Deck 4: Costing and Product Analysis

Question 1

Milk, butter cream, etc obtained in is example of

A)By product
B)joint product
C)Co- product
D)none

Answer 1

joint product

Question 2

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

Answer 2

N.C of normal output / normal output * units of A. gain

Question 3

In ………… costing separate account " process A/C " is kept for each process

A)Proces
B)Job
C)Batch
D)none of these

Answer 3

Proces

Question 4

The finished product of last process is transferred to ……………… a/c

A)Abnormal gain
B)Abnormal loss
C)Normal loss
D)finished stock

Question 5

In ………… costing no distinction is made between direct and indirect materials

A)Job
B)Contract
C)Process
D)Service

Question 6

Cost of ………… is not included in the cost of the process

A)Abnormal los
B)Normal loss
C)Normal gain
D)Abnormal gain

Question 7

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

Question 8

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

Question 9

………… costs relate to processes and incurred after split off points

A)Direct
B)Process
C)By product
D)Subsequent

Question 10

The cost incurred up to the point of separation are called …………cost

A)Direct
B)Process
C)Byproduct
D)Common

Question 11

………… 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

Question 12

The product has generally…………over the relative quantities of byproducts and the main products

A)Control
B)No control
C)Value
D)Quantity

Question 13

The main product is usually produced in greater quantities than the

A)Scrap
B)Defectives
C)Byproduct
D)Joint product

Question 14

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

Question 15

………… is based on the distinction between fixed and variable cost

A)Service costing
B)Unit costing
C)Process costing
D)Marginal costing

Question 16

Marginal costing is the aggregate of …………plus variable overheads

A)Work cost
B)Variable cost
C)Prime Cost
D)Cost of production

Question 17

Marginal costing is a…………of costing

A)Technique
B)Type
C)Method
D)Both (a)&(c)

Question 18

………… is the aggregate of fixed cost and profit

A)Prime cost
B)Contribution
C)Work cost
D)Cost of sale

Question 19

In marginal costing stock of finished goods is valued at

A)Fixed cost
B)Market price
C)Cost price
D)Variable cost

Question 20

In marginal costing only…………is charged to products

A)Fixed cost
B)Variable cost
C)Semi variable cost
D)Semi fixed cost

Question 21

…………helps the management in cost control

A)Marginal costing
B)Operation costing
C)Unit costing
D)Absorption costing

Question 22

…………is the system most useful for making make or buy decision

A)Operation costing
B)Marginal costing
C)Unit costing
D)Service costing

Question 23

Profit planning is possible with…………costing

A)Marginal
B)Absorption
C)Operation
D)Unit

Question 24

Marginal costing and …………analysis helps in decision making

A)Service costing
B)Unit costing
C)Differential costing
D)Absorption costing

Question 25

An increase in physical sales volume…………P/V ratio

A)Increase
B)Decreases
C)Either increase or decrease
D)Do not affect