allocation rate method without adjustmentsbudget rate method with adjustmentsbudget rate method without adjustmentsallocation rate method with adjustments

2.Which rate is determined by dividing the total indirect costs in the pool by the actual amount of the cost allocation base?

actual manufacturing overhead ratemanufacturing overhead expensesoverhead allocation ratedirect cost rateindirect cost percentage

3.What term is used to describe an indirect cost that has been allocated less than required?

underapplied overhead costunderabsorbed overhead expenseabsorbed overhead costboth A and B

4.Given an annual budgeted indirect cost of $60,000 and a budgeted annual allocation base quantity of 3,600 units, what is the budgeted indirect cost rate per unit?

15.67 dollars per unit16.67 dollars per unit14.67 dollars per unit13.67 dollars per unit12.67 dollars per unit

5.What type of document details the materials used for a particular product within a specific department?

Cost calculation approachSales procedureMaterial procurement documentNone of the above

6.What is calculated by multiplying the budgeted direct labor hours by the direct labor cost rate?

anticipated overall direct labor expenseplanned total direct labor costestimated total indirect labor expenseprojected labor hours

7.What is determined by dividing the total budgeted direct labor cost by the total budgeted direct labor hours?

Planned indirect labor cost rateAnticipated direct labor cost rateBudgeted direct labor cost rateProjected indirect labor cost rate

8.When the allocated indirect cost amounts to $1500 but the actual indirect cost incurred is $1200, how is this situation categorized?

assigned indirect costassigned direct costactual indirect cost incurredexcess allocated indirect costunder allocated indirect cost

9.What is determined by dividing the estimated yearly indirect expenses by the estimated annual amount of the cost allocation base?

anticipated indirect cost ratioanticipated direct cost ratioplanned indirect cost rateplanned direct cost ratio

10.What is the method called where the overall production cost of identical items is divided by the quantity produced?

sales cost methodjob order costingpricing cost approachprocess costing methodbatch costing system

11.What is the method called that distributes overapplied or underapplied overhead across work in process, finished goods, and cost of goods sold?

proration methodappreciation methoddepreciation methodadjustment method

12.In accounting, what is the name of the document that provides evidence for making journal entries?

expense recordvaluation documentsource documentimmediate documenttransaction slip

13.If the actual indirect costs amount to $25,000 while the allocated indirect costs are $23,000, what is the value of the overallocated indirect cost?

$48,000-$2,000$2,000-$48,000

14.What is the name of the allocation method where overheads are recalculated using actual cost rates instead of the originally budgeted rates?

allocation method using unmodified budget ratesallocation method with adjusted ratesallocation method using unmodified ratesbudget rate adjustment methodnone of the above

15.In normal costing, what term is used for the manufacturing overhead that is assigned to products?

manufacturing overhead appliedlabor overhead assignedcost overhead allocatedbudgeted overhead assignedstandard overhead allocated

16.Given that the actual manufacturing overhead expenses amount to $225,000 and the total actual labor hours used as the cost allocation base is 2,500 hours, what is the overhead rate per labor hour?

$60 per labor hour$90 per labor hour$80 per labor hour$70 per labor hour$85 per labor hour

How to prepare with Cost Accounting Mcqs

Work through questions topic by topic, then revisit any you answered incorrectly.
Read explanations carefully—they often cover facts that repeat across PPSC, FPSC, and NTS papers.
Pair subject practice with past papers to see how Cost Accounting Mcqs appears in real exam conditions.

Cost Accounting Mcqs

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Practice questions

1.Which method combines the advantages of normal costing with the use of actual manufacturing overhead?