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This set of Applied Cost Accounting Multiple Choice Questions & Answers (MCQs) focuses on Applied Cost Accounting Set 3
Q1 | Provision for increase in the contract price to accommodate increase inmaterial and labour cost
- De escalation clause
- fluctuating price
- Fixed price
- Escalation price
Q2 | A contract in which the contractor is given the lost of work done plus acertain percentage for profit is called …………………….
- Cost plus contract
- Sub contract
- Fixed price contract
- none of these
Q3 | The person who gives the work on contract is known as ……
- Contractor
- contractee
- Sub contraction
- sub contractee
Q4 | ……….. is the portion of work certified not paid by the contractee tillcompletion of the work
- Work certified
- Uncertified
- Retention money
- notional profit
Q5 | The work in the process of completion is known as …………….
- Work certified
- work in progress
- Work un certified
- notional profit
Q6 | …………….. is the provision to increase the contract price increase in theCost of construction over a particular level
- Escalation clause
- Desecration clause
- Retention money
- work certified
Q7 | Estimated profit on incomplete contract can also be called as ,……………..
- Net profit
- notional profit
- Work in progress
- net loss
Q8 | A contract in which the price is fixed in advance is a ………….. contract
- Sub contract
- fixed price contract
- Cost plus contract
- Fixed cost with Escalation clause
Q9 | A portion of the contact entrusted to somebody else is known as……………..
- Extra work
- Sub contract
- Cost plus contract
- fixed price contract
Q10 | A method of costing applied where costs are collected and accumulatedfor each work order is ………………….
- Process a/c
- contract costing
- Operating costing
- job costing
Q11 | The method of costing applied when articles are manufactured in definitebatches is ………………………….
- Job costing
- operation costing
- Batch costing
- service costing
Q12 | The number of units to be manufactured in one batch
- Economic order Quantity
- Economic Quantity
- Economic batch Quantity
- ordering unit
Q13 | The method of job costing is applied
- Biscuit manufacturing
- oil refining
- Medicine manufacturing
- Engineering work shop
Q14 | The method of batch costing is used in …………………
- Manufacture of agriculture product
- construction of building
- Manufacturing medicines
- processing of oil
Q15 | Job costing is ………………………….
- Method of costing
- technique of costing
- Cost ascertainment
- cost estimation
Q16 | The method of costing applied in lathe is ………………….
- Process costing
- marginal costing
- Absorption costing
- job costing
Q17 | The method of costing applied in cycle parts manufacturing is ………..
- Job costing
- process costing
- Batch costing
- contract costing
Q18 | Job costing is applied when the product are of …………… nature
- Similar
- Dissimilar
- Non separable
- none of these
Q19 | Job costing can also be called as ……………….. costing
- Specific order costing
- batch costing
- Transport costing
- Farm costing
Q20 | For each job a …………………. Is given under job costing
- Distinct number
- Equal number
- Coding
- None of these
Q21 | In ……………… costing production is always made for stock
- Job costing
- batch costing
- Process costing
- contract costing
Q22 | Cost of product in each stage is calculated in ………. Costing
- Contract costing
- marginal costing
- Multiple costing
- process costing
Q23 | Un avoidable loss inherent in the material
- Normal los
- abnormal loss
- Accidental loss
- spoilage
Q24 | Incidental residue from manufacture with recoverable value
- Scrap
- spoilage
- Defective
- loss
Q25 | ………….. product are produced incidental to the main product
- Joint product
- By product
- Co – product
- none of these