Cost Accounting Important Multiple Choice questions (MCQs) B.COM (Hons) : Gauhati University Cost Accounting Important MCQS, Dibrugarh University Cost Accounting Important MCQS, Ravindranath Tagore University Cost Accounting Important MCQS,Cost Accounting Important Multiple Choice Questions Answers.
In this article you will get very very Important Cost Accounting Unit-5 MCQs for B.com (Hons). Which can be Very Useful for scoring a good marks in your Semester & Sessional Exams Conduct by Colleges/Universities.
COST ACCOUNTING MCQS
UNIT-5
Method of Costing
QI(A): Fill in the blanks with most appropriate words:
(i) Less incurred in an incomplete contract is transferred to_____Account.
Ans: Profit and Loss Account
(ii) In process costing, abnormal loss is treated as_____cost and written off to profit and Loss account.
Ans : Period
(iii) Abnormal process loss should be transferred is____Account.
Ans: Costing Profit and Loss Account
(iv) The sum of value of work certified and uncertified appearing in the contract account is called_____.
Ans: Work-in-progress
(v) Average unit cost for each process is calculated by dividing the_____by_____.
Ans: Total Process cost, number of units in process
(vi) Where the work is undertaken to customers special requirements and each order is of comparatively short duration, it is called______.
Ans: Job costing,
(vii) In contract costing payment of cash to the contractor is made on the basis of Ans: Certified work.
(viii) Cost of_____ loss is not borne by good units.
Ans: Abnormal
(ix) If the actual loss in a process is less than the normal loss, the difference is known as______.
Ans: Abnormal gain
Q1(B): State whether the following statements is 'True' or 'False":
(i) A job is a small contract and in contract is a big job.
Ans: True
(ii) Cost of normal loss in process costing is borne by the goods produced.
Ans: True
(iii) Job costing is not applied where work is undertaken to customers special requirements.
Ans : False
(iv) Contract costing is variant of job costing.
Ans: True
(v) In contract costing, the unit of cost is a job.
Ans : False
(vi) Job costing is applied only in small concerns.
Ans: False
(vii) Process costing is a variant of operation costing.
Ans: True
(viii) Job costing and process costing can be used simultaneously in the some industries.
Ans: True
(ix) In process costing normal loss is transferred to costing Profit and Loss Account.
Ans: False
(x) Cost per unit remains the same whether there is abnormal gain or abnormal loss.
Ans: True
(xi) In cost plus contract, the contractor runs a risk of incurring loss.
Ans: False
(xii) Escalation clause in a contract provides that the contract price is fixed. Ans : False
(xiii) Escalation clause safeguard the interest of the contractir for rise in palse. Ans: True
(xiv) If the number of contracts or more, a separate contract account is maintained for each of contract.
Ans: True
QI(C): Choose the correct alternative in each of the following statements:
(i) Job costing is used in:
(a) Furniture making
(c) Printing Press
(b) Repairs Shops
Ans : (d) All of the above
(d) All of the above
(ii) In a job costing system,
(a) on monthly basis costs are accoumalated:
(b) by specific job
(c) by department or process
(d) by kind of material used
Ans: (b) by specific job
(ii) The most suitable cost system where the products differ in type of material and work is performed as per customers requirement is:.costing
(c) Process costing
(a) Operating
(b) Job costing
(d) All of the above
Ans : (b) Job costing
(iv)Cost price is not fixed in case of:
(a) Cost Plus Contract
(c) De-escalation clause
(d) All of the above
(b) Escalation clause
Ans: (a) Cost Plus Contract
(v)Most of the expenses are direct in:
(a) Job costing
(c) Contract costing
(d) None of the above
(b) Batch costing
Ans : (c) Contract costing
(vi) Cost Plus contract is usually entered into those cases where :
(a) Cost can be easily estimated
(b) Cost of certified and uncertified work
(c) Cost of certified work, cost of uncertified work and amount of profit transferred to Profit and Loss Account.
(d) None of the above
Ans : (b) Cost of certified and uncertified work
(vii) The sum of value of work certified and uncertified appearing in contract account is called
(a) work-in-progress (b) work-in-process
(c) work completed (d) work done
Ans: (a) work-in-progress
(viii) If the amount of work certified is less than of the
contract police, then no profit should be taken to Profit and Loss account.
(a) 25%
(c) 90%
(b) 50%
(d) None of the above
Ans:- 25%
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