661. What is the basis for the 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
662. Stockroom costs are an illustration of:
A. Production overhead
B. Selling overhead
C. Distribution overhead
D. None of them
663. 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
664. 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
665. What would be the attitude of the management in treating Sunk costs in decision making?
(A) A periodic investment of cash resources that has been made and should be relevant for decision making
B. It is a past cost which is not directly relevant in decision making
(C) Management will treat it as variable cost each time in decision making
(D) None of the given options
666. All of the following are essential requirements of a good wage system EXCEPT:
(A) Reduced labor and overhead costs
(B) Reduced per unit variable costs
(C) Increased production
D. Increased operating costs
667. Assuming no returns outwards or carriage inwards, the cost of goods sold will be equal to:
(A) Opening stock Less purchases plus closing stock
(B) Closing stock plus purchases plus opening stock
C. Sales less gross profit
(D) Purchases plus closing stock plus opening stock plus direct labor
668. Cost of finished goods inventory is calculated by:
(A) Deducting total cost from finished goods inventory
B. Multiplying units of finished goods inventory with the cost per unit
(C) Dividing units of finished goods inventory with the cost per unit
(D) Multiplying total cost with finished goods inventory
669. The basic assumption made in direct costing with respect to fixed costs is that?
(A) Fixed cost is a controllable cost
(B) Fixed cost is a product cost
(C) Fixed cost is an irrelevant cost ;
D. Fixed cost is a period cost
670. Which of the given will NOT be included for the calculation of equivalent units of material under weighted average costing method?
(A) Opening work in process units
(B) Closing work in process units
(C) Unit completed and transferred out
D. None of the given options
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