Accounting Practice MCQ Page 2
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: 952 Check digit variation is
- the process of checking invoices for correct calculations
- a method of making code numbers self checking
- to enable codes to be self-indexing
- the encoding of invoices with internal codes
Question: 956 Which of the following firms would be most likely to use job costing
- a paint manufacturer
- a sugar refinery
- a firm of architects
- a car manufacturers
Question: 960 Labour turnover can be expressed as a ratio as follows
- Number of leavers
- Number replaced
- Numbers of employees at the end
- Number of leavers in a period
Question: 965 A cost driver is
- the amount of overhead caused by an activity
- a unit of activity which causes costs
- a long term variable costs
- equivalent to a cost centre
Question: 969 Prime cost includes
- Direct labour,direct materials and direct expenses
- All direct costs plus factory overheads
- Direct materials plus total overheads
- Direct labour plus factory overheads
Question: 974 A cost center is
- A unit of production in relation to which costs are ascertained
- A location which is responsible for controlling direct costs
- Part of the overhead system by which costs are gathered together
- Any location or department which incurs cost
Question: 981 Cost apportionment is carried out by
- Charging each cost unit a realistic proportion of overheads
- charging whole items of cost to centres
- Ensuring that each period carries its amount of cost by making accruals or prepayment s
- Dividing common costs among centres in proportion to the benefit received
Question: 990 Overhead absorption is done so that
- common costs are shared among cost centres,in prortion to the benefit received
- The total amount of overheads for the firm can be calculated
- The total overheads for a cost centre can be calculated
- Each unit of the product carries a share of ovcerheads
Question: 998 Expenditure on steel used in the product would be classified into which of the following categories
- Direct material/cost unit
- direct material/production overheads
- in direct material/cost unit
- prime cost/production overhead
Question: 1005 A firm uses direct labour a basis for overhead absorptionif large fluctuations in labour houes are experiences
- this is a reason to use predetermined overhead rate
- this will mean that overheads will be under or over absorbed for the year
- different amounts of overhead will be charged to jobs with the same labour hours
- it will be better to use a machine hour rate
Question: 1039 A predetermined overhead rate using machine hours as a basis
- is calculated by dividing actual overhead by budgeted machine hours
- results in the over absorption of overhead
- is inferior to a rate based on labour hours
- results in charging similar overheads to jobs with similar machine hours
Question: 1043 The costing associated with a typical site based contract
- means that more costs cab be identified as direct
- requires some estimate to be made of interim profits
- means that the contract account will be credited with materials at the end of thee contract
- includes all of these
Answers to the questions of Accounting on this page
Following list gives the correct choice for the answer of the Accounting mcqs.
952 . B
956 . C
960 . B
965 . B
969 . A
974 . C
981 . D
990 . D
998 . A
1005 . A
1039 . D
1043 . D
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MCQ for Practicing Subject Tests