Quiznetik
Applied Cost Accounting | Set 1
1. In job costing each ………. Is a cost unit to which all costs are assigned
A. Jobb
B. profit
C. Batch
D. cost
Correct : A. Jobb
2. In a contract costing most of the items of cost are ……………..
A. Indirect
B. direct
C. normal
D. fixed
Correct : B. direct
3. ……………. In a contract , provides that the contract price would be suitably enhanced on the happening of a specified contingency
A. Cost plus contract
B. estimated profit
C. Escalation\ clause
D. EBQ
Correct : C. Escalation\ clause
4. The loss incurred on an incomplete contract is transferred to ……… account
A. Profit & loss a/c
B. work in progress
C. depreciation
D. Machinery
Correct : A. Profit & loss a/c
5. When the completion stage of the contract is more than half, the profit to be credited to P/L a/c will be equal to ………………..
A. 2/3 *notional profit *CR/WC
B. Estimated profit *W.C/contract price
C. 1/3 * N.P * CR/W.C
D. Total profit
Correct : A. 2/3 *notional profit *CR/WC
6. In …………….. contract the contractor will get cost plus stipulated profit
A. Sub contract
B. cost plus contract
C. job
D. direct
Correct : B. cost plus contract
7. Scope of specific order costing is very wide and includes ……. ,………, ………….
A. Job, Batch and contract costing
B. Process , Contract and unit costing
C. Batch , Job and process costing
D. Unit , service and transport costing
Correct : A. Job, Batch and contract costing
8. ………… is an important point to be determined in industries where batch costing is employed
A. EBQ
B. EOQ
C. Re – order quantity
D. Batch
Correct : A. EBQ
9. When a contract is debited with the original cost of the plant , it should credited with ………… at the end of the year
A. Original cost of the plant
B. Depreciated value of the stock
C. Profit
D. Estimated cost
Correct : B. Depreciated value of the stock
10. When the competition stage of a contract is less than ¼ , the total expenditure on the contract is transferred to ………… account
A. Work in progres
B. P/L a/c
C. Estimated profit
D. Notional profit
Correct : A. Work in progres
11. If the contract is almost complete , the amount of profit generally transferred to profit and loss account is equal to
A. Estimated profit * work certified/ contract price
B. Estimated profit * contract price / work certified
C. Notional profit * C.R/ W.C
D. Notional profit W.C/ C.R
Correct : A. Estimated profit * work certified/ contract price
12. In a contract costing payment of cash to the contract is made on the basis of …………………………. Work
A. Certified
B. profit and loss a/c
C. contract price
D. cost
Correct : A. Certified
13. Job costing is applied only in …………………. Concern
A. Small
B. large
C. medium
D. None of these
Correct : A. Small
14. Contract costing is a basic method of …………….. costing
A. Specific order costing
B. batch costing
C. process costing
D. Unit costing
Correct : A. Specific order costing
15. In job costing the production is generally against customers …………………. but not for stock
A. Order
B. profit
C. cash in hand
D. none of these
Correct : A. Order
16. The method of costing applied in biscuit industries is …………………….
A. Jo
B. process
C. contract
D. unit
Correct : A. Jo
17. Average unit cost for each process is calculated by dividing ……………..by …………….
A. Total process cost / No.of units in process
B. Total process cost / Total cost
C. Total cost / Total profit
D. None of these
Correct : A. Total process cost / No.of units in process
18. Where raw material is to pass certain stages before it is converted into finished goods, the method of costing used is ……………………
A. Contract
B. Process
C. unit
D. Batch
Correct : B. Process
19. When the actual loss is more than the estimated loss, the difference between the two is considered to be ,………………….
A. Abnormal gain
B. Abnormal loss
C. Normal loss
D. Normal gain
Correct : B. Abnormal loss
20. ……………….. process loss should be transferred to costing profit and loss account
A. Normal
B. abnormal
C. actual
D. none of these
Correct : B. abnormal
21. The cost of ……….. process loss is absorbed in the cost of production of good units
A. Normal
B. abnormal
C. actual
D. none of these
Correct : A. Normal
22. Where actual loss in a process is less than the anticipated loss , the difference b/w the two is considered to be …………..
