Overhead Costing MCQs

MCQs always help students to clear their concepts and test knowledge about a particular subject. Here, We have prepared Overhead Costing MCQs for the students to prepare themselves for objective exams and to appear for an interview.

How to take Overhead Costing MCQs quiz?

Overhead costing MCQs quiz consists of 12 questions with 4 multiple choice options for each question. Students need to choose the correct option to move to the next question. Let’s start the Overhead Costing Multiple Choice Questions (MCQs) quiz below:

1. The wages paid to maintenance department workers who do repair work principally for production departments but also on the vehicles in the distribution department should be charged as

 
 
 
 

2. Which of the following costs of management is likely to have least control?

 
 
 
 

3. Which of the following costs are most likely to have a cost behavior pattern described as . . . . a fixed cost up to an activity level of 1,000 units with a variable cost thereafter which decreases from 10 P to 8 P per unit at 2,000 units?

 
 
 
 

4. Which of the following is most likely to be an allocated production overhead cost to the finishing cost center?

 
 
 
 

5. Which of the following is a valid classification of the salary paid to the foreman in charge of the packing department?

 
 
 
 

6. Which of the following methods of charging service cost centers will be compatible with control of the efficiency of the service within the service cost center?

 
 
 
 

7. Non-production overheads are usually omitted from stock valuation for the following reason:

 
 
 
 

8. Non-production overheads are usually omitted from stock valuation for the following reason:

 
 
 
 

9. If the overhead to be absorbed was the foreman’s salary, the most likely appropriate basis for absorption would be:

 
 
 

10. Absorption of production overhead cost in unit cost on a marginal cost basis is unacceptable.

 
 
 
 

11. Which of the following best describes a fixed cost? A cost which:

 
 
 
 

12. Which of the following would not cause either an under or over-absorption of overheads?

 
 
 
 

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