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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