A. Normal los
B. Abnormal gain
C. normal gain
D. None of
Correct : B. Abnormal gain
23. ……… is the difference b/w the sales and marginal cost of sale
A. Profit
B. contribution
C. p/v ratio
D. none f these
Correct : B. contribution
24. Cost of producing an additional unit of output is ……………
A. Historical cost
B. marginal cost
C. fixed cost
D. total cost
Correct : B. marginal cost
25. A cost do not change with changes in the level of activity is ………….
A. Variable cost
B. fixed cost
C. sunk cost
D. total cost
Correct : B. fixed cost
26. A cost both containing both fixed and variable elements ………………..
A. Variable cost
B. fixed cost
C. total cost
D. semi variable cost
Correct : C. total cost
27. The excess of sales over variable cost is known as ………………
A. profit
B. loss
C. contribution
D. margin
Correct : C. contribution
28. Establishes the relationship between cost , volume of sales and profit is …..
A. Marginal costing
B. standard costing
C. budgeting
D. Cost volume profit analysis
Correct : D. Cost volume profit analysis
29. A point at which there is neither profit nor loss ………………
A. No profit no loss point
B. Break even point
C. Margin of safety
D. contribution
Correct : B. Break even point
30. Excess of sales over break even sales is known as …………………..
A. No profit no loss point
B. Breakeven point
C. Margin of safety
D. contribution
Correct : C. Margin of safety
31. The angle formed at the point of incidence of sales line to total cost…….
A. Angle of incidence
B. break even point
C. Fixed cost
D. total cost
Correct : A. Angle of incidence
32. A factor that restrict the activities of a concern ……………..
A. Contribution factor
B. break even point
C. Key factor
D. margin of safety
Correct : C. Key factor
33. …….. is method of cost volume profit analysis
A. Budgeting
B. budgetary control
C. Standard costing
D. break even analysis
Correct : D. break even analysis
34. The additional cost of producing an additional unit is called ……….
A. Fixed cost
B. marginal cost
C. Semi variable
D. none of these
Correct : B. marginal cost
35. Variable cost can also be called as …………………………
A. Semi variable
B. marginal cost
C. Standard costing
D. fixed cost
Correct : B. marginal cost
36. Break even units can also be called as ………………………
A. Break even output
B. break even sales
C. Margin of safety
D. contribution
Correct : A. Break even output
37. Sales – variable cost = ……………………………………..
A. Marginal cost
B. fixed cost
C. Budget cost
D. contribution
Correct : D. contribution
38. Excess of actual sales over break even sales is …………………
A. Break even unit
B. angle of incidence
C. Margin of safety
D. contribution
Correct : C. Margin of safety
39. The angle formed were the total cost line under sects the sale line is
A. Angle of incidence
B. margin of safety
C. Breakeven point
D. contribution
Correct : A. Angle of incidence
40. The cost which varies proportionate to increase in production is …….. cost
A. Fixed
B. variable cost
C. Semi variable cost
D. break even cost
Correct : B. variable cost
41. The cost which remains constant with change in level of activities is called
A. Variable cost
B. marginal cost
C. Standard cost
D. fixed cost
Correct : D. fixed cost
42. ……………….. is an angle formed in break even chart
A. Margin of safety
B. angle of incidence
C. Contribution
D. Break even point
Correct : B. angle of incidence
43. …………… is a graphical representation of marginal costing
A. Break even chart
B. angle of incidence
C. Margin of safety
D. none of these
Correct : A. Break even chart
44. Contract price is fixed in advance
A. Cost plus contract
B. Target costing
C. Fixed price contract
D. Fluctuating contract
Correct : C. Fixed price contract
45. Contract price is the cost of work done plus a percentage
A. Cost plus contract
B. target costing
C. Fixed price contract
D. fluctuating contract
Correct : A. Cost plus contract
46. Value of work done to the satisfaction of contractee
A. Work certified
B. Work un certified
C. Fixed price contract
D. fluctuating contract
Correct : B. Work un certified
47. A portion of work certified retained by contractee is known
A. Retention money
B. advance
C. Fixed price contract
D. fluctuating contract
Correct : A. Retention money
48. Profit on incomplete contract is known as ,………..
A. P/L a/c
B. notional profit
C. Net profit
D. completed contract
Correct : B. notional profit
49. Work in the process of completion
A. Work in progres
B. notional profit
C. Net profit
D. completed contract
Correct : A. Work in progres
50. A portion of main contract entrusted to some one else
A. Extra work
B. Sub work
C. Work in progress
D. Sub contract
Correct : D. Sub contract
51. Provision for increase in the contract price to accommodate increase in material and labour cost
A. De escalation clause
B. fluctuating price
C. Fixed price
D. Escalation price
Correct : D. Escalation price
52. A contract in which the contractor is given the lost of work done plus a certain percentage for profit is called …………………….
