Accounting Practice MCQ Page 13
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: 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
Question: 1508 Number of workers employed is used as a basis for the apportionment of
- time office costs
- canteen expenses
- personnel department expenses
- any of these
Question: 1518 In which of the following methods of providing depreciation, the amount of depreciation goes on decreasing with the age of the asset
- Reducing balance method
- sum of digits method
- Annuity method
- (a) and (b) above
Question: 1544 Selling and distribution overheads are absorbed on the basis of
- Rate per unit
- percentage on selling price of each unit
- Any of these
Question: 1549 The difference over a period of time, between actual factory overhead and absorbed factory will usually be minimum when the predetermined overhead rate is based on
- normal capacity
- maximum capacity
- direct labour hours
- machine hours
- none of the above
Question: 1553 A monopoly will shut down its plant in the short run if
- it is making a loss.
- marginal revenue is less than marginal cost.
- marginal revenue less than average variable cost at all levels of output.
- average revenue is less than average variable cost at all levels of output.
- average revenue is less than marginal cost at all levels of output.
Question: 1555 A company found that the differences in product costs resulting from the application of pre-determined overhead rates rather than actual overhead rates were immaterial even though actual production was substantially less than planned production The most likely explanation is that
- factory overhead was mainly composed of variable costs
- several products were produced simultaneously
- fixed factoy overhead was a significant cost
- costs of factory overhead items were substantially larger than anticipated
Question: 1560 Under-absorbed factory overhead costs are
- excess variable factory overhead costs
- factory cost not allocated to units produced
- fixed factory costs not allocated to unit produced
- cost that cannot be controlled
- None of the above
Question: 1567 If a per-determined factory overhead rate is not employed and the volume of production is reduced from the level planned, the cost per unit would be expected to
- remain unchanged for fixed costs and increase for variable costs
- increase for fixed cost and remain uncharged for variable costs
- increase for fixed costs and decrease for variable costs
- decrease for fixed costs and decrease for variable costs
Question: 1569 The least suitable basis for applying overhead is
- materials consumed
- direct labour cost
- direct labour hours
- machine hours
Question: 1571 Excess plant capacity means
- temporary idleness of plant
- greater production capacity than a company can use
- the difference between theoretical capacity and actual capacity
Answers to the questions of Accounting on this page
Following list gives the correct choice for the answer of the Accounting mcqs.
1502 . A
1506 . C
1508 . D
1518 . D
1544 . D
1549 . A
1553 . D
1555 . C
1560 . E
1567 . B
1569 . A
1571 . B
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