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.
| 851. |
%_Types of spoilage include_% |
| A. | normal spoilage |
| B. | abnormal spoilage |
| C. | weighted spoilage |
| D. | both a and b |
| Answer» E. | |
| 852. |
%_Any output that has total positive sales is a_% |
| A. | joint product |
| B. | main product |
| C. | product |
| D. | all of above |
| Answer» E. | |
| 853. |
%_If percentage of overall gross margin is 15 and final sales value of whole production is $20000, then gross margin (in dollars) will be_% |
| A. | $30,000 |
| B. | $300,000 |
| C. | $40,000 |
| D. | $400,000 |
| Answer» C. $40,000 | |
| 854. |
%_In a joint process of production, a product which yields high volume of sales as compared to total sales volume of other products is known as_% |
| A. | incremental product |
| B. | sunk product |
| C. | main product |
| D. | split off product |
| Answer» D. split off product | |
| 855. |
_ Budget which calculates expected revenues and expected costs, based on actual output quantity is named as$? |
| A. | flexible budget |
| B. | fixed budget |
| C. | variable budget |
| D. | multiplied budget |
| Answer» B. fixed budget | |
| 856. |
_ If an actual selling price is $400, an actual result is $250 and an actual units sold are 500, then selling price variance will be$? |
| A. | $45,000 |
| B. | $55,000 |
| C. | $75,000 |
| D. | $65,000 |
| Answer» D. $65,000 | |
| 857. |
_ If sales budget variance for operating income is $68000 and static budget amount is $19000, then flexible budget amount will be$? |
| A. | $47,000 |
| B. | $57,000 |
| C. | $87,000 |
| D. | $97,000 |
| Answer» D. $97,000 | |
| 858. |
_ Static budget amount is subtracted from flexible budget amount to calculate the$? |
| A. | sales budget variance |
| B. | cost budget variance |
| C. | resultant budget variance |
| D. | static budget variance |
| Answer» B. cost budget variance | |
| 859. |
_ Costing system, in which individual activities are identified as cost object is considered as$? |
| A. | manufactured costing |
| B. | activity based costing |
| C. | allocation costing |
| D. | base costing |
| Answer» C. allocation costing | |
| 860. |
_ In an activity based cost system; an activity/unit of work or task with differentiated purposes will be classified as$? |
| A. | different task |
| B. | purpose cost |
| C. | an activity |
| D. | an allocation cost |
| Answer» D. an allocation cost | |
| 861. |
_ Product which requires low amount of resources, but incur high per unit cost is classified as$? |
| A. | expected under cost |
| B. | expected over cost |
| C. | product under costing |
| D. | product over costing |
| Answer» E. | |
| 862. |
_ Variance, if used to alert managers before time of problem is called$? |
| A. | varied warning |
| B. | times warning |
| C. | managers warning |
| D. | early warning |
| Answer» E. | |
| 863. |
_ Significant feature of Kaizen Budgeting is$? |
| A. | employee suggestion |
| B. | customer suggestion |
| C. | cost suggestion |
| D. | price suggestion |
| Answer» B. customer suggestion | |
| 864. |
_ Costs of undertaken activities is to support individual products are known as$? |
| A. | expected sustaining |
| B. | input sustaining |
| C. | output sustaining |
| D. | product sustaining costs |
| Answer» E. | |
| 865. |
_ An assignment of task for managers, who are accountable for their actions in controlling and budgeting of resources is classified as$? |
| A. | coordinating company effort |
| B. | action plan |
| C. | action accountability |
| D. | project accountability |
| Answer» B. action plan | |
| 866. |
_ If indirect manufacturing labour is $20000, power cost is $5000, maintenance and supplies are of $10000 then manufacturing budget will be$? |
| A. | $5,000 |
| B. | $35,000 |
| C. | $15,000 |
| D. | $45,000 |
| Answer» C. $15,000 | |
| 867. |
_ If actual selling price is $500, actual result is $250 and actual units sold are 350, then selling price variance will be$? |
| A. | $87,500 |
| B. | $97,500 |
| C. | $67,500 |
| D. | $57,500 |
| Answer» B. $97,500 | |
| 868. |
