Sample Multiple Choice Questions (MCQ's) for CA Intermediate - Paper 1 - COST AND MANAGEMENT ACCOUNTING Chapter 4: OVERHEADS- ABSORPTION COSTING METHOD - For Practice relevant for May/November 23 Examinations


Q1. “Fixed overhead costs are not affected in monetary terms during a given period by a change in output”. But this statement holds good provided:

  1. Increase in output is not substantial
  2. Increase in output is substantial
  3. Both (a) and (b)
  4. None of the above

Answer: 1

Q2. _________ capacity is defined as actually utilised capacity of a plant.

  1. Theoretical
  2. Installed
  3. Practical
  4. Normal 

Answer: 3

Q3. The allotment of whole items of cost to cost centres or cost units is called:

  1. Overhead absorption
  2. Cost apportionment
  3. Cost allocation
  4. None of the above

Answer: 3

Q4. Primary packing cost is a part of

  1. Direct material cost
  2. Production Cost
  3. Selling overheads
  4. Distribution overheads

Answer: 2

Q5. Director’s remuneration and expenses form part of

  1. Production overhead
  2. Administration overhead
  3. Selling overhead
  4. Distribution overhead

Answer: 2

Q6. Bad debt is an example of: 

  1. Distribution overhead
  2. Production overhead
  3. Selling overhead
  4. Administration overhead

Answer: 3


CA Intermediate COSTING - MCQ for Chapter 5 -   

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