Deck 7: Costing and Contracting

Question 1

A decrease in the variable cost per unit, the profit-volume ratio will

A)Increase
B)Decreases
C)Does not change
D)Difficult to say

Answer 1

Increase

Question 2

When fixed cost decreases, the break even point ……………….

A)Increase
B)Decreases
C)Does not change
D)Difficult to say

Answer 2

Decreases

Question 3

A method of costing which is used to ascertain the cost of products at each stage of it's manufacture is called

A)Job costing
B)Batch costing
C)Process costing
D)None of these

Answer 3

Process costing

Question 4

The process A/c is debited with

A)All expenses and losse
B)Material, labour and overheads
C)Material and labour only
D)Incomes and gains

Question 5

The process A/c is credited with

A)Value of by-products & scrap
B)All expenses and losses
C)Material and labour
D)Incomes and gains

Question 6

Normal Process Loss is

A)Avoidable and controllable
B)Unavoidable and expected
C)Avoidable and unexpected
D)Unavoidable and uncontrollable

Question 7

Normal cost of Normal output is equal to

A)Total cost-scrap value of normal los
B)Total loss-normal loss
C)Total input-normal loss
D)None

Question 8

The finished product of one process becomes

A)Raw material of next proces
B)Finished product of next process
C)Output of next process
D)All of the above

Question 9

Units of abnormal gain………………..in process A/c and ……………in abnormal gain A/c

A)Credited, Debited
B)Debited, Debited
C)Debited, Credited
D)Credited, Credited

Question 10

Units of abnormal loss is………………..in abnormal process A/c and ……………in process A/c

A)Debited, Credited
B)Credited, Debited
C)Debited, Debited
D)Credited, Credited

Question 11

If abnormal loss has any scrap value , it should be credited to

A)Abnormal los
B)Profit & Loss A/c
C)Process A/c
D)None

Question 12

Any loss over and above the normal loss is called

A)Waste
B)Abnormal loss
C)Spoilage
D)Scrap

Question 13

……………..is a method of costing in which cost are collected and accumulated for each job order

A)Batch costing
B)Job costing
C)Process costing
D)Contract costing

Question 14

Production order costing is also known as

A)Job costing
B)Lot costing
C)Both a and b
D)None of the above

Question 15

Under job costing, on what basis production is performed?

A)Customers taste and preference
B)Customers income
C)Customers order and specifications
D)Both a and b

Question 16

The limitations of job costing are ;

A)Expensive
B)More clerical work
C)Historical nature
D)All of them

Question 17

………………..is a modified form of job costing

A)Process costing
B)Batch costing
C)Contract costing
D)Work costing

Question 18

Select suitable examples for batch costing

A)Radio set
B)Component part of watches
C)Toy making unit
D)All of them

Question 19

EBQ stands for

A)Economic Order Quantity
B)Economic Batch Order
C)Economic Batch Quantity
D)Economic Batch Quality

Question 20

EBQ =

A)2CO/l
B)2DS/IC

Question 21

What is the purpose of calculating EBQ ?

A)To reduce cost
B)Optimum production
C)Identify ideal or economic batch
D)None of the above

Question 22

In which type of contract, the contractee agrees to pay the cost of work done plus a percentage of overhead and profit

A)Fixed price contract
B)Cost plus contract
C)Fixed price contract with exclalation or de-exclalation
D)Completed contract

Question 23

Contract account is a form of ………………….

A)Nominal account
B)Real account
C)Personal account
D)Statement

Question 24

The portion of value of work that has been done by the contractor and architect or supervisor of the contractee certified that work is ………..

A)Work uncertified
B)Contract price
C)Work certified
D)Retention money