1. When the completion stage of a contract is less than ¼, the total
expenditure on the contract is transferred to ………………..account.
Correct : A. Work-in-Progress
2. If the amount of work certified is less than………of the contract price,
then no profit should be taken to Profit & Loss Account.
Correct : B. 25%
3. Contract costing is not used in one of the following industries.
Correct : C. Automobiles
4. The sum of value of work certified and uncertified appearing in the
Contract Account is called ……………..
Correct : A. Work in Progress
5. ……………………is the most suitable method in a transport industry.
Correct : B. Service costing
6. Room/day is the cost unit used in…………………
Correct : A. Hotels
7. Maintenance charges are in the nature of …………………expenses.
Correct : C. semi-variable
8. In transport costing………………charges vary more or less in direct
proportion to kilometers run.
Correct : A. Running
9. Service costing is called as ……………….
Correct : B. Operating costing
10. In electricity supply company uses …………….as cost unit.
Correct : A. Kilo watt hour
11. In transportation costing a composite unit such as …………….is used.
Correct : A. passenger mile/km or Ten kilometer
12. Boiler house costing is an example of …………….costing
Correct : C. service
13. In service costing, fixed charges are also called as…………………..
Correct : A. Standing charges
14. Service costing is not used in one of the following:
Correct : D. Electronics
15. 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…………
Correct : C. Rs.1,333
16. A bus carries 25 passengers daily for 25 days and its mileage per
month is 1000 kms. Its passenger miles are………………
Correct : D. 25,000
17. 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:
Correct : C. Operation
18. The method of costing applied in biscuit industries is ………….costing
and in steel industry………….costing.
Correct : A. Job, process
19. Average unit cost for each process is calculated by dividing the
………………..by…………………
Correct : B. total process cost, number of units in process
20. Where raw material is to pass certain stages, before it is converted
into finished goods, the method of costing used is…………………
Correct : C. Process Costing
21. When the actual loss is more than the estimated loss, the difference
between the two is considered to be………..
Correct : A. Abnormal loss
22. When actual loss is less than the estimated loss, the difference
between the two is considered to be……………
Correct : A. Abnormal gain
23. When actual loss is ………..than the estimated loss, the difference
between the two is considered to be abnormal gain
Correct : B. less
24. When actual loss is ………………than the estimated loss, the difference
between the two is considered to be abnormal loss.
Correct : A. More
25. When 1000 units are 60% complete in a process, it is equivalent to
…………….completed units.
Correct : B. 600
26. Equivalent units represent the production of a process in terms of
………..units.
Correct : A. Completed
27. …………..process loss should be transferred to costing profit & loss
account.
Correct : A. Abnormal
28. The cost of …………..process loss is absorbed in the cost of production
of good units.
Correct : B. normal
29. In inter process profits, the output of one process is transferred from
one process to another not at …………….but at ……………….
Correct : B. Actual cost, market price
30. Where actual loss in a process is less than the anticipated loss, the
difference between the two is considered to be ………………..
Correct : C. abnormal gain
31. In process costing, the abnormal loss is treated as ……….cost and
written off to profit & loss account.
Correct : B. period
32. The process costing is not used in one of the following.
Correct : C. cement
33. ………….arises where the actual process loss is less than the normal
predetermined process loss.
Correct : C. abnormal gain
34. 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
36. …………………is a budget which is updated continuously by adding a
further period (a month/quarter) and deducting a corresponding earlier period.
Correct : D. both a & b
37. The budget relating to ………….must be prepared first and the other
budgets should be prepared in the light of that factor.
Correct : A. Limiting factor
38. …………………budget is the most important budget and it forms the
basis on which all the other budgets are built up.
Correct : D. sales
39. ………………….budget may be classified into material cost budget,
labour cost budget and overhead budget.
Correct : A. Cost of Production
40. ……………….budget gives an estimate of the anticipated receipts and
payment of cash during the budget period.
Correct : C. Cash
41. ……………….is the consolidated summary of the various functional
budgets.
Correct : A. Master Budget
42. …………………budget is designed to remain unchanged irrespective of
the volume of output or turnover attained.
Correct : B. Fixed
43. …………………budget gives differentbudgeted costs for different levels
of activity.
Correct : C. Flexible
44. …………………budget is the preparation of budget starting from a
clean state.
Correct : B. Zero Base
45. Calendar Ratio =
Correct : A. Number of actual working days in a period x 100 Number of working days in the budget period
46. Capacity Ratio =
Correct : B. Actual hours worked x 100 Budgeted hours
47. Efficiency Ratio=
Correct : C. Standard hours for actual production x 100 Actual hours worked
48. Activity Ratio =
Correct : D. Standard hours for actual productionx 100
49. ……………….is a summary of all function budgets in a Capsule form.
