Deck 4: Costing and Expense Analysis

Question 1

Fancy packing is an example of .................. expenses.

A)selling
B)distribution
C)administration
D)factory

Answer 1

selling

Question 2

Telephone expense is ......................expense.

A)variable
B)semi-variable
C)fixed
D)none of these

Answer 2

semi-variable

Question 3

Primary packing is an item of ………………

A)selling overheads
B)prime cost
C)distribution overheads
D)factory overheads

Answer 3

prime cost

Question 4

The Profit/Volume ratio or marginal ratio expresses the relation of ………………

A)profit
B)marginal cost
C)contribution
D)none of these

Question 5

Which of the following measures helps to increase the P/V Ratio ?

A)increasing the selling price per unit
B)reducing the variable or marginal cost
C)changing the sales mixture
D)all of these

Question 6

Credit and collection cost is an item of

A)selling overhead
B)office overhead
C)prime cost
D)administrative overhead

Question 7

Warehousing cost is an item of

A)office overhead
B)distribution overhead
C)material cost
D)works overhead

Question 8

In................................ each job is a cost unit to which all costs are assigned.

A)batch costing
B)job costing
C)process costing
D)operation costing

Question 9

Material Costs of each job are determined from……………

A)material requisition notes
B)bill of materials
C)both a & b
D)none of these

Question 10

Printers use ......................... costing.

A)process
B)batch
C)job
D)contract

Question 11

Each job has a ..................... prepared for it that bears the job number and which is used to collect all cost data relating to job.

A)job time sheet
B)job cost card
C)job ticket
D)job account

Question 12

An automobile service unit uses..........................costing.

A)specific order
B)batch
C)job
D)contract

Question 13

Economic Batch Quantity is an important point to be determined in industries where...................... costing is employed.

A)job
B)batch
C)operation
D)output

Question 14

Economic Batch Quantity depends on...........................and…………..costs.

A)material, labour
B)set-up costs, carrying
C)transportation, carrying
D)warehousing, labour

Question 15

The .....................costing is applied when a quantity of similar and identical products are manufactured together as one Job.

A)job
B)batch
C)operation
D)output

Question 16

The loss incurred on an incomplete contract is transferred to ………….account.

A)costing profit and loss account
B)profit and loss account
C)trading account
D)deferred to next year.

Question 17

When the completion stage of the contract is more than half, the profit to be credited to Profit and Loss account will be equal to…………..

A)1/3rd of notional profit x cash received work certified
B)½ of notional profit x cash received work certified
C)2/3rd of notional profit x cash received work certified
D)full notional profit.

Question 18

When the completion stage of a contract is less than ¼, the total expenditure on the contract is transferred to...............................account.

A)work-in-progress
B)profit and loss account
C)miscellaneous account
D)none of these

Question 19

If the amount of work certified is less than…......... of the contract price, then no profit should be taken to Profit & Loss Account.

A)20%
B)25%
C)33 1/3%
D)40%

Question 20

Contract costing is not used in one of the following industries.

A)ship building
B)civil construction
C)automobiles
D)construction of bridges

Question 21

The sum of value of work certified and uncertified appearing in the Contract Account is called ……………..

A)work in progress
B)work in process
C)work completed
D)work done.

Question 22

….is the most suitable method in a transport industry.

A)operation costing
B)service costing
C)process costing
D)job costing

Question 23

Room/day is the cost unit used in…………………

A)hotels
B)hospital
C)schools
D)none of these

Question 24

Maintenance charges are in the nature of..............................expenses.

A)fixed
B)variable
C)semi-variable
D)none of these

Question 25

In transport costing...........................charges vary more or less in direct proportion to kilometers run.

A)running
B)petrol
C)drivers salary
D)tax