Cost and Works Accounting 2 solved mcqs 1 to 5

 

1. An example of a production overhead would be:

A. Material.

B. Rent

C. Labour cost.

D. Supervisory cost

D. Supervisory cost

2. All such expenses which are incurred for creating and enhancing the demands for theproducts are

A. Selling expenses

B. Administrative expenses

C. Distribution expenses

D. All of the above

D. All of the above

3. To control costs it is essential to keep control on

A. Prime cost

B. Overheads

C. Indirect materials and tools cost.

D. All of the above

B. Overheads

4. A cost that is easily traceable to a cost object is known as:

A. Direct cost

B. Indirect cost

C. Variable cost

D. Fixed cost

A. Direct cost

5. Which of the following best describes a fixed cost? A cost which:

A. Represents a fixed proportion of total costs

B. Remains at the same level up to a particular level of output

C. Has a direct relationship with output.

D. Remains at the same level when output increases.

A. Represents a fixed proportion of total costs