Question 1

Room/day is the cost unit used in…………………

Accepted Answer

A)  hotels
B)  hospital
C)  schools
D)  none of these A

Question 2

The sum of value of work certified and uncertified appearing in the Contract Account is called ……………..

Accepted Answer

A)  work in progress
B)  work in process
C)  work completed
D)  work done. A

Question 3

Contract costing is not used in one of the following industries.

Accepted Answer

A)  ship building
B)  civil construction
C)  automobiles
D)  construction of bridges C

Question 4

….is the most suitable method in a transport industry.

Accepted Answer

A)  operation costing
B)  service costing
C)  process costing
D)  job costing

Question 5

The Profit/Volume ratio or marginal ratio expresses the relation of ………………

Accepted Answer

A)  profit
B)  marginal cost
C)  contribution
D)  none of these

Question 6

Economic Batch Quantity is an important point to be determined in industries where...................... costing is employed.

Accepted Answer

A)  job
B)  batch
C)  operation
D)  output

Question 7

Economic Batch Quantity depends on...........................and…………..costs.

Accepted Answer

A)  material, labour
B)  set-up costs, carrying
C)  transportation, carrying
D)  warehousing, labour

Question 8

Warehousing cost is an item of

Accepted Answer

A)  office overhead
B)  distribution overhead
C)  material cost
D)  works overhead

Question 9

Primary packing is an item of ………………

Accepted Answer

A)  selling overheads
B)  prime cost
C)  distribution overheads
D)  factory overheads

Question 10

Material Costs of each job are determined from……………

Accepted Answer

A)  material requisition notes
B)  bill of materials
C)  both a & b
D)  none of these

Question 11

In................................ each job is a cost unit to which all costs are assigned.

Accepted Answer

A)  batch costing
B)  job costing
C)  process costing
D)  operation costing

Question 12

If the amount of work certified is less than…......... of the contract price, then no profit should be taken to Profit & Loss Account.

Accepted Answer

A)  20%
B)  25%
C)  33 1/3%
D)  40%

Question 13

Each job has a ..................... prepared for it that bears the job number and which is used to collect all cost data relating to job.

Accepted Answer

A)  job time sheet
B)  job cost card
C)  job ticket
D)  job account

Question 14

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

Accepted Answer

A)  work-in-progress
B)  profit and loss account
C)  miscellaneous account
D)  none of these

Question 15

In transport costing...........................charges vary more or less in direct proportion to kilometers run.

Accepted Answer

A)  running
B)  petrol
C)  drivers salary
D)  tax

Question 16

Printers use ......................... costing.

Accepted Answer

A)  process
B)  batch
C)  job
D)  contract

Question 17

An automobile service unit uses..........................costing.

Accepted Answer

A)  specific order
B)  batch
C)  job
D)  contract

Question 18

The .....................costing is applied when a quantity of similar and identical products are manufactured together as one Job.

Accepted Answer