3. Which of the following is a mechanical method of time keeping?
Correct : A. Time recording clock
4. Payment on the basis of the work done irrespective of the time taken by the worker is called:
Correct : C. Piece rate system
5. How many piece rates are set for each job in Taylor’s differential piece rate system?
Correct : A. Two
6. Overhead expenses can be classified according to
Correct : D. All of the above
7. The process of distribution of overheads allotted to a particular department or cost center over the units produced is called:
Correct : C. Absorption
8. If an item of overhead expenditure is charged specifically to a single department this
would be an example of:
Correct : B. Allocation
9. Example of semi-variable overhead items include the following except:
Correct : D. Insurance of plant and building
10. Which of the following costs is not a factory overhead expense?
Correct : C. Audit fees
11. The total of all indirect costs is known as
Correct : B. Overhead
12. The bases of apportionment for electric power is
Correct : A. Number of machine hours
13. When the amount of overhead absorbed is less than the amount of overhead incurred it is known as
Correct : B. Under-absorption
14. Fixed overhead costs are also called as: -
Correct : A. Period cost
15. Which materials do not normally form a past of finished goods: -
Correct : A. Indirect materials
16. Warehousing cost is an item of: -
Correct : B. Distribution overhead
17. The excess of overheads absorbed over the actual amount of overheads incurred is called: -
Correct : B. Over absorption
18. Lighting expenses are apportioned on the basis of: -
Correct : B. Light Points
19. Absorption costing is closely related to which of the following cost elements?
Correct : B. Overheads
20. To control costs it is essential to keep control on: -
Correct : D. All of these
21. Which of the following is variable cost?
Correct : B. Prime cost
22. Departmentalization of overhead is
Correct : B. Primary distribution
23. Absorption means
Correct : C. Charging of overhead to cost centres or units
24. A statement prepared to provide detailed cost of a cost centre or cost unit is
Correct : B. Cost sheet
25. Over valuation of ________ in cost accounts is deducted to costing profit to find out financial profit.
Correct : A. Closing stock
26. An aggregate of indirect material, indirect labourand indirect expenses is called
Correct : D. Overheads.
27. Production Manager’s salary is;
Correct : A. Factory overhead
28. Allotment of whole items of overheads to cost centres is known as;
Correct : A. allocation
29. Under absorption of overhead expense in cost accounting results in _______.
Correct : C. increase in costing profit
30. The overheads which remain unaffected in total amount by fluctuations in volume of output.
Correct : B. Fixed Overhead
31. Material costs which cannot be allocated but which are to be apportioned or absorbed
by cost centres or cost units.
Correct : B. Indirect Material
32. Certain overhead costs cannot be directly charged to a department or cost centres. The process of distribution of such overhead costs to various departments is called
Correct : A. Apportionment
33. Rent and other building expenses may be apportioned to various departments on the basis of
Correct : C. Floor Area
34. The method of re-apportionment of overhead costs which is used when service department renders its services to other service departments but does not receive services of the other service departments.
Correct : A. Stepladder Method
35. When the amount of overheads absorbed is less than the amount of overheads actually incurred.
Correct : B. Under Absorption
36. In case the amount of under or over absorbed overheads is significant, this rate is calculated to adjust the amount in the cost.
Correct : C. Supplementary rate
37. When the under or over absorbed amount is quite negligible, it is transferred to
Correct : A. Costing P/L A/c
38. Classification of overheads into indirect material, indirect labour and indirect expenses come under:
Correct : D. Element-wise classification
39. Labour employed in time office and security office is an example of:
Correct : B. Indirect labour
40. Depreciation of plant and machinery is apportioned on the basis of:
Correct : D. Capital value of assets
41. Supervision is charged on the basis of:
Correct : A. Number of employees
42. Power charges are:
Correct : B. Variable overhead
43. Overheads classified as Manufacturing, Administrative, Selling and Distribution come under:
Correct : A. Function-wise classification
44. Depreciation of office equipments is an example of:
Correct : B. Administrative overheads
45. Allotment of overhead to a cost unit is called:
Correct : B. Absorption
46. In ________ costing the cost of a group of products is ascertained.
Correct : C. Batch
47. ________ costing is suitable for mines, quarries, cement works etc.
Correct : D. Operation
48. ________ is an extension of job costing.
Correct : B. Batch costing
49. When job is very big and spread over long periods of time the method of costing adopted is
Correct : C. Contract
50. Continuous costing is also called
Correct : B. Process costing
51. In this type of costing works are carried out at factory premises:
Correct : A. Job
52. Under this method, homogeneous products are taken as cost unit
Correct : C. Batch
53. The costing method which can be used in industry where the product passes through different processes is known as
Correct : D. Process costing
54. Under which method costs are collected & accumulated for each job: -
Correct : A. Job Costing
55. The basis of collection of costs are:-
Correct : D. All of these
56. Which method is adopted to calculate the cost of each batch?
Correct : C. Batch Costing
57. In what basis of work, the contractor is made payment?
Correct : A. Certified Work
58. Ascertainment of cost of the product at each process is called: -
Correct : C. Process Costing
59. A contract account is a _______ account in nature.
Correct : C. Nominal a/c
60. Identify the types of specific order costing.
Correct : C. Both (a) & (b)
61. Which of the following is known as Terminal Costing?
Correct : D. Contract Costing
62. The costing method which can be used in industry where the product pass through different processes is known as______.
Correct : D. process costing
63. Process Account is _____.
Correct : A. Nominal A/c
64. Profit to be transferred to P& L A/c , if the contract is complete to the extent of only 20% is _____.
Correct : A. nil
65. If the actual loss is more than the estimated normal loss, then it is
Correct : A. abnormal loss
66. The sum of value of work certified and uncertified appearing in the Contract Account is called
Correct : A. Work in Progress
67. Contract costing is specialized system of job costing applies to _____ contracts.
Correct : C. Long-term
68. Each job has a ______ prepare for it that bears the job number and which is used to
collect all cost data relating to job.
Correct : B. Job Cost Card
69. The first step in a job order cost procedure is
Correct : D. Receiving an enquiry
70. Job Costing is suitable for
Correct : D. All of the above
71. Batch costing is a form of specific order/job costing where the cost per unit is ascertained by _________ the total cost of a batch by the number of items produced in that batch.
Correct : D. adding
72. The determination of EBQ is influenced by the following factors:
Correct : D. All of the above
73. Work which has been done but not certified is called
Correct : A. Work uncertified
74. The sum of value of work certified and uncertified appearing in the contract account is called
Correct : A. Work in process
75. Loss which unavoidable on account of inherent nature of production processes is
Correct : B. Normal loss
76. In process costing when the actual loss is less than the normal loss then it is
Correct : A. Abnormal gain
77. What we prepare for each job that bears the job number and which is used to collect
all cost data relating to job is:
Correct : B. Job cost card
78. An automobile service unit uses:
Correct : B. Contract costing
79. Where the work is undertaken to customer’s special requirements and each order is of comparatively short duration, then it is called:
Correct : A. Job costing
80. Printing industry uses:
Correct : B. Batch costing
81. Batch costing is a form of:
Correct : C. Specific order costing
82. Batch costing is applied in:
Correct : D. All of the above
83. Batch costing is used for which type of product?
Correct : C. Homogeneous product
84. Contract costing is a specialized system of Job costing applies to: