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.
| 1051. |
Costs that are incurred in last department, where product has been processed and will be carried to next department for further processing are called$? |
| A. | partial work costs |
| B. | transferred-in costs |
| C. | transferred-out costs |
| D. | weighted average costs |
| Answer» C. transferred-out costs | |
| 1052. |
Second step in processing costing system is to$? |
| A. | summarize total costs |
| B. | compute cost for each equivalent unit |
| C. | summarize flow of output |
| D. | compute output in units |
| Answer» E. | |
| 1053. |
Hybrid costing system, which is applied to batches of similar products, but are not identical is classified as$? |
| A. | incremental costing system |
| B. | split off costing system |
| C. | inventoriable costing system |
| D. | operation costing system |
| Answer» E. | |
| 1054. |
Total costs incur in a production process, is divided by total number of output units to calculate the$? |
| A. | cost of indirect labour |
| B. | cost of direct labour |
| C. | cost of direct material |
| D. | unit costs |
| Answer» E. | |
| 1055. |
An additional cost, incurred for some specific activity to bring processed product on to next production stage is$? |
| A. | partial cost |
| B. | relevant cost |
| C. | incremental cost |
| D. | irrelevant cost |
| Answer» D. irrelevant cost | |
| 1056. |
Cost classification can be done in ________.$? |
| A. | two ways |
| B. | three ways |
| C. | four ways |
| D. | several ways |
| Answer» E. | |
| 1057. |
A job is budgeted to require 3,300 productive hours after incurring 25% idle time. If the total labour cost budgeted for the job is Rs 36,300. What is the labour cost per hour( to the nearest cent)?$? |
| A. | Rs 8.25 |
| B. | Rs 8.80 |
| C. | Rs 11.00 |
| D. | Rs 14.67 |
| Answer» B. Rs 8.80 | |
| 1058. |
In process costing, a joint product is:$? |
| A. | a product which is later divided into many parts |
| B. | a product which is produced simultaneously with other products and is of similar value to at least one of the other products. |
| C. | A product which is produced simultaneously with other products but which is of a greater value than any of the other products. |
| D. | a product produced jointly with another organization |
| Answer» C. A product which is produced simultaneously with other products but which is of a greater value than any of the other products. | |
| 1059. |
A Local Authority is preparing cash Budget for its refuse disposal department. Which of the following items would not be included in the cash budget?$? |
| A. | Capital cost of a new collection vehicle |
| B. | Depreciation of the machinery |
| C. | Operatives wages |
| D. | Fuel for the collection Vehicles |
| Answer» C. Operatives wages | |
| 1060. |
AT Co makes a single product and is preparing its material usage budget for next year Each unit of product requires 2kg of material, and 5,000 units of product are to be produced next year Opening inventory of material is budgeted to be 800 kg and AT co budgets to increase material inventory at the end of next year by 20%.The material usage budget for next year is$? |
| A. | 8,000 Kg |
| B. | 9,840 kg |
| C. | 10,000 Kg |
| D. | 10,160 Kg |
| Answer» D. 10,160 Kg | |
| 1061. |
Allotment of whole item of cost to a cost centre or cost unit is known as:$? |
| A. | Cost Apportionment |
| B. | Cost Allocation |
| C. | Cost Absorption |
| D. | Machine hour rate |
| Answer» C. Cost Absorption | |
| 1062. |
"Calculate workers recruited and joined from the following:Labour turnover rates are 20%, 10% and 6% respectively under Flux method, Replacement method andSeparation method No of workers replaced during the quarter is 80"$? |
| A. | 112 |
| B. | 80 |
| C. | 48 |
| D. | 64 |
| Answer» B. 80 | |
| 1063. |
If overtime is resorted to at the desire of the customer, then the overtime premium:$? |
| A. | should be charged to costing profit and loss account; |
| B. | should not be charged at all |
| C. | should be charged to the job directly |
| D. | should be charged to the highest profit making department |
| Answer» D. should be charged to the highest profit making department | |
| 1064. |
"Calculate the value of closing stock from the following according to Weighted Average method:1st January, 20XX: Opening balance: 50 units @ Rs 4Receipts:5th January, 20XX: 100 units @ Rs 512th January, 20XX: 200 units @ Rs 450Issues:2nd January, 20XX: 30 units18th January, 20XX: 150 units"$? |
