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