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This set of Applied Cost Accounting Multiple Choice Questions & Answers (MCQs) focuses on Applied Cost Accounting Set 2

Q1 | A cost both containing both fixed and variable elements ………………..
  • Variable cost
  • fixed cost
  • total cost
  • semi variable cost
Q2 | The excess of sales over variable cost is known as ………………
  • profit
  • loss
  • contribution
  • margin
Q3 | Establishes the relationship between cost , volume of sales and profit is…..
  • Marginal costing
  • standard costing
  • budgeting
  • Cost volume profit analysis
Q4 | A point at which there is neither profit nor loss ………………
  • No profit no loss point
  • Break even point
  • Margin of safety
  • contribution
Q5 | Excess of sales over break even sales is known as …………………..
  • No profit no loss point
  • Breakeven point
  • Margin of safety
  • contribution
Q6 | The angle formed at the point of incidence of sales line to total cost…….
  • Angle of incidence
  • break even point
  • Fixed cost
  • total cost
Q7 | A factor that restrict the activities of a concern ……………..
  • Contribution factor
  • break even point
  • Key factor
  • margin of safety
Q8 | …….. is method of cost volume profit analysis
  • Budgeting
  • budgetary control
  • Standard costing
  • break even analysis
Q9 | The additional cost of producing an additional unit is called ……….
  • Fixed cost
  • marginal cost
  • Semi variable
  • none of these
Q10 | Variable cost can also be called as …………………………
  • Semi variable
  • marginal cost
  • Standard costing
  • fixed cost
Q11 | Break even units can also be called as ………………………
  • Break even output
  • break even sales
  • Margin of safety
  • contribution
Q12 | Sales – variable cost = ……………………………………..
  • Marginal cost
  • fixed cost
  • Budget cost
  • contribution
Q13 | Excess of actual sales over break even sales is …………………
  • Break even unit
  • angle of incidence
  • Margin of safety
  • contribution
Q14 | The angle formed were the total cost line under sects the sale line is
  • Angle of incidence
  • margin of safety
  • Breakeven point
  • contribution
Q15 | The cost which varies proportionate to increase in production is …….. cost
  • Fixed
  • variable cost
  • Semi variable cost
  • break even cost
Q16 | The cost which remains constant with change in level of activities iscalled
  • Variable cost
  • marginal cost
  • Standard cost
  • fixed cost
Q17 | ……………….. is an angle formed in break even chart
  • Margin of safety
  • angle of incidence
  • Contribution
  • Break even point
Q18 | …………… is a graphical representation of marginal costing
  • Break even chart
  • angle of incidence
  • Margin of safety
  • none of these
Q19 | Contract price is fixed in advance
  • Cost plus contract
  • Target costing
  • Fixed price contract
  • Fluctuating contract
Q20 | Contract price is the cost of work done plus a percentage
  • Cost plus contract
  • target costing
  • Fixed price contract
  • fluctuating contract
Q21 | Value of work done to the satisfaction of contractee
  • Work certified
  • Work un certified
  • Fixed price contract
  • fluctuating contract
Q22 | A portion of work certified retained by contractee is known
  • Retention money
  • advance
  • Fixed price contract
  • fluctuating contract
Q23 | Profit on incomplete contract is known as ,………..
  • P/L a/c
  • notional profit
  • Net profit
  • completed contract
Q24 | Work in the process of completion
  • Work in progres
  • notional profit
  • Net profit
  • completed contract
Q25 | A portion of main contract entrusted to some one else
  • Extra work
  • Sub work
  • Work in progress
  • Sub contract