McqMate
1. |
In job costing each ………. Is a cost unit to which all costs are assigned |
A. | Jobb |
B. | profit |
C. | Batch |
D. | cost |
Answer» A. Jobb |
2. |
In a contract costing most of the items of cost are …………….. |
A. | Indirect |
B. | direct |
C. | normal |
D. | fixed |
Answer» B. direct |
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 |
Answer» C. Escalation\ clause |
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 |
Answer» A. Profit & loss a/c |
5. |
When the completion stage of the contract is more than half, the profit to be 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 |
Answer» A. 2/3 *notional profit *CR/WC |
6. |
In …………….. contract the contractor will get cost plus stipulated profit |
A. | Sub contract |
B. | cost plus contract |
C. | job |
D. | direct |
Answer» B. cost plus contract |
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 |
Answer» A. Job, Batch and contract costing |
8. |
………… is an important point to be determined in industries where batch costing is employed |
A. | EBQ |
B. | EOQ |
C. | Re – order quantity |
D. | Batch |
Answer» A. EBQ |
9. |
When a contract is debited with the original cost of the plant , it should credited with ………… at the end of the year |
A. | Original cost of the plant |
B. | Depreciated value of the stock |
C. | Profit |
D. | Estimated cost |
Answer» B. Depreciated value of the stock |
10. |
When the competition stage of a contract is less than ¼ , the total expenditure on the contract is transferred to ………… account |
A. | Work in progres |
B. | P/L a/c |
C. | Estimated profit |
D. | Notional profit |
Answer» A. Work in progres |
11. |
If the contract is almost complete , the amount of profit generally transferred 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 |
Answer» A. Estimated profit * work certified/ contract price |
12. |
In a contract costing payment of cash to the contract is made on the basis of …………………………. Work |
A. | Certified |
B. | profit and loss a/c |
C. | contract price |
D. | cost |
Answer» A. Certified |
13. |
Job costing is applied only in …………………. Concern |
A. | Small |
B. | large |
C. | medium |
D. | None of these |
Answer» A. Small |
14. |
Contract costing is a basic method of …………….. costing |
A. | Specific order costing |
B. | batch costing |
C. | process costing |
D. | Unit costing |
Answer» A. Specific order 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 |
Answer» A. Order |
16. |
The method of costing applied in biscuit industries is ……………………. |
A. | Jo |
B. | process |
C. | contract |
D. | unit |
Answer» A. Jo |
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 |
Answer» A. Total process cost / No.of units in process |
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 |
Answer» B. Process |
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 |
Answer» B. Abnormal loss |
20. |
……………….. process loss should be transferred to costing profit and loss account |
A. | Normal |
B. | abnormal |
C. | actual |
D. | none of these |
Answer» B. abnormal |
21. |
The cost of ……….. process loss is absorbed in the cost of production of good units |
A. | Normal |
B. | abnormal |
C. | actual |
D. | none of these |
Answer» A. Normal |
22. |
Where actual loss in a process is less than the anticipated loss , the difference b/w the two is considered to be ………….. |
A. | Normal los |
B. | Abnormal gain |
C. | normal gain |
D. | None of |
Answer» B. Abnormal gain |
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 |
Answer» B. contribution |
24. |
Cost of producing an additional unit of output is …………… |
A. | Historical cost |
B. | marginal cost |
C. | fixed cost |
D. | total cost |
Answer» B. marginal 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 |
Answer» B. fixed cost |
26. |
A cost both containing both fixed and variable elements ……………….. |
A. | Variable cost |
B. | fixed cost |
C. | total cost |
D. | semi variable cost |
Answer» C. total cost |
27. |
The excess of sales over variable cost is known as ……………… |
A. | profit |
B. | loss |
C. | contribution |
D. | margin |
Answer» C. contribution |
28. |
Establishes the relationship between cost , volume of sales and profit is ….. |
A. | Marginal costing |
B. | standard costing |
C. | budgeting |
D. | Cost volume profit analysis |
Answer» D. Cost volume profit analysis |
29. |
A point at which there is neither profit nor loss ……………… |
A. | No profit no loss point |
B. | Break even point |
C. | Margin of safety |
