1711. Bad debt is an examples of :

A. Production overhead
B. Selling overhead *
C. Administration overhead
D. Distribution overhead

1712. Number of workers employed is used as a basis for the apportionment of :

A. Time office costs
B. Canteen expenses
C. Personnel department expenses
D. Any of these *

1713. When the factory overhead control account has a closing debit balance factory overhead was :

A. Over-absorbed
B. Fixed
C. Under-absorbed *
D. Variable

1714. Factory overhead should be absorbed on the basis of :

A. Relationship to cost incurred *
B. Direct labour cost
C. Direct labour hours
D. Machine hours

1715. In which of the following methods of providing depreciation, the amount of depreciation goes on decreasing with the age of the asset ?

A. Reducing balance method
B. Sum of digits method
C. Annuity method
D. A and B *

1716. Which of the following is a scientific and accurate method of absorption of factory overheads :

A. Percentage on prime cost
B. Machine hour rate *
C. Percentage on direct labour cost
D. All of these

1717. What is the basis for distribution of indirect material cost to various departments ?

A. Direct allocation *
B. Cost of direct materials consumed
C. Machine hours worked
D. None of them

1718. Stockroom costs is an illustration of :

A. Production overhead
B. Selling overhead
C. Distribution overhead *
D. None of them

1719. Selling and distribution overheads are absorbed on the basis of :

A. Rate per unit
B. Percentage on works cost
C. Rate on selling cost of every unit
D. Any of these *

1720. The difference over a period of time , between actual factory overhead and absorbed factory overhead will usually be minimum when the predetermined overhead rate is based on :

A. Normal capacity *
B. Machine hours
C. Maximum capacity
D. None of the above