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.
| 951. |
__In accounting, cost incurred in past or in historical financial statements is classified as__ |
| A. | actual cost |
| B. | budgeted cost |
| C. | past cost |
| D. | incurred cost |
| Answer» B. budgeted cost | |
| 952. |
__Process of assigning indirect costs to any specific cost object is known as__ |
| A. | economic cost |
| B. | cost tracing |
| C. | cost allocation |
| D. | non-economic costs |
| Answer» D. non-economic costs | |
| 953. |
_Under which plan efficiency is shared by employee and employer equally?$? |
| A. | Time rate |
| B. | Gantts task and bonus plan |
| C. | Halsey plan |
| D. | Rowan plan |
| Answer» D. Rowan plan | |
| 954. |
_This is a point at which the store keeper should initiate purchase requisition for fresh supply It is ________.$? |
| A. | maximum stock level |
| B. | minimum stock level |
| C. | reorder level |
| D. | average stock level |
| Answer» D. average stock level | |
| 955. |
_Continuous stock taking is a part of ________.$? |
| A. | annual stock taking |
| B. | perpetual inventory |
| C. | ABC analysis |
| D. | VED analysis |
| Answer» C. ABC analysis | |
| 956. |
_Increase in total variable cost is due to ________.$? |
| A. | increase in fixed cost |
| B. | increase in sales |
| C. | increase in production |
| D. | increase in efficiency |
| Answer» D. increase in efficiency | |
| 957. |
_Directors remuneration and expenses form part of ________.$? |
| A. | production overhead |
| B. | administrative overhead |
| C. | selling overhead |
| D. | distribution overhead |
| Answer» C. selling overhead | |
| 958. |
_Indirect materials can be apportioned on the basis of ________.$? |
| A. | direct material |
| B. | prime cost |
| C. | direct labour hour |
| D. | machine hour |
| Answer» B. prime cost | |
| 959. |
_Reorder level = ________.$? |
| A. | maximum level - minimum level |
| B. | maximum consumption X maximum reorder period |
| C. | minimum consumption x minimum reorder period |
| D. | normal consumption X normal reorder period |
| Answer» C. minimum consumption x minimum reorder period | |
| 960. |
_Wage sheet is prepared by ________.$? |
| A. | time keeping department |
| B. | personnel department |
| C. | payroll department |
| D. | cost accounting department |
| Answer» D. cost accounting department | |
| 961. |
_Halsey premium plan is ________.$? |
| A. | individual incentive scheme |
| B. | group incentive scheme |
| C. | time and piece wage system |
| D. | differential piece wage system |
| Answer» B. group incentive scheme | |
| 962. |
_Labour turnover is ______.$? |
| A. | productivity of labour |
| B. | efficiency of the labour |
| C. | change in labour force |
| D. | total cost of the labour |
| Answer» D. total cost of the labour | |
| 963. |
_Time wages are paid on the basis of ________.$? |
| A. | actual time |
| B. | standard time |
| C. | time saved |
| D. | overtime |
| Answer» B. standard time | |
| 964. |
____________ is the value of economic resources used as a result of producing or doing the thing costed.$? |
| A. | Cost |
| B. | Inventory |
| C. | Labour |
| D. | overhead |
| Answer» B. Inventory | |
| 965. |
_Scrap is ________.$? |
| A. | residue of material |
| B. | wastage of material |
| C. | surplus material |
| D. | abnormal loss of material |
| Answer» B. wastage of material | |
| 966. |
_An inward delivery charges and custom duties are classified as$? |
| A. | direct labour costs |
| B. | indirect labour costs |
| C. | direct material costs |
| D. | indirect material costs |
| Answer» D. indirect material costs | |
| 967. |
_If direct material cost is $5500 and prime cost is $25000, then direct manufacturing labour would be$? |
| A. | $19,500 |
| B. | $30,500 |
| C. | $45,500 |
| D. | $22,500 |
| Answer» B. $30,500 | |
| 968. |
_Costs are classified as fixed or variable on basis of$? |
| A. | specific activity |
| B. | given time period |
| C. | common activity |
| D. | both a and b |
| Answer» E. | |
| 969. |