D. | contribution |
Answer» B. Break even point |
30. |
Excess of sales over break even sales is known as ………………….. |
A. | No profit no loss point |
B. | Breakeven point |
C. | Margin of safety |
D. | contribution |
Answer» C. Margin of safety |
31. |
The angle formed at the point of incidence of sales line to total cost……. |
A. | Angle of incidence |
B. | break even point |
C. | Fixed cost |
D. | total cost |
Answer» A. Angle of incidence |
32. |
A factor that restrict the activities of a concern …………….. |
A. | Contribution factor |
B. | break even point |
C. | Key factor |
D. | margin of safety |
Answer» C. Key factor |
33. |
…….. is method of cost volume profit analysis |
A. | Budgeting |
B. | budgetary control |
C. | Standard costing |
D. | break even analysis |
Answer» D. break even analysis |
34. |
The additional cost of producing an additional unit is called ………. |
A. | Fixed cost |
B. | marginal cost |
C. | Semi variable |
D. | none of these |
Answer» B. marginal cost |
35. |
Variable cost can also be called as ………………………… |
A. | Semi variable |
B. | marginal cost |
C. | Standard costing |
D. | fixed cost |
Answer» B. marginal cost |
36. |
Break even units can also be called as ……………………… |
A. | Break even output |
B. | break even sales |
C. | Margin of safety |
D. | contribution |
Answer» A. Break even output |
37. |
Sales – variable cost = …………………………………….. |
A. | Marginal cost |
B. | fixed cost |
C. | Budget cost |
D. | contribution |
Answer» D. contribution |
38. |
Excess of actual sales over break even sales is ………………… |
A. | Break even unit |
B. | angle of incidence |
C. | Margin of safety |
D. | contribution |
Answer» C. Margin of safety |
39. |
The angle formed were the total cost line under sects the sale line is |
A. | Angle of incidence |
B. | margin of safety |
C. | Breakeven point |
D. | contribution |
Answer» A. Angle of incidence |
40. |
The cost which varies proportionate to increase in production is …….. cost |
A. | Fixed |
B. | variable cost |
C. | Semi variable cost |
D. | break even cost |
Answer» B. variable cost |
41. |
The cost which remains constant with change in level of activities is called |
A. | Variable cost |
B. | marginal cost |
C. | Standard cost |
D. | fixed cost |
Answer» D. fixed cost |
42. |
……………….. is an angle formed in break even chart |
A. | Margin of safety |
B. | angle of incidence |
C. | Contribution |
D. | Break even point |
Answer» B. angle of incidence |
43. |
…………… is a graphical representation of marginal costing |
A. | Break even chart |
B. | angle of incidence |
C. | Margin of safety |
D. | none of these |
Answer» A. Break even chart |
44. |
Contract price is fixed in advance |
A. | Cost plus contract |
B. | Target costing |
C. | Fixed price contract |
D. | Fluctuating contract |
Answer» C. Fixed price contract |
45. |
Contract price is the cost of work done plus a percentage |
A. | Cost plus contract |
B. | target costing |
C. | Fixed price contract |
D. | fluctuating contract |
Answer» A. Cost plus contract |
46. |
Value of work done to the satisfaction of contractee |
A. | Work certified |
B. | Work un certified |
C. | Fixed price contract |
D. | fluctuating contract |
Answer» B. Work un certified |
47. |
A portion of work certified retained by contractee is known |
A. | Retention money |
B. | advance |
C. | Fixed price contract |
D. | fluctuating contract |
Answer» A. Retention money |
48. |
Profit on incomplete contract is known as ,……….. |
A. | P/L a/c |
B. | notional profit |
C. | Net profit |
D. | completed contract |
Answer» B. notional profit |
49. |
Work in the process of completion |
A. | Work in progres |
B. | notional profit |
C. | Net profit |
D. | completed contract |
Answer» A. Work in progres |
50. |
A portion of main contract entrusted to some one else |
A. | Extra work |
B. | Sub work |
C. | Work in progress |
D. | Sub contract |
Answer» D. Sub contract |
51. |
Provision for increase in the contract price to accommodate increase in material and labour cost |
A. | De escalation clause |
B. | fluctuating price |
C. | Fixed price |
D. | Escalation price |
Answer» D. Escalation price |
52. |
A contract in which the contractor is given the lost of work done plus a certain percentage for profit is called ……………………. |
A. | Cost plus contract |
B. | Sub contract |
C. | Fixed price contract |
D. | none of these |
Answer» A. Cost plus contract |
53. |
The person who gives the work on contract is known as …… |
