631. In considering a special order situation that will enable a company to make use of currently idle capacity, which of the following cost will be irrelevant:
A. Materials
B. Depreciation
C. Direct labour
D. Variable factory overhead
E. None of these

632. Completion of a job is result in:
A. DR finished goods …….. CR WIP
B. DR Cost of goods ……… CR finished goods
C. DR WIP ……………..….….. CR FOH control
D. DR FOH control …….….. CR FOH applied
E. None of these

633. Operating cost in often named as:
A. Manufacturing cost plus commercial expenses
B. Prime cost plus factory overheads
C. Direct material plus direct labour
D. Selling plus administrative expenses
E. None of these

634. Expenses such as rent and depreciation of a building are shared by several departments these are:
A. Indirect expenses
B. Direct expenses
C. Joint expenses
D. All of the above
E. None of these

635. If under applied FOH is closed to cost of goods sold, the journal entry is:
A. DR Cost of goods sold …….. CR FOH control
B. DR FOH control ……..……….. CR Cost of goods sold
C. DR FOH control ……..……….. CR Profit % loss account
D. None of these

636. The time lag between indenting and receiving material is called:
A. Lead time
B. Idle time
C. Stock out time
D. None of these

637. A credit balance remaining in FOH Control account is called:
A. Over-applied overhead
B. Under-applied overhead
C. Actual overhead
D. None of these

638. Direct material cost plus direct labour cost is called:
A. Prime cost
B. Conversion cost
C. Product cost
D. All of these
E. None of these

639. Productivity means:
A. The ability to produce
B. All units produced
C. Good units produced
D. None of these

640. A segment of the business that generates both revenue and cost is called:
A. Profit Center
B. Cost Center
C. Cost driver
D. All of these
E. None of these

NOTE
IF YOU THINK ANY OF THE MCQ ABOVE IS WRONG.
PLEASE COMMENT WITH CORRECT ANSWER AND ITS DETAIL EXPLANATION IN COMMENT BOX.
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