| A. | Rs. 765 |
| B. | Rs. 805 |
| C. | Rs. 786 |
| D. | Rs. 700 |
| Answer» D. Rs. 700 | |
| 1065. |
cost object user, who is ranked first in incremental cost allocation method is known as$? |
| A. | First incremental user |
| B. | primary user |
| C. | secondary user |
| D. | second incremental user |
| Answer» C. secondary user | |
| 1066. |
Method which divides support department cost into two dimensions such as fixed and variable cost pool is classified as$? |
| A. | sales mix allocation method |
| B. | dual-rate cost-allocation method |
| C. | single rate cost allocation method |
| D. | quantity variance allocation method |
| Answer» C. single rate cost allocation method | |
| 1067. |
Method which allocates cost of support department to only operating departments is called$? |
| A. | indirect method |
| B. | direct method |
| C. | step down method |
| D. | reciprocal method |
| Answer» C. step down method | |
| 1068. |
Department which directly adds value to product or service is known as$? |
| A. | production department |
| B. | operating department |
| C. | allocation base department |
| D. | both a and b |
| Answer» E. | |
| 1069. |
Method, which allocates cost of support department to operating and support departments is known as$? |
| A. | indirect method |
| B. | direct method |
| C. | step down method |
| D. | reciprocal method |
| Answer» D. reciprocal method | |
| 1070. |
Direct manufacturing labour costs is added into manufacturing overhead cost to calculate$? |
| A. | transaction costs |
| B. | conversion costs |
| C. | resale costs |
| D. | merchandise costs |
| Answer» C. resale costs | |
| 1071. |
Cost which is related to specific cost object and cannot be economically traceable is classified as$? |
| A. | line cost |
| B. | staff cost |
| C. | direct cost |
| D. | indirect cost |
| Answer» E. | |
| 1072. |
Direct cost assignment for specific cost object is classified as$? |
| A. | cost object line cost |
| B. | cost tracing |
| C. | cost object indirect cost |
| D. | cost object staff cost |
| Answer» C. cost object indirect cost | |
| 1073. |
If demand of one year is 25000 units, relevant ordering cost for each purchase order is $210, carrying cost of one unit of stock is $25 then economic order quantity will be$? |
| A. | 678 packages |
| B. | 648 packages |
| C. | 658 packages |
| D. | 668 packages |
| Answer» C. 658 packages | |
| 1074. |
Systematic flow of services, goods or information from buying material for product delivery to customers is known as$? |
| A. | supply chain |
| B. | value chain |
| C. | material flow chain |
| D. | manufacturing flow chain |
| Answer» B. value chain | |
| 1075. |
Profit forgone by capital investment in inventory rather than investment of capital to somewhere else is classified as$? |
| A. | relevant purchase order costs |
| B. | relevant inventory carrying costs |
| C. | irrelevant inventory carrying costs |
| D. | relevant opportunity cost of capital |
| Answer» E. | |
| 1076. |
Direct service labour is $5000, idle time wages are $1000 and overtime premium is $450, then total figure would be$? |
| A. | $4,450 |
| B. | $6,450 |
| C. | $21,500 |
| D. | $14,300 |
| Answer» C. $21,500 | |
| 1077. |
Balance sheet, in which all costs of product that must be considered as its assets, is said to be$? |
| A. | factory overhead costs |
| B. | manufacturing overhead costs |
| C. | Inventoriable costs |
| D. | finished costs |
| Answer» D. finished costs | |
| 1078. |
Conversion cost is subtracted from manufacturing overhead cost is to calculate the$? |
| A. | manufacturing labour costs |
| B. | direct labour costs |
| C. | direct manufacturing labour costs |
| D. | indirect manufacturing labour costs |
| Answer» D. indirect manufacturing labour costs | |
| 1079. |
All costs, which are assigned to manufactured products for specific calculations are classified as$? |
| A. | contracting costs |
| B. | product cost |
| C. | government costs |
| D. | marketing costs |
| Answer» C. government costs | |
| 1080. |
Conversion cost is subtracted from direct manufacturing labour cost is to calculate the$? |
| A. | direct overheads |
| B. | overhead costs |
| C. | factory overhead |
| D. | manufacturing overhead cost |
| Answer» E. | |
| 1081. |
An overtime is considered in cost accounting as$? |
| A. | indirect costs |
