Deck 3: Wage Systems, Cost Apportionment, and Expenses in Cost Accounting

Question 1

In time wage system, wages are paid according to the……………….

A)production
B)time
C)both a & b
D)none of these

Answer 1

time

Question 2

Under piece rate system of wage payment, payment is made according to the…………………

A)quantity of work done
B)time
C)both a&b
D)none of these

Answer 2

quantity of work done

Question 3

Under Merrick's multiple piece rate system, 120% of the ordinary piece rate is given to workers whose level of performance is between…........................of the standard output.

A)83% and 100%
B)100% and 120%
C)0% and 83%
D)none of these

Answer 3

100% and 120%

Question 4

Basis of apportionment of welfare department expenses is…………..

A)wages of each department
B)number of employees
C)materials consumed
D)number of machineries

Question 5

is the amount by which the absorbed overheads fall short of the actual amount of overheads incurred.

A)over absorption of overheads
B)under absorption of overheads
C)overheads absorption
D)none of these.

Question 6

When …………………….is used on the basis of budgeted overheads and the rate is applied to the actual base, the actual overhead expenses may be different from the charged overheads.

A)a predetermined rate
B)actual rate method of absorption
C)both a & b
D)none of these

Question 7

The per unit expense of the ……………portion factory overhead varies with the volume of production while…..........................portion remains the same with volume.

A)fixed, variable
B)variable, fixed
C)variable, semi-variable
D)none of these

Question 8

….expenses are excluded from cost.

A)normal
B)abnormal
C)both a & b
D)none of these

Question 9

Such expenses which are included (even though they are not incurred) for taking managerial decisions are called………………

A)notional expenses
B)actual expenses
C)imputed
D)none of these

Question 10

………expenses are partly fixed and partly variable.

A)all expenses
B)variable
C)fixed
D)semi-variable

Question 11

Unsuccessful research expenditure should be ......................... cost accounts.

A)excluded from
B)included in
C)apportioned in
D)none of these

Question 12

Salary paid to general manager is an item of………………expenses.

A)fixed
B)variable
C)semi-variable
D)estimated