B.COM AFM-1 (Departmental Accounts) MCQ's




Question 31 :
Cost of H.R. Department is allocated on the basis of _____ _____ _____ .

  1. Area of each Department
  2. Sale of each Department
  3. number of workers
  4. None of the above
  

Question 32 :
Depreciation is allocated on the basis of value of assets.

  1. TRUE
  2. FALSE
  

Question 33 :
Following is allocated in the ratio of number of employees

  1. Welfare expenses
  2. Rent
  3. Carriage
  4. Advertising
  

Question 34 :
Freight inward is allocated on the basis of purchases.

  1. TRUE
  2. FALSE
  

Question 35 :
Depreciation is allocated on the basis of

  1. Value of Assets
  2. Area
  3. Light points
  4. No of workers
  

Question 36 :
Bad debts are charged to General Profit - Loss Account.

  1. TRUE
  2. FALSE
  

Question 37 :
Departmental Trading A/c is prepared to meet the requirement of law.

  1. TRUE
  2. FALSE
  

Question 38 :
Contribution to P.F. is allocated on the basis of number of employees in each department.

  1. TRUE
  2. FALSE
  

Question 39 :
Lighting charges are allocated on the basis of H.P. of machines in each department.

  1. TRUE
  2. FALSE
  

Question 40 :
Cost of insurance is allocated on the basis of purchases of each department.

  1. TRUE
  2. FALSE
  

Question 41 :
All expenses are allocated among the departments on the basis of turnover.

  1. TRUE
  2. FALSE
  

Question 42 :
Rent and rates are apportioned to different departments on the basis of :

  1. Area
  2. Number of employees
  3. Sales of each department
  4. None of the above
  

Question 43 :
Depreciation on machinery is allocated on the basis of value of machinery in each department.

  1. TRUE
  2. FALSE
  

Question 44 :
Non departmental items of expenses are –

  1. Charged to general P - L A/c
  2. Charged to departments on the basis of sales
  3. Charged to departments on the basis of fixed assets
  4. None of the above
  

Question 45 :
Following is debited to general P - L A/c

  1. Power
  2. Rent
  3. Audit fees
  4. None of the above
  

Question 46 :
Cost of Stores Department is allocated on the basis of purchases of each department.

  1. TRUE
  2. FALSE
  

Question 47 :
Supervision charges should be apportioned over the different departments on the basis of :

  1. Time devoted for supervision
  2. Area occupied by each department
  3. Sales of each department
  4. None of the above
  

Question 48 :
Direct expenses are traceable with the departments.

  1. TRUE
  2. FALSE
  

Question 49 :
Management expenses are charged to General Profit - Loss Account.

  1. TRUE
  2. FALSE
  

Question 50 :
Power is allocated on the basis of

  1. H.P
  2. No of light points
  3. Area
  4. No of employees
  

Question 51 :
Factory expenses are allocated on the basis of material purchased.

  1. TRUE
  2. FALSE
  

Question 52 :
Cost of electric power should be apportioned over different departments according to :

  1. H.P. of motors
  2. No. of light points
  3. Cost of machines
  4. None of the above
  

Question 53 :
Following is not debited to Departmental P - L A/c

  1. Rent
  2. Salaries
  3. Lighting charges
  4. Carriage on purchases
  

Question 54 :
Staff welfare expenses are allocated on the basis of _____ _____ _____ of departments.

  1. Sale of each Department
  2. Area of each Department
  3. number of workers
  4. None of the above
  

Question 55 :
Items of expenses not connected with any department are :

  1. Charged to departments on the basis of total sales
  2. Charged to the General Profit - Loss Account
  3. Charged to departments on the basis of fixed assets employed
  4. None of the above
  

Question 56 :
Sales of each department is the basis of allocation of :

  1. Selling Expenses
  2. Advertising Expenses
  3. (a) and (b)
  4. None of the above
  

Question 57 :
Expenses traceable with the departments are called _____.

  1. Direct Income
  2. Welfare Expenses
  3. Direct Expenses
  4. None of the above
  

Question 58 :
Departmental reports evaluate the performance of departmental managers.

  1. TRUE
  2. FALSE
  

Question 59 :
Following items are used to calculate departmental profit except

  1. Debtors
  2. Sales
  3. Purchases
  4. Sales return
  

Question 60 :
Loss by fire in a department is treated as expenditure of that department.

  1. TRUE
  2. FALSE
  
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