Administrator, Author at GetMCQs

2706. Quantitative expression, of action plan by management of firm for a specified period of time is classified as

complexity

process

budget

batching

✅ The correct answer is C.
Quantitative expression, of action plan by management of firm for a specified period of time is classified as budget. A budget is an estimation of revenue and expenses over a specified future period of time and is utilized by governments, businesses, and individuals.

2707. Costs of goods acquired from suppliers is classified as

stock-out costs

ordering costs

carrying costs

purchasing costs

✅ The correct answer is D.
Costs of goods acquired from suppliers is classified as purchasing costs. It is important when you decide to buy a home that you have a full understanding of the costs associated with your purchase.

2708. Better administration of budget in budgeting plans require

intelligent interpretations

participation

persuasion

all of above

✅ The correct answer is D.
Better administration of budget in budgeting plans require intelligent interpretations, participation and persuasion.

2710. In activity based costing system, description of activity can be classified as

activity list

activity dictionary

active purpose

both a and b

✅ The correct answer is D.
In activity based costing system, description of activity can be classified as activity list and activity dictionary.

2712. Rate of return which considers riskiness and an available returns on investments is classified as

constant dividend

constant rate

maximum rate of return

minimum acceptable rate of return

✅ The correct answer is D.
Rate of return which considers riskiness and an available returns on investments is classified as minimum acceptable rate of return. A minimum acceptable rate of return (MARR) is the minimum profit an investor expects to make from an investment, taking into account the risks of the investment and the opportunity cost of undertaking it instead of other investments.

2714. If budgeted total direct labour hours are 3800 and budgeted direct labour cost is $480000, then budgeted direct labour cost rate will be

$126.32 per labour hour

$128.32 per labour hour

$130 per labour hour

$132 per labour hour

✅ The correct answer is A.
Budgeted direct labour cost rate = Budgeted direct labour cost ÷ Budgeted total direct labour hours
= $480000 ÷ 3800 = $126.32 per labour hour

250. How trial balance shows the accumulated depreciation?

as a debit item

as a credit item

It doesn’t show

Answer: Option B

✅ The correct answer is B.
Trial balance shows the accumulated depreciation as a credit item. Accumulated depreciation has a credit balance, because it aggregates the amount of depreciation expense charged against a fixed asset.

2699. In a normal accounting period, allocated amount of indirect cost is $2000 and actual amount is $2200, then this is classified as

over allocated budget

under allocated budget

under allocated indirect cost

over allocated direct cost

✅ The correct answer is A.
In a normal accounting period, allocated amount of indirect cost is $2000 and actual amount is $2200, then this is classified as over allocated budget because allocated amount is less than actual amount.

2700. State which of the following assets is beyond the scope of the creditors.

Ramakant’s indebtedness after his demise can lead to the creditors taking away his property

Ramakant’s bank accounts can be attached to clear off his debts

Mutual funds proceeds can be attached by the creditors

Term policy proceeds under MWP Act

✅ The correct answer is D.
Term policy proceeds under MWP Act is beyond the scope of the creditors. If the Insurance policy was purchased under MWP Act, creditors cannot claim any amount from the policy proceeds and thus the claimed amount becomes available to the nominees.

2701. Trading procedures dimensions include

location dimension

method of matching orders

price dimension

Both A and B

✅ The correct answer is D.
Trading procedures dimensions include location dimension and method of matching orders. Trading process consists of two major steps Order openingand Order closing.

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