Correct Answer:
A. A factor that causes the cost of an activity to change
Examples include number of set-ups, machine hours and number of orders.
November 13, 2026 · Accounting and Finance MCQs, Cost & Management Accounting MCQs
A cost driver is:
Related MCQs
Budgeted overhead is Rs. 240,000 and budgeted direct labor hours are 12,000. The predetermined overhead rate is:
A.
Rs. 20 per direct labor hour
B.
Rs. 2,880,000 per hour
C.
Rs. 50 per direct labor hour
D.
Rs. 0.05 per direct labor hour
Correct answer is:
A. Rs. 20 per direct labor hour
Do you agree with this answer?
Repayment of a long-term bank loan is classified as a cash flow from:
A.
Operating activities
B.
Investing activities
C.
Non-cash activities
D.
Financing activities
Correct answer is:
D. Financing activities
Do you agree with this answer?
Which of the following is an example of a public sector fraud risk indicator?
A.
Payments approved with full documentation
B.
Competitive bidding with several bidders
C.
Payments split into smaller amounts to avoid approval limits
D.
Regular stock verification
Correct answer is:
C. Payments split into smaller amounts to avoid approval limits
Do you agree with this answer?
Annual demand is 3,600 units, ordering cost is Rs. 100 per order and holding cost is Rs. 8 per unit per year. The EOQ is:
A.
300 units
B.
600 units
C.
450 units
D.
90 units
Correct answer is:
A. 300 units
Do you agree with this answer?
A budget deficit occurs when:
A.
Government expenditure exceeds government revenue
B.
Government revenue exceeds expenditure
C.
Revenue equals expenditure
D.
Public debt is zero
Correct answer is:
A. Government expenditure exceeds government revenue
Do you agree with this answer?
Relevant costs are costs that:
A.
Have already been paid
B.
Are the same under all alternatives
C.
Include all allocated overheads
D.
Are future costs and differ between alternatives
Correct answer is:
D. Are future costs and differ between alternatives
Do you agree with this answer?
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