821. Secret reserve strengthens financial position, hence they are allowed.
A.Right
B.Wrong
C.Cannot say

822. 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

823. 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

824. 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

825. Re-order quantity …… 3600 unitsMaximum consumption …… 900 units per weekMinimumcomsumption …….300 units per weekRe-order period ………………..5 weeksBased on this data Re-order level is:
A. 4500 units
B. 3900 units
C. 1200 units
D. 400 units
E. None of these

826. 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

827. 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

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

829. 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

830. Economics resources of a business that are expected to be of benefit in the future are referred to as:
A. Liabilities
B. Owner’s equity
C. Withdrawals
D. Assets
E. None of these

NOTE
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