Question 1

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

Accepted Answer

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

Question 2

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.

Accepted Answer

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

Question 3

….expenses are excluded from cost.

Accepted Answer

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

Question 4

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

Accepted Answer

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

Question 5

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

Accepted Answer

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

Question 6

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

Accepted Answer

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

Question 7

………expenses are partly fixed and partly variable.

Accepted Answer

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

Question 8

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

Accepted Answer

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

Question 9

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

Accepted Answer

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

Question 10

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

Accepted Answer

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

Question 11

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

Accepted Answer

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

Question 12

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.

Accepted Answer

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

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