_ A company's break even point is 6,000 units per annum. The selling price is Rs 90 per unit and the variable cost is Rs 40 per unit. What are the company's annual fixed costs?$? |
| A. | Rs 120 |
| B. | Rs 2,40,000 |
| C. | Rs 3,00,000 |
| D. | Rs 5,40,000 |
| Answer» D. Rs 5,40,000 | |
| 869. |
_ A company makes a single product and incurs fixed costs of Rs 30,000 per annum. Variable cost per unit is Rs 5 and each unit sells for Rs 15. Annual sales demand is 7,000 units. The breakeven point is:$? |
| A. | 2,000 units |
| B. | 3,000 units |
| C. | 4,000 units |
| D. | 6,000 units |
| Answer» C. 4,000 units | |
| 870. |
_ The summarized balance sheet of Autolight Limited shows the balances of previous and current year of retained earnings Rs 25,000 and Rs 35,000. If dividend paid during the current year amounted to Rs 5,000 then profit earned during the year will be:$? |
| A. | Rs 5,000 |
| B. | Rs 55,000 |
| C. | Rs 15,000 |
| D. | Rs 65,000 |
| Answer» D. Rs 65,000 | |
| 871. |
_ _____________ is a detailed budget of cash receipts and cash expenditure incorporating both revenue and capital items.$? |
| A. | Cash Budget |
| B. | Capital Expenditure Budget |
| C. | Sales Budget |
| D. | Overhead Budget |
| Answer» B. Capital Expenditure Budget | |
| 872. |
_ The cost per unit of a product manufactured in a factory amounts to Rs 160 (75% variable) when the production is 10,000 units. When production increases by 25%, the cost of production will be Rs per unit.$? |
| A. | Rs 145 |
| B. | Rs 150 |
| C. | Rs 152 |
| D. | Rs 140 |
| Answer» D. Rs 140 | |
| 873. |
_ Plan of action; how an organization meets its opportunities and capabilities is classified as$? |
| A. | action plan |
| B. | strategy |
| C. | step wise plan |
| D. | complex plan |
| Answer» C. step wise plan | |
| 874. |
_ In dependent variable cost pool, relationship between individual cost items and cost drivers can be classified as$? |
| A. | no homogeneous relationship |
| B. | homogeneous relationship |
| C. | heterogeneous relationship |
| D. | an extreme relationship |
| Answer» B. homogeneous relationship | |
| 875. |
_ In step cost functions, cost is increased by$? |
| A. | discrete amounts |
| B. | same amounts |
| C. | linear amounts |
| D. | nonlinear amounts |
| Answer» B. same amounts | |
| 876. |
_ When the sales increase from Rs 40,000 to Rs 60,000 and profit increases by Rs 5,000, the P/V ratio is —$? |
| A. | 0.2 |
| B. | 0.3 |
| C. | 0.25 |
| D. | 40% |
| Answer» D. 40% | |
| 877. |
_ "Calculate Re-order level from the following:Consumption per week: 100-200 unitsDelivery period: 14-28 days"$? |
| A. | 5600 units |
| B. | 800 units |
| C. | 1400 units |
| D. | 200 units |
| Answer» C. 1400 units | |
| 878. |
_ Factory overhead is Rs 3,00,000 and direct material cost is Rs 5,00,000 What is the overhead rate under direct material cost method?$? |
| A. | 25% |
| B. | 30% |
| C. | 60% |
| D. | 75% |
| Answer» D. 75% | |
| 879. |
_ A document which provides for the detailed cost centre and cost unit is _______.$? |
| A. | tender |
| B. | cost sheet |
| C. | invoice |
| D. | profit statement |
| Answer» C. invoice | |
| 880. |
_ Term which describes assigning of indirect cost to any cost abject is classified as$? |
| A. | cost allocation |
| B. | sales tracing |
| C. | sales allocation |
| D. | cost tracing |
| Answer» B. sales tracing | |
| 881. |
_ Joint cost allocation method, in which individual product from joint products must gain a gross margin percentage is classified as$? |
| A. | sales value at split off method |
| B. | joint products value at split off method |
| C. | constant gross margin percentage NRV method |
| D. | Gross realizable value method |
| Answer» D. Gross realizable value method | |
| 882. |
_ Given that for a job standard time is 8 hrs, actual time taken is 6 hrs and the time rate is Rs 2 per hr What is the total wages under Halsey premium plan?$? |
| A. | Rs. 12 |
| B. | Rs. 14 |
| C. | Rs. 16 |
| D. | Rs. 18 |
| Answer» C. Rs. 16 | |
| 883. |
_ The loss which arise in manufacturing activity on account of inherent nature of the product is ________.$? |
| A. | normal loss |
| B. | abnormal loss |
| C. | net loss |
| D. | gross loss |
