Author name: Administrator

2011. An approach which yields benefits of normal costing and actual manufacturing overhead is classified as

unadjusted allocation rate approach
adjusted budget rate approach
unadjusted budget rate approach
adjusted allocation rate approach
✅ The correct answer is D.
An approach which yields benefits of normal costing and actual manufacturing overhead is classified as adjusted allocation rate approach. The adjusted allocation-rate approach restates or corrects estimated overhead costs booked throughout the year, so that the actual overhead costs are recorded properly.

2013. An estimation by marginal investor, a higher expected return is earned on

more risky securities
less risky securities
less premium
high premium
✅ The correct answer is A.
An estimation by marginal investor, a higher expected return is earned on more risky securities. The marginal investor in a firm is the investor who is most likely to be trading at the margin and therefore has the most influence on the pricing of its equity.

1999. Absorption means ________.

charging overheads to cost centres
charging of overheads to cost units
charging of overheads to cost centres or cost units
allotment of overheads to different departments
✅ The correct answer is B.
Absorption means charging of overheads to cost units. It means costs is absorbed by the production (or product units )during the period or charging each unit of a product with an equitable share of overhead expenses.

188. Which of the following is a selling expense?

Any tax/freight is paid on purchases
General salaries paid to laborers
Tax & freight paid on sale
Interest on deposits
✅ The correct answer is C.
Tax & freight paid on sale is a selling expense. Selling expense (or sales expense) includes any costs incurred by the sales department.

1987. Markets where assets are bought or sold within a few days or at some future dates are classified as

spot markets
future markets
Both A and B
financial instruments
✅ The correct answer is C.
Markets where assets are bought or sold within a few days or at some future dates are classified as spot markets and future markets. The spot market is where financial instruments, such as commodities, currencies and securities, are traded for immediate delivery. Delivery is the exchange of cash for the financial instrument. A futures contract, on the other hand, is based on the delivery of the underlying asset at a future date.

1989. Political stability is the major factor concerning_______________.

exchange risk
systematic risk
non-systematic risk
country risk
✅ The correct answer is D.
Political stability is the major factor concerning country risk. Political stability in this case refers to the lack of real competition for the governing elite. The ‘politically stable’ system enforces stringent barriers to personal freedoms.
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