McqMate
101. |
In marginal costing managerial decisions are guided by…………than by profit |
A. | Marginal cost |
B. | Variable cost |
C. | Incremental cost |
D. | Contribution margin |
Answer» D. Contribution margin |
102. |
There will be…………in marginal costing when there is production but no sales |
A. | Profit |
B. | Loss |
C. | Cost |
D. | Income |
Answer» B. Loss |
103. |
Marginal costing is a technique of |
A. | Cost reduction |
B. | Cost control |
C. | Profit planning |
D. | Profit maximization |
Answer» B. Cost control |
104. |
In differential cost analysis decisions are taken by comparing the………… with differential cost |
A. | Marginal cost |
B. | Marginal revenue |
C. | Incremental revenue |
D. | Either (b) or (c) |
Answer» C. Incremental revenue |
105. |
A………… is useful only when the actual level of activity corresponds to the budgeted level of activity |
A. | Flexible budget |
B. | Master budget |
C. | Fixed budget |
D. | Sales budget |
Answer» C. Fixed budget |
106. |
………… is the act of building budgets |
A. | Budgeting |
B. | Estimating |
C. | Forecasting |
D. | ZBB |
Answer» A. Budgeting |
107. |
Budgeting system……………. key managerial functions |
A. | Co-ordinate |
B. | Integrates |
C. | Controls |
D. | Organize |
Answer» B. Integrates |
108. |
……………. is a budget starts from zero |
A. | ZBB |
B. | PB |
C. | PPB |
D. | All of these |
Answer» A. ZBB |
109. |
……………. is the budget incorporating all the components functional budgets |
A. | Sales budget |
B. | Production budget |
C. | Capital budget |
D. | Master budget |
Answer» D. Master budget |
110. |
……………. is the most important budget |
A. | Master budget |
B. | Cash budget |
C. | Sales budget |
D. | Production budget |
Answer» C. Sales budget |
111. |
……………. forms the basis on which all other budgets are built up |
A. | Master budget |
B. | Cash budget |
C. | Sales budget |
D. | Summary budget |
Answer» C. Sales budget |
112. |
The job costing each job is a ……………. to which all costs are assigned |
A. | Profit unit |
B. | Cost unit |
C. | Expenses |
D. | Variable |
Answer» B. Cost unit |
113. |
Job costing can be used in industries using |
A. | Farm costing |
B. | Multiple costing |
C. | Standard costing |
D. | One-operation costing |
Answer» C. Standard costing |
114. |
The loss incurred on an incomplete contract is transferred to |
A. | Profit and Loss Account |
B. | Contract account |
C. | Work certified |
D. | Work in progress account |
Answer» A. Profit and Loss Account |
115. |
Contract costing is a basic method of |
A. | Specific costing |
B. | Specific order costing |
C. | Economic batch costing |
D. | Economic order costing |
Answer» B. Specific order costing |
116. |
In cost-plus contract, the contractor will get costplus |
A. | Accumulated profit |
B. | Stipulated profit |
C. | Earned profit |
D. | Budgeted profit |
Answer» B. Stipulated profit |
117. |
In marginal costing valuation of stock of work in progress is done on the basis of |
A. | Market cost |
B. | Marginal cost |
C. | Product cost |
D. | Cost price |
Answer» B. Marginal cost |
118. |
In marginal costing selling price is based on |
A. | Contribution |
B. | Marginal cost |
C. | Market cost |
D. | Marginal cost plus contribution |
Answer» D. Marginal cost plus contribution |
119. |
The difference between selling price and marginal cost is |
A. | Profit |
B. | Marginal cost |
C. | Contribution |
D. | Loss |
Answer» C. Contribution |
120. |
Fixed expenses + profit=? |
A. | Contribution |
B. | Marginal cost |
C. | Prime cost |
D. | Variable cost |
Answer» A. Contribution |
121. |
Stock of work in progress and finished goods are valued at marginal costing not include |
A. | Fixed cost |
B. | Semi-fixed |
C. | Semi-variable |
D. | Variable |
Answer» A. Fixed cost |
122. |
In the marginal costing method, the actual amount of fixed overheads is wholly charged to |
A. | Cost sheet |
B. | Profit and loss |
C. | Balance sheet |
D. | Cost account |
Answer» B. Profit and loss |
123. |
……………..is a financial plan |
A. | Budget |
B. | Budgetary control |
C. | P/V ratio |
D. | BEP |
Answer» A. Budget |
124. |
Budget control is exercised by |
