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.
| 1151. |
If budgeted annual indirect cost is $85000 and budgeted annual quantity of cost allocation base is $7500, then budgeted indirect cost rate would be? |
| A. | 112.34 per piece |
| B. | 113.34 per piece |
| C. | 111.34 per piece |
| D. | 110.34 per piece |
| Answer» C. 111.34 per piece | |
| 1152. |
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 | |
| 1153. |
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. | 67.30% |
| B. | 87.31% |
| C. | 55.50% |
| D. | 45.50% |
| Answer» C. 55.50% | |
| 1154. |
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 | |
| 1155. |
Total cost of producing similar products divided by number of units produced is a technique known as? |
| A. | sale costing system |
| B. | job costing system |
| C. | price costing system |
| D. | process costing system |
| Answer» E. | |
| 1156. |
Costing, which explains how and when scrap affects operating income of company is classified as? |
| A. | inventory costing |
| B. | conversion costing |
| C. | normal scrap costing |
| D. | abnormal scrap costing |
| Answer» B. conversion costing | |
| 1157. |
An amount of spoilage that is not natural in a specific production process is categorized as? |
| A. | normal scrap |
| B. | normal spoilage |
| C. | abnormal spoilage |
| D. | weighted spoilage |
| Answer» D. weighted spoilage | |
| 1158. |
If transferred out total cost is $1850000 and number of good units (produced), then cost per good unit transferred out and completed can be? |
| A. | 245.1724 |
| B. | 255.1724 |
| C. | 278.1724 |
| D. | 268.1724 |
| Answer» C. 278.1724 | |
| 1159. |
Gross margin percentage in constant gross-margin percentage NRV method is based on? |
| A. | total labour costs |
| B. | total production |
| C. | total revenues |
| D. | total costs |
| Answer» C. total revenues | |
| 1160. |
Partial or completed units of manufactured goods, that do not meet customer specifications and get sold at reduced price or simply discarded, are called? |
| A. | spoilage |
| B. | rework |
| C. | scrap |
| D. | equivalence |
| Answer» B. rework | |
| 1161. |
In a joint process of production, two or more products that yield high volume of sales as compared to total sales of other products are classified as? |
| A. | split off product |
| B. | joint product |
| C. | sunk product |
| D. | main product |
| Answer» C. sunk product | |
| 1162. |
Percentage of overall gross margin is multiplied to final sales value of products total production is used to calculate? |
| A. | Gross margin in terms of amount of money |
| B. | Gross margin in terms of separable costs |
| C. | Gross margin in terms of total cost |
| D. | Gross margin in terms of labour cost |
| Answer» B. Gross margin in terms of separable costs | |
| 1163. |
If value of final sales is $48000 and net realizable value is $35000, then value of sales costs would be? |
| A. | $35,000 |
| B. | $13,000 |
| C. | $83,000 |
| D. | $48,000 |
| Answer» C. $83,000 | |
| 1164. |
An actual selling price is subtracted from budgeted selling price, and then multiplied to actual sold units to calculate? |
| A. | profit variance |
| B. | investment variance |
| C. | cost variance |
| D. | selling price variance |
| Answer» E. | |
| 1165. |
If flexible budget amount is $82000 and actual result is $45000 then flexible budget amount will be? |
| A. | $97,000 |
| B. | $87,000 |
| C. | $27,000 |
| D. | $37,000 |
| Answer» E. | |
| 1166. |
If static budget is $208000 and flexible budget amount is $305000, then sales budget variance will be? |
| A. | $67,000 |
| B. | $97,000 |
| C. | $57,000 |
| D. | $47,000 |
| Answer» C. $57,000 | |
| 1167. |
Flexible budget amount is added to flexible budget variance to calculate? |
| A. | static result |
| B. | actual result |
| C. | secondary result |
| D. | primary result |
| Answer» C. secondary result | |
| 1168. |
Cost pool category, which have similar cause and effect relationship, with each cost driver uses as an 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 | |
| 1169. |
