Applied Cost Accounting Set 4

Bachelor of Commerce (B Com)

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This set of Applied Cost Accounting Multiple Choice Questions & Answers (MCQs) focuses on Applied Cost Accounting Set 4

Q1 | Milk, butter cream, etc obtained in is example of
  • By product
  • joint product
  • Co- product
  • none
Answer: joint product
Q2 | Abnormal gain =…………..
  • normal cost of normal output /Actual output*units of A.L
  • N.C of normal output / normal output * units of A. gain
  • Normal output /Actual output * A. gain
  • None of these
Answer: N.C of normal output / normal output * units of A. gain
Q3 | In ………… costing separate account “ process A/C ” is kept for eachprocess
  • Proces
  • Job
  • Batch
  • none of these
Answer: Proces
Q4 | The finished product of last process is transferred to ……………… a/c
  • Abnormal gain
  • Abnormal loss
  • Normal loss
  • finished stock
Answer: finished stock
Q5 | In ………… costing no distinction is made between direct and indirectmaterials
  • Job
  • Contract
  • Process
  • Service
Answer: Process
Q6 | Cost of ………… is not included in the cost of the process
  • Abnormal los
  • Normal loss
  • Normal gain
  • Abnormal gain
Answer: Abnormal los
Q7 | Cost of one process may be transferred to the next process at
  • Cost price
  • Market price
  • Cost or market price
  • Realizable price
Answer: Cost or market price
Q8 | The most important criterion for distinguishing between scrap, byproductand joint product is…………of the products
  • Cost price
  • Market price
  • Relative sales value
  • Realizable value
Answer: Relative sales value
Q9 | ………… costs relate to processes and incurred after split off points
  • Direct
  • Process
  • By product
  • Subsequent
Answer: Subsequent
Q10 | The cost incurred up to the point of separation are called …………cost
  • Direct
  • Process
  • Byproduct
  • Common
Answer: Byproduct
Q11 | ………… is the point of production at which separate products areidentified
  • Ordering point
  • Trade off point
  • Split off point
  • Matching point
Answer: Split off point
Q12 | The product has generally…………over the relative quantities ofbyproducts and the main products
  • Control
  • No control
  • Value
  • Quantity
Answer: No control
Q13 | The main product is usually produced in greater quantities than the
  • Scrap
  • Defectives
  • Byproduct
  • Joint product
Answer: Byproduct
Q14 | Joint costs are allocated according to…………value of individual productsunder the market value method
  • Market
  • Sales
  • Cost
  • Cost or market
Answer: Sales
Q15 | ………… is based on the distinction between fixed and variable cost
  • Service costing
  • Unit costing
  • Process costing
  • Marginal costing
Answer: Marginal costing
Q16 | Marginal costing is the aggregate of …………plus variable overheads
  • Work cost
  • Variable cost
  • Prime Cost
  • Cost of production
Answer: Prime Cost
Q17 | Marginal costing is a…………of costing
  • Technique
  • Type
  • Method
  • Both (a)&(c)
Answer: Technique
Q18 | ………… is the aggregate of fixed cost and profit
  • Prime cost
  • Contribution
  • Work cost
  • Cost of sale
Answer: Contribution
Q19 | In marginal costing stock of finished goods is valued at
  • Fixed cost
  • Market price
  • Cost price
  • Variable cost
Answer: Variable cost
Q20 | In marginal costing only…………is charged to products
  • Fixed cost
  • Variable cost
  • Semi variable cost
  • Semi fixed cost
Answer: Variable cost
Q21 | …………helps the management in cost control
  • Marginal costing
  • Operation costing
  • Unit costing
  • Absorption costing
Answer: Marginal costing
Q22 | …………is the system most useful for making make or buy decision
  • Operation costing
  • Marginal costing
  • Unit costing
  • Service costing
Answer: Marginal costing
Q23 | Profit planning is possible with…………costing
  • Marginal
  • Absorption
  • Operation
  • Unit
Answer: Marginal
Q24 | Marginal costing and …………analysis helps in decision making
  • Service costing
  • Unit costing
  • Differential costing
  • Absorption costing
Answer: Differential costing
Q25 | An increase in physical sales volume…………P/V ratio
  • Increase
  • Decreases
  • Either increase or decrease
  • Do not affect
Answer: Do not affect
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