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
0 h : 0 m : 1 s