_In income statement of merchandising costs, period cost includes all costs which are not related to$? |
| A. | cost of resale goods |
| B. | cost of manufacturing goods |
| C. | timed resale of goods |
| D. | cost of purchased goods |
| Answer» E. | |
| 970. |
_In an income statement, when costs become cost of sold goods and manufactured products are sold, such costs are$? |
| A. | inventoriable costs |
| B. | finished costs |
| C. | factory overhead costs |
| D. | manufacturing overhead costs |
| Answer» B. finished costs | |
| 971. |
_In cost terms, direct manufacturing labour cost is included in$? |
| A. | manufacturing costs |
| B. | prime costs |
| C. | conversion costs |
| D. | both B and C |
| Answer» E. | |
| 972. |
_Labour which works as forklift truck, plant guards and rework labour is classified as$? |
| A. | prime overhead |
| B. | conversion overhead |
| C. | factory overhead |
| D. | manufacturing overhead |
| Answer» E. | |
| 973. |
_Direct material cost is $75000 and direct manufacturing labour is $20000, then prime cost would be$? |
| A. | $55,000 |
| B. | $37,500 |
| C. | $95,000 |
| D. | $26,000 |
| Answer» D. $26,000 | |
| 974. |
_In normal costing, situation in which allocated amount of indirect cost is greater than incurred cost, is considered as$? |
| A. | incurred indirect cost |
| B. | over allocated indirect cost |
| C. | applied indirect cost |
| D. | applied direct cost |
| Answer» C. applied indirect cost | |
| 975. |
_An average unit cost, applicable to each similar produced units is classified as$? |
| A. | per unit cost |
| B. | per post cost |
| C. | per price cost |
| D. | application cost |
| Answer» B. per post cost | |
| 976. |
_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. $128.32 per labour hour | |
| 977. |
_Costing and allocating situation, in which indirect cost allocated amount is less than actually incurred amount is known as$? |
| A. | over allocated budget |
| B. | under allocated budget |
| C. | under allocated indirect cost |
| D. | over allocated direct cost |
| Answer» D. over allocated direct cost | |
| 978. |
_Costing technique, in which actual direct rates are multiplied to quantity of direct cost inputs is classified as$? |
| A. | priced costing |
| B. | actual costing |
| C. | direct costing |
| D. | indirect costing |
| Answer» C. direct costing | |
| 979. |
_Procedure of assigning direct cost to any cost abject is classified as$? |
| A. | sales allocation |
| B. | cost tracing |
| C. | cost allocation |
| D. | sales tracing |
| Answer» D. sales tracing | |
| 980. |
_In a normal accounting period, allocated amount of indirect cost is $2000 and actual amount is $2200, then this is classified as$? |
| A. | over allocated budget |
| B. | under allocated budget |
| C. | under allocated indirect cost |
| D. | over allocated direct cost |
| Answer» B. under allocated budget | |
| 981. |
_In normal costing, budgeted rate is multiplied to an actual quantity, which have been used as allocation base to calculate$? |
| A. | budget overhead applied |
| B. | manufacturing overhead applied |
| C. | labour overhead applied |
| D. | none of above |
| Answer» C. labour overhead applied | |
| 982. |
_An amount of spoilage that is natural in any particular production process is classified as$? |
| A. | normal scrap |
| B. | normal spoilage |
| C. | abnormal spoilage |
| D. | weighted spoilage |
| Answer» C. abnormal spoilage | |
| 983. |
_Sum of beginning work in process inventory units and started units, is subtracted from sum of ending work in process inventory units and transferred out units of goods to calculate$? |
| A. | Gross weighted spoilage |
| B. | inventoriable spoilage |
| C. | partial spoilage |
| D. | total spoilage |
| Answer» E. | |
| 984. |
_Aspects of accounting for scrap includes$? |
| A. | physical tracking |
| B. | non-inventoriable costing |
| C. | inventory costing |
| D. | both a and c |
| Answer» E. | |
| 985. |
_Third step in constant gross margin percentage NRV Method to allocate joint cost is to compute$? |
