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Quiz 16
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Q.1
In process costing, each producing department is a __________
cost unit
cost centre
investment centre
sales centre
Q.2
In cost accounting, stock is valued at
Cost Price
Market Price
Selling Price
Standard Price
Q.3
According to CIMA, England, “the technique and process of ascertaining cost” is called
Costing
Cost Accounting
Cost Accountancy
Cost
Q.4
Scrap value of normal loss is _____ to process account.
debited
credited
ignored
not recorded
Q.5
P/V Ratio is an indicator of
the measurement of rate at which goods and services are bought and sold
the measurement of change in profit due to change in volume of sales
the measurement of volume of profit to be earned
None of the above
Q.6
Contribution margin is also known as
Marginal income
Gross Profit
Net Profit
All of the above
Q.7
When fixed cost is Rs.20,and P/V Ratio is 40%, the breakeven point will be
75,000
40,000
20,000
50,000
Q.8
Object of _____ is to protect the interest of contractor.
contract
escalation
de-escalation
retention
Q.9
In Contract Costing, work uncertified is valued at _____.
contract price
sale price
residual price
cost price
Q.10
A manager can be blamed for _____ adverse variance.
controllable
non controllable
improvement in quality
reduction in cost
Q.11
Sale of scrap is _____ to contract A/c.
debited
credited
omitted
recorded
Q.12
An item of low value incidentally arising in a process is called _________.
joint product
by-product
scrap
waste
Q.13
-------- ------are sections of a business to which costs can be charged Therefore, a ---- ---- can be any function or section of the organisation. In a manufacturing business it can be an entire factory, a department of a factory, or a particular stage in the production process.
Cost centre
Profit Centre
investment Centre
Q.14
Hesketh is a stationary business. Classify the following elements:Insurance of office computers
Material
Labour
Overhead
Q.15
Extra payment reuired to be paid for overtime work is called as overtime
Premium
Payment
Salary
Wages
Q.16
_______ time refers to the time for which wages are paid without any production
Over
Under
Excess
Idle
Q.17
________ labour cost is the remuneration paid to the employees who are directly engaged in the manufacturing operations
Direct
Indirect
Normal
Abnormal
Q.18
Cost incurred by undertakings which do not manufacture any product but services is
Operation Costing
Operating Costing
Sunk Costing
Joint Costing
Q.19
Each contract is considered as a separate unit of cost.
True
False
Q.20
A contract usually takes more than one year to complete.
True
False
Q.21
Profit on each contract is computed every year on incomplete portion of the contract.
True
False
Q.22
Work certified is recorded in the contract Account at cost.
True
False
Q.23
Most of the costs in a contract are direct cost.
True
False
Q.24
__________ is debited to the contract A/c.
Work Certified
Work Uncertified
Cash Received
Sub Contract Cost
Q.25
_____ money is paid a certain period after completion of the contract.
work certified
work uncertified
retention
escalation
Q.26
Work certified is valued in term of ________ .
contract price
degree of completion
retention amount
cash paid by contractee.
Q.27
On _____ of the contract entire profit is transferred to P & L A/c.
25% completion
50% completion
90% completion
completion
Q.28
_____ ensures the contractee that the contractor will continue the work.
contract price
work certified
work uncertified
retention
Q.29
Work–in–progress appears as _____ in balance sheet.
current asset
non current asset
current liability
provision
Q.30
Profit on incomplete contract is calculated on the basis of _____ of completion.
stage
degree
retention
process
Q.31
Work done yet to be certified is called _____.
work certified
work uncertified
cash received
work in progress
Q.32
Work certified factilitates to monitor the _____.
job
materials
plant
workers
Q.33
In _____ there is no risk of loss.
Contractee’s A/c
fixed price contract
cost plus contract
sub contract
Q.34
Contract A/c is debited by _____ of plant.
hire charges
job charges
store value
residual value
Q.35
Contract work is carried out at _____ site.
contractee's
contractor's
sub contractors site
factory
Q.36
Prime cost + all variable cost =
Fixed cost
Marginal cost
Absorbtion cost
All of the above
Q.37
Contribution is calculated by the formula
Sales minus profit
Sales minus variable cost
Fixed cost minus profit
None of the above
Q.38
Marginal costing technique classifies cost into
variable cost and fixed cost
operation and Maintainance cost
semi-variable cost
standard and floating cost
Q.39
Which is not included in primecost?
Raw materials
Manager Salary
Labour expenses
Coal
Q.40
Marginal costing helps the management to
Fix the price of products
Take various decisions
Calculate profit
All the above
Q.41
A high margin of safety indicates that
over production
business is dull
over capitalisation
business is going on well
Q.42
If PVR=40%, MOS=50%, Sales=Rs.6,00,Find Net profit.
Rs 1,50,000
Rs 1,00,000
Rs.1,20,000
Rs.1,60,000
Q.43
Break Even Point refers to the point in which
total cost is equal to fixed cost
total cost is equal to total revenue
total cost is equal to contribution
total cost is equal to variable cost
Q.44
An increase in variable costs results in
An increase in P/V Ratio
Reduces contribution
Increase in Profit
None of the above
Q.45
The total variable cost change _________________________with change in output
Consistently
Constantly
Proportionately
Un proportionately
Q.46
Fixed cost + profit =
Semi - variable cost
Margin of safety
Contribution
Standard profit
Q.47
If the total cost ofunits is Rs. 5,and those ofunits is Rs. 5,then increase of Rs.in total cost is
Marginal cost
Prime cost
Fixed cost
None of the above
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