Accounting Practice MCQ Page 12
Multiple Choice questions for Accounting in the sets of 10 each on one page with questions and answers. All sets are useful in the preparation of subject tests for employment or admission.
Question: 1471 Salary of a foreman should be classified as a
- fixed overhead
- variable overhead
- semi-fixed or semi-variable overhead
Question: 1472 Charging to a cost centre those overheads that result soleoy from existence of that cost centre is known as
- allocation
- apportionment
- absorption
- allotment
Question: 1476 Absorption means
- charging of overheads to cost centres
- charging of overheads to cost units
- charging of overheads to cost centres or cost units
Question: 1481 Administration overheads are recovered as a percentage of
- direct materials
- direct wages
- prime cost
- works cost
Question: 1484 Which of the following is NOT is selling overhead
- Insurance to cover sold goods while in transit
- Royalty on sales
- Legal costs for debt realisation
- Distribution of samples
Question: 1488 Which method of absorption of factory overheads do you suggest in a concern which produced only one uniform type of product
- percentage of direct wages basis
- Direct labour hour rate
- Machine hour rate
- A rate per unit of output
- Any of the above
Question: 1490 When the amount of under-or over-absorption is significant, it should be disposed of by
- transferring to Costing profit and Loss A/C.
- the use of supplementary rates
- carrying over as a deferred charge to the next accounting year
Question: 1493 Idle capacity of a plant refers to the difference between
- maximum capacity and practical capacity
- practical capacity and normal capacity
- practical capacity and capacity based on sales expectancy
- maxiumum capacity and actual capacity
Question: 1496 Maximum possible productive capacity of a plant, when no operating time is lost, is its
- practical capacity
- Theoretical capacity
- Normal capacity
- Capacity based on sales expectancy
Question: 1499 The capacity which is based on the long term average of the sales expectancy level is known as
- practical capacity
- Actual capacity
- Normal capacity
- None of these
Question: 1502 When the amount of overhead absorbed is less than the amount of overhead incurred, it is called
- under-absorption of overhead
- over-absorption of overhead
- proper absorption of overhead
Question: 1506 Bad debt is an examples of
- production overhead
- Administration overhead
- selling overhead
- Distribution overhead
Answers to the questions of Accounting on this page
Following list gives the correct choice for the answer of the Accounting mcqs.
1471 . C
1472 . A
1476 . B
1481 . D
1484 . A
1488 . D
1490 . B
1493 . C
1496 . C
1499 . C
1502 . A
1506 . C
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