An approach in which company under-costs it's one product and over-costs 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 | |
| 1170. |
Broad's average use to assign cost of revenue to cost objects will be classified as? |
| A. | refined costing system |
| B. | refined selling system |
| C. | undefined costing |
| D. | defined selling system |
| Answer» B. refined selling system | |
| 1171. |
Segment of subunit of company, whose manager is responsible for specific set of instructions and activities perform is classified as? |
| A. | subunit center |
| B. | instruction center |
| C. | responsibility center |
| D. | activity segment |
| Answer» D. activity segment | |
| 1172. |
Manager who is responsible only for revenues of company can be categorized under the? |
| A. | profit center |
| B. | investment center |
| C. | cost center |
| D. | revenue center |
| Answer» E. | |
| 1173. |
Hierarchy which is based on different types of cost allocation and drivers, is to categorize cost pool activity is classified as? |
| A. | cost hierarchy |
| B. | price hierarchy |
| C. | activity hierarchy |
| D. | purpose hierarchy |
| Answer» B. price hierarchy | |
| 1174. |
A manager, who is responsible for both cost and revenues belongs to department of? |
| A. | cost center |
| B. | revenue center |
| C. | profit center |
| D. | investment center |
| Answer» D. investment center | |
| 1175. |
Third step in developing operating budget is? |
| A. | analysis of batches |
| B. | analysis of batches |
| C. | analysis of products |
| D. | making predictions about future |
| Answer» E. | |
| 1176. |
If actual result is $25000 and flexible budget amount is $11000, then flexible budget amount is? |
| A. | $36,000 |
| B. | $46,000 |
| C. | $56,000 |
| D. | $14,000 |
| Answer» E. | |
| 1177. |
"How many units must be sold if company wants to achieve a profit of Rs 11,000 for the year?Selling price - Rs 6 per unitVariable production cost - Rs 1.20 per unitVariable selling cost - Rs 0.40 per unitFixed production cost - Rs 4 per unitFixed selling cost - Rs 0.80 per unitBudgeted production and sales for the year are 10,000 units."? |
| A. | 2,500 units |
| B. | 9,833 units |
| C. | 10,625 units |
| D. | 13,409 units |
| Answer» E. | |
| 1178. |
"Calculate the most appropriate unit cost for a distribution division of a multinational company using the following information.Miles travelled 636,500Tonnes carried 2,479Number of drivers 20Hours worked by drivers 35,520Tonnes miles carried 375,200Cost incurred 562,800"? |
| A. | Rs .88 |
| B. | Rs 1.50 |
| C. | Rs 15.84 |
| D. | Rs28, 140 |
| Answer» C. Rs 15.84 | |
| 1179. |
If credit sales for the year is Rs 5,40,000 and Debtors at the end of year is Rs 90,000 the Average Collection Period will be? |
| A. | 30 days |
| B. | 61 days |
| C. | 90 days |
| D. | 120 days |
| Answer» C. 90 days | |
| 1180. |
_________ is also known as working capital ratio.? |
| A. | Current ratio |
| B. | Quick ratio |
| C. | Liquid ratio |
| D. | Debt-equity ratio |
| Answer» B. Quick ratio | |
| 1181. |
In case of joint products, the main objective of accounting of the cost is to apportion the joint costs incurred up to the split off point. For cost apportionment one company has chosen Physical Quantity Method. Three joint products ‘A’, ‘B’ and ‘C’ are produced in the same process. Up to the point of split off the total production of A, B and C is 60,000 kg, out of which ‘A’ produces 30,000 kg and joint costs are Rs 3,60,000. Joint costs allocated to product A is.? |
| A. | Rs 1,20,000 |
| B. | Rs 60,000 |
| C. | Rs 1,80,000 |
| D. | None of the these |
| Answer» D. None of the these | |
| 1182. |
Document, which contains information about used material sequence, detail and quantity of raw material is classified as? |
| A. | bill of materials |
| B. | bill of sequence |
| C. | bill of detail |
| D. | bill of raw materials |
| Answer» B. bill of sequence | |
| 1183. |
Method which considers lowest and highest values of cost driver and cost within relevant range is called? |
| A. | low high method |
| B. | constant equation |
| C. | variable equation |
| D. | high low method |
