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

51. Repairs and maintenance is ___________ expense.
a) Direct
b) Indirect
c) Machine
d) Selling

52. Production overhead rate is suitable when output is___________.
a) Uniform
b) Fluctuate
c) Constant
d) None of the above

53. % of direct material cost is suitable when material prices do not ________ much.
a) Fluctuate
b) Constant
c) Uniform
d) None of the above

54. % of Direct wages is suitable when direct __________ is major factor of production.
a) Labour
b) Machine
c) Wages
d) None of the above

55. Direct labour hour rate is suitable when labour is __________ factor of produciton.
a) Dominant
b) Major
c) Fluctuate
d) None of the above

56. Machine hour rate is suitable when machine is a _________ factor of production.
a) Fluctuate
b) Dominant
c) Major
d) None of the above

57. Rent is a_________ charge.
a) Standing
b) Dominant
c) Fluctuate
d) None of the above

58. Insurance is a _______ charge.
a) Dominant
b) Fluctuate
c) Standing
d) None of the above

59. Power is a ___________ expense.
a) Machine
b) Labour
c) Office
d) None of the above

60. Lubricating oil is a _________ expense.
a) Machine
b) Direct
c) Indirect
d) Labour

Answer: 51) Machine 52) Uniform 53) Fluctuate 54) Labour 55) Dominant 56) Dominant 57) Standing 58) Standing 59) Machine 60) Machine