Factory Overhead MCQs


MCQs 1-10

1. Which of the following would be classified as direct material for a furniture manufacturer?

2. Which of the following is not classified as a factory overhead cost?

3. The process of assigning share of indirect costs to cost centers is called?

4. Where there is mass production of homogeneous units or where few products are produced in batches, which of the following cost driver would be regarded as best base for the determination of Factory overhead absorption rate?

5. It is possible for an item of overhead expenses to be shared amongst many departments. It is also possible that this same item may relate to just one specific department. If the item was charged specifically to a single department this would be an example of?

6. The predetermined overhead rate is calculated as?

7. Which of the following items would not be classified as direct material for an automobile manufacturer?

8. The cost objective is the?

9. When too much overhead cost is charged to products as they are made, the result is?

10. Absorption costing is closely related to which of the following cost elements?


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