| Answer» E. | |
| 1184. |
In linear cost function, fixed cost is considered as? |
| A. | constant |
| B. | variable |
| C. | exponent |
| D. | base |
| Answer» B. variable | |
| 1185. |
Following information is available of PQR for year ended March, 20XX: 4,000 units in process, 3,800 units output, 10% of input is normal wastage, Rs 2.50 per unit is scrap value and Rs 46,000 incurred towards total process cost then amount on account of abnormal gain to be transferred to Costing P&L will be:-? |
| A. | Rs 2,500 |
| B. | Rs 2,000 |
| C. | Rs 4,000 |
| D. | Rs 3,500 |
| Answer» B. Rs 2,000 | |
| 1186. |
In case of rising prices (inflation), FIFO method will:? |
| A. | provide lowest value of closing stock and profit |
| B. | provide highest value of closing stock and profit |
| C. | provide highest value of closing stock but lowest value of profit |
| D. | provide highest value of profit but lowest value of closing stock |
| Answer» C. provide highest value of closing stock but lowest value of profit | |
| 1187. |
Departmentalization of overhead is known as ________.? |
| A. | primary distribution |
| B. | secondary distribution |
| C. | absorption |
| D. | allocation |
| Answer» B. secondary distribution | |
| 1188. |
Office and administrative expenses can be charged on the basis of _______.? |
| A. | material cost |
| B. | labour cost |
| C. | prime cost |
| D. | factory cost |
| Answer» D. factory cost | |
| 1189. |
Budgeted total direct labour cost is divided with budgeted total direct labour to calculate? |
| A. | budgeted indirect labour cost rate |
| B. | expected direct labour cost rate |
| C. | budgeted direct labour cost rate |
| D. | expected indirect labour cost rate |
| Answer» D. expected indirect labour cost rate | |
| 1190. |
As compared to sale value of main products, by-products have? |
| A. | low sale value |
| B. | high sale value |
| C. | unstable sale value |
| D. | relevant sale value |
| Answer» B. high sale value | |
| 1191. |
Time keeping refers to _______.? |
| A. | time spent by worker on their job |
| B. | time spent by workers in the factory |
| C. | time spent by workers without work |
| D. | time spent by workers off their job |
| Answer» C. time spent by workers without work | |
| 1192. |
Labour cost is the second element of ________.? |
| A. | cost |
| B. | profit |
| C. | sales |
| D. | task |
| Answer» B. profit | |
| 1193. |
Warehouse rent is a part of ________.? |
| A. | prime cost |
| B. | factory cost |
| C. | distribution cost |
| D. | production cost |
| Answer» D. production cost | |
| 1194. |
Cost accounting concepts include all the following except ________.? |
| A. | planning |
| B. | controlling |
| C. | profit sharing |
| D. | product costing |
| Answer» D. product costing | |
| 1195. |
Recreation expenses in factory are apportioned on the basis of ________.? |
| A. | material cost |
| B. | wages |
| C. | prime cost |
| D. | number of employees |
| Answer» E. | |
| 1196. |
The expenses relating to a particular process is ________.? |
| A. | debited to that process a/c |
| B. | credited to that process a/c |
| C. | debited to costing profit and loss a/c |
| D. | debited to profit and loss a/c |
| Answer» B. credited to that process a/c | |
| 1197. |
Discarded material substances having no value is called ________.? |
| A. | waste |
| B. | scrap |
| C. | defectives |
| D. | spoilage |
| Answer» B. scrap | |
| 1198. |
Fixed cost per unit increases when _______.? |
| A. | variable cost per unit increases |
| B. | variable cost per unit decreases |
| C. | production volume increases |
| D. | production volume decreases |
| Answer» E. | |
| 1199. |
Centers such as revenue, cost, investment and profit all are known as? |
| A. | marketing center |
| B. | financial center |
| C. | responsibility center |
| D. | planning center |
| Answer» D. planning center | |
| 1200. |
Factor which provides hedge to managers in adverse and unexpected circumstances is known as? |
| A. | budgetary slack |
| B. | costly slack |
| C. | influential slack |
| D. | target slack |
| Answer» B. costly slack | |