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B Com Exam  >  B Com Test  >  Cost Accounting  >  Test: Overheads- 1 - B Com MCQ

Overheads- 1 - Free MCQ Practice Test with solutions, B Com Cost Accounting


MCQ Practice Test & Solutions: Test: Overheads- 1 (10 Questions)

You can prepare effectively for B Com Cost Accounting with this dedicated MCQ Practice Test (available with solutions) on the important topic of "Test: Overheads- 1". These 10 questions have been designed by the experts with the latest curriculum of B Com 2026, to help you master the concept.

Test Highlights:

  • - Format: Multiple Choice Questions (MCQ)
  • - Duration: 15 minutes
  • - Number of Questions: 10

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Test: Overheads- 1 - Question 1
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What is the purpose of departmentalisation of overheads?

Detailed Solution: Question 1

The departmentalisation of overheads serves multiple purposes. It helps in segregating factory overhead costs, which allows for better cost control. It also aids in computing the cost of different jobs or products that pass through the various departments. Therefore, the correct answer is option D, all of the above.

Test: Overheads- 1 - Question 2
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Which type of department is directly involved in the production of goods?

Detailed Solution: Question 2

Producing or manufacturing departments are directly involved in the production of goods. They are responsible for the manual/machine operations and other processes involved in the production of articles or commodities. Therefore, the correct answer is option A.

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Test: Overheads- 1 - Question 3
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What is the basis for apportioning overhead expenses among production and service departments?

Detailed Solution: Question 3

The basis for apportioning overhead expenses among production and service departments can vary. It can be based on factors such as floor area, the number of employees or wages of each department, and capital values. Therefore, the correct answer is option D, all of the above.

Test: Overheads- 1 - Question 4
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What is the process of redistributing the cost of service departments among production departments called?

Detailed Solution: Question 4

The process of redistributing the cost of service departments among production departments is called secondary distribution. This step follows the primary distribution, where overhead expenses are allocated or apportioned to all departments. Therefore, the correct answer is option B.

Test: Overheads- 1 - Question 5
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Which method of secondary distribution considers the extent of service received by each production department?

Detailed Solution: Question 5

The service or use method of secondary distribution considers the extent of service received by each production department. The greater the amount of service received by a production department, the greater its share of the apportioned overhead expenses. This method aims to distribute expenses equitably based on the extent of benefit received. Therefore, the correct answer is option A.

Test: Overheads- 1 - Question 6
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What is the advantage of using pre-determined overhead rates for absorption?

Detailed Solution: Question 6

Pre-determined overhead rates offer several advantages for absorption. They allow for the immediate determination of product costs once production is completed. The data required for calculating these rates is readily available in a budgetary control system. Additionally, pre-determined rates are useful in cost estimating and competitive pricing situations. Therefore, the correct answer is option D, all of the above.

Test: Overheads- 1 - Question 7
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What is the process of charging overheads to individual products or jobs called?

Detailed Solution: Question 7

The process of charging overheads to individual products or jobs is called absorption. This involves applying overhead absorption rates to allocate the overhead expenses of a cost centre to the products or jobs that pass through it. Therefore, the correct answer is option C.

Test: Overheads- 1 - Question 8
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What is the purpose of using multiple overhead rates?

Detailed Solution: Question 8

Multiple overhead rates serve multiple purposes. They can be used to differentiate between fixed and variable overheads, allocate costs to different cost centres, and calculate overhead absorption rates for each product or product line. Therefore, the correct answer is option D, all of the above.

Test: Overheads- 1 - Question 9
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Which method of re-distribution considers interdepartmental services in distributing the expenses of service departments?

Detailed Solution: Question 9

The reciprocal service method of re-distribution considers interdepartmental services in distributing the expenses of service departments. This method acknowledges that service departments may render services to each other and accounts for these interdepartmental services in the distribution. Therefore, the correct answer is option C.

Test: Overheads- 1 - Question 10
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When is a blanket overhead rate used?

Detailed Solution: Question 10

A blanket overhead rate is used when only one major product is being produced continuously. In such cases, there is no need for differentiation between products or departments, and a single rate can be applied to the entire factory. Therefore, the correct answer is option B.

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About this B Com Practice Test

This test contains 10 MCQs on Overheads- 1 with detailed solutions for each question. It is part of the Cost Accounting course on EduRev, designed to align with the current B Com syllabus. Each solution explains not just the correct answer but also gives you an understanding of the topic — not just to attempt the question but also help you prepare for the exam with practice.

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If you found this Overheads- 1 MCQ Test helpful, you can further enhance your B Com preparation with in-depth courses on EduRev, for all the subjects and topics available in Cost Accounting course. The course offers:
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