Practice Test

Q1) The process by which cost items are charged direct to a cost unit is called ____ Show Answer

Q2) A common absorption rate used throughout the following for all jobs and units of output irrespective of the department in which they were produced is called ____ Show Answer

Q3) When allocating service department costs to production departments, the method that does not consider different cost behaviour pattern is the ___ Show Answer

Q4) Machine hour rate is followed when ____ Show Answer

Q5) Labour hour rate is followed when most of the work is done by ____ Show Answer

Q6) ___ is an indirect cost. Show Answer

Q7) _________ method is followed where the work is machine oriental. Show Answer

Q8) Machine hour rate = Overheads/? Show Answer

Q9) ___ ___ ___ method is followed when labour is pre-dominent. Show Answer

Q10) Under _________ method cost of material consumed is the basis. Show Answer

Q11) % of Direct Labour = Factory Overheads/ ? Show Answer

Q12) The rate of absorption should be ____ Show Answer

Q13) Indirect costs cannot be identified with a particular cost center are shared between cost centre using _____ Show Answer

Q14) The method of apportionment suitable for allocating rent of building between cost centres _____. Show Answer

Q15) The allotment of whole items of cost to cost unit is called ____ Show Answer

Q16) Administration overheads are recovered as a percentage of ____ Show Answer

Q17) Selling and distribution overheads are absorbed on the basis of ___ Show Answer

Q18) Depreciation on machine is apportioned on the basis of ____ Show Answer

Q19) Power is allocated on the basis of ____ Show Answer

Q20) Employee welfare expenses are allocated on the basis of ____ Show Answer

Q21) Electricity charges are allocated on the basis of ___ Show Answer

Q22) Indirect cost is known as ____ Show Answer

Q23) Cost incurred to secure orders is _____ Show Answer

Q24) Material which cannot be charged directly ____ Show Answer

Q25) Rent of building is ____ overheads. Show Answer

Q26) Cost which can be controlled is ____ cost. Show Answer

Q27) Cost of abnormal idle time is ____ overheads. Show Answer

Q28) Depreciation on machinery is charged under ____ overheads. Show Answer

Q29) Royalty on production is a ___ charge. Show Answer

Q30) Costing department expenses are considered as ____ overheads. Show Answer

Q31) Factory overheads cost is always indirect cost. Show Answer

Q32) Allocation and apportionment of overheads means the same thing. Show Answer

Q33) Manufacturing and administrative overheads are different. Show Answer

Q34) Selling and distribution overheads are same as administrative overheads. Show Answer

Q35) Written Down Value Method of depreciation is the best method. Show Answer

Q36) Overheads are also known as chargeable expenses. Show Answer

Q37) Allocation of overheads implies identification of overheads cost with the particular cost centre. Show Answer

Q38) Apportionment of overheads is allotment of whole items of cost to cost centres. Show Answer

Q39) Department that assist production departments are called services departments. Show Answer

Q40) Overheads absorption is the allotment of overheads to cost unit. Show Answer

Q41) Overheads absorption rates for fixed overheads are based on normal plant capacity. Show Answer

Q42) Under-absorption of overheads means that actual overheads are more than absorbed overheads. Show Answer

Q43) Under-absorption of overheads decreases profit in costing books. Show Answer

Q44) When actual overheads are more than absorbed overheads, it is known as over-absorption. Show Answer

Q45) Administrative overheads are usually absorbed as a percentage of prime cost. Show Answer

Q46) Departmentalisation of overheads facilitates control objective of cost accounting. Show Answer

Q47) Linking overheads to cost unit is known as overheads absorption. Show Answer

Q48) Variable overheads cost is a period cost. Show Answer