McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Management Studies (BMS) , Bachelor of Accounting and Finance (BAF) , Bachelor of Commerce (B Com) .
| 201. |
When the completion stage of a contract is less than ¼, the total expenditure on the contract is transferred to ………………..account. |
| A. | Work-in-Progress |
| B. | Profit and loss account |
| C. | miscellaneous account |
| D. | none of these |
| Answer» A. Work-in-Progress | |
| 202. |
If the amount of work certified is less than………of the contract price, then no profit should be taken to Profit & Loss Account. |
| A. | 20% |
| B. | 25% |
| C. | 33 1/3% |
| D. | 40% |
| Answer» B. 25% | |
| 203. |
Contract costing is not used in one of the following industries. |
| A. | Ship building |
| B. | Civil Construction |
| C. | Automobiles |
| D. | Construction of Bridges |
| Answer» C. Automobiles | |
| 204. |
The sum of value of work certified and uncertified appearing in the Contract Account is called …………….. |
| A. | Work in Progress |
| B. | Work in Process |
| C. | Work Completed |
| D. | Work done. |
| Answer» A. Work in Progress | |
| 205. |
……………………is the most suitable method in a transport industry. |
| A. | Operation costing |
| B. | Service costing |
| C. | Process costing |
| D. | Job costing |
| Answer» B. Service costing | |
| 206. |
Room/day is the cost unit used in………………… |
| A. | Hotels |
| B. | hospital |
| C. | schools |
| D. | none of these |
| Answer» A. Hotels | |
| 207. |
Maintenance charges are in the nature of …………………expenses. |
| A. | Fixed |
| B. | Variable |
| C. | semi-variable |
| D. | none of these |
| Answer» C. semi-variable | |
| 208. |
In transport costing………………charges vary more or less in direct proportion to kilometers run. |
| A. | Running |
| B. | petrol |
| C. | drivers salary |
| D. | tax |
| Answer» A. Running | |
| 209. |
Service costing is called as ………………. |
| A. | Operation costing |
| B. | Operating costing |
| C. | multiple costing |
| D. | none of these |
| Answer» B. Operating costing | |
| 210. |
In electricity supply company uses …………….as cost unit. |
| A. | Kilo watt hour |
| B. | per household |
| C. | voltage |
| D. | none of these |
| Answer» A. Kilo watt hour | |
| 211. |
In transportation costing a composite unit such as …………….is used. |
| A. | passenger mile/km or Ten kilometer |
| B. | per km |
| C. | per passenger |
| D. | per stop |
| Answer» A. passenger mile/km or Ten kilometer | |
| 212. |
Boiler house costing is an example of …………….costing |
| A. | Operation |
| B. | process |
| C. | service |
| D. | none of these |
| Answer» C. service | |
| 213. |
In service costing, fixed charges are also called as………………….. |
| A. | Standing charges |
| B. | variable charges |
| C. | fixed charges |
| D. | none of these |
| Answer» A. Standing charges | |
| 214. |
Service costing is not used in one of the following: |
| A. | Electricity |
| B. | Hospitals |
| C. | transport |
| D. | Electronics |
| Answer» D. Electronics | |
| 215. |
If the present cost of the car is Rs.1,00,000 residual value at the end of the 5th year is Rs.20,000, the monthly depreciation is………… |
| A. | Rs.20,000 |
| B. | Rs.16,000 |
| C. | Rs.1,333 |
| D. | Rs.17,333 |
| Answer» C. Rs.1,333 | |
| 216. |
A bus carries 25 passengers daily for 25 days and its mileage per month is 1000 kms. Its passenger miles are……………… |
| A. | 30,000 |
| B. | 12,500 |
| C. | 20,000 |
| D. | 25,000 |
| Answer» D. 25,000 | |
| 217. |
In ……………………costing where standardized goods or services result from a sequence of repetitive and more or less continuous operations to which costs are collected and averaged over the units produced during the year: |
| A. | Multiple |
| B. | Process |
| C. | Operation |
| D. | single. |
| Answer» C. Operation | |
| 218. |
The method of costing applied in biscuit industries is ………….costing and in steel industry………….costing. |
| A. | Job, process |
| B. | job, contract |
| C. | batch, multiple |
