Deck 1: Costing and Cost Units

Question 1

In job costing each ………. Is a cost unit to which all costs are assigned

A)Jobb
B)profit
C)Batch
D)cost

Answer 1

Jobb

Question 2

In a contract costing most of the items of cost are ……………..

A)Indirect
B)direct
C)normal
D)fixed

Answer 2

direct

Question 3

……………. In a contract , provides that the contract price would be suitably enhanced on the happening of a specified contingency

A)Cost plus contract
B)estimated profit
C)Escalation\ clause
D)EBQ

Answer 3

Escalation\ clause

Question 4

The loss incurred on an incomplete contract is transferred to ……… account

A)Profit & loss a/c
B)work in progress
C)depreciation
D)Machinery

Question 5

When the completion stage of the contract is more than half, the profit to be credited to P/L a/c will be equal to ………………..

A)2/3 *notional profit *CR/WC
B)Estimated profit *W.C/contract price
C)1/3 * N.P * CR/W.C
D)Total profit

Question 6

In …………….. contract the contractor will get cost plus stipulated profit

A)Sub contract
B)cost plus contract
C)job
D)direct

Question 7

Scope of specific order costing is very wide and includes ……. ,………, ………….

A)Job, Batch and contract costing
B)Process , Contract and unit costing
C)Batch , Job and process costing
D)Unit , service and transport costing

Question 8

………… is an important point to be determined in industries where batch costing is employed

A)EBQ
B)EOQ
C)Re - order quantity
D)Batch

Question 9

When a contract is debited with the original cost of the plant , it should credited with ………… at the end of the year

A)Original cost of the plant
B)Depreciated value of the stock
C)Profit
D)Estimated cost

Question 10

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

A)Work in progres
B)P/L a/c
C)Estimated profit
D)Notional profit

Question 11

If the contract is almost complete , the amount of profit generally transferred to profit and loss account is equal to

A)Estimated profit * work certified/ contract price
B)Estimated profit * contract price / work certified
C)Notional profit * C.R/ W.C
D)Notional profit W.C/ C.R

Question 12

In a contract costing payment of cash to the contract is made on the basis of …………………………. Work

A)Certified
B)profit and loss a/c
C)contract price
D)cost

Question 13

Job costing is applied only in …………………. Concern

A)Small
B)large
C)medium
D)None of these

Question 14

Contract costing is a basic method of …………….. costing

A)Specific order costing
B)batch costing
C)process costing
D)Unit costing

Question 15

In job costing the production is generally against customers …………………. but not for stock

A)Order
B)profit
C)cash in hand
D)none of these

Question 16

The method of costing applied in biscuit industries is …………………….

A)Jo
B)process
C)contract
D)unit

Question 17

Average unit cost for each process is calculated by dividing ……………..by …………….

A)Total process cost / No.of units in process
B)Total process cost / Total cost
C)Total cost / Total profit
D)None of these

Question 18

Where raw material is to pass certain stages before it is converted into finished goods, the method of costing used is ……………………

A)Contract
B)Process
C)unit
D)Batch

Question 19

When the actual loss is more than the estimated loss, the difference between the two is considered to be ,………………….

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

Question 20

……………….. process loss should be transferred to costing profit and loss account

A)Normal
B)abnormal
C)actual
D)none of these

Question 21

The cost of ……….. process loss is absorbed in the cost of production of good units

A)Normal
B)abnormal
C)actual
D)none of these

Question 22

Where actual loss in a process is less than the anticipated loss , the difference b/w the two is considered to be …………..

A)Normal los
B)Abnormal gain
C)normal gain
D)None of

Question 23

……… is the difference b/w the sales and marginal cost of sale

A)Profit
B)contribution
C)p/v ratio
D)none f these

Question 24

Cost of producing an additional unit of output is ……………

A)Historical cost
B)marginal cost
C)fixed cost
D)total cost

Question 25

A cost do not change with changes in the level of activity is ………….

A)Variable cost
B)fixed cost
C)sunk cost
D)total cost