A. | Budget officer |
B. | Budget director |
C. | Budget controller |
D. | All the above |
Answer» D. All the above |
125. |
Period for which budget is prepared is called |
A. | Budget period |
B. | Financial period |
C. | Fiscal period |
D. | Accounting period |
Answer» A. Budget period |
126. |
The most important budget having primary importance is called |
A. | Sales budget |
B. | Cash budget |
C. | Master budget |
D. | Fixed budget |
Answer» A. Sales budget |
127. |
……………..is a forecast of the total output of the whole organization |
A. | Sales budget |
B. | Production budget |
C. | Master budget |
D. | Material budget |
Answer» B. Production budget |
128. |
……………..budget provides information about the materials to be acquired from the market |
A. | Material budget |
B. | Production budget |
C. | Cash budget |
D. | Purchase budget |
Answer» D. Purchase budget |
129. |
……………..budget gives different budgeted cost for different levels of activity |
A. | Flexible budget |
B. | Fixed budget |
C. | Master budget |
D. | Production budget |
Answer» A. Flexible budget |
130. |
In contract costing payment of cash to the contractor is made on the basis of |
A. | Estimated work |
B. | Standard work |
C. | Certified work |
D. | Uncertified work |
Answer» C. Certified work |
131. |
In job costing each job is a ……………..to which all cost are assigned |
A. | Profit unit |
B. | Cost unit |
C. | Expenses |
D. | Variable |
Answer» B. Cost unit |
132. |
In contract costing credit is taken only for a part of the profit on |
A. | Incomplete contract |
B. | Complete contract |
C. | Estimated contract |
D. | Initial contract |
Answer» A. Incomplete contract |
133. |
If the contract is almost complete, the amount of profit generally transferred to profit and loss account is equal to |
A. | Estimated profit*(Contract price/Work certified) |
B. | National profit*(Cash Received/Work certified) |
C. | Estimated profit*(Work certified/Contract price) |
D. | Work certified*(Contract price/Estimated price) |
Answer» C. Estimated profit*(Work certified/Contract price) |
134. |
Job costing can be done in conjunction with |
A. | Standard costing |
B. | Process costing |
C. | Multiple costing |
D. | Marginal costing |
Answer» D. Marginal costing |
135. |
In contract costing most of the items of cost are |
A. | Direct |
B. | Indirect |
C. | Variable |
D. | Semivariable |
Answer» A. Direct |
136. |
When the completion stage of a contract is less than ¼ of the total expenditure on the contract is transferred to |
A. | Profit & Loss account |
B. | Work certified account |
C. | Work in progress account |
D. | Contract account |
Answer» C. Work in progress account |
137. |
Contract testing is a basic method of |
A. | Specific costing |
B. | Specific order costing |
C. | Economic batch costing |
D. | Economic order costing |
Answer» B. Specific order costing |
138. |
At break even point, the |
A. | Fixed cost equal to the total sales value |
B. | Variable cost equal to the total sales value |
C. | Total cost equal to the total sales value |
D. | Variable cost equal to fixed cost |
Answer» C. Total cost equal to the total sales value |
139. |
At break even point, the contribution equal to |
A. | Fixed cost |
B. | Variable cost |
C. | Total cost |
D. | Zero |
Answer» A. Fixed cost |
140. |
Break even chart depicts |
A. | Cost volume profit relationship |
B. | Relationship between fixed and variable cost only |
C. | Relationship between price and quantity demanded |
D. | Relationship between price and quantity supplied |
Answer» A. Cost volume profit relationship |
141. |
Period costs means |
A. | Variable cost |
B. | Fixed cost |
C. | Prime cost |
D. | Direct cost |
Answer» B. Fixed cost |
142. |
The valuation of stock, in marginal costing, as compared to absorption costing is |
A. | Higher |
B. | Lower |
C. | Same |
D. | Difficult to say |
Answer» B. Lower |
143. |
Contribution margin is also known as |
A. | Gross profit |
B. | Net profit |
C. | Earning before interest and tax |
D. | Marginal income |
Answer» D. Marginal income |
144. |
Contribution is the difference in |
A. | Sales and fixed cost |
