Deck 2: Costing and Profitability Analysis

Question 1

A cost both containing both fixed and variable elements ………………..

A)Variable cost
B)fixed cost
C)total cost
D)semi variable cost

Answer 1

total cost

Question 2

The excess of sales over variable cost is known as ………………

A)profit
B)loss
C)contribution
D)margin

Answer 2

contribution

Question 3

Establishes the relationship between cost , volume of sales and profit is …..

A)Marginal costing
B)standard costing
C)budgeting
D)Cost volume profit analysis

Answer 3

Cost volume profit analysis

Question 4

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

Question 5

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

Question 6

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

Question 7

A factor that restrict the activities of a concern ……………..

A)Contribution factor
B)break even point
C)Key factor
D)margin of safety

Question 8

…….. is method of cost volume profit analysis

A)Budgeting
B)budgetary control
C)Standard costing
D)break even analysis

Question 9

The additional cost of producing an additional unit is called ……….

A)Fixed cost
B)marginal cost
C)Semi variable
D)none of these

Question 10

Variable cost can also be called as …………………………

A)Semi variable
B)marginal cost
C)Standard costing
D)fixed cost

Question 11

Break even units can also be called as ………………………

A)Break even output
B)break even sales
C)Margin of safety
D)contribution

Question 12

Sales - variable cost = ……………………………………..

A)Marginal cost
B)fixed cost
C)Budget cost
D)contribution

Question 13

Excess of actual sales over break even sales is …………………

A)Break even unit
B)angle of incidence
C)Margin of safety
D)contribution

Question 14

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

Question 15

The cost which varies proportionate to increase in production is …….. cost

A)Fixed
B)variable cost
C)Semi variable cost
D)break even cost

Question 16

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

Question 17

……………….. is an angle formed in break even chart

A)Margin of safety
B)angle of incidence
C)Contribution
D)Break even point

Question 18

…………… is a graphical representation of marginal costing

A)Break even chart
B)angle of incidence
C)Margin of safety
D)none of these

Question 19

Contract price is fixed in advance

A)Cost plus contract
B)Target costing
C)Fixed price contract
D)Fluctuating contract

Question 20

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

Question 21

Value of work done to the satisfaction of contractee

A)Work certified
B)Work un certified
C)Fixed price contract
D)fluctuating contract

Question 22

A portion of work certified retained by contractee is known

A)Retention money
B)advance
C)Fixed price contract
D)fluctuating contract

Question 23

Profit on incomplete contract is known as ,………..

A)P/L a/c
B)notional profit
C)Net profit
D)completed contract

Question 24

Work in the process of completion

A)Work in progres
B)notional profit
C)Net profit
D)completed contract

Question 25

A portion of main contract entrusted to some one else

A)Extra work
B)Sub work
C)Work in progress
D)Sub contract