(A) Below
(B) Above
(C) Equal
(D) Danger level has no relation to minimum level
Category: Accounting Mcqs
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It is possible for an item of overhead expenditure to be shared amongst many departments. It is also possible that this same item may relate to just one specific department. If the item was not charged specifically to a single department this would be an example of:
(A) Apportionment
(B) Allocation
(C) Re-apportionment
(D) Absorption
An investor invests in stock exchange he foregoes the opportunity to invest further in his hotel. The profit which the investor will be getting from the hotel is __?
(A) Opportunity cost
(B) Period Cost
(C) Product Cost
(D) Historical Cost
Wage, Rent & Materials are examples of :
(A) Implicit Cost
(B) Explicit Cost
(C) Direct Cost
(D) Manufacturing Cost
A firm Uses its own capital or Uses its owner’s time and/or financial resources both are examples of:
(A) Implicit Cost
(B) Explicit Cost
(C) Sunk Cost
(D) Relevant Cost
The FIFO inventory costing method (when using a perpetual inventory system) assumes that the cost of the earliest units purchased is allocated in which of the following ways?
(A) First to be allocated to the ending inventory
(B) Last to be allocated to the cost of goods sold
(C) Last to be allocated to the ending inventory
(D) First to be allocated to the cost of good sold
The term Maximum level represents:
(A) The maximum stock level indicates the maximum quantity of an item of material which can be held in stock at any time.
(B) The maximum stock level indicates the maximum quantity of an item of material which cannot be held in stock at any time.
(C) The average stock level indicates the maximum quantity of an item of material which can be held in stock at any time.
(D) The available stock level indicates the maximum quantity of an item of material which can be held in stock at any time.
The components of factory overhead are as follows:
(A) Direct material + Indirect material + Direct expenses
(B) Indirect material + Indirect labor + Others indirect cost
(C) Direct material + Indirect expenses + Indirect labor
(D) Direct labor + Indirect labor + Indirect expenses