Overheads in Costing MCQ with Answers | Cost Accounting MCQs (Free Resource)

21. Indirect costs cannot be identified with a particular cost centre are shared between cost centre using _____
a) a method of apportionment
b) a method of allocation
c) a recovery rate
d) None of the above

22. The method of apportionment suitable for allocating rent of building between cost centres ________
a) number of employees
b) machine hours
c) KWH
d) floor area

23. The allotment of whole items of cost to cost unit is called ________
a) cost allocation
b) cost apportionment
c) cost classification
d) overhead absorption

24. Administrative overheads are recovered as a percentage of __________
a) direct materials
b) prime cost
c) works cost
d) None of the above

25. Selling and distribution overheads are absorbed on the basis of ________
a) rate per unit
b) percentage on works cost
c) percentage on selling price
d) any of these

26. Depreciation on a machine is apportioned on the basis of _______
a) machine cost
b) machine hours
c) labour hours
d) labour cost

27. Power is allocated on the basis of _______
a) H.P. of machines
b) cost of machines
c) machine hours of machine
d) labour hours

28. Employee welfare expenses are allocated on the basis of ________
a) number of employees
b) labour hours
c) machine hours
d) prime cost

29. Electricity charges are allocated on the basis of _________
a) number of light points
b) cost of machines
c) labour hours
d) factory cost

30. Charging overheads to individual units is known as :
a) allocation
b) apportionment
c) absorption
d) collection

Answer: 21) a method of apportionment 22) floor area 23) cost allocation 24) works cost 25) any of these 26) machine cost 27) H.P. of machines 28) number of employees 29) number of light points 30) absorption