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