Overhead absorption rate is calculated as: MCQ with Answer and Explanation

Question

Share Report Error

Overhead absorption rate is calculated as:

A. None

B. Actual overheads / Actual base

C. Budgeted overheads / Budgeted base

D. Budgeted overheads / Actual base

Answer: Option C

Solution (By JKSSB Mock Tests)

Overhead absorption rate is usually predetermined based on budgeted figures to absorb overheads into products.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Accountancy and Book Keeping Questions

Question #1

Which of the following is an example of a personal account?

A. Salary Account

B. Capital Account

C. Building Account

D. Ramesh's Account

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option D

Explanation:
Ramesh's Account represents a specific person, making it a personal account. The rule is 'Debit the receiver, credit the giver'.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2

In the Trading Account, 'Wages' paid for production are:

A. Credited

B. Not included

C. Shown as liability

D. Debited

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option D

Explanation:
Wages are direct expenses, debited to Trading Account.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #3

What is the primary benefit of Just-in-Time (JIT) funding under the PFMS framework?

A. Eliminates state governments from the process

B. Slows down project implementation

C. Increases bank interest for agencies

D. Reduces the borrowing cost of the Central Government by preventing unspent balances

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option D

Explanation:
JIT ensures funds are released only when actually needed for expenditure, minimizing the government's borrowing costs on idle parked funds.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Explore All Accountancy and Book Keeping MCQs