Correct : A. Master Budget
50. ……………..determines the priorities of functional budget.
Correct : C. both a & b
51. Cash Budget is a ……………….budget.
Correct : C. short term
52. The primary difference between a fixed budget and a variable(flexible) budget is that a fixed budget:
Correct : D. Is a plan for a single level of sales(or other measure of activity), while a variable budget consists of several plans, one for each of several levels of sales (or other measure of activity)
53. Sales budget is a
Correct : A. Functional budget
54. In the case of plant, the limiting factor may be:
Correct : A. Insufficient capacity
55. The difference between fixed and variable cost has a special
significance in the preparation of
Correct : A. Flexible budget
56. The budget that is prepared first of all is…………..
Correct : C. budget for the key factor
57. In case of materials the key factor may be.
Correct : B. restrictions imposed by quota
58. The budget which commonly takes the form of budgeted profit and
loss account and balance sheet is
Correct : B. master budget
59. Standard cost is a …………..cost
Correct : A. Predetermined
60. The limitations of …………………………has led to the development of
standard costing system.
Correct : A. Historical costing system
61. Standard costing is more widely applied in…………………industries.
Correct : A. Process and engineering
62. Three types of standards are…………..
Correct : A. Current standard, basic standard and normal standard
63. The deviation of the actual cost or profit or sales from the standard
cost or profit or sale is known as …………
Correct : B. Variance
64. Management by exception is exercising control over………..
Correct : C. Unfavourable items
65. Material price variance is the difference between standard and actual
prices of materials used multiplied by………………..
Correct : A. Actual quantity of materials used
66. Labour cost variance is the difference between standard cost of labour
and………..
Correct : C. Actual cost of labour
67. Idle time variance is………….
Correct : B. Idle time x standard rate
68. Volume variance is divided into……………
Correct : B. Capacity variance, calendar variance and efficiency variance
69. Standards set provide yardsticks against which………….are compared.
Correct : C. Actual costs
70. The technique of standard costing may not be applicable in case of
Correct : D. Both b & c
71. Total Material cost variance =
Correct : A. Standard cost of materials-actual cost of materials
72. Material Usage Variance=Material Mix Variance +…………..
Correct : A. Material Yield Variance
73. Material Price Variance = Actual Usage (……………)
Correct : B. Standard unit price-actual unit price
74. Material usage variance = standard price(……………….)
Correct : A. Standard usage-actual usage
75. Material mix variance = standard cost of standard mix - ………………..
Correct : C. Standard cost of actual mix
76. Total Labour cost variance =
Correct : A. Standard cost of labour - actual cost of labour
77. Volume Variance =
Correct : D. All of the above
78. A favourable variance will arise when capital revenues are………..than
expected.
Correct : A. More
79. An unfavourable material price variance occurs because of:
Correct : A. Price increase in raw materials
80. The type of standard best suitable for cost control purpose is
Correct : D. Expected standard
81. An unfavourable material usage arises because of:
Correct : D. More than anticipated normal wastage in the manufacturing process
82. Volume variance arises because of :
Correct : C. Increase or decrease in actual output as compared to the budgeted output.
83. Labour rate variance is computed by multiplying the
Correct : D. None of the above
84. ……………..is an example of long-term budget
Correct : D. Both b & c
85. ……………..is an example of short-term budget
Correct : D. Both a & c
86. The main objective of cost accounting is:
Correct : D. All of the above
87. The expected return or benefit foregone in rejecting one course of action for the other is known as
Correct : B. opportunity cost
88. Costs which are ascertained after they have been incurred are called
Correct : C. historical costs
89. A cost centre is
Correct : A. a production or service location, function, activity or item of equipment whose costs may be attributed to cost units
90. These accounts are obligatory to be prepared according to the legal requirements of Companies Act and Income Tax Act.
Correct : B. Financial Accounting
91. The cost unit for a cement industry is
Correct : C. Tonne
92. Hypothetical costs which are specially computed outside the accounting system for the purpose of decision making are called
Correct : B. Imputed Cost
93. Direct material + Directlabour + direct expenses =
Correct : A. Prime Cost
94. Costing is a technique of ascertaining: -
Correct : A. Cost
95. The cost can be controlled by:
Correct : D. All of these
96. It is a device for the purpose of breaking up cost into smaller sub-divisions:-
Correct : A. Cost Unit
97. Elements of cost are:-
Correct : D. All of thesew
98. These types of costs are partly fixed & partly variable is relation to output:-
Correct : C. Semi-variable Cost
99. Cost accounting has been developed because of limitation in:-
Correct : A. Financial a/c
100. The cost which is to be incurred even when a business unit is closed is a ____ cost.