MCQOPTIONS
Saved Bookmarks
MCQOPTIONS
This section includes 181 Mcqs, each offering curated multiple-choice questions to sharpen your Bachelor of Commerce (B Com) knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
The loss incurred on an incomplete contract is transferred to account |
| A. | Profit & loss a/c |
| B. | work in progress |
| C. | depreciation |
| D. | Machinery |
| Answer» B. work in progress | |
| 2. |
In job costing each . Is a cost unit to which all costs are assigned |
| A. | Jobb |
| B. | profit |
| C. | Batch |
| D. | cost |
| Answer» B. profit | |
| 3. |
In a contract costing most of the items of cost are .. |
| A. | Indirect |
| B. | direct |
| C. | normal |
| D. | fixed |
| Answer» C. normal | |
| 4. |
. In a contract , provides that the contract price would be suitably enhanced on the happening of a specified contingency |
| A. | Cost plus contract |
| B. | estimated profit |
| C. | Escalation clause |
| D. | EBQ |
| Answer» D. EBQ | |
| 5. |
When the completion stage of the contract is more than half, the profit to be credited to P/L a/c will be equal to .. |
| A. | 2/3 *notional profit *CR/WC |
| B. | Estimated profit *W.C/contract price |
| C. | 1/3 * N.P * CR/W.C |
| D. | Total profit |
| Answer» B. Estimated profit *W.C/contract price | |
| 6. |
In .. contract the contractor will get cost plus stipulated profit |
| A. | Sub contract |
| B. | cost plus contract |
| C. | job |
| D. | direct |
| Answer» C. job | |
| 7. |
Scope of specific order costing is very wide and includes . , , . |
| A. | Job, Batch and contract costing |
| B. | Process , Contract and unit costing |
| C. | Batch , Job and process costing |
| D. | Unit , service and transport costing |
| Answer» B. Process , Contract and unit costing | |
| 8. |
is an important point to be determined in industries where batch costing is employed |
| A. | EBQ |
| B. | EOQ |
| C. | Re order quantity |
| D. | Batch |
| Answer» B. EOQ | |
| 9. |
When the competition stage of a contract is less than , the total expenditure on the contract is transferred to account |
| A. | Work in progres |
| B. | P/L a/c |
| C. | Estimated profit |
| D. | Notional profit |
| Answer» B. P/L a/c | |
| 10. |
The additional cost of producing an additional unit is called . |
| A. | Fixed cost |
| B. | marginal cost |
| C. | Semi variable |
| D. | none of these |
| Answer» C. Semi variable | |
| 11. |
When a contract is debited with the original cost of the plant , it should credited with at the end of the year |
| A. | Original cost of the plant |
| B. | Depreciated value of the stock |
| C. | Profit |
| D. | Estimated cost |
| Answer» C. Profit | |
| 12. |
Average unit cost for each process is calculated by dividing ..by . |
| A. | Total process cost / No.of units in process |
| B. | Total process cost / Total cost |
| C. | Total cost / Total profit |
| D. | None of these |
| Answer» B. Total process cost / Total cost | |
| 13. |
Job costing is applied only in . Concern |
| A. | Small |
| B. | large |
| C. | medium |
| D. | None of these |
| Answer» B. large | |
| 14. |
If the contract is almost complete , the amount of profit generally transferred to profit and loss account is equal to |
| A. | Estimated profit * work certified/ contract price |
| B. | Estimated profit * contract price / work certified |
| C. | Notional profit * C.R/ W.C |
| D. | Notional profit W.C/ C.R |
| Answer» B. Estimated profit * contract price / work certified | |
| 15. |
In a contract costing payment of cash to the contract is made on the basis of . Work |
| A. | Certified |
| B. | profit and loss a/c |
| C. | contract price |
| D. | cost |
| Answer» B. profit and loss a/c | |
| 16. |
The method of costing applied in biscuit industries is . |
| A. | Jo |
| B. | process |
| C. | contract |
| D. | unit |
| Answer» B. process | |
| 17. |
Contract costing is a basic method of .. costing |
| A. | Specific order costing |
| B. | batch costing |
| C. | process costing |
| D. | Unit costing |
| Answer» B. batch costing | |
| 18. |
In job costing the production is generally against customers . but not for stock |
| A. | Order |
| B. | profit |
| C. | cash in hand |
| D. | none of these |
| Answer» B. profit | |
| 19. |
Where raw material is to pass certain stages before it is converted into finished goods, the method of costing used is |
| A. | Contract |
| B. | Process |
| C. | unit |
| D. | Batch |
| Answer» C. unit | |
| 20. |
The cost of .. process loss is absorbed in the cost of production of good units |
| A. | Normal |
| B. | abnormal |
| C. | actual |
| D. | none of these |
| Answer» B. abnormal | |
| 21. |
When the actual loss is more than the estimated loss, the difference between the two is considered to be , . |
| A. | Abnormal gain |
| B. | Abnormal loss |
| C. | Normal loss |
| D. | Normal gain |
| Answer» C. Normal loss | |
| 22. |
.. process loss should be transferred to costing profit and loss account |
| A. | Normal |
| B. | abnormal |
| C. | actual |
| D. | none of these |
| Answer» C. actual | |
| 23. |
Where actual loss in a process is less than the anticipated loss , the difference b/w the two is considered to be .. |
| A. | Normal los |
| B. | Abnormal gain |
| C. | normal gain |
| D. | None of |
| Answer» C. normal gain | |
| 24. |
is the difference b/w the sales and marginal cost of sale |
| A. | Profit |
| B. | contribution |
| C. | p/v ratio |
| D. | none f these |
| Answer» C. p/v ratio | |
| 25. |
Cost of producing an additional unit of output is |
