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34. The cost which relates to the inputs like materials, labour and expenses directly
connected with the product is known as :
i) Engineered cost ii) Relevant cost
iii) Product cost iv) Urgent cost
35. Cost which is related to capacity is called :
i) Fixed cost ii) Capacity cost
iii) Plant cost iv) none of the above
36. Cost which is unaffected by the change in output is called as :
i) Fixed cost ii) Variable cost
iii) Period cost iv) None of the above
6. Bill of materials
i) is an invoice sent by the supplier.
ii) helps to calculate the cost of materials of a job.
iii) is an inpection record of materials.
7. Material control includes
i) inventory control.
ii) control over labour.
iii) control over overheads.
8. Under periodic inventory control
i) stock is verified at the end of a certain period.
ii) stock is verified continuously.
iii) stock is verified everyday.
9. Under perpetual inventory control
i) stock is verified continuously.
ii) stock is verified periodically.
iii) stock is verified at the end of every quarter.
10. ABC Analysis is
i) analysis of A, B and C type of material.
ii) a technique of selective control.
iii) a technique under which control is always best.
9. Issue of material during the period is priced at the latest purchase cost under :
i) FIFO ii) LIFO
iii) Average iv) None of the above
10. Issue of material under _____ method is from oldest lots.
i) FIFO ii) LIFO
iii) Average iv) None of the above
11. During the period of rising prices, pricing of the issue will be at more recent price
under :
i) LIFO ii) FIFO
iii) Average iv) None of the above
12. The inventory is valued at more recent price under :
i) LIFO ii) FIFO
iii) Average iv) None of the above
13. Trade discount :
i) Increases cost of material ii) Decreases cost of material
iii) Does not affect cost of material iv) None of the above
14. FIFO method is :
i) Logical ii) Illogical
iii) Recognised by AS2 iv) both a & c
15. Under perpetual Inventory system stock is ascertained :
i) Periodically ii) Continuously
iii) At the end of the year iv) None of the above
Chapter – 9 : Overheads
1. Indirect costs cannot be identified with a particular cost centre are shared between
cost centre using
i) a method of apportionment
ii) a method of allocation
iii) a recovery rate
2. The method of apportionment suitable for allocating rent of building between cost
centres
i) number of employees ii) machine hours
iii) KWH iv) floor area
3. The allotment of whole items of cost to cost unit is called
i) cost allocation ii) cost apportionment
iii) cost classification iv) overhead absorption
4. Administrative overheads are recovered as a percentage of
i) direct materials
ii) prime cost
iii) works cost
5. Selling and distribution overheads are absorbed on the basis of
i) rate per unit ii) percentage on works cost
iii) percentage on selling price iv) any of these
6. Depreciation on machine is apportioned on the basis of
i) machine cost ii) machine hours
iii) labour hours iv) labour cost
7. Power is allocated on the basis of
i) H.P. of machines ii) cost of machines
iii) machine hours of machine iv) labour hours
8. Employee welfare expenses are allocated on the basis of
i) number of employees ii) labour hours
iii) machine hours iv) prime cost
9. Electricity charges are allocted on the basis of
i) number of light points ii) cost of machines
iii) labour hours iv) factory cost
10. Charging overheads to invidual unit is known as :
i) allocation ii) apportionment
iii) absorption iv) collection
11. Direct expenses are also known as :
i) Chargeable expenses ii) Prime cost
iii) Variable cost iv) Period cost
12. The process of arranging items into groups accoridng to their degree of similarity is
called :
i) Classification ii) Analysis
iii) Identification iv) Ascertainment
13. The cost directly attributable to a department is called as :
i) Allotment ii) Allocation
iii) Recovery iv) Charging
14. The process of re–distribution of overheads of support department to production
departmnet is called as :