| B. | overhead costs |
| C. | premium costs |
| D. | both a and b |
| Answer» E. | |
| 1082. |
Cost which is changed in proportion to level total volume is$? |
| A. | fixed cost |
| B. | variable cost |
| C. | total cost |
| D. | infeasible cost |
| Answer» C. total cost | |
| 1083. |
An amount of spoilage that is not natural in a specific production process is categorized as$? |
| A. | normal scrap |
| B. | normal spoilage |
| C. | abnormal spoilage |
| D. | weighted spoilage |
| Answer» D. weighted spoilage | |
| 1084. |
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 | |
| 1085. |
Costing, which explains how and when scrap affects operating income of company is classified as$? |
| A. | inventory costing |
| B. | conversion costing |
| C. | normal scrap costing |
| D. | abnormal scrap costing |
| Answer» B. conversion costing | |
| 1086. |
In a joint process of production, two or more products that yield high volume of sales as compared to total sales of other products are classified as$? |
| A. | split off product |
| B. | joint product |
| C. | sunk product |
| D. | main product |
| Answer» C. sunk product | |
| 1087. |
Percentage of overall gross margin is multiplied to final sales value of products total production is used to calculate$? |
| A. | Gross margin in terms of amount of money |
| B. | Gross margin in terms of separable costs |
| C. | Gross margin in terms of total cost |
| D. | Gross margin in terms of labour cost |
| Answer» B. Gross margin in terms of separable costs | |
| 1088. |
Gross margin percentage in constant gross-margin percentage NRV method is based on$? |
| A. | total labour costs |
| B. | total production |
| C. | total revenues |
| D. | total costs |
| Answer» C. total revenues | |
| 1089. |
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 | |
| 1090. |
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. $83,000 | |
| 1091. |
Hierarchy which is based on different types of cost allocation and drivers, is to categorize cost pool activity is classified as$? |
| A. | cost hierarchy |
| B. | price hierarchy |
| C. | activity hierarchy |
| D. | purpose hierarchy |
| Answer» B. price hierarchy | |
| 1092. |
A manager, who is responsible for both cost and revenues belongs to department of$? |
| A. | cost center |
| B. | revenue center |
| C. | profit center |
| D. | investment center |
| Answer» D. investment center | |
| 1093. |
Segment of subunit of company, whose manager is responsible for specific set of instructions and activities perform is classified as$? |
| A. | subunit center |
| B. | instruction center |
| C. | responsibility center |
| D. | activity segment |
| Answer» D. activity segment | |
| 1094. |
Manager who is responsible only for revenues of company can be categorized under the$? |
| A. | profit center |
| B. | investment center |
| C. | cost center |
| D. | revenue center |
| Answer» E. | |
| 1095. |
Third step in developing operating budget is$? |
| A. | analysis of batches |
| B. | analysis of batches |
| C. | analysis of products |
| D. | making predictions about future |
| Answer» E. | |
| 1096. |
"Calculate the value of closing stock from the following according to LIFO method:1st January, 20XX: Opening balance: 50 units @ Rs 4Receipts:5th January, 20XX: 100 units @ Rs 512th January, 20XX: 200 units @ Rs 450Issues:2nd January, 20XX: 30 units18th January, 20XX: 150 units"$? |
| A. | Rs. 765 |
| B. | Rs. 805 |
| C. | Rs. 786 |
| D. | Rs. 700 |
| Answer» C. Rs. 786 | |
| 1097. |
If credit sales for the year is Rs 5,40,000 and Debtors at the end of year is Rs 90,000 the Average Collection Period will be$? |
| A. | 30 days |
| B. | 61 days |
| C. | 90 days |
| D. | 120 days |
| Answer» C. 90 days | |
| 1098. |
"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"$? |
| A. | Rs .88 |
| B. | Rs 1.50 |
| C. | Rs 15.84 |
| D. | Rs28, 140 |
| Answer» C. Rs 15.84 | |
| 1099. |
"How many units must be sold if company wants to achieve a profit of Rs 11,000 for the year?Selling price - Rs 6 per unitVariable production cost - Rs 1.20 per unitVariable selling cost - Rs 0.40 per unitFixed production cost - Rs 4 per unitFixed selling cost - Rs 0.80 per unitBudgeted production and sales for the year are 10,000 units."$? |
| A. | 2,500 units |
| B. | 9,833 units |
| C. | 10,625 units |
| D. | 13,409 units |
| Answer» E. | |
| 1100. |
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 | |