| A. | Gross margin percentage |
| B. | total production cost of each product |
| C. | allocated joint costs |
| D. | cost of split off point |
| Answer» D. cost of split off point | |
| 986. |
_In process and job costing system, normal spoilage cost is considered as$? |
| A. | conversion costs |
| B. | sunk costs |
| C. | inventoriable costs |
| D. | non inventoriable costs |
| Answer» D. non inventoriable costs | |
| 987. |
_Joint cost allocation method for joint products, which is based on achievable value is known as$? |
| A. | joint products value at split off method |
| B. | main product cost at split off method |
| C. | Gross realizable value method |
| D. | net realizable value method |
| Answer» E. | |
| 988. |
_Final sales is subtracted from net realizable value is used to calculate$? |
| A. | separable costs |
| B. | inseparable costs |
| C. | joint costs |
| D. | floating costs |
| Answer» B. inseparable costs | |
| 989. |
_Second step, in constant gross margin percentage NRV method, to allocate joint cost is to compute$? |
| A. | allocated joint costs |
| B. | cost of split off point |
| C. | Gross margin percentage |
| D. | total production cost of each product |
| Answer» E. | |
| 990. |
_Number of units are multiplied to per unit price, to calculate$? |
| A. | multiple budget variable |
| B. | fixed budget variable |
| C. | flexible budget variable |
| D. | constant budget |
| Answer» D. constant budget | |
| 991. |
_Difference between flexible budget amount and corresponding static budget amount is classified as$? |
| A. | sales revenue variance |
| B. | cost profit variance |
| C. | profit volume variance |
| D. | sales volume variance |
| Answer» E. | |
| 992. |
_Subtracted flexible budget amount can form an actual result to calculate$? |
| A. | unstated budget variance |
| B. | flexible budget variance |
| C. | constant budget variance |
| D. | static budget variance |
| Answer» C. constant budget variance | |
| 993. |
_Flexible budget amount is $57000 and flexible budget variance is $14000, then actual result amount will be$? |
| A. | $61,000 |
| B. | $71,000 |
| C. | $43,000 |
| D. | $24,000 |
| Answer» C. $43,000 | |
| 994. |
_In activity based costing method implementation, indirect costs are allocated by using the$? |
| A. | no cost pool |
| B. | One or two cost pools |
| C. | sustained tracing |
| D. | support tracing |
| Answer» C. sustained tracing | |
| 995. |
_Budgeted total cost in indirect cost pool is divided by budgeted total quantity of cost allocation base is to calculate by$? |
| A. | budgeted direct cost rate |
| B. | budgeted indirect cost rate |
| C. | expected indirect cost rate |
| D. | direct budget percentage |
| Answer» C. expected indirect cost rate | |
| 996. |
_Costs of all activities for a group of products, rather than individual product can be classified as$? |
| A. | activity level costs |
| B. | input level costs |
| C. | batch level costs |
| D. | output level costs |
| Answer» D. output level costs | |
| 997. |
_Which of following is an example of revenue center?$? |
| A. | sales department |
| B. | investing center |
| C. | marketing department |
| D. | segment department |
| Answer» B. investing center | |
| 998. |
_System which measures budget, action and plan of each responsibility center is known as$? |
| A. | budgeted accounting |
| B. | action accounting |
| C. | planned accounting |
| D. | responsibility accounting |
| Answer» E. | |
| 999. |
_Product which requires large amount of resources, but incur low per unit cost is classified as$? |
| A. | product under costing |
| B. | product over costing |
| C. | expected under cost |
| D. | expected over cost |
| Answer» B. product over costing | |
| 1000. |
_Larger number of manager subordinates and higher level manager are termed as$? |
| A. | activity subordinates |
| B. | broader responsibility center |
| C. | broader subordinates |
| D. | activity ordinates |
| Answer» C. broader subordinates | |