(A) Cost may be controlled
(B) Cost unit gather overheads as they pass through cost centers
(C) Whole items of cost can be charged to cost centers
(D) Common costs are shared among cost centers
Tag: Accounting Mcqs
Overtime that is necessary in order to fulfill customer orders is called:
(A) Avoidable overtime
(B) Unavoidable overtime
(C) Premium Overtime
(D) Flex time
The component of Factory overhead are as follow?
(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
Inventory turnover ratio can be calculated as follow?
(A) Cost of goods sold/Average inventory
(B) Gross profit/Average inventory
(C) Cost of goods sold/sale
(D) Cost of goods sold/Gross profit
Which of the following is correct for maximum level?
(A) Reorder level – (Minimum consumption x Lead time) + EOQ
(B) Maximum consumption x Lead time) – (Minimum consumption x Lead time) + EOQ
(C) [(Maximum consumption – Minimum consumption) Lead time]+ EOQ
(D) All of the given options
Manufacturing entities classified the inventory in which of three kinds?
(A) Material inventory, WIP inventory, Finished goods inventory
(B) Material inventory, purchased good inventory, WIP inventory
(C) Material inventory, purchased good inventory, Finished goods inventory
(D) WIP inventory, Finished goods inventory, purchased good inventory
High labor turnover is NOT desirable because:
(A) It denotes the instability of the labor force
(B) It is an indication of high labor cost
(C) It shows frequent changes in the labor force
(D) All of the given options
Which of the following best describes the manufacturing costs?
(A) Direct materials, direct labor and factory overhead
(B) Direct materials and direct labor
(C) Direct materials, direct labor, factory overhead, and administrative overhead
(D) Direct labor and factory overhead