A. | Contractor |
B. | contractee |
C. | Sub contraction |
D. | sub contractee |
Answer» B. contractee |
54. |
……….. is the portion of work certified not paid by the contractee till completion of the work |
A. | Work certified |
B. | Uncertified |
C. | Retention money |
D. | notional profit |
Answer» C. Retention money |
55. |
The work in the process of completion is known as ……………. |
A. | Work certified |
B. | work in progress |
C. | Work un certified |
D. | notional profit |
Answer» B. work in progress |
56. |
…………….. is the provision to increase the contract price increase in the Cost of construction over a particular level |
A. | Escalation clause |
B. | Desecration clause |
C. | Retention money |
D. | work certified |
Answer» A. Escalation clause |
57. |
Estimated profit on incomplete contract can also be called as ,…………….. |
A. | Net profit |
B. | notional profit |
C. | Work in progress |
D. | net loss |
Answer» B. notional profit |
58. |
A contract in which the price is fixed in advance is a ………….. contract |
A. | Sub contract |
B. | fixed price contract |
C. | Cost plus contract |
D. | Fixed cost with Escalation clause |
Answer» B. fixed price contract |
59. |
A portion of the contact entrusted to somebody else is known as …………….. |
A. | Extra work |
B. | Sub contract |
C. | Cost plus contract |
D. | fixed price contract |
Answer» B. Sub contract |
60. |
A method of costing applied where costs are collected and accumulated for each work order is …………………. |
A. | Process a/c |
B. | contract costing |
C. | Operating costing |
D. | job costing |
Answer» D. job costing |
61. |
The method of costing applied when articles are manufactured in definite batches is …………………………. |
A. | Job costing |
B. | operation costing |
C. | Batch costing |
D. | service costing |
Answer» C. Batch costing |
62. |
The number of units to be manufactured in one batch |
A. | Economic order Quantity |
B. | Economic Quantity |
C. | Economic batch Quantity |
D. | ordering unit |
Answer» C. Economic batch Quantity |
63. |
The method of job costing is applied |
A. | Biscuit manufacturing |
B. | oil refining |
C. | Medicine manufacturing |
D. | Engineering work shop |
Answer» D. Engineering work shop |
64. |
The method of batch costing is used in ………………… |
A. | Manufacture of agriculture product |
B. | construction of building |
C. | Manufacturing medicines |
D. | processing of oil |
Answer» C. Manufacturing medicines |
65. |
Job costing is …………………………. |
A. | Method of costing |
B. | technique of costing |
C. | Cost ascertainment |
D. | cost estimation |
Answer» A. Method of costing |
66. |
The method of costing applied in lathe is …………………. |
A. | Process costing |
B. | marginal costing |
C. | Absorption costing |
D. | job costing |
Answer» D. job costing |
67. |
The method of costing applied in cycle parts manufacturing is ……….. |
A. | Job costing |
B. | process costing |
C. | Batch costing |
D. | contract costing |
Answer» C. Batch costing |
68. |
Job costing is applied when the product are of …………… nature |
A. | Similar |
B. | Dissimilar |
C. | Non separable |
D. | none of these |
Answer» B. Dissimilar |
69. |
Job costing can also be called as ……………….. costing |
A. | Specific order costing |
B. | batch costing |
C. | Transport costing |
D. | Farm costing |
Answer» A. Specific order costing |
70. |
For each job a …………………. Is given under job costing |
A. | Distinct number |
B. | Equal number |
C. | Coding |
D. | None of these |
Answer» A. Distinct number |
71. |
In ……………… costing production is always made for stock |
A. | Job costing |
B. | batch costing |
C. | Process costing |
D. | contract costing |
Answer» B. batch costing |
72. |
Cost of product in each stage is calculated in ………. Costing |
A. | Contract costing |
B. | marginal costing |
C. | Multiple costing |
D. | process costing |
Answer» D. process costing |
73. |
Un avoidable loss inherent in the material |
A. | Normal los |
B. | abnormal loss |
C. | Accidental loss |
D. | spoilage |
Answer» A. Normal los |
74. |
Incidental residue from manufacture with recoverable value |
A. | Scrap |
B. | spoilage |
C. | Defective |
D. | loss |
Answer» A. Scrap |
75. |
………….. product are produced incidental to the main product |
A. | Joint product |
B. | By product |
C. | Co – product |
D. | none of these |
Answer» B. By product |
76. |
Milk, butter cream, etc obtained in is example of |
A. | By product |
B. | joint product |
C. | Co- product |
