{"id":5447,"date":"2021-09-04T17:50:14","date_gmt":"2021-09-04T12:20:14","guid":{"rendered":"https:\/\/scholarsclasses.com\/blog\/?p=5447"},"modified":"2025-10-07T19:26:09","modified_gmt":"2025-10-07T13:56:09","slug":"overheads-in-costing","status":"publish","type":"post","link":"https:\/\/scholarsclasses.com\/blog\/overheads-in-costing\/","title":{"rendered":"Overheads in Costing MCQ with Answers | Cost Accounting MCQs (Free Resource)"},"content":{"rendered":"\n<h2 class=\"wp-block-heading has-text-align-center\"><strong>Overheads in Costing MCQ with Answers<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"576\" data-src=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/09\/Overheads-in-cost-accounting-1024x576.png\" alt=\"Overheads in costing\" class=\"wp-image-5458 lazyload\" title=\"\" data-srcset=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/09\/Overheads-in-cost-accounting-1024x576.png 1024w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/09\/Overheads-in-cost-accounting-300x169.png 300w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/09\/Overheads-in-cost-accounting-768x432.png 768w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/09\/Overheads-in-cost-accounting-1536x864.png 1536w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/09\/Overheads-in-cost-accounting.png 1920w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/576;\" \/><figcaption class=\"wp-element-caption\">Material Cost MCQ<\/figcaption><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><a href=\"https:\/\/scholarsclasses.com\/blog\/cost-accounting-mcq\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/cost-accounting-mcq\/\" target=\"_blank\" rel=\"noreferrer noopener\">MCQs on other topics of Cost Accounting <\/a><\/strong><\/li>\n\n\n\n<li><a href=\"https:\/\/www.icsi.edu\/media\/webmodules\/modelquestionpaper\/CMA-MCQ%20100.pdf\" data-type=\"URL\" data-id=\"https:\/\/www.icsi.edu\/media\/webmodules\/modelquestionpaper\/CMA-MCQ%20100.pdf\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Cost Accounting MCQs pdf <\/strong><\/a><\/li>\n<\/ul>\n\n\n\n<p><strong>1. Indirect cost is known as ________ .<br><\/strong>a) Indirect overheads <br>b) overheads <br>c) Work overheads <br>d) Chargeable overheads<\/p>\n\n\n\n<p><strong>2. Cost incurred to secure orders is ____________.<br><\/strong>a) selling overheads <br>b) Office overheads <br>c) Variable overheads <br>d) None of the above<\/p>\n\n\n\n<p><strong>3. Material which cannot be charged directly ___________ .<br><\/strong>a) Direct material <br>b) indirect material <br>c) overheads <br>d) None of the above<\/p>\n\n\n\n<p><strong>4. Rent of building is ____________ overheads.<br><\/strong>a) fixed overhead <br>b) Indirect overheads <br>c) Direct overheads <br>d) None of the above<\/p>\n\n\n\n<p><strong>5. Cost which can be controlled is ___________ cost.<br><\/strong>a) chargeable <br>b) controllable <br>c) overheads <br>d) None of the above<\/p>\n\n\n\n<p><strong>6. Cost of abnormal idle time is ____________ overheads.<br><\/strong>a) abnormal <br>b) normal <br>c) Production <br>d) None of the above<\/p>\n\n\n\n<p><strong>7. Depreciation on machinery is charged under ___________ overheads.<br><\/strong>a) factory overheads <br>b) Office overheads <br>c) Direct overheads <br>d) Indirect overheads<\/p>\n\n\n\n<p><strong>8. Royalty on production is a __________ charge.<br><\/strong>a) direct <br>b) Indirect <br>c) overheads <br>d) None of the above<\/p>\n\n\n\n<p><strong>9. Costing department expenses are considered as __________ overheads.<br><\/strong>a) administrative overheads <br>b) Production overheads <br>c) Office overheads <br>d) Selling overheads<\/p>\n\n\n\n<p><strong>10) Stationery in production dept is ___________ material.<br><\/strong>a) Indirect <br>b) Direct <br>c) Fixed <br>d) None of the above<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answers:<\/strong> <span class=\"has-inline-color has-vivid-red-color\">1)overheads  2) selling overheads  3) indirect material  4) fixed overhead  5) controllable  6) abnormal  7) factory overheads  8) direct  9) administrative overheads  10) Indirect<\/span><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>11. Salary of office clerk is ___________ labour.<br><\/strong>a) Office <br>b) Indirect <br>c) Direct <br>d) Factory<\/p>\n\n\n\n<p><strong>12. Rent is ________ expense.<br><\/strong>a) Fixed <br>b) Direct <br>c) Indirect <br>d) None of the above<\/p>\n\n\n\n<p><strong>13. Overheads are classified on the basis of behaviour as <em>__________ <\/em>.<br><\/strong>a) Fixed, Variable, Semi-variable <br>b) Direct <br>c) Indirect <br>d) None of the above<\/p>\n\n\n\n<p><strong>14. Overheads are classified on the basis of function as ___________ .