Q. Production overheads represent indirect materials, indirect wages and indirect expenses attributable to:
✅ Correct Answer: (C)
Both A&B
Cost and Works Accounting 2 MCQs and Notes
Q. . Production Overheads are costs related to the production process other than direct labour and materials. They are also known as factory overheads since they are incurred inside the factory, other overheads such as selling and administrative overheads are always charged to in the period in which they are incurred
✅ Correct Answer: (A)
The above statement is true
Q. Overhead costs may be classified according to the function of the organization as:
✅ Correct Answer: (C)
Both A&B
Q. Overhead is actually the total of:
✅ Correct Answer: (D)
All of the above
Q. Indirect expenses are also known as overheads.
✅ Correct Answer: (A)
True
Q. Overhead is the cost incurred in the course of making a product, providing a service or running a department, but which cannot be traced directly and in full to the product, service or department.
✅ Correct Answer: (A)
Correct
Q. Wages paid to a office cleaning staff who was engaged in Administration activities a can be termed as.
✅ Correct Answer: (B)
indirect cost
Q. . Which of the following is most likely to be an allocated production overhead cost to the finishing cost centre?
✅ Correct Answer: (C)
Power used on finishing cost centre machines.
Q. . Which of the following best describes a fixed cost? A cost which:
✅ Correct Answer: (D)
The number of units produced being greater than budget.
Q. . The cost which is to be incurred even when a business unit is closed is a.
✅ Correct Answer: (D)
shutdown cost