| D. | process, operation |
| Answer» A. Job, process | |
| 219. |
Average unit cost for each process is calculated by dividing the ………………..by………………… |
| A. | Total cost, number of units |
| B. | total process cost, number of units in process |
| C. | Total process cost, number of finished goods |
| D. | total cost, number of units produced |
| Answer» B. total process cost, number of units in process | |
| 220. |
Where raw material is to pass certain stages, before it is converted into finished goods, the method of costing used is………………… |
| A. | Job costing |
| B. | Operating costing |
| C. | Process Costing |
| D. | both b and c |
| Answer» C. Process Costing | |
| 221. |
When the actual loss is more than the estimated loss, the difference between the two is considered to be……….. |
| A. | Abnormal loss |
| B. | normal loss |
| C. | loss |
| D. | none of these |
| Answer» A. Abnormal loss | |
| 222. |
When actual loss is less than the estimated loss, the difference between the two is considered to be…………… |
| A. | Abnormal gain |
| B. | abnormal loss |
| C. | normal loss |
| D. | income |
| Answer» A. Abnormal gain | |
| 223. |
When actual loss is ………..than the estimated loss, the difference between the two is considered to be abnormal gain |
| A. | More |
| B. | less |
| C. | higher |
| D. | none of these |
| Answer» B. less | |
| 224. |
When actual loss is ………………than the estimated loss, the difference between the two is considered to be abnormal loss. |
| A. | More |
| B. | less |
| C. | both a & b) |
| D. | none of these |
| Answer» A. More | |
| 225. |
When 1000 units are 60% complete in a process, it is equivalent to …………….completed units. |
| A. | 60 |
| B. | 600 |
| C. | 6000 |
| D. | 1000 |
| Answer» B. 600 | |
| 226. |
Equivalent units represent the production of a process in terms of ………..units. |
| A. | Completed |
| B. | total production |
| C. | semi-finished |
| D. | both a& c |
| Answer» A. Completed | |
| 227. |
…………..process loss should be transferred to costing profit & loss account. |
| A. | Abnormal |
| B. | normal |
| C. | both a& b |
| D. | none of these |
| Answer» A. Abnormal | |
| 228. |
The cost of …………..process loss is absorbed in the cost of production of good units. |
| A. | Abnormal |
| B. | normal |
| C. | both a & b |
| D. | none of these |
| Answer» B. normal | |
| 229. |
In inter process profits, the output of one process is transferred from one process to another not at …………….but at ………………. |
| A. | Market price, actual cost |
| B. | Actual cost, market price |
| C. | both a& b |
| D. | none of these |
| Answer» B. Actual cost, market price | |
| 230. |
Where actual loss in a process is less than the anticipated loss, the difference between the two is considered to be ……………….. |
| A. | Abnormal loss |
| B. | normal loss |
| C. | abnormal gain |
| D. | normal gain |
| Answer» C. abnormal gain | |
| 231. |
In process costing, the abnormal loss is treated as ……….cost and written off to profit & loss account. |
| A. | Unit |
| B. | period |
| C. | future |
| D. | process |
| Answer» B. period | |
| 232. |
The process costing is not used in one of the following. |
| A. | Chemical |
| B. | textiles |
| C. | cement |
| D. | oil refining |
| Answer» C. cement | |
| 233. |
………….arises where the actual process loss is less than the normal predetermined process loss. |
| A. | Normal loss |
| B. | abnormal loss |
| C. | abnormal gain |
| D. | none of these |
| Answer» C. abnormal gain | |
| 234. |
An input of 5000kg of material introduced into the process and the expected loss is 8% and if the actual output from the process is 4300, the abnormal loss is …………kg |
| A. | 400 |
| B. | 300 |
| C. | 500 |
| D. | 600 |
| Answer» B. 300 | |
| 235. |
Budgeting system……………key managerial functions. |
| A. | Dismisses |
| B. | integrates |
| C. | discharges |
| D. | none of these |
| Answer» B. integrates | |
| 236. |