i) Secondary distribution ii) primary distribution
iii) Repeat distribution iv) none of the above
Objective Questions 13
15. Total of indirect material, indirect labour and indirect expenses is called as :
i) indirect overheads ii) Overheads cost
iii) works overheads iv) Chargeable cost
16. The process of charging the traceable overheads to cost centres is called as :
i) Overheads allocation ii) Overheads charging
iii) Overheads allotment iv) None of the above
17. Research cost should be treated as :
i) Production overheads ii) Period cost
iii) Variable cost iv) None of the above
18. Storekeeping expenses are allocated on the basis :
i) No. of material requisitions ii) Area
iii) Direct labour hours iv) None of the above
19. Salary of works manager is a :
i) Office overheads ii) Factory overheads
iii) Selling overheads iv) All of the above
20. Insurance is a :
i) Fixed overheads ii) Variable overheads
iii) Semi–variable overheads iv) None of the above
21. Assigning code numbers to a group of overheads is called as :
i) Classification ii) Codification
iii) Analysis iv) None of the above
8. The workers who work outside the factory premises are called outworkers.
9. Payroll Accounting is concerned with calculation of wages.
10. Payroll shows Gross wages.
11. Payslip is prepared for a group of workers.
12. Idle facility and idle time are the same.
13. Overtime premium is always treated as factory overheads.
14. Abnormal idle time wages is included in cost of production.
15. Idle time is the difference between time clocked and time booked.
Chapter – 9 : Overheads
1. Cost of packing is production overheads.
2. Bad Debts is factory overheads.
3. Interest on capital is included in cost of production.
4. Depreciation should be excluded from cost accounts.
5. Scrap can be realised.
Objective Questions 19
18. _________ _________ _________ _________ plan does not penalise the workers who
produces below standard output.
Chapter – 9 : Overheads
1. Indirect cost is known as _________.
2. Cost incurred to secure orders is _________.
3. Material which cannot be charged directly _________.
4. Rent of building is _________ overheads.
5. Cost which can be controlled is _________ cost.
6. Cost of abnormal idle time is _________ overheads.
7. Depreciation on machinery is charged under _________ overheads.
8. Royalty on production is a _________charge.
9. Costing department expenses are considered as _________ overheads.
10. Stationery in production dept is _________ material.
11. Salary of office clerk is _________ labour.
12. Rent is _________ expense.
13. Overheads are classified on the basis of behaviour as _________ _________
_________.
14. Overheads are classified on the basis of function as _________ _________ _________.
15. Cost of catelogues is _________ _________.
16. Rent of premises is _________ overheads.
17. Telephone charges is _________ _________ overheads.
18. Actual benefit received by the department is _________ of apportionment of
overheads.
19. Compensation to workers is apportioned on the basis of _________.
20. Store keeping expenses are apportioned on the basis of _________ material.
Chapter – 9 : Overheads
1.
Column ‘A’ Column ‘B’
a) Rent i) H.P. of Machines
b) Lighting ii) Capital Value
c) Power iii) Light Points
d) Depreciation iv) Floor Area
e) Advertising v) Percentage of Sales
vi) Employees
2.
Column ‘A’ Column ‘B’
a) Rent i) No. of light points
b) Lighting and Heating ii) Time spent on machine
c) Supervision iii) Cost of each machine
d) Insurance iv) Actual depreciation
e) Depreciation v) Requisition Slip
vi) Floor area occupied by each
machine
3.
Column ‘A’ Column ‘B’
a) Stationary i) Indirect Material
b) Office Salary ii) Indirect Labour
c) Rent iii) Indirect Material
d) Cost of Catelogues iv) Semi-Variable Overheads
e) Telephone Charges v) On the Basis of Wages
F) Compensation to Workers vi) Factory Cost
g) Repeated Distribution Method vii) Fixed Cost
viii) Method of Reapportionment of
Same Dept. cost
Costing
e) Overabsorption of Overheads v) Machine Expense Process of
f) Depreciation of Machine vi) Charging Overheads to Cost Unit
g) Rent vii) Standing Charge
viii) Machine Expenditure
ix) Insurance
Chapter – 9 : Overheads
1. What is Overheads?
2. What is Factory Overheads?
3. What is Factory Cost?
Objective Questions 33
Chapter – 12 : Reconciliation
1. What is Non-inteprated system?
2. What is Cost Reconciliation?
3. Why costing profit differ from financial profit?
4. What is over absorption of overheads?
5. What is under absorption of overheads?
Chapter – 9 : Overheads
1. Manufacturing Overheads
2. Selling Overheads
3. Office Overheads
4. Fixed Overheads
5. Fringe Benefits