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This set of Applied Cost Accounting Multiple Choice Questions & Answers (MCQs) focuses on Applied Cost Accounting Set 1
Q1 | In job costing each ………. Is a cost unit to which all costs are assigned
- Jobb
- profit
- Batch
- cost
Q2 | In a contract costing most of the items of cost are ……………..
- Indirect
- direct
- normal
- fixed
Q3 | ……………. In a contract , provides that the contract price would be suitably enhanced on the happening of a specified contingency
- Cost plus contract
- estimated profit
- Escalation\ clause
- EBQ
Q4 | The loss incurred on an incomplete contract is transferred to ……… account
- Profit & loss a/c
- work in progress
- depreciation
- Machinery
Q5 | When the completion stage of the contract is more than half, the profit tobe credited to P/L a/c will be equal to ………………..
- 2/3 *notional profit *CR/WC
- Estimated profit *W.C/contract price
- 1/3 * N.P * CR/W.C
- Total profit
Q6 | In …………….. contract the contractor will get cost plus stipulated profit
- Sub contract
- cost plus contract
- job
- direct
Q7 | Scope of specific order costing is very wide and includes ……. ,………,………….
- Job, Batch and contract costing
- Process , Contract and unit costing
- Batch , Job and process costing
- Unit , service and transport costing
Q8 | ………… is an important point to be determined in industries where batchcosting is employed
- EBQ
- EOQ
- Re – order quantity
- Batch
Q9 | When a contract is debited with the original cost of the plant , it shouldcredited with ………… at the end of the year
- Original cost of the plant
- Depreciated value of the stock
- Profit
- Estimated cost
Q10 | When the competition stage of a contract is less than ¼ , the totalexpenditure on the contract is transferred to ………… account
- Work in progres
- P/L a/c
- Estimated profit
- Notional profit
Q11 | If the contract is almost complete , the amount of profit generallytransferred to profit and loss account is equal to
- Estimated profit * work certified/ contract price
- Estimated profit * contract price / work certified
- Notional profit * C.R/ W.C
- Notional profit W.C/ C.R
Q12 | In a contract costing payment of cash to the contract is made on the basisof …………………………. Work
- Certified
- profit and loss a/c
- contract price
- cost
Q13 | Job costing is applied only in …………………. Concern
- Small
- large
- medium
- None of these
Q14 | Contract costing is a basic method of …………….. costing
- Specific order costing
- batch costing
- process costing
- Unit costing
Q15 | In job costing the production is generally against customers…………………. but not for stock
- Order
- profit
- cash in hand
- none of these
Q16 | The method of costing applied in biscuit industries is …………………….
- Jo
- process
- contract
- unit
Q17 | Average unit cost for each process is calculated by dividing ……………..by…………….
- Total process cost / No.of units in process
- Total process cost / Total cost
- Total cost / Total profit
- None of these
Q18 | Where raw material is to pass certain stages before it is converted into finished goods, the method of costing used is ……………………
- Contract
- Process
- unit
- Batch
Q19 | When the actual loss is more than the estimated loss, the difference between the two is considered to be ,………………….
- Abnormal gain
- Abnormal loss
- Normal loss
- Normal gain
Q20 | ……………….. process loss should be transferred to costing profit and lossaccount
- Normal
- abnormal
- actual
- none of these
Q21 | The cost of ……….. process loss is absorbed in the cost of production ofgood units
- Normal
- abnormal
- actual
- none of these
Q22 | Where actual loss in a process is less than the anticipated loss , thedifference b/w the two is considered to be …………..
- Normal los
- Abnormal gain
- normal gain
- None of
Q23 | ……… is the difference b/w the sales and marginal cost of sale
- Profit
- contribution
- p/v ratio
- none f these
Q24 | Cost of producing an additional unit of output is ……………
- Historical cost
- marginal cost
- fixed cost
- total cost
Q25 | A cost do not change with changes in the level of activity is ………….
- Variable cost
- fixed cost
- sunk cost
- total cost