B. | Sales and variable cost |
C. | Sales and total cost |
D. | Variable cost and fixed cost |
Answer» B. Sales and variable cost |
145. |
Contribution is the sum of |
A. | Fixed cost and profit |
B. | Variable cost and profit |
C. | Total cost and profit |
D. | Factory cost and profit |
Answer» A. Fixed cost and profit |
146. |
The angle formed at the intersection of sales line and variable cost line is called |
A. | Angle of incidence |
B. | Acute angle |
C. | Loss area |
D. | Profit area |
Answer» A. Angle of incidence |
147. |
Profit-volume ratio is a relationship between |
A. | Profit earned to sales volume |
B. | Target profit to target sales volume |
C. | Contribution to sales |
D. | All of the above |
Answer» C. Contribution to sales |
148. |
During the boom period, the profits of a firm will increase at a much faster rate whose P/V ratio is, |
A. | Very high |
B. | Moderate |
C. | Low |
D. | Very low |
Answer» A. Very high |
149. |
During the recession period, the profits of a firm will decrease at a much slower rate whose P/V ratio is, |
A. | Very high |
B. | Moderate |
C. | Low |
D. | Very low |
Answer» D. Very low |
150. |
When variable cost per unit increases break even point ………………. |
A. | Increase |
B. | Decreases |
C. | Does not change |
D. | Difficult to say |
Answer» A. Increase |
151. |
A decrease in the variable cost per unit, the profit-volume ratio will |
A. | Increase |
B. | Decreases |
C. | Does not change |
D. | Difficult to say |
Answer» A. Increase |
152. |
When fixed cost decreases, the break even point ………………. |
A. | Increase |
B. | Decreases |
C. | Does not change |
D. | Difficult to say |
Answer» B. Decreases |
153. |
A method of costing which is used to ascertain the cost of products at each stage of it’s manufacture is called |
A. | Job costing |
B. | Batch costing |
C. | Process costing |
D. | None of these |
Answer» C. Process costing |
154. |
The process A/c is debited with |
A. | All expenses and losse |
B. | Material, labour and overheads |
C. | Material and labour only |
D. | Incomes and gains |
Answer» B. Material, labour and overheads |
155. |
The process A/c is credited with |
A. | Value of by-products & scrap |
B. | All expenses and losses |
C. | Material and labour |
D. | Incomes and gains |
Answer» A. Value of by-products & scrap |
156. |
Normal Process Loss is |
A. | Avoidable and controllable |
B. | Unavoidable and expected |
C. | Avoidable and unexpected |
D. | Unavoidable and uncontrollable |
Answer» B. Unavoidable and expected |
157. |
Normal cost of Normal output is equal to |
A. | Total cost-scrap value of normal los |
B. | Total loss-normal loss |
C. | Total input-normal loss |
D. | None |
Answer» A. Total cost-scrap value of normal los |
158. |
The finished product of one process becomes |
A. | Raw material of next proces |
B. | Finished product of next process |
C. | Output of next process |
D. | All of the above |
Answer» A. Raw material of next proces |
159. |
Units of abnormal gain………………..in process A/c and ……………in abnormal gain A/c |
A. | Credited, Debited |
B. | Debited, Debited |
C. | Debited, Credited |
D. | Credited, Credited |
Answer» C. Debited, Credited |
160. |
Units of abnormal loss is………………..in abnormal process A/c and ……………in process A/c |
A. | Debited, Credited |
B. | Credited, Debited |
C. | Debited, Debited |
D. | Credited, Credited |
Answer» B. Credited, Debited |
161. |
If abnormal loss has any scrap value , it should be credited to |
A. | Abnormal los |
B. | Profit & Loss A/c |
C. | Process A/c |
D. | None |
Answer» A. Abnormal los |
162. |
Any loss over and above the normal loss is called |
A. | Waste |
B. | Abnormal loss |
C. | Spoilage |
D. | Scrap |
Answer» C. Spoilage |
163. |
……………..is a method of costing in which cost are collected and accumulated for each job order |
A. | Batch costing |
B. | Job costing |
C. | Process costing |
D. | Contract costing |
Answer» B. Job costing |
164. |
Production order costing is also known as |
A. | Job costing |
B. | Lot costing |
C. | Both a and b |
D. | None of the above |
Answer» C. Both a and b |
165. |
Under job costing, on what basis production is performed? |
