McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) .
| 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 | |
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