<br><\/strong>a) Factory, Office &amp; S &amp; D <br>b) Purchase, Sales, Labour <br>c) Production, Material , Overhead <br>d) None of the above<\/p>\n\n\n\n<p><strong>15. Cost of catelogues is _________ .<br><\/strong>a) Direct material <br>b) Indirect Material <br>c) Work cost <br>d) None of the above<\/p>\n\n\n\n<p><strong>16. Rent of premises is _____________ overheads.<br><\/strong>a) Fixed <br>b) Direct <br>c) Indirect <br>d) None of the above<\/p>\n\n\n\n<p><strong>17. Telephone charges is __________ overheads.<br><\/strong>a) fixed overhead <br>b) Variable overheads <br>c) Semi-Variable <br>d) None of the above<\/p>\n\n\n\n<p><strong>18. Actual benefit received by the department is _________ of apportionment of overheads.<br><\/strong>a) No of employees <br>b) Principle <br>c) None of the above<\/p>\n\n\n\n<p><strong>19. Compensation to workers is apportioned on the basis of _____________ .<br><\/strong>a) Overheads <br>b) Wages <br>c) Materials <br>d) None of the above<\/p>\n\n\n\n<p><strong>20. Store keeping expenses are apportioned on the basis of __________ material.<br><\/strong>a) Direct <br>b) Indirect <br>c) Variable <br>d) None of the above<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answers:<\/strong> <span class=\"has-inline-color has-vivid-red-color\">11) Indirect  12) Fixed  13) Fixed, Variable, Semi-variable  14) Factory, Office &amp; S &amp; D  15) Indirect Material  16) Fixed  17) Semi-Variable  18) Principle  19) Wages  20) Indirect<\/span><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>21. Indirect costs cannot be identified with a particular cost centre are shared between cost centre using _____<br><\/strong>a) a method of apportionment <br>b) a method of allocation <br>c) a recovery rate <br>d) None of the above<\/p>\n\n\n\n<p><strong>22. The method of apportionment suitable for allocating rent of building between cost centres ________<br><\/strong>a) number of employees <br>b) machine hours <br>c) KWH <br>d) floor area<\/p>\n\n\n\n<p><strong>23. The allotment of whole items of cost to cost unit is called ________<br><\/strong>a) cost allocation <br>b) cost apportionment <br>c) cost classification <br>d) overhead absorption<\/p>\n\n\n\n<p><strong>24. Administrative overheads are recovered as a percentage of __________<br><\/strong>a) direct materials <br>b) prime cost <br>c) works cost <br>d) None of the above<\/p>\n\n\n\n<p><strong>25. Selling and distribution overheads are absorbed on the basis of ________<br><\/strong>a) rate per unit <br>b) percentage on works cost <br>c) percentage on selling price <br>d) any of these<\/p>\n\n\n\n<p><strong>26. Depreciation on a machine is apportioned on the basis of _______<br><\/strong>a) machine cost <br>b) machine hours <br>c) labour hours <br>d) labour cost<\/p>\n\n\n\n<p><strong>27. Power is allocated on the basis of _______<br><\/strong>a) H.P. of machines <br>b) cost of machines <br>c) machine hours of machine <br>d) labour hours<\/p>\n\n\n\n<p><strong>28. Employee welfare expenses are allocated on the basis of ________<br><\/strong>a) number of employees <br>b) labour hours <br>c) machine hours <br>d) prime cost<\/p>\n\n\n\n<p><strong>29. Electricity charges are allocated on the basis of _________<br><\/strong>a) number of light points <br>b) cost of machines <br>c) labour hours <br>d) factory cost<\/p>\n\n\n\n<p><strong>30. Charging overheads to individual units is known as :<br><\/strong>a) allocation <br>b) apportionment <br>c) absorption <br>d) collection<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answer:<\/strong><span class=\"has-inline-color has-vivid-red-color\"><strong> <\/strong>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<\/span><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>31. Direct expenses are also known as :<br><\/strong>a) Chargeable expenses <br>b) Prime cost <br>c) Variable cost <br>d) Period cost<\/p>\n\n\n\n<p><strong>32. The process of arranging items into groups according to their degree of similarity is called :<br><\/strong>a) Classification <br>b) Analysis <br>c) Identification <br>d) Ascertainment<\/p>\n\n\n\n<p><strong>33. The cost directly attributable to a department is called as :<br><\/strong>a) Allotment <br>b) Allocation <br>c) Recovery <br>d) Charging<\/p>\n\n\n\n<p><strong>34. The process of redistribution of overheads of support department to production department is called as :<br><\/strong>a) Secondary distribution <br>b) primary distribution <br>c) Repeat distribution <br>d) none of the above<\/p>\n\n\n\n<p><strong>35. Total of indirect material, indirect