A. Cost plus contract
B. Sub contract
C. Fixed price contract
D. none of these
Correct : A. Cost plus contract
53. The person who gives the work on contract is known as ……
A. Contractor
B. contractee
C. Sub contraction
D. sub contractee
Correct : B. contractee
54. ……….. is the portion of work certified not paid by the contractee till completion of the work
A. Work certified
B. Uncertified
C. Retention money
D. notional profit
Correct : C. Retention money
55. The work in the process of completion is known as …………….
A. Work certified
B. work in progress
C. Work un certified
D. notional profit
Correct : B. work in progress
56. …………….. is the provision to increase the contract price increase in the Cost of construction over a particular level
A. Escalation clause
B. Desecration clause
C. Retention money
D. work certified
Correct : A. Escalation clause
57. Estimated profit on incomplete contract can also be called as ,……………..
A. Net profit
B. notional profit
C. Work in progress
D. net loss
Correct : B. notional profit
58. A contract in which the price is fixed in advance is a ………….. contract
A. Sub contract
B. fixed price contract
C. Cost plus contract
D. Fixed cost with Escalation clause
Correct : B. fixed price contract
59. A portion of the contact entrusted to somebody else is known as ……………..
A. Extra work
B. Sub contract
C. Cost plus contract
D. fixed price contract
Correct : B. Sub contract
60. A method of costing applied where costs are collected and accumulated for each work order is ………………….
A. Process a/c
B. contract costing
C. Operating costing
D. job costing
Correct : D. job costing
61. The method of costing applied when articles are manufactured in definite batches is ………………………….
A. Job costing
B. operation costing
C. Batch costing
D. service costing
Correct : C. Batch costing
62. The number of units to be manufactured in one batch
A. Economic order Quantity
B. Economic Quantity
C. Economic batch Quantity
D. ordering unit
Correct : C. Economic batch Quantity
63. The method of job costing is applied
A. Biscuit manufacturing
B. oil refining
C. Medicine manufacturing
D. Engineering work shop
Correct : D. Engineering work shop
64. The method of batch costing is used in …………………
A. Manufacture of agriculture product
B. construction of building
C. Manufacturing medicines
D. processing of oil
Correct : C. Manufacturing medicines
65. Job costing is ………………………….
A. Method of costing
B. technique of costing
C. Cost ascertainment
D. cost estimation
Correct : A. Method of costing
66. The method of costing applied in lathe is ………………….
A. Process costing
B. marginal costing
C. Absorption costing
D. job costing
Correct : D. job costing
67. The method of costing applied in cycle parts manufacturing is ………..
A. Job costing
B. process costing
C. Batch costing
D. contract costing
Correct : C. Batch costing
68. Job costing is applied when the product are of …………… nature
A. Similar
B. Dissimilar
C. Non separable
D. none of these
Correct : B. Dissimilar
69. Job costing can also be called as ……………….. costing
A. Specific order costing
B. batch costing
C. Transport costing
D. Farm costing
Correct : A. Specific order costing
70. For each job a …………………. Is given under job costing
A. Distinct number
B. Equal number
C. Coding
D. None of these
Correct : A. Distinct number
71. In ……………… costing production is always made for stock
A. Job costing
B. batch costing
C. Process costing
D. contract costing
Correct : B. batch costing
72. Cost of product in each stage is calculated in ………. Costing
A. Contract costing
B. marginal costing
C. Multiple costing
D. process costing
Correct : D. process costing
73. Un avoidable loss inherent in the material
A. Normal los
B. abnormal loss
C. Accidental loss
D. spoilage
Correct : A. Normal los
74. Incidental residue from manufacture with recoverable value
A. Scrap
B. spoilage
C. Defective
D. loss
Correct : A. Scrap
75. ………….. product are produced incidental to the main product
A. Joint product
B. By product
C. Co – product
D. none of these
