Deck 5: Costing and Process Costing

Question 1

Service costing is called as ……………….

A)operation costing
B)operating costing
C)multiple costing
D)none of these

Answer 1

operating costing

Question 2

In electricity supply company uses ...................... as cost unit.

A)kilo watt hour
B)per household
C)voltage
D)none of these

Answer 2

kilo watt hour

Question 3

In transportation costing a composite unit such as.......................is used.

A)passenger mile/km or ten kilometer
B)per km
C)per passenger
D)per stop

Answer 3

passenger mile/km or ten kilometer

Question 4

Boiler house costing is an example of..........................costing

A)operation
B)process
C)service
D)none of these

Question 5

In service costing, fixed charges are also called as…………………..

A)standing charges
B)variable charges
C)fixed charges
D)none of these

Question 6

Service costing is not used in one of the following:

A)electricity
B)hospitals
C)transport
D)electronics

Question 7

If the present cost of the car is Rs.1,00,000 residual value at the end of the 5th year is Rs.20,000, the monthly depreciation is…………

A)rs.20,000
B)rs.16,000
C)rs.1,333
D)rs.17,333

Question 8

A bus carries 25 passengers daily for 25 days and its mileage per month is 1000 kms. Its passenger miles are………………

A)30,000
B)12,500
C)20,000
D)25,000

Question 9

In ……………………costing where standardized goods or services result from a sequence of repetitive and more or less continuous operations to which costs are collected and averaged over the units produced during the year:

A)multiple
B)process
C)operation
D)single.

Question 10

The method of costing applied in biscuit industries is...................costing and in steel industry…............. costing.

A)job, process
B)job, contract
C)batch, multiple
D)process, operation

Question 11

Average unit cost for each process is calculated by dividing the ………………..by…………………

A)total cost, number of units
B)total process cost, number of units in process
C)total process cost, number of finished goods
D)total cost, number of units produced

Question 12

Where raw material is to pass certain stages, before it is converted into finished goods, the method of costing used is…………………

A)job costing
B)operating costing
C)process costing
D)both b and c

Question 13

When the actual loss is more than the estimated loss, the difference between the two is considered to be………..

A)abnormal loss
B)normal loss
C)loss
D)none of these

Question 14

When actual loss is less than the estimated loss, the difference between the two is considered to be……………

A)abnormal gain
B)abnormal loss
C)normal loss
D)income

Question 15

When actual loss is................than the estimated loss, the difference between the two is considered to be abnormal gain

A)more
B)less
C)higher
D)none of these

Question 16

When actual loss is..........................than the estimated loss, the difference between the two is considered to be abnormal loss.

A)more
B)less
C)both a & b)
D)none of these

Question 17

When 1000 units are 60% complete in a process, it is equivalent to …………….completed units.

A)60
B)600
C)6000
D)1000

Question 18

Equivalent units represent the production of a process in terms of…..units.

A)completed
B)total production
C)semi-finished
D)both a& c

Question 19

.............……….process loss should be transferred to costing profit & loss account.

A)abnormal
B)normal
C)both a& b
D)none of these

Question 20

The cost of......................process loss is absorbed in the cost of production of good units.

A)abnormal
B)normal
C)both a & b
D)none of these

Question 21

In inter process profits, the output of one process is transferred from one process to another not at …………….but at ……………….

A)market price, actual cost
B)actual cost, market price
C)both a& b
D)none of these

Question 22

Where actual loss in a process is less than the anticipated loss, the difference between the two is considered to be ………………..

A)abnormal loss
B)normal loss
C)abnormal gain
D)normal gain

Question 23

In process costing, the abnormal loss is treated as .............. cost and written off to profit & loss account.

A)unit
B)period
C)future
D)process

Question 24

The process costing is not used in one of the following.

A)chemical
B)textiles
C)cement
D)oil refining

Question 25

…..arises where the actual process loss is less than the normal predetermined process loss.

A)normal loss
B)abnormal loss
C)abnormal gain
D)none of these