…………………is a budget which is updated continuously by adding a further period (a month/quarter) and deducting a corresponding earlier period. |
| A. | Rolling budget |
| B. | continuous budget |
| C. | annual budget |
| D. | both a & b |
| Answer» D. both a & b | |
| 237. |
The budget relating to ………….must be prepared first and the other budgets should be prepared in the light of that factor. |
| A. | Limiting factor |
| B. | materials |
| C. | labour |
| D. | production |
| Answer» A. Limiting factor | |
| 238. |
…………………budget is the most important budget and it forms the basis on which all the other budgets are built up. |
| A. | Production |
| B. | material |
| C. | cash budget |
| D. | sales |
| Answer» D. sales | |
| 239. |
………………….budget may be classified into material cost budget, labour cost budget and overhead budget. |
| A. | Cost of Production |
| B. | purchase |
| C. | sales |
| D. | Cash |
| Answer» A. Cost of Production | |
| 240. |
……………….budget gives an estimate of the anticipated receipts and payment of cash during the budget period. |
| A. | Sales |
| B. | Production |
| C. | Cash |
| D. | Master |
| Answer» C. Cash | |
| 241. |
……………….is the consolidated summary of the various functional budgets. |
| A. | Master Budget |
| B. | Sales budget |
| C. | Performance budget |
| D. | Cash Budget |
| Answer» A. Master Budget | |
| 242. |
…………………budget is designed to remain unchanged irrespective of the volume of output or turnover attained. |
| A. | Master |
| B. | Fixed |
| C. | Flexible |
| D. | all of these |
| Answer» B. Fixed | |
| 243. |
…………………budget gives differentbudgeted costs for different levels of activity. |
| A. | Master |
| B. | Fixed |
| C. | Flexible |
| D. | all of these |
| Answer» C. Flexible | |
| 244. |
…………………budget is the preparation of budget starting from a clean state. |
| A. | Performance |
| B. | Zero Base |
| C. | Cash |
| D. | none of these |
| Answer» B. Zero Base | |
| 245. |
Calendar Ratio = |
| A. | Number of actual working days in a period x 100 Number of working days in the budget period |
| B. | Actual hours worked x 100 Budgeted hours |
| C. | Standard hours for actual production x 100 Actual hours worked |
| D. | Standard hours for actual productionx 100 Budgeted standard hours |
| Answer» A. Number of actual working days in a period x 100 Number of working days in the budget period | |
| 246. |
Capacity Ratio = |
| A. | Number of actual working days in a period x 100 Number of working days in the budget period |
| B. | Actual hours worked x 100 Budgeted hours |
| C. | Standard hours for actual production x 100 Actual hours worked |
| D. | Standard hours for actual productionx 100 Budgeted standard hours |
| Answer» B. Actual hours worked x 100 Budgeted hours | |
| 247. |
Efficiency Ratio= |
| A. | Number of actual working days in a period x 100 Number of working days in the budget period |
| B. | Actual hours worked x 100 Budgeted hours |
| C. | Standard hours for actual production x 100 Actual hours worked |
| D. | Standard hours for actual productionx 100 Budgeted standard hours |
| Answer» C. Standard hours for actual production x 100 Actual hours worked | |
| 248. |
Activity Ratio = |
| A. | Number of actual working days in a period x 100 Number of working days in the budget period |
| B. | Actual hours worked x 100 Budgeted hours |
| C. | Standard hours for actual production x 100 Actual hours worked |
| D. | Standard hours for actual productionx 100 |
| Answer» D. Standard hours for actual productionx 100 | |
| 249. |
……………….is a summary of all function budgets in a Capsule form. |
| A. | Master Budget |
| B. | Sales budget |
| C. | Performance budget |
| D. | Cash Budget |
| Answer» A. Master Budget | |
| 250. |
……………..determines the priorities of functional budget. |
| A. | Principal Budget Factor |
| B. | Limiting Factor |
| C. | both a & b |
| D. | none of the above. |
| Answer» C. both a & b | |
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