Correct : B. By product
76. Milk, butter cream, etc obtained in is example of
A. By product
B. joint product
C. Co- product
D. none
Correct : B. joint product
77. Abnormal gain =…………..
A. normal cost of normal output /Actual output*units of A.L
B. N.C of normal output / normal output * units of A. gain
C. Normal output /Actual output * A. gain
D. None of these
Correct : B. N.C of normal output / normal output * units of A. gain
78. In ………… costing separate account “ process A/C ” is kept for each process
A. Proces
B. Job
C. Batch
D. none of these
Correct : A. Proces
79. The finished product of last process is transferred to ……………… a/c
A. Abnormal gain
B. Abnormal loss
C. Normal loss
D. finished stock
Correct : D. finished stock
80. In ………… costing no distinction is made between direct and indirect materials
A. Job
B. Contract
C. Process
D. Service
Correct : C. Process
81. Cost of ………… is not included in the cost of the process
A. Abnormal los
B. Normal loss
C. Normal gain
D. Abnormal gain
Correct : A. Abnormal los
82. Cost of one process may be transferred to the next process at
A. Cost price
B. Market price
C. Cost or market price
D. Realizable price
Correct : C. Cost or market price
83. The most important criterion for distinguishing between scrap, byproduct and joint product is…………of the products
A. Cost price
B. Market price
C. Relative sales value
D. Realizable value
Correct : C. Relative sales value
84. ………… costs relate to processes and incurred after split off points
A. Direct
B. Process
C. By product
D. Subsequent
Correct : D. Subsequent
85. The cost incurred up to the point of separation are called …………cost
A. Direct
B. Process
C. Byproduct
D. Common
Correct : C. Byproduct
86. ………… is the point of production at which separate products are identified
A. Ordering point
B. Trade off point
C. Split off point
D. Matching point
Correct : C. Split off point
87. The product has generally…………over the relative quantities of byproducts and the main products
A. Control
B. No control
C. Value
D. Quantity
Correct : B. No control
88. The main product is usually produced in greater quantities than the
A. Scrap
B. Defectives
C. Byproduct
D. Joint product
Correct : C. Byproduct
89. Joint costs are allocated according to…………value of individual products under the market value method
A. Market
B. Sales
C. Cost
D. Cost or market
Correct : B. Sales
90. ………… is based on the distinction between fixed and variable cost
A. Service costing
B. Unit costing
C. Process costing
D. Marginal costing
Correct : D. Marginal costing
91. Marginal costing is the aggregate of …………plus variable overheads
A. Work cost
B. Variable cost
C. Prime Cost
D. Cost of production
Correct : C. Prime Cost
92. Marginal costing is a…………of costing
A. Technique
B. Type
C. Method
D. Both (a)&(c)
Correct : A. Technique
93. ………… is the aggregate of fixed cost and profit
A. Prime cost
B. Contribution
C. Work cost
D. Cost of sale
Correct : B. Contribution
94. In marginal costing stock of finished goods is valued at
A. Fixed cost
B. Market price
C. Cost price
D. Variable cost
Correct : D. Variable cost
95. In marginal costing only…………is charged to products
A. Fixed cost
B. Variable cost
C. Semi variable cost
D. Semi fixed cost
Correct : B. Variable cost
96. …………helps the management in cost control
A. Marginal costing
B. Operation costing
C. Unit costing
D. Absorption costing
Correct : A. Marginal costing
97. …………is the system most useful for making make or buy decision
A. Operation costing
B. Marginal costing
C. Unit costing
D. Service costing
Correct : B. Marginal costing
98. Profit planning is possible with…………costing
A. Marginal
B. Absorption
C. Operation
D. Unit
Correct : A. Marginal
99. Marginal costing and …………analysis helps in decision making
A. Service costing
B. Unit costing
C. Differential costing
D. Absorption costing
Correct : C. Differential costing
100. An increase in physical sales volume…………P/V ratio
A. Increase
B. Decreases
C. Either increase or decrease
D. Do not affect
Correct : D. Do not affect