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This set of Applied Cost Accounting Multiple Choice Questions & Answers (MCQs) focuses on Applied Cost Accounting Set 7
Q1 | A decrease in the variable cost per unit, the profit-volume ratio will
- Increase
- Decreases
- Does not change
- Difficult to say
Q2 | When fixed cost decreases, the break even point ……………….
- Increase
- Decreases
- Does not change
- Difficult to say
Q3 | A method of costing which is used to ascertain the cost of products at each stage of it’s manufacture is called
- Job costing
- Batch costing
- Process costing
- None of these
Q4 | The process A/c is debited with
- All expenses and losse
- Material, labour and overheads
- Material and labour only
- Incomes and gains
Q5 | The process A/c is credited with
- Value of by-products & scrap
- All expenses and losses
- Material and labour
- Incomes and gains
Q6 | Normal Process Loss is
- Avoidable and controllable
- Unavoidable and expected
- Avoidable and unexpected
- Unavoidable and uncontrollable
Q7 | Normal cost of Normal output is equal to
- Total cost-scrap value of normal los
- Total loss-normal loss
- Total input-normal loss
- None
Q8 | The finished product of one process becomes
- Raw material of next proces
- Finished product of next process
- Output of next process
- All of the above
Q9 | Units of abnormal gain………………..in process A/c and ……………in abnormal gain A/c
- Credited, Debited
- Debited, Debited
- Debited, Credited
- Credited, Credited
Q10 | Units of abnormal loss is………………..in abnormal process A/c and ……………in process A/c
- Debited, Credited
- Credited, Debited
- Debited, Debited
- Credited, Credited
Q11 | If abnormal loss has any scrap value , it should be credited to
- Abnormal los
- Profit & Loss A/c
- Process A/c
- None
Q12 | Any loss over and above the normal loss is called
- Waste
- Abnormal loss
- Spoilage
- Scrap
Q13 | ……………..is a method of costing in which cost are collected and accumulated for each job order
- Batch costing
- Job costing
- Process costing
- Contract costing
Q14 | Production order costing is also known as
- Job costing
- Lot costing
- Both a and b
- None of the above
Q15 | Under job costing, on what basis production is performed?
- Customers taste and preference
- Customers income
- Customers order and specifications
- Both a and b
Q16 | The limitations of job costing are ;
- Expensive
- More clerical work
- Historical nature
- All of them
Q17 | How many steps are there in job costing procedure?
- 5
- 4
- 6
- 8
Q18 | ………………..is a modified form of job costing
- Process costing
- Batch costing
- Contract costing
- Work costing
Q19 | Select suitable examples for batch costing
- Radio set
- Component part of watches
- Toy making unit
- All of them
Q20 | EBQ stands for
- Economic Order Quantity
- Economic Batch Order
- Economic Batch Quantity
- Economic Batch Quality
Q21 | EBQ =
- 2CO/l
- 2DS/IC
Q22 | What is the purpose of calculating EBQ ?
- To reduce cost
- Optimum production
- Identify ideal or economic batch
- None of the above
Q23 | In which type of contract, the contractee agrees to pay the cost of work done plus a percentage of overhead and profit
- Fixed price contract
- Cost plus contract
- Fixed price contract with exclalation or de-exclalation
- Completed contract
Q24 | Contract account is a form of ………………….
- Nominal account
- Real account
- Personal account
- Statement
Q25 | The portion of value of work that has been done by the contractor and architect or supervisor of the contractee certified that work is ………..
- Work uncertified
- Contract price
- Work certified
- Retention money