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

31. Direct expenses are also known as :
a) Chargeable expenses
b) Prime cost
c) Variable cost
d) Period cost

32. The process of arranging items into groups according to their degree of similarity is called :
a) Classification
b) Analysis
c) Identification
d) Ascertainment

33. The cost directly attributable to a department is called as :
a) Allotment
b) Allocation
c) Recovery
d) Charging

34. The process of redistribution of overheads of support department to production department is called as :
a) Secondary distribution
b) primary distribution
c) Repeat distribution
d) none of the above

35. Total of indirect material, indirect labour and indirect expenses is called as :
a) indirect overheads
b) Overheads cost
c) works overheads
d) Chargeable cost

36. The process of charging the traceable overheads to cost centres is called as :
a) Overheads allocation
b) Overheads charging
c) Overheads allotment
d) None of the above

37. Research cost should be treated as :
a) Production overheads
b) Period cost
c) Variable cost
d) None of the above

38. Storekeeping expenses are allocated on the basis :
a) No. of material requisitions
b) Area
c) Direct labour hours
d) None of the above

39. Salary of works manager is a :
a) Office overheads
b) Factory overheads
c) Selling overheads
d) All of the above

40. Assigning code numbers to a group of overheads is called as :
a) Classification
b) Codification
c) Analysis
d) None of the above

Answer: 31) Chargeable expenses 32) Classification 33) Allocation 34) Secondary distribution 35) Overheads cost 36) Overheads allocation 37) Production overheads 38) No. of material requisitions 39) Factory overheads 40) Codification