labour and indirect expenses is called as :<br><\/strong>a) indirect overheads <br>b) Overheads cost <br>c) works overheads <br>d) Chargeable cost<\/p>\n\n\n\n<p><strong>36. The process of charging the traceable overheads to cost centres is called as :<br><\/strong>a) Overheads allocation <br>b) Overheads charging <br>c) Overheads allotment <br>d) None of the above<\/p>\n\n\n\n<p><strong>37. Research cost should be treated as :<br><\/strong>a) Production overheads <br>b) Period cost <br>c) Variable cost <br>d) None of the above<\/p>\n\n\n\n<p><strong>38. Storekeeping expenses are allocated on the basis :<br><\/strong>a) No. of material requisitions <br>b) Area <br>c) Direct labour hours <br>d) None of the above<\/p>\n\n\n\n<p><strong>39. Salary of works manager is a :<br><\/strong>a) Office overheads <br>b) Factory overheads <br>c) Selling overheads <br>d) All of the above<\/p>\n\n\n\n<p><strong>40. Assigning code numbers to a group of overheads is called as :<br><\/strong>a) Classification <br>b) Codification <br>c) Analysis <br>d) None of the above<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answer:<\/strong><span class=\"has-inline-color has-vivid-red-color\"><strong> <\/strong>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<\/span><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>41. The process of charging cost to a cost unit is ____________ .<br><\/strong>a) Absorption <br>b) Allocation <br>c) Apportionment <br>d) Allotment<\/p>\n\n\n\n<p><strong>42. Labour hour rate is followed in _________ intensive industry.<br><\/strong>a) Labour <br>b) Machine <br>c) Different groups of machine <br>d) None of the above<\/p>\n\n\n\n<p><strong>43. Machine hour rate is followed in__________ intensive industry.<br><\/strong>a) Machine <br>b) Labour <br>c) Different groups of machine <br>d) None of the above<\/p>\n\n\n\n<p><strong>44. Recovery of overheads in costing less than actual is __________ of overheads.<br><\/strong>a) Under Absorption <br>b) Over Absorption <br>c) Application <br>d) None of the above<\/p>\n\n\n\n<p><strong>45. Recovery of overheads in costing more than actual is __________ of overheads.<br><\/strong>a) Over Absorption <br>b) Under Absorption <br>c) Application <br>d) None of the above<\/p>\n\n\n\n<p><strong>46. Factory overheads are recovered as a % of_________ wages.<br><\/strong>a) Direct Wages <br>b) Indirect Wages <br>c) None of the above<\/p>\n\n\n\n<p><strong>47. Office overheads are recovered as a % of ________ cost.<br><\/strong>a) Factory Cost <br>b) Variable cost <br>c) Production cost <br>d) None of the above<\/p>\n\n\n\n<p><strong>48. Labour hour rate = _________ .<br><\/strong>a) Overheads, Labour Hours <br>b) Overheads, Machine Hours <br>c) Direct Labour, Machine Hours <br>d) None of the above<\/p>\n\n\n\n<p><strong>49. Machine hour rate = __________ .<br><\/strong>a) Overheads, Machine hours <br>b) Direct Materials, Machine Hours <br>c) Direct Labour, Machine Hours <br>d) None of the above<\/p>\n\n\n\n<p><strong>50. Depreciation of machine is __________ expense.<br><\/strong>a) Power <br>b) Salary <br>c) Machine <br>d) None of the above<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answer:<\/strong><span class=\"has-inline-color has-vivid-red-color\"><strong> <\/strong>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<\/span><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>51. Repairs and maintenance is ___________ expense.<br><\/strong>a) Direct <br>b) Indirect <br>c) Machine <br>d) Selling<\/p>\n\n\n\n<p><strong>52. Production overhead rate is suitable when output is___________.<br><\/strong>a) Uniform <br>b) Fluctuate <br>c) Constant <br>d) None of the above<\/p>\n\n\n\n<p><strong>53. % of direct material cost is suitable when material prices do not ________ much.<br><\/strong>a) Fluctuate <br>b) Constant <br>c) Uniform <br>d) None of the above<\/p>\n\n\n\n<p><strong>54. % of Direct wages is suitable when direct __________ is major factor of production.<br><\/strong>a) Labour <br>b) Machine <br>c) Wages <br>d) None of the above<\/p>\n\n\n\n<p><strong>55. Direct labour hour rate is suitable when labour is __________ factor of produciton.<br><\/strong>a) Dominant <br>b) Major <br>c) Fluctuate <br>d) None of the above<\/p>\n\n\n\n<p><strong>56. Machine hour rate is suitable when machine is a  _________ factor of production.<br><\/strong>a) Fluctuate <br>b) Dominant <br>c) Major <br>d) None of the above<\/p>\n\n\n\n<p><strong>57. Rent is a_________ charge.<br><\/strong>a) Standing <br>b) Dominant <br>c) Fluctuate <br>d) None of the above<\/p>\n\n\n\n<p><strong>58. Insurance is a _______ charge.