| A. | Historical cost |
| B. | marginal cost |
| C. | fixed cost |
| D. | total cost |
| Answer» C. fixed cost | |
| 26. |
In job costing each job is a ..to which all cost are assigned |
| A. | Profit unit |
| B. | Cost unit |
| C. | Expenses |
| D. | Variable |
| Answer» C. Expenses | |
| 27. |
..budget provides information about the materials to be acquired from the market |
| A. | Material budget |
| B. | Production budget |
| C. | Cash budget |
| D. | Purchase budget |
| Answer» E. | |
| 28. |
..is a forecast of the total output of the whole organization |
| A. | Sales budget |
| B. | Production budget |
| C. | Master budget |
| D. | Material budget |
| Answer» C. Master budget | |
| 29. |
The most important budget having primary importance is called |
| A. | Sales budget |
| B. | Cash budget |
| C. | Master budget |
| D. | Fixed budget |
| Answer» B. Cash budget | |
| 30. |
..budget gives different budgeted cost for different levels of activity |
| A. | Flexible budget |
| B. | Fixed budget |
| C. | Master budget |
| D. | Production budget |
| Answer» B. Fixed budget | |
| 31. |
In contract costing payment of cash to the contractor is made on the basis of |
| A. | Estimated work |
| B. | Standard work |
| C. | Certified work |
| D. | Uncertified work |
| Answer» D. Uncertified work | |
| 32. |
Contract testing is a basic method of |
| A. | Specific costing |
| B. | Specific order costing |
| C. | Economic batch costing |
| D. | Economic order costing |
| Answer» C. Economic batch costing | |
| 33. |
If the contract is almost complete, the amount of profit generally transferred to profit and loss account is equal to |
| A. | Estimated profit*(Contract price/Work certified) |
| B. | National profit*(Cash Received/Work certified) |
| C. | Estimated profit*(Work certified/Contract price) |
| D. | Work certified*(Contract price/Estimated price) |
| Answer» D. Work certified*(Contract price/Estimated price) | |
| 34. |
Job costing can be done in conjunction with |
| A. | Standard costing |
| B. | Process costing |
| C. | Multiple costing |
| D. | Marginal costing |
| Answer» E. | |
| 35. |
In contract costing credit is taken only for a part of the profit on |
| A. | Incomplete contract |
| B. | Complete contract |
| C. | Estimated contract |
| D. | Initial contract |
| Answer» B. Complete contract | |
| 36. |
When the completion stage of a contract is less than of the total expenditure on the contract is transferred to |
| A. | Profit & Loss account |
| B. | Work certified account |
| C. | Work in progress account |
| D. | Contract account |
| Answer» D. Contract account | |
| 37. |
In contract costing most of the items of cost are |
| A. | Direct |
| B. | Indirect |
| C. | Variable |
| D. | Semivariable |
| Answer» B. Indirect | |
| 38. |
At break even point, the |
| A. | Fixed cost equal to the total sales value |
| B. | Variable cost equal to the total sales value |
| C. | Total cost equal to the total sales value |
| D. | Variable cost equal to fixed cost |
| Answer» D. Variable cost equal to fixed cost | |
| 39. |
Contribution is the difference in |
| A. | Sales and fixed cost |
| B. | Sales and variable cost |
| C. | Sales and total cost |
| D. | Variable cost and fixed cost |
| Answer» C. Sales and total cost | |
| 40. |
At break even point, the contribution equal to |
| A. | Fixed cost |
| B. | Variable cost |
| C. | Total cost |
| D. | Zero |
| Answer» B. Variable cost | |
| 41. |
Break even chart depicts |
| A. | Cost volume profit relationship |
| B. | Relationship between fixed and variable cost only |
| C. | Relationship between price and quantity demanded |
| D. | Relationship between price and quantity supplied |
| Answer» B. Relationship between fixed and variable cost only | |
| 42. |
The valuation of stock, in marginal costing, as compared to absorption costing is |
| A. | Higher |
| B. | Lower |
| C. | Same |
| D. | Difficult to say |
| Answer» C. Same | |
| 43. |
Period costs means |
| A. | Variable cost |
| B. | Fixed cost |
| C. | Prime cost |
| D. | Direct cost |
| Answer» C. Prime cost | |
| 44. |
Contribution is the sum of |
| A. | Fixed cost and profit |
| B. | Variable cost and profit |
| C. | Total cost and profit |
| D. | Factory cost and profit |
| Answer» B. Variable cost and profit | |
| 45. |
In marginal costing managerial decisions are guided by than by profit |
| A. | Marginal cost |
| B. | Variable cost |
| C. | Incremental cost |
| D. | Contribution margin |
| Answer» E. | |
| 46. |
Profit-volume ratio is a relationship between |
| A. | Profit earned to sales volume |
| B. | Target profit to target sales volume |
| C. | Contribution to sales |
| D. | All of the above |
| Answer» D. All of the above | |
| 47. |
The angle formed at the intersection of sales line and variable cost line is called |
| A. | Angle of incidence |
| B. | Acute angle |
| C. | Loss area |
| D. | Profit area |
| Answer» B. Acute angle | |
| 48. |
During the boom period, the profits of a firm will increase at a much faster rate whose P/V ratio is, |
| A. | Very high |
| B. | Moderate |
| C. | Low |
| D. | Very low |
| Answer» B. Moderate | |
| 49. |
There will be in marginal costing when there is production but no sales |
| A. | Profit |
| B. | Loss |
| C. | Cost |
| D. | Income |
| Answer» C. Cost | |
| 50. |
Marginal costing is a technique of |
| A. | Cost reduction |
| B. | Cost control |
| C. | Profit planning |
| D. | Profit maximization |
| Answer» C. Profit planning | |