Applied Cost Accounting solved MCQs

1 of 8

1. In job costing each ………. Is a cost unit to which all costs are assigned

a. Jobb

B. profit

c. Batch

d. cost

2. In a contract costing most of the items of cost are ……………..

a. Indirect

B. direct

c. normal

d. fixed

3. ……………. In a contract , provides that the contract price would be suitably enhanced on the happening of a specified contingency

a. Cost plus contract

B. estimated profit

c. Escalation\ clause

d. EBQ

4. The loss incurred on an incomplete contract is transferred to ……… account

a. Profit & loss a/c

B. work in progress

c. depreciation

d. Machinery

5. When the completion stage of the contract is more than half, the profit tobe credited to P/L a/c will be equal to ………………..

a. 2/3 *notional profit *CR/WC

B. Estimated profit *W.C/contract price

c. 1/3 * N.P * CR/W.C

d. Total profit

6. In …………….. contract the contractor will get cost plus stipulated profit

a. Sub contract

B. cost plus contract

c. job

d. direct

7. Scope of specific order costing is very wide and includes ……. ,………,………….

a. Job, Batch and contract costing

B. Process , Contract and unit costing

c. Batch , Job and process costing

d. Unit , service and transport costing

8. ………… is an important point to be determined in industries where batchcosting is employed

a. EBQ

B. EOQ

c. Re – order quantity

d. Batch

9. When a contract is debited with the original cost of the plant , it shouldcredited with ………… at the end of the year

a. Original cost of the plant

B. Depreciated value of the stock

c. Profit

d. Estimated cost

10. When the competition stage of a contract is less than ¼ , the totalexpenditure on the contract is transferred to ………… account

a. Work in progres

B. P/L a/c

c. Estimated profit

d. Notional profit

11. If the contract is almost complete , the amount of profit generallytransferred to profit and loss account is equal to

a. Estimated profit * work certified/ contract price

B. Estimated profit * contract price / work certified

c. Notional profit * C.R/ W.C

d. Notional profit W.C/ C.R

12. In a contract costing payment of cash to the contract is made on the basisof …………………………. Work

a. Certified

B. profit and loss a/c

c. contract price

d. cost

13. Job costing is applied only in …………………. Concern

a. Small

B. large

c. medium

d. None of these

14. Contract costing is a basic method of …………….. costing

a. Specific order costing

B. batch costing

c. process costing

d. Unit costing

15. In job costing the production is generally against customers…………………. but not for stock

a. Order

B. profit

c. cash in hand

d. none of these

16. The method of costing applied in biscuit industries is …………………….

a. Jo

B. process

c. contract

d. unit

17. Average unit cost for each process is calculated by dividing ……………..by…………….

a. Total process cost / No.of units in process

B. Total process cost / Total cost

c. Total cost / Total profit

d. None of these

18. Where raw material is to pass certain stages before it is converted into finished goods, the method of costing used is ……………………

a. Contract

B. Process

c. unit

d. Batch

19. When the actual loss is more than the estimated loss, the difference between the two is considered to be ,………………….

a. Abnormal gain

B. Abnormal loss

c. Normal loss

d. Normal gain

20. ……………….. process loss should be transferred to costing profit and lossaccount

a. Normal

B. abnormal

c. actual

d. none of these

21. The cost of ……….. process loss is absorbed in the cost of production ofgood units

a. Normal

B. abnormal

c. actual

d. none of these

22. Where actual loss in a process is less than the anticipated loss , thedifference b/w the two is considered to be …………..

a. Normal los

B. Abnormal gain

c. normal gain

d. None of

23. ……… is the difference b/w the sales and marginal cost of sale

a. Profit

B. contribution

c. p/v ratio

d. none f these

24. Cost of producing an additional unit of output is ……………

a. Historical cost

B. marginal cost

c. fixed cost

d. total cost

25. A cost do not change with changes in the level of activity is ………….

a. Variable cost

B. fixed cost

c. sunk cost

d. total cost

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