A. | Customers taste and preference |
B. | Customers income |
C. | Customers order and specifications |
D. | Both a and b |
Answer» C. Customers order and specifications |
166. |
The limitations of job costing are ; |
A. | Expensive |
B. | More clerical work |
C. | Historical nature |
D. | All of them |
Answer» D. All of them |
167. |
How many steps are there in job costing procedure? |
A. | 5 |
B. | 4 |
C. | 6 |
D. | 8 |
Answer» A. 5 |
168. |
………………..is a modified form of job costing |
A. | Process costing |
B. | Batch costing |
C. | Contract costing |
D. | Work costing |
Answer» B. Batch costing |
169. |
Select suitable examples for batch costing |
A. | Radio set |
B. | Component part of watches |
C. | Toy making unit |
D. | All of them |
Answer» D. All of them |
170. |
EBQ stands for |
A. | Economic Order Quantity |
B. | Economic Batch Order |
C. | Economic Batch Quantity |
D. | Economic Batch Quality |
Answer» C. Economic Batch Quantity |
171. |
EBQ = |
A. | 2CO/l |
C. | 2DS/IC |
Answer» C. 2DS/IC |
172. |
What is the purpose of calculating EBQ ? |
A. | To reduce cost |
B. | Optimum production |
C. | Identify ideal or economic batch |
D. | None of the above |
Answer» C. Identify ideal or economic batch |
173. |
In which type of contract, the contractee agrees to pay the cost of work done plus a percentage of overhead and profit |
A. | Fixed price contract |
B. | Cost plus contract |
C. | Fixed price contract with exclalation or de-exclalation |
D. | Completed contract |
Answer» B. Cost plus contract |
174. |
Contract account is a form of …………………. |
A. | Nominal account |
B. | Real account |
C. | Personal account |
D. | Statement |
Answer» A. Nominal account |
175. |
The portion of value of work that has been done by the contractor and architect or supervisor of the contractee certified that work is ……….. |
A. | Work uncertified |
B. | Contract price |
C. | Work certified |
D. | Retention money |
Answer» C. Work certified |
176. |
The cost of work that has been done by the contractor on the closing date of account, but has not reach stipulated stages to qualify certification of architect of contractee |
A. | Work certified |
B. | Work uncertified |
C. | Contract price |
D. | None of these |
Answer» B. Work uncertified |
177. |
Retention money is retained by whom …………………. |
A. | Contractor |
B. | Contractee |
C. | Both a and b |
D. | None of these |
Answer» B. Contractee |
178. |
If the value of work certified less than 25% of contract price,profit to be credited to P&L is |
A. | No profit is credited to P & L a/c |
B. | 1/3 of national profit credited to P & L a/c |
C. | 2/3 of national profit credited to P & L a/c |
D. | None of these |
Answer» A. No profit is credited to P & L a/c |
179. |
In which situation, 2/3 of national profit credited to P & L a/c |
A. | If the value of work certified equal to or more than 90% of the contract price |
B. | If the value of work certified less than 25% of the contract price |
C. | Both a and b |
D. | If the value of work certified equal to or more than 50% but less than 90% of the contract price |
Answer» D. If the value of work certified equal to or more than 50% but less than 90% of the contract price |
180. |
If the value of work certified equal to or more than 90% of contract price, profit to be credited is………………. |
A. | 2/3 * National profit * (Cash received/Work certified) |
B. | No profit credited to P&L a/c |
C. | Estimated profit on completion*(Work certified/Contract price) |
D. | 1/3 * National profit * (Cash received/Work certified) |
Answer» C. Estimated profit on completion*(Work certified/Contract price) |
181. |
Example for cost plus contract |
A. | Construction work in war |
B. | Manufacture of ship in special type or design |
C. | Construction of fish tank |
D. | Both a and b |
Answer» D. Both a and b |
182. |
The expenses incurred in extra work is |
A. | Debited in contract amount |
B. | Credited in contract amount |
C. | Not shown in contract amount |
D. | None of the above |
Answer» A. Debited in contract amount |
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