1. In time wage system, wages are paid according to the……………….
Correct : B. time
2. Under piece rate system of wage payment, payment is made according
to the…………………
Correct : A. quantity of work done
3. For a work order, standard time and time taken are 20 hours and 15
hours respectively. Time rate being Rs. 2 per hour, total wages payable under Rowan Premium Plan will be……………….
Correct : B. 37.50
4. Taylors differential piece rate system provides for higher rate to …….workers.
Correct : B. efficient
5. …………………..is most suitable when quality of work is of prime
importance.
Correct : B. time wage system
6. Given sales = 150000, Fixed costs = 30000, Profit = 40000.The variable cost is
Correct : B. 80000
7. Under Merrick’s multiple piece rate system, 110% of the ordinary piece rate is given to workers whose level of performance is between…….
of the standard output.
Correct : A. 83% and 100%
8. Under Merrick’s multiple piece rate system, 120% of the ordinary
piece rate is given to workers whose level of performance is between…........................of the standard output.
Correct : B. 100% and 120%
9. Under Merrick’s multiple piece rate system, ordinary piece rate is given to workers whose level of performance is between…........................of the
standard output.
Correct : C. 0% and 83%
10. In............................................, two piece rates are set for each job.
Correct : C. taylor’s differential piece rate system
11. Basis of apportionment of stores service expenses is ………………..
Correct : A. value of materials consumed
12. Basis of apportionment of welfare department expenses is…………..
Correct : B. number of employees
13. Basis of apportionment of crèche expenses is ……………..
Correct : B. number of female employees
14. Under step method of re-apportionment of costs of service departments, the cost of last service department is apportioned only to
the …………..
Correct : A. production departments
15. Machine hour rate is obtained by dividing the total running expenses
of a machine during a particular period by the…………
Correct : A. number of hours
16. is the amount by which the absorbed overheads fall short
of the actual amount of overheads incurred.
Correct : B. under absorption of overheads
17. is the excess of overheads absorbed over the actual amount
of overheads incurred.
Correct : A. over absorption of overheads
18. When …………………….is used on the basis of budgeted overheads
and the rate is applied to the actual base, the actual overhead expenses may be different from the charged overheads.
Correct : A. a predetermined rate
19. Expenses incurred during production other than direct materials and
direct labour are called…………..factory expenses; those charged to production on estimated basis are called …………….
Correct : A. actual, applied
20. The per unit expense of the ……………portion factory overhead varies with the volume of production while…..........................portion remains the
same with volume.
Correct : A. fixed, variable
21. ….expenses are excluded from cost.
Correct : B. abnormal
22. Such expenses which are included (even though they are not incurred)
for taking managerial decisions are called………………
Correct : A. notional expenses
23. ………expenses are partly fixed and partly variable.
Correct : D. semi-variable
24. Unsuccessful research expenditure should be ......................... cost
accounts.
Correct : A. excluded from
25. Salary paid to general manager is an item of………………expenses.
Correct : A. fixed
26. Fancy packing is an example of .................. expenses.
Correct : A. selling
27. Telephone expense is ......................expense.
Correct : B. semi-variable
28. Primary packing is an item of ………………
Correct : B. prime cost
29. The Profit/Volume ratio or marginal ratio expresses the relation of
………………
Correct : C. contribution
30. Which of the following measures helps to increase the P/V Ratio ?
Correct : D. all of these
31. Credit and collection cost is an item of
Correct : A. selling overhead
32. Warehousing cost is an item of
Correct : B. distribution overhead
33. In................................ each job is a cost unit to which all costs are assigned.
Correct : B. job costing
34. Material Costs of each job are determined from……………
Correct : C. both a & b
35. Printers use ......................... costing.
Correct : C. job
36. Each job has a ..................... prepared for it that bears the job number and
which is used to collect all cost data relating to job.
Correct : B. job cost card
37. An automobile service unit uses..........................costing.
Correct : C. job
38. Economic Batch Quantity is an important point to be determined in
industries where...................... costing is employed.
40. The .....................costing is applied when a quantity of similar and identical
products are manufactured together as one Job.
Correct : B. batch
41. The loss incurred on an incomplete contract is transferred to
………….account.
Correct : B. profit and loss account
42. When the completion stage of the contract is more than half, the profit
to be credited to Profit and Loss account will be equal to…………..
Correct : C. 2/3rd of notional profit x cash received work certified
43. 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
44. 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%
45. Contract costing is not used in one of the following industries.
Correct : C. automobiles
46. The sum of value of work certified and uncertified appearing in the
Contract Account is called ……………..
Correct : A. work in progress
47. ….is the most suitable method in a transport industry.
Correct : B. service costing
48. Room/day is the cost unit used in…………………
Correct : A. hotels
49. Maintenance charges are in the nature of..............................expenses.
Correct : C. semi-variable
50. In transport costing...........................charges vary more or less in direct
proportion to kilometers run.
Correct : A. running
51. Service costing is called as ……………….
Correct : B. operating costing
52. In electricity supply company uses ...................... as cost unit.
Correct : A. kilo watt hour
53. In transportation costing a composite unit such as.......................is used.
Correct : A. passenger mile/km or ten kilometer
54. Boiler house costing is an example of..........................costing
Correct : C. service
55. In service costing, fixed charges are also called as…………………..
Correct : A. standing charges
56. Service costing is not used in one of the following:
Correct : D. electronics
57. 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
58. 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
59. 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
60. The method of costing applied in biscuit industries is...................costing
and in steel industry…............. costing.
Correct : A. job, process
61. Average unit cost for each process is calculated by dividing the
………………..by…………………
Correct : B. total process cost, number of units in process
62. 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
63. When the actual loss is more than the estimated loss, the difference
between the two is considered to be………..
Correct : A. abnormal loss
64. When actual loss is less than the estimated loss, the difference
between the two is considered to be……………
Correct : A. abnormal gain
65. When actual loss is................than the estimated loss, the difference
between the two is considered to be abnormal gain
Correct : B. less
66. When actual loss is..........................than the estimated loss, the difference
between the two is considered to be abnormal loss.
Correct : A. more
67. When 1000 units are 60% complete in a process, it is equivalent to ……………completed units.
Correct : B. 600
68. Equivalent units represent the production of a process in terms of…..units.
Correct : A. completed
69. .............……….process loss should be transferred to costing profit & loss
account.
Correct : A. abnormal
70. The cost of......................process loss is absorbed in the cost of production of
good units.
Correct : B. normal
71. 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
72. 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
73. In process costing, the abnormal loss is treated as .............. cost and written
off to profit & loss account.
Correct : B. period
74. The process costing is not used in one of the following.
Correct : C. cement
75. …..arises where the actual process loss is less than the normal predetermined
process loss.
Correct : C. abnormal gain
76. 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