Question 1

In …………….. contract the contractor will get cost plus stipulated profit

Accepted Answer

A) Sub contract 
B) cost plus contract 
C) job 
D) direct 
A) Sub contract 
B) cost plus contract 
C) job 
D) direct B

Question 2

In a contract costing payment of cash to the contract is made on the basis of …………………………. Work

Accepted Answer

A) Certified 
B) profit and loss a/c 
C) contract price 
D) cost 
A) Certified 
B) profit and loss a/c 
C) contract price 
D) cost A

Question 3

Contract costing is a basic method of …………….. costing

Accepted Answer

A) Specific order costing 
B) batch costing 
C) process costing 
D) Unit costing 
A) Specific order costing 
B) batch costing 
C) process costing 
D) Unit costing A

Question 4

When the competition stage of a contract is less than ¼ , the total expenditure on the contract is transferred to ………… account

Accepted Answer

A) Work in progres 
B) P/L a/c 
C) Estimated profit 
D) Notional profit 
A) Work in progres 
B) P/L a/c 
C) Estimated profit 
D) Notional profit

Question 5

A cost do not change with changes in the level of activity is ………….

Accepted Answer

A) Variable cost 
B) fixed cost 
C) sunk cost 
D) total cost 
A) Variable cost 
B) fixed cost 
C) sunk cost 
D) total cost

Question 6

……………….. process loss should be transferred to costing profit and loss account

Accepted Answer

A) Normal 
B) abnormal 
C) actual 
D) none of these 
A) Normal 
B) abnormal 
C) actual 
D) none of these

Question 7

………… is an important point to be determined in industries where batch costing is employed

Accepted Answer

A) EBQ 
B) EOQ 
C) Re - order quantity 
D) Batch 
A) EBQ 
B) EOQ 
C) Re - order quantity 
D) Batch

Question 8

……… is the difference b/w the sales and marginal cost of sale

Accepted Answer

A) Profit 
B) contribution 
C) p/v ratio 
D) none f these 
A) Profit 
B) contribution 
C) p/v ratio 
D) none f these

Question 9

The loss incurred on an incomplete contract is transferred to ……… account

Accepted Answer

A) Profit & loss a/c 
B) work in progress 
C) depreciation 
D) Machinery 
A) Profit & loss a/c 
B) work in progress 
C) depreciation 
D) Machinery

Question 10

The cost of ……….. process loss is absorbed in the cost of production of good units

Accepted Answer

A) Normal 
B) abnormal 
C) actual 
D) none of these 
A) Normal 
B) abnormal 
C) actual 
D) none of these

Question 11

When a contract is debited with the original cost of the plant , it should credited with ………… at the end of the year

Accepted Answer

A) Original cost of the plant 
B) Depreciated value of the stock 
C) Profit 
D) Estimated cost 
A) Original cost of the plant 
B) Depreciated value of the stock 
C) Profit 
D) Estimated cost

Question 12

In job costing the production is generally against customers …………………. but not for stock

Accepted Answer

A) Order 
B) profit 
C) cash in hand 
D) none of these 
A) Order 
B) profit 
C) cash in hand 
D) none of these

Question 13

Job costing is applied only in …………………. Concern

Accepted Answer

A) Small 
B) large 
C) medium 
D) None of these 
A) Small 
B) large 
C) medium 
D) None of these

Question 14

The method of costing applied in biscuit industries is …………………….

Accepted Answer

A) Jo 
B) process 
C) contract 
D) unit 
A) Jo 
B) process 
C) contract 
D) unit

Question 15

Where raw material is to pass certain stages before it is converted into finished goods, the method of costing used is ……………………

Accepted Answer

A) Contract 
B) Process 
C) unit 
D) Batch 
A) Contract 
B) Process 
C) unit 
D) Batch

Question 16

Scope of specific order costing is very wide and includes ……. ,………, ………….

