Question 1

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

Accepted Answer

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

Question 2

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

Accepted Answer

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

Question 3

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

Accepted Answer

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

Question 4

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

Accepted Answer

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

Question 5

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

Accepted Answer

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

Question 6

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

Accepted Answer

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

Question 7

…………….. is the provision to increase the contract price increase in the Cost of construction over a particular level

Accepted Answer

A)  Escalation clause
B)  Desecration clause
C)  Retention money
D)  work certified

Question 8

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

Accepted Answer

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

Question 9

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

Accepted Answer

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

Question 10

A portion of the contact entrusted to somebody else is known as ……………..

Accepted Answer

A)  Extra work
B)  Sub contract
C)  Cost plus contract
D)  fixed price contract

Question 11

The method of job costing is applied

Accepted Answer

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

Question 12

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

Accepted Answer

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

Question 13

Un avoidable loss inherent in the material

Accepted Answer

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

Question 14

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

Accepted Answer

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

Question 15

Provision for increase in the contract price to accommodate increase in material and labour cost

Accepted Answer

A)  De escalation clause
B)  fluctuating price
C)  Fixed price
D)  Escalation price

Question 16

Job costing is ………………………….

Accepted Answer

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

Question 17

The number of units to be manufactured in one batch

Accepted Answer

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

Question 18

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

Accepted Answer

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

Question 19

The method of costing applied when articles are manufactured in definite batches is ………………………….

Accepted Answer

A)  Job costing
B)  operation costing
C)  Batch costing
D)  service costing

Question 20

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

Accepted Answer

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

Exam 3: Contract Pricing and Costing Methods