Cost and Works Accounting MCQS With Answers 17 to 22

 

17. A total of all the direct costs is known as

A. Cost of production

B. Cost of sales

C. Prime cost

D. Works cost

C. Prime cost

18. Which of the following is not included in functional classification of overheads?

A. Repairs and maintenance

B. Lubricating oil

C. Consumable stores

D. Chargeable expenses

D. Chargeable expenses

19. The process of distribution of overheads allotted to a particular department or costcenter over the units produced is called:

A. Allocation

B. Apportionment

C. Absorption

D. Departmentalization

C. Absorption

20. A product with a high gross profit could be an unprofitable product.

A. True

B. False

C. none

D. none

B. False

21. To control costs it is essential to keep control on

A. Prime cost

B. Overheads

C. Indirect materials and tools cost

D. All of the above

D. All of the above

22. The overhead cost for a particular job =

A. man hour rate x man hours spent on that job

B. man hour rate / man hours spent on that job

C. man hour rate + man hours spent on that job

D. man hour rate – man hours spent on that jab

A. man hour rate x man hours spent on that job