Accepted Answer

A) Job, Batch and contract costing 
B) Process , Contract and unit costing 
C) Batch , Job and process costing 
D) Unit , service and transport costing 
A) Job, Batch and contract costing 
B) Process , Contract and unit costing 
C) Batch , Job and process costing 
D) Unit , service and transport costing

Question 17

Cost of producing an additional unit of output is ……………

Accepted Answer

A) Historical cost 
B) marginal cost 
C) fixed cost 
D) total cost 
A) Historical cost 
B) marginal cost 
C) fixed cost 
D) total cost

Question 18

In a contract costing most of the items of cost are ……………..

Accepted Answer

A) Indirect 
B) direct 
C) normal 
D) fixed 
A) Indirect 
B) direct 
C) normal 
D) fixed

Question 19

Average unit cost for each process is calculated by dividing ……………..by …………….

Accepted Answer

A) Total process cost / No.of units in process 
B) Total process cost / Total cost 
C) Total cost / Total profit 
D) None of these 
A) Total process cost / No.of units in process 
B) Total process cost / Total cost 
C) Total cost / Total profit 
D) None of these

Question 20

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 ………………..

Accepted Answer

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 
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

In …………….. contract the contractor will get cost plus stipulated profit

In a contract costing payment of cash to the contract is made on the basis of …………………………. Work

Contract costing is a basic method of …………….. costing

When the competition stage of a contract is less than ¼ , the total expenditure on the contract is transferred to ………… account

A cost do not change with changes in the level of activity is ………….

……………….. process loss should be transferred to costing profit and loss account

………… is an important point to be determined in industries where batch costing is employed

……… is the difference b/w the sales and marginal cost of sale

The loss incurred on an incomplete contract is transferred to ……… account

The cost of ……….. process loss is absorbed in the cost of production of good units

When a contract is debited with the original cost of the plant , it should credited with ………… at the end of the year

In job costing the production is generally against customers …………………. but not for stock

Job costing is applied only in …………………. Concern

The method of costing applied in biscuit industries is …………………….

Where raw material is to pass certain stages before it is converted into finished goods, the method of costing used is ……………………

Scope of specific order costing is very wide and includes ……. ,………, ………….

Cost of producing an additional unit of output is ……………

In a contract costing most of the items of cost are ……………..

Average unit cost for each process is calculated by dividing ……………..by …………….

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 ………………..

Costing and Profitability Analysis

Contract Pricing and Costing Methods

Costing and Product Analysis

Marginal Costing, Budgeting, and Costing Techniques

Budgeting and Costing

Costing and Contracting

Contractor Payments and Profit Calculation

Filters

Exam 1: Costing and Cost Units

In …………….. contract the contractor will get cost plus stipulated profit

In a contract costing payment of cash to the contract is made on the basis of …………………………. Work

Contract costing is a basic method of …………….. costing

When the competition stage of a contract is less than ¼ , the total expenditure on the contract is transferred to ………… account

A cost do not change with changes in the level of activity is ………….

……………….. process loss should be transferred to costing profit and loss account

………… is an important point to be determined in industries where batch costing is employed

……… is the difference b/w the sales and marginal cost of sale

The loss incurred on an incomplete contract is transferred to ……… account

The cost of ……….. process loss is absorbed in the cost of production of good units

When a contract is debited with the original cost of the plant , it should credited with ………… at the end of the year

In job costing the production is generally against customers …………………. but not for stock

Job costing is applied only in …………………. Concern

The method of costing applied in biscuit industries is …………………….

Where raw material is to pass certain stages before it is converted into finished goods, the method of costing used is ……………………

Scope of specific order costing is very wide and includes ……. ,………, ………….

Cost of producing an additional unit of output is ……………

In a contract costing most of the items of cost are ……………..

Average unit cost for each process is calculated by dividing ……………..by …………….

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 ………………..

Costing and Profitability Analysis

Contract Pricing and Costing Methods

Costing and Product Analysis

Marginal Costing, Budgeting, and Costing Techniques

Budgeting and Costing

Costing and Contracting

Contractor Payments and Profit Calculation

Filters