D. | none |
Answer» B. joint product |
77. |
Abnormal gain =………….. |
A. | normal cost of normal output /Actual output*units of A.L |
B. | N.C of normal output / normal output * units of A. gain |
C. | Normal output /Actual output * A. gain |
D. | None of these |
Answer» B. N.C of normal output / normal output * units of A. gain |
78. |
In ………… costing separate account “ process A/C ” is kept for each process |
A. | Proces |
B. | Job |
C. | Batch |
D. | none of these |
Answer» A. Proces |
79. |
The finished product of last process is transferred to ……………… a/c |
A. | Abnormal gain |
B. | Abnormal loss |
C. | Normal loss |
D. | finished stock |
Answer» D. finished stock |
80. |
In ………… costing no distinction is made between direct and indirect materials |
A. | Job |
B. | Contract |
C. | Process |
D. | Service |
Answer» C. Process |
81. |
Cost of ………… is not included in the cost of the process |
A. | Abnormal los |
B. | Normal loss |
C. | Normal gain |
D. | Abnormal gain |
Answer» A. Abnormal los |
82. |
Cost of one process may be transferred to the next process at |
A. | Cost price |
B. | Market price |
C. | Cost or market price |
D. | Realizable price |
Answer» C. Cost or market price |
83. |
The most important criterion for distinguishing between scrap, byproduct and joint product is…………of the products |
A. | Cost price |
B. | Market price |
C. | Relative sales value |
D. | Realizable value |
Answer» C. Relative sales value |
84. |
………… costs relate to processes and incurred after split off points |
A. | Direct |
B. | Process |
C. | By product |
D. | Subsequent |
Answer» D. Subsequent |
85. |
The cost incurred up to the point of separation are called …………cost |
A. | Direct |
B. | Process |
C. | Byproduct |
D. | Common |
Answer» C. Byproduct |
86. |
………… is the point of production at which separate products are identified |
A. | Ordering point |
B. | Trade off point |
C. | Split off point |
D. | Matching point |
Answer» C. Split off point |
87. |
The product has generally…………over the relative quantities of byproducts and the main products |
A. | Control |
B. | No control |
C. | Value |
D. | Quantity |
Answer» B. No control |
88. |
The main product is usually produced in greater quantities than the |
A. | Scrap |
B. | Defectives |
C. | Byproduct |
D. | Joint product |
Answer» C. Byproduct |
89. |
Joint costs are allocated according to…………value of individual products under the market value method |
A. | Market |
B. | Sales |
C. | Cost |
D. | Cost or market |
Answer» B. Sales |
90. |
………… is based on the distinction between fixed and variable cost |
A. | Service costing |
B. | Unit costing |
C. | Process costing |
D. | Marginal costing |
Answer» D. Marginal costing |
91. |
Marginal costing is the aggregate of …………plus variable overheads |
A. | Work cost |
B. | Variable cost |
C. | Prime Cost |
D. | Cost of production |
Answer» C. Prime Cost |
92. |
Marginal costing is a…………of costing |
A. | Technique |
B. | Type |
C. | Method |
D. | Both (a)&(c) |
Answer» A. Technique |
93. |
………… is the aggregate of fixed cost and profit |
A. | Prime cost |
B. | Contribution |
C. | Work cost |
D. | Cost of sale |
Answer» B. Contribution |
94. |
In marginal costing stock of finished goods is valued at |
A. | Fixed cost |
B. | Market price |
C. | Cost price |
D. | Variable cost |
Answer» D. Variable cost |
95. |
In marginal costing only…………is charged to products |
A. | Fixed cost |
B. | Variable cost |
C. | Semi variable cost |
D. | Semi fixed cost |
Answer» B. Variable cost |
96. |
…………helps the management in cost control |
A. | Marginal costing |
B. | Operation costing |
C. | Unit costing |
D. | Absorption costing |
Answer» A. Marginal costing |
97. |
…………is the system most useful for making make or buy decision |
A. | Operation costing |
B. | Marginal costing |
C. | Unit costing |
D. | Service costing |
Answer» B. Marginal costing |
98. |
Profit planning is possible with…………costing |
A. | Marginal |
B. | Absorption |
C. | Operation |
D. | Unit |
Answer» A. Marginal |
99. |
Marginal costing and …………analysis helps in decision making |
A. | Service costing |
B. | Unit costing |
C. | Differential costing |
D. | Absorption costing |
Answer» C. Differential costing |
100. |
An increase in physical sales volume…………P/V ratio |
A. | Increase |
B. | Decreases |
C. | Either increase or decrease |
D. | Do not affect |
Answer» D. Do not affect |
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