Questions A B C D Solution

Indirect Work Chargeable

Indirect cost is known as _____. overheads overheads overheads overheads overheads
selling Office Variable None of the selling
Cost incurred to secure orders is _____. overheads overheads above
overheads overheads
Material which cannot be charged directly Direct indirect None of the indirect
material overheads above
_____. material material
fixed Indirect Direct None of the fixed
Rent of building is _____ overheads. overheads overheads above
overhead overhead
None of the
Cost which can be controlled is _____ cost. chargeable controllable overheads above controllable
None of the
Cost of abnormal idle time is _____ overheads. abnormal normal Production above abnormal
Depreciation on machinery is charged under factory Office Direct Indirect factory
_____ overheads. overheads overheads overheads overheads overheads
None of the
Royalty on production is a _____ charge. direct Indirect overheads above direct
Costing department expenses are considered as administrativ Production Office Selling administrativ
_____ overheads. e overheads overheads overheads overheads e overheads
None of the
Stationery in production dept is _____ material. Indirect Direct Fixed above Indirect

Salary of office clerk is _____ labour. Office Indirect Direct Factory Indirect
None of the
Rent is _____ expense. Fixed Direct Indirect above Fixed
Overheads are classified on the basis of Fixed, None of the Fixed,
Direct Indirect above
behaviour as _____ _____ _____. Variable, Variable,
Semi-
Factory, Purchase, Production, Semi-
Factory,
Overheads are classified on the basis of function Sales, Material , None of the
Office & S & Office & S &
as _____ _____ _____. Labour Overhead above
D D
Direct Indirect None of the Indirect
Cost of catelogues is _____ _____. material Work cost above
Material Material
None of the
Rent of premises is _____ overheads. Fixed Direct Indirect above Fixed
fixed Variable Semi- None of the Semi-
Telephone charges is _____ _____ overheads. overhead overheads above
Variable Variable
Actual benefit received by the department is No of None of the
employees Principle above Principle
_____ of apportionment of overheads.
Compensation to workers is apportioned on the None of the
Overheads Wages Materials above Wages
basis of _____.
Store keeping expenses are apportioned on the None of the
Direct Indirect Variable above Indirect
basis of _____ material.
Cost of packing is production overheads. True False False
Bad Debts is factory overheads. True False False
Interest on capital is included in cost of
production. True False False
Depreciation should be excluded from cost
accounts. True False False
Scrap can be realised. True False True
Waste can be realised. True False False
Power cost is allocated over the departments on
the basis of H.P. of machines. True False True
Overheads include indirect material indirect
labour and indirect expenses. True False True
Lighting charges are allocated on the basis of
No. of light paints. True False True
Employee welfare expenses are allocated on the
basis of light points. True False False
Rent is allocated on the basis of Area. True False True
Insurance of Assets is allocated on the basis of
Asset values. True False True
Supervisor’s salary is allocated on the basis of
time spent. True False False
Cost of stores is allocated on the basis of Direct
Materials. True False True
Indirect wages are allocated on the basis of
Direct wages. True False True
Indirect costs cannot be identified with a a method of a method of
particular cost centre are shared between cost apportionme a method of a recovery None of the apportionme
centre using nt allocation rate above nt
The method of apportionment suitable for number of machine floor area
allocating rent of building between cost centres employees hours
cost KWH floor area
The allotment of whole items of cost to cost unit cost apportionme cost overhead cost
is called allocation nt classification absorption allocation
Administrative overheads are recovered as a direct None of the
materials prime cost works cost above works cost
percentage of percentage percentage
Selling and distribution overheads are absorbed on works on selling
rate per unit cost price any of these any of these
on the basis of
Depreciation on machine is apportioned on the machine
machine cost hours labour hours labour cost
machine machine cost
basis of
H.P. of cost of hours of H.P. of
Power is allocated on the basis of machines machines machine labour hours machines
Employee welfare expenses are allocated on the number of machine number of
basis of employees labour hours hours prime cost employees
number of cost of number of
Electricity charges are allocted on the basis of light points machines labour hours factory cost light points
Charging overheads to invidual unit is known as apportionme
allocation nt absorption collection absorption
:
Chargeable Chargeable
Direct expenses are also known as : expenses Prime cost Variable cost Period cost expenses
The process of arranging items into groups Classificatio Ascertainme Classificatio
accoridng to their degree of similarity is called : n Analysis Identification nt n
The cost directly attributable to a department is
Allotment Allocation Recovery Charging Allocation
called as :
The process of re–distribution of overheads of
Secondary
support department to production departmnet is Secondary primary Repeat none of the
distribution distribution distribution above distribution
called as :
Total of indirect material, indirect labour and indirect Overheads works Chargeable Overheads
indirect expenses is called as : overheads cost overheads cost cost
The process of charging the traceable overheads Overheads Overheads Overheads None of the Overheads
to cost centres is called as : allocation charging allotment above allocation
 Production None of the Production
Research cost should be treated as : overheads Period cost Variable cost above
No. of overheads
Storekeeping expenses are allocated on the basis material Direct labour None of the No. of
: requisitions Area hours above material
Office Factory Selling All of the requisitions
Factory
Salary of works manager is a : overheads overheads overheads above overheads
Fixed Variable Semi–variabl None of the Fixed
Insurance is a : overheads overheads e overheads above overheads
Assigning code numbers to a group of overheads Classificatio None of the
n Codification Analysis above Codification
is called as :