| Answer» B. abnormal loss | |
| 884. |
_ Tender is an _______.$? |
| A. | estimation of profit |
| B. | estimation of cost |
| C. | estimation of selling price |
| D. | estimation of units |
| Answer» D. estimation of units | |
| 885. |
_ Cost unit of a sugar industry can be ________.$? |
| A. | per litre |
| B. | per tonne |
| C. | per acre |
| D. | per metre |
| Answer» C. per acre | |
| 886. |
_ Comprehensive machine hour rate includes ________.$? |
| A. | machine operators wages |
| B. | managing directors salary |
| C. | income tax |
| D. | office rent |
| Answer» B. managing directors salary | |
| 887. |
_ Abnormal loss and its value are _______.$? |
| A. | debited to process a/c |
| B. | credited to process a/c |
| C. | debited to costing profit and loss a/c |
| D. | debited to profit and loss a/c |
| Answer» C. debited to costing profit and loss a/c | |
| 888. |
_ Which of the following is NOT a selling overhead?$? |
| A. | Insurance to cover sold goods while in transit |
| B. | Royalty on sales |
| C. | Legal cost on debt realization |
| D. | Distribution of samples |
| Answer» D. Distribution of samples | |
| 889. |
_ Which of the following is an example of semi-variable cost?$? |
| A. | Salary |
| B. | Tax |
| C. | Telephone expenses |
| D. | Office expenses |
| Answer» D. Office expenses | |
| 890. |
_ First ranked product, in incremental revenue allocation method, is classified as$? |
| A. | primary product |
| B. | First incremental product |
| C. | Second incremental product |
| D. | Third incremental product |
| Answer» B. First incremental product | |
| 891. |
_ Schedule of expected disbursements and cash receipts is considered as$? |
| A. | planned schedule |
| B. | cash budget |
| C. | market budget |
| D. | price schedule |
| Answer» C. market budget | |
| 892. |
_ Budget which specifies an operating and financial plan, usually for a fiscal year or any specific period of time is classified as$? |
| A. | annual budget |
| B. | operating budget |
| C. | specific budget |
| D. | master budget |
| Answer» E. | |
| 893. |
_ Master budget includes all projections of company's budget and focuses on$? |
| A. | serial correlation |
| B. | marketing plan |
| C. | financial plan |
| D. | both B and C |
| Answer» E. | |
| 894. |
_ Compelling strategic plan, promoting coordination and providing framework of performance are$? |
| A. | advantages of budget |
| B. | disadvantages of budget |
| C. | advantages of costing method |
| D. | disadvantages of costing method |
| Answer» B. disadvantages of budget | |
| 895. |
_ Non-financial and financial aspects of plan by company management, is classified as$? |
| A. | complexity |
| B. | process |
| C. | budget |
| D. | batching |
| Answer» D. batching | |
| 896. |
_ Budget plan in many companies is also referred as$? |
| A. | profit plan |
| B. | sales plan |
| C. | cost plan |
| D. | marketing plan |
| Answer» B. sales plan | |
| 897. |
_ Budget, which predicts effect of given level of operations on a cash position is classified as$? |
| A. | market budget |
| B. | price schedule |
| C. | planned schedule |
| D. | cash budget |
| Answer» E. | |
| 898. |
_ Prime cost includes _______.$? |
| A. | direct materials, direct wages and indirect expenses |
| B. | indirect materials and indirect labour and indirect expenses |
| C. | direct materials, direct wages and direct expenses |
| D. | direct materials, indirect wages and indirect expenses |
| Answer» D. direct materials, indirect wages and indirect expenses | |
| 899. |
_ The purpose of financial accounting is to provide information for ________.$? |
| A. | fixing prices |
| B. | controlling cost |
| C. | locating factors leading to wastages and losses |
| D. | assessing the profitability and financial position of the firm |
| Answer» E. | |
| 900. |
_ Cost accounting was developed because of the _________.$? |
| A. | limitations of the financial accounting |
| B. | limitations of the management accounting |
| C. | limitations of the human resource accounting |
| D. | limitations of the double entry accounting |
| Answer» B. limitations of the management accounting | |