<br><\/strong>a) Dominant <br>b) Fluctuate <br>c) Standing <br>d) None of the above<\/p>\n\n\n\n<p><strong>59. Power is a ___________ expense.<br><\/strong>a) Machine <br>b) Labour <br>c) Office <br>d) None of the above<\/p>\n\n\n\n<p><strong>60. Lubricating oil is a _________ expense.<br><\/strong>a) Machine <br>b) Direct <br>c) Indirect <br>d) Labour<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answer:<\/strong><span class=\"has-inline-color has-vivid-red-color\"><strong> <\/strong>51) Machine  52) Uniform  53) Fluctuate  54) Labour  55) Dominant  56) Dominant  57) Standing  58) Standing  59) Machine  60) Machine<\/span><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>61. Machine hour rate takes into account _________.<br><\/strong>a) Time Fact <br>b) Cost Fact <br>c) Place Fact <br>d) None of the above<\/p>\n\n\n\n<p><strong>62. The process by which cost items are charged directly to a cost unit is called _______.<br><\/strong>a) absorption <br>b) apportionment <br>c) allocation <br>d) allotment<\/p>\n\n\n\n<p><strong>63. A common absorption rate used through out the following for all jobs and units of output irrespective of the department in which they were produced is called _________<br><\/strong>a) machine hour rate <br>b) department absorption rate <br>c) overall absorption rate <br>d) blanket absorption rate<\/p>\n\n\n\n<p><strong>64. When allocating service department costs to production departments, the method that does not consider different cost behaviour pattern is the _________<br><\/strong>a) step method <br>b) reciprocal method <br>c) simple rate method <br>d) dual rate method<\/p>\n\n\n\n<p><strong>65. Machine hour rate is followed when ______<br><\/strong>a) most of the work is done by machine <br>b) most of the work is done by labour <br>c) overall absorption rate <br>d) blanket absorption rate<\/p>\n\n\n\n<p><strong>66. Labour hour rate is followed when most of the work is done by _______<br><\/strong>a) labour <br>b) machines <br>c) different groups of machines <br>d) None of the above<\/p>\n\n\n\n<p><strong>67. When overheads recovered in costing are less than actual overheads incurred it is called :<br><\/strong>a) under absorption <br>b) over absorption <br>c) recovery <br>d) none of the above<\/p>\n\n\n\n<p><strong>68. When overheads recovered in costing are more than actual overheads incurred it is called :<br><\/strong>a) under absorption <br>b) over absorption <br>c) application <br>d) all of the above<\/p>\n\n\n\n<p><strong>69. Factory overheads are recovered as a :<br><\/strong>a) % of Direct wages <br>b) % of cost of production <br>c) % of sales <br>d) None of the above<\/p>\n\n\n\n<p><strong>70. Office overheads are recovered as a % of :<br><\/strong>a) Direct materials <br>b) Direct wages <br>c) Factory cost <br>d) None of the above<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answer:<\/strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\"><strong> <\/strong>61) Time fact  62) allocation  63) blanket absorption rate  64) simple rate method  65) most of the work is done by machine  66) labour  67) under absorption  68) over absorption  69) % of Direct wages  70)Factory cost<\/mark><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>71. Insurance is apportioned on machines on the basis of :<br><\/strong><span class=\"has-inline-color has-vivid-purple-color\">a) Insured value of each machine <br><\/span>b) Invoice price of each machine <br>c) Area <br>d) Cost of machine<\/p>\n\n\n\n<p>72. Machine expenses are :<br><span class=\"has-inline-color has-vivid-purple-color\">a) Depreciation on machine <br><\/span>b) Rent of premises <br>c) Salary of supervisors <br>d) All of the above<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":5458,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,1],"tags":[2404],"class_list":["post-5447","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bcom","category-misc","tag-overheads-in-costing-mcq-with-answers"],"_links":{"self":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/5447","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/comments?post=5447"}],"version-history":[{"count":3,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/5447\/revisions"}],"predecessor-version":[{"id":39288,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/5447\/revisions\/39288"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media\/5458"}],"wp:attachment":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media?parent=5447"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/categories?post=5447"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/tags?post=5447"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}