(A) Advertising expenses
(B) Direct labor cost
(C) Factory overhead cost
(D) Cost of raw material
Category: Accounting Mcqs
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Which of the following is NOT a relevant cost to decision making?
(A) Opportunity costs
(B) Relevant benefits
(C) Avoidable costs
(D) Sunk costs
Amount of Depreciation on fixed assets will be fixed in nature if calculated under which of the following method?
(A) Straight line method
(B) Reducing balance method
(C) Some of year’s digits method
(D) Double declining method
All of the following compose cost of goods sold EXCEPT?
(A) Raw material
(B) Labor
(C) Capital
(D) Factory overhead
When production is equal to sales, which of the following is TRUE?
(A) No change occurs to inventories for either use absorption costing or variable costing methods
(B) The use of absorption costing produces a higher net income than the use of variable costing
(C) The use of absorption costing produces a lower net income than the use of variable costing
(D) The use of absorption costing causes inventory value to increase more than they would though the use of variable costing
Which of the following loss is not included as part of the cost of transferred or finished goods, but rather treated as a period cost?
(A) Operating loss
(B) Abnormal loss
(C) Normal loss
(D) Non-operating loss
The term Cost apportionment is referred to?
(A) The costs that can not be identified with specific cost centers.
(B) The total cost of factory overhead needs to be distributed among specific cost centers but must be divided among the concerned department/cost centers
(C) The total cost of factory overhead needs to be distributed among specific cost centers.
(D) None of the given options
Which of the following best describe piece rate system?
(A) The increased volume of production results in decreased cost of production
(B) The increased volume of production in minimum time
(C) Establishment of fair standard rates
(D) Higher output is a result of efficient management