(A) Share out common costs over benefiting cost centres
(B) Find the total overheads for a cost centre
(C) Charge overheads to products
(D) Control overheads
Category: Accounting Mcqs
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The process of cost apportionment is carried out so that :
(A) Costs may be controlled
(B) Cost units gather overheads as they pass through cost centres
(C) Whole items of cost can be charged to cost centres
(D) Common costs are shared among cost centres
A method of dealing with overheads involves spreading common costs over cost centres on the basis of benefit received. This is known as :
(A) Overhead absorption
(B) Overhead apportionment
(C) Overhead identification
(D) Overhead analysis
Which of the following bases would be most appropriate to apportion the cost of electric power to factory departments?
(A) Number of outlet points
(B) Amount metered out
(C) Cubic capacity of premises;
(D) Kilowatt capacity of machines in department
Which of the following costs is not a factory overhead expense?
(A) Depreciation of equipment used in the research department
(B) Salary of quality control inspector
(C) Overtime premium paid to direct labour
(D) Machine maintenance labour cost
Which of the following is not a production department?
(A) Power department
(B) Machining department
(C) Refining department;
(D) Finishing department
Direct Labor is an element of:
(A) Prime cost
(B) Conversion cost
(C) Total production cost
(D) All of the given options
Example of semi-variable items include the following except :
(A) Telephone
(B) Repairs and maintenance
(C) Depreciation of plant and machinery
(D) Insurance of plant and building