This document contains multiple choice questions about cost and works accounting topics like overheads. It asks questions about different types of overheads such as administrative, selling, factory, and distribution overheads. It also contains questions about classifying costs as direct or indirect, fixed or variable overheads, and treating certain expenses like packing charges as factory or selling overheads. The document is presented by Dr. Shradha Prasad and provides answers to each multiple choice question.

1. MULTIPLE CHOICE QUESTIONS
Subject: Cost & Works Accounting-II
Topic: Overheads
PRESENTED BY
DR.SHRADHA PRASAD

2. ____________ overheads are the cost of formulating the policy of an organization.
A . Factory B. Administrative
Answer : B - Administrative
C. Selling D. Distribution
6/7/2021 2
COST & WORKS ACCOUNTING - II BY
DR.SHRADHA PRASAD

3. __________are the costs of seeking to create and stimulate demand or of securing
orders.
A . Selling Overheads B. Administrative Overheads
Answer : A – Selling Overheads
C. Factory Overheads D. Distribution Overheads
6/7/2021 3
COST & WORKS ACCOUNTING - II BY
DR.SHRADHA PRASAD

4. Electrodes is an example of ___________
A . Indirect Material B. Direct Material
Answer : A – Indirect Material
C. Indirect Labour D. Indirect Expense
6/7/2021 4
COST & WORKS ACCOUNTING - II BY
DR.SHRADHA PRASAD

5. Factory Overheads are also termed as _____________
A . Production Overheads B. Works Overheads
C. Manufacturing Overheads
Answer : D – All the above
6/7/2021 5
COST & WORKS ACCOUNTING - II BY
DR.SHRADHA PRASAD
D. All the above

6. Abnormal Idle Time is an example of ______________ overheads.
A . Normal Overheads B. Abnormal Overheads
C. Controllable Overheads
Answer : B – Abnormal Overheads
6/7/2021 6
COST & WORKS ACCOUNTING - II BY
DR.SHRADHA PRASAD
D. Fixed Overheads

7. Packing Charges are treated as ____________ If packing is done in the factory.
A . Factory Overhead Costs B. Selling Overhead Costs
C. Distribution Overhead Costs
Answer : A – Factory Overhead Costs
6/7/2021 7
COST & WORKS ACCOUNTING - II BY
DR.SHRADHA PRASAD

8. ____________is the process of grouping like facts under a common designation on
the basis of similarities of nature, attributes or relations.
A . Classification B. Collection
Answer : A – Classification
C. Codification
6/7/2021 8
COST & WORKS ACCOUNTING - II BY
DR.SHRADHA PRASAD

9. Costs may be classified into ____________
A . Direct Costs B. Indirect Costs
C. Direct and Indirect Costs
Answer : C –Direct and Indirect Costs
6/7/2021 9
COST & WORKS ACCOUNTING - II BY
DR.SHRADHA PRASAD

10. ___________overheads per unit varies with change in the volume of production.
A . Fixed B. Variable
Answer : A – Fixed
C. Semi-variable
6/7/2021 10
COST & WORKS ACCOUNTING - II BY
DR.SHRADHA PRASAD

11. Overheads is used interchangeably with such terms as ___________
A . Burden B. Supplementary Costs
C. Both A & B
Answer : C - Both A & B
6/7/2021 11
COST & WORKS ACCOUNTING - II BY
DR.SHRADHA PRASAD

12. Overheads = Indirect Material + Indirect Labour + ____________
A . Indirect Expenses B. Direct Expenses
C. Prime Expenses
Answer : A – Indirect Expenses
6/7/2021 12
COST & WORKS ACCOUNTING - II BY
DR.SHRADHA PRASAD

13. Indirect Costs are common costs.
A . True B. False
Answer : A – True
6/7/2021 13
COST & WORKS ACCOUNTING - II BY
DR.SHRADHA PRASAD

14. Direct Costs are also known as Prime Cost.
A . True B. False
Answer : A – True
6/7/2021 14
COST & WORKS ACCOUNTING - II BY
DR.SHRADHA PRASAD

15. Administrative Overheads are controllable in nature.
A . True B. False
Answer : B – False
6/7/2021 15
COST & WORKS ACCOUNTING - II BY
DR.SHRADHA PRASAD

16. Per unit variable cost remains fixed with increase or decrease in volume of
production.
A . True B. False
Answer : A – True
6/7/2021 16
COST & WORKS ACCOUNTING - II BY
DR.SHRADHA PRASAD

17. Overheads are both variable and fixed.
A . True B. False
Answer : A – True
6/7/2021 17
COST & WORKS ACCOUNTING - II BY
DR.SHRADHA PRASAD

18. Overheads comprise of both cash and non-cash expenses.
A . True B. False
Answer : A – True
6/7/2021 18
COST & WORKS ACCOUNTING - II BY
DR.SHRADHA PRASAD

19. All overheads are costs but all costs are not overheads.
A . True B. False
Answer : A – True
6/7/2021 19
COST & WORKS ACCOUNTING - II BY
DR.SHRADHA PRASAD

20. Variable overheads are ___________in nature.
A . Controllable B. Uncontrollable
Answer : A – Controllable
6/7/2021 20
COST & WORKS ACCOUNTING - II BY
DR.SHRADHA PRASAD

21. Fixed Overheads are related to _____________
A . Period B. Product
Answer : A – Period
6/7/2021 21
COST & WORKS ACCOUNTING - II
BY DR.SHRADHA PRASAD

22. 6/7/2021
COST & WORKS ACCOUNTING - II BY
DR.SHRADHA PRASAD
22
THANK YOU