Deck 3: Contract Pricing and Costing Methods

Question 1

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

Answer 1

Escalation price

Question 2

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

Answer 2

Cost plus contract

Question 3

The person who gives the work on contract is known as ……

A)Contractor
B)contractee
C)Sub contraction
D)sub contractee

Answer 3

contractee

Question 4

……….. 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

Question 5

The work in the process of completion is known as …………….

A)Work certified
B)work in progress
C)Work un certified
D)notional profit

Question 6

…………….. 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

Question 7

Estimated profit on incomplete contract can also be called as ,……………..

A)Net profit
B)notional profit
C)Work in progress
D)net loss

Question 8

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

Question 9

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

Question 10

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

Question 11

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

Question 12

The number of units to be manufactured in one batch

A)Economic order Quantity
B)Economic Quantity
C)Economic batch Quantity
D)ordering unit

Question 13

The method of job costing is applied

A)Biscuit manufacturing
B)oil refining
C)Medicine manufacturing
D)Engineering work shop

Question 14

The method of batch costing is used in …………………

A)Manufacture of agriculture product
B)construction of building
C)Manufacturing medicines
D)processing of oil

Question 15

Job costing is ………………………….

A)Method of costing
B)technique of costing
C)Cost ascertainment
D)cost estimation

Question 16

The method of costing applied in lathe is ………………….

A)Process costing
B)marginal costing
C)Absorption costing
D)job costing

Question 17

The method of costing applied in cycle parts manufacturing is ………..

A)Job costing
B)process costing
C)Batch costing
D)contract costing

Question 18

Job costing is applied when the product are of …………… nature

A)Similar
B)Dissimilar
C)Non separable
D)none of these

Question 19

Job costing can also be called as ……………….. costing

A)Specific order costing
B)batch costing
C)Transport costing
D)Farm costing

Question 20

For each job a …………………. Is given under job costing

A)Distinct number
B)Equal number
C)Coding
D)None of these

Question 21

In ……………… costing production is always made for stock

A)Job costing
B)batch costing
C)Process costing
D)contract costing

Question 22

Cost of product in each stage is calculated in ………. Costing

A)Contract costing
B)marginal costing
C)Multiple costing
D)process costing

Question 23

Un avoidable loss inherent in the material

A)Normal los
B)abnormal loss
C)Accidental loss
D)spoilage

Question 24

Incidental residue from manufacture with recoverable value

A)Scrap
B)spoilage
C)Defective
D)loss

Question 25

………….. product are produced incidental to the main product

A)Joint product
B)By product
C)Co - product
D)none of these