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

41. The process of charging cost to a cost unit is ____________ .
a) Absorption
b) Allocation
c) Apportionment
d) Allotment

42. Labour hour rate is followed in _________ intensive industry.
a) Labour
b) Machine
c) Different groups of machine
d) None of the above

43. Machine hour rate is followed in__________ intensive industry.
a) Machine
b) Labour
c) Different groups of machine
d) None of the above

44. Recovery of overheads in costing less than actual is __________ of overheads.
a) Under Absorption
b) Over Absorption
c) Application
d) None of the above

45. Recovery of overheads in costing more than actual is __________ of overheads.
a) Over Absorption
b) Under Absorption
c) Application
d) None of the above

46. Factory overheads are recovered as a % of_________ wages.
a) Direct Wages
b) Indirect Wages
c) None of the above

47. Office overheads are recovered as a % of ________ cost.
a) Factory Cost
b) Variable cost
c) Production cost
d) None of the above

48. Labour hour rate = _________ .
a) Overheads, Labour Hours
b) Overheads, Machine Hours
c) Direct Labour, Machine Hours
d) None of the above

49. Machine hour rate = __________ .
a) Overheads, Machine hours
b) Direct Materials, Machine Hours
c) Direct Labour, Machine Hours
d) None of the above

50. Depreciation of machine is __________ expense.
a) Power
b) Salary
c) Machine
d) None of the above

Answer: 41) Absorption 42) Labour 43) Machine 44) Under Absorption 45) Over Absorption 46) Direct Wages 47) Factory Cost 48) Overheads, Labour Hours 49) Overheads, Machine hours 50) Machine