Cost and Works Accounting MCQs With Answers 6 to 10

 

6. Which of the following is a valid classification of the salary paid to the foreman incharge of the packing department?

A. Indirect departmental cost

B. Direct product cost

C. Direct departmental cost

D. Service department cost.

D. Service department cost.

7. A cost that changes in total dollar amount with the change in the level of activity isknown as:

A. Direct cost

B. Indirect cost

C. Variable cost

D. Fixed cost

C. Variable cost

8. Which of the following costs is treated as indirect labour?

A. Idle time

B. Overtime premium

C. Fringe benefits

D. All of the above

D. All of the above

9. Which definition best describes indirect costs?

A. Indirect costs are those costs which are not controlled directly by a manager.

B. Indirect costs are those costs which cannot be directly associated with a product or service.

C. Indirect costs are always fix

B. Indirect costs are those costs which cannot be directly associated with a product or service.

10. What would be the most appropriate way of apportioning depreciation costs acrossdifferent manufacturing departments in a business?

A. Floor space

B. Numbers of personnel

C. Value of buildings and equipment

D. Administration costs

C. Value of buildings and equipment