manufacturing management |
| Answer» D. manufacturing management | |
| 791. |
*/*_Costs of goods acquired from suppliers is classified as? |
| A. | stock-out costs |
| B. | ordering costs |
| C. | carrying costs |
| D. | purchasing costs |
| Answer» E. | |
| 792. |
*/*_If relevant incremental costs are $5000 and relevant opportunity cost of invested capital is $2500, then relevant inventory carrying costs would be? |
| A. | $7,500 |
| B. | $7,000 |
| C. | $6,500 |
| D. | $6,000 |
| Answer» B. $7,000 | |
| 793. |
*/*_Calculation of product cost, gathering information for planning and analyzing information for decisions making are features of? |
| A. | information accounting |
| B. | cost accounting |
| C. | analyzing accounts |
| D. | marketing costs |
| Answer» C. analyzing accounts | |
| 794. |
*/*_period cost, which consists income statement of manufacturing companies belongs to? |
| A. | inventory costs |
| B. | product costs |
| C. | non-manufacturing costs |
| D. | manufacturing costs |
| Answer» D. manufacturing costs | |
| 795. |
*/*_Inventory of final goods that are not yet sold is called? |
| A. | finished goods inventory |
| B. | indirect material inventory |
| C. | direct materials inventory |
| D. | work in process inventory |
| Answer» B. indirect material inventory | |
| 796. |
*/*_Direct manufacturing labour costs is $40000 and manufacturing overhead cost is $7000, then conversion cost would be? |
| A. | $47,000 |
| B. | $33,000 |
| C. | $57,000 |
| D. | $18,000 |
| Answer» B. $33,000 | |
| 797. |
*/*_Supplies, plant maintenance, plant rent, plant insurance and cleaning labour comes under which type of costs?? |
| A. | labour costs |
| B. | factory overhead costs |
| C. | finished costs |
| D. | manufacturing costs |
| Answer» C. finished costs | |
| 798. |
*/*_Wages paid to workers of factory are termed as? |
| A. | workers premium |
| B. | overtime premium |
| C. | factory premium |
| D. | wage premium |
| Answer» C. factory premium | |
| 799. |
*/*_Process of tracing direct costs and allocation of indirect costs is known as? |
| A. | cost assignment |
| B. | direct assignment |
| C. | indirect assignment |
| D. | economic assignment |
| Answer» B. direct assignment | |
| 800. |
*/*_The cost which is to be incurred even when a business unit is closed is a _____.? |
| A. | imputed cost |
| B. | historical cost |
| C. | sunk cost |
| D. | shutdown cost |
| Answer» E. | |