MCQOPTIONS
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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.
| 101. |
When fixed cost decreases, the break even point . |
| A. | Increase |
| B. | Decreases |
| C. | Does not change |
| D. | Difficult to say |
| Answer» C. Does not change | |
| 102. |
A method of costing which is used to ascertain the cost of products at each stage of it s manufacture is called |
| A. | Job costing |
| B. | Batch costing |
| C. | Process costing |
| D. | None of these |
| Answer» D. None of these | |
| 103. |
The process A/c is debited with |
| A. | All expenses and losse |
| B. | Material, labour and overheads |
| C. | Material and labour only |
| D. | Incomes and gains |
| Answer» C. Material and labour only | |
| 104. |
Units of abnormal gain ..in process A/c and in abnormal gain A/c |
| A. | Credited, Debited |
| B. | Debited, Debited |
| C. | Debited, Credited |
| D. | Credited, Credited |
| Answer» D. Credited, Credited | |
| 105. |
A decrease in the variable cost per unit, the profit-volume ratio will |
| A. | Increase |
| B. | Decreases |
| C. | Does not change |
| D. | Difficult to say |
| Answer» B. Decreases | |
| 106. |
The process A/c is credited with |
| A. | Value of by-products & scrap |
| B. | All expenses and losses |
| C. | Material and labour |
| D. | Incomes and gains |
| Answer» B. All expenses and losses | |
| 107. |
Any loss over and above the normal loss is called |
| A. | Waste |
| B. | Abnormal loss |
| C. | Spoilage |
| D. | Scrap |
| Answer» D. Scrap | |
| 108. |
Normal cost of Normal output is equal to |
| A. | Total cost-scrap value of normal los |
| B. | Total loss-normal loss |
| C. | Total input-normal loss |
| D. | None |
| Answer» B. Total loss-normal loss | |
| 109. |
Units of abnormal loss is ..in abnormal process A/c and in process A/c |
| A. | Debited, Credited |
| B. | Credited, Debited |
| C. | Debited, Debited |
| D. | Credited, Credited |
| Answer» C. Debited, Debited | |
| 110. |
Normal Process Loss is |
| A. | Avoidable and controllable |
| B. | Unavoidable and expected |
| C. | Avoidable and unexpected |
| D. | Unavoidable and uncontrollable |
| Answer» C. Avoidable and unexpected | |
| 111. |
..is a method of costing in which cost are collected and accumulated for each job order |
| A. | Batch costing |
| B. | Job costing |
| C. | Process costing |
| D. | Contract costing |
| Answer» C. Process costing | |
| 112. |
If abnormal loss has any scrap value , it should be credited to |
| A. | Abnormal los |
| B. | Profit & Loss A/c |
| C. | Process A/c |
| D. | None |
| Answer» B. Profit & Loss A/c | |
| 113. |
Production order costing is also known as |
| A. | Job costing |
| B. | Lot costing |
| C. | Both a and b |
| D. | None of the above |
| Answer» D. None of the above | |
| 114. |
Work in the process of completion |
| A. | Work in progres |
| B. | notional profit |
| C. | Net profit |
| D. | completed contract |
| Answer» B. notional profit | |
| 115. |
.. is method of cost volume profit analysis |
| A. | Budgeting |
| B. | budgetary control |
| C. | Standard costing |
| D. | break even analysis |
| Answer» E. | |
| 116. |
..is a modified form of job costing |
| A. | Process costing |
| B. | Batch costing |
| C. | Contract costing |
| D. | Work costing |
| Answer» C. Contract costing | |
| 117. |
EBQ stands for |
| A. | Economic Order Quantity |
| B. | Economic Batch Order |
| C. | Economic Batch Quantity |
| D. | Economic Batch Quality |
| Answer» D. Economic Batch Quality | |
| 118. |
Under job costing, on what basis production is performed? |
| A. | Customers taste and preference |
| B. | Customers income |
| C. | Customers order and specifications |
| D. | Both a and b |
| Answer» D. Both a and b | |
| 119. |
The limitations of job costing are ; |
| A. | Expensive |
| B. | More clerical work |
| C. | Historical nature |
| D. | All of them |
| Answer» E. | |
| 120. |
EBQ = |
| A. | 2CO/l |
| B. | 2DS/IC |
| Answer» D. | |
| 121. |
How many steps are there in job costing procedure? |
| A. | 5 |
| B. | 4 |
| C. | 6 |
| D. | 8 |
| Answer» B. 4 | |
| 122. |
Select suitable examples for batch costing |
| A. | Radio set |
| B. | Component part of watches |
| C. | Toy making unit |
| D. | All of them |
| Answer» E. | |
| 123. |
Contract price is fixed in advance |
| A. | Cost plus contract |
| B. | Target costing |
| C. | Fixed price contract |
| D. | Fluctuating contract |
| Answer» D. Fluctuating contract | |
| 124. |
Profit on incomplete contract is known as , .. |
| A. | P/L a/c |
| B. | notional profit |
| C. | Net profit |
| D. | completed contract |
| Answer» C. Net profit | |
| 125. |
What is the purpose of calculating EBQ ? |
| A. | To reduce cost |
| B. | Optimum production |
| C. | Identify ideal or economic batch |
| D. | None of the above |
| Answer» D. None of the above | |
| 126. |
Contract account is a form of . |
| A. | Nominal account |
| B. | Real account |
| C. | Personal account |
| D. | Statement |
| Answer» B. Real account | |
| 127. |
Provision for increase in the contract price to accommodate increase in material and labour cost |
| A. | De escalation clause |
| B. | fluctuating price |
| C. | Fixed price |
| D. | Escalation price |
| Answer» E. | |
| 128. |
A contract in which the contractor is given the lost of work done plus a certain percentage for profit is called . |
| A. | Cost plus contract |
| B. | Sub contract |
| C. | Fixed price contract |
| D. | none of these |
| Answer» B. Sub contract | |
| 129. |
In which type of contract, the contractee agrees to pay the cost of work done plus a percentage of overhead and profit |
| A. | Fixed price contract |
| B. | Cost plus contract |
| C. | Fixed price contract with exclalation or de-exclalation |
| D. | Completed contract |
| Answer» C. Fixed price contract with exclalation or de-exclalation | |
| 130. |
The work in the process of completion is known as . |
| A. | Work certified |
| B. | work in progress |
| C. | Work un certified |
| D. | notional profit |
| Answer» C. Work un certified | |
| 131. |
.. is the portion of work certified not paid by the contractee till completion of the work |
| A. | Work certified |
| B. | Uncertified |
| C. | Retention money |
| D. | notional profit |
| Answer» D. notional profit | |
| 132. |
The person who gives the work on contract is known as |
| A. | Contractor |
| B. | contractee |
| C. | Sub contraction |
| D. | sub contractee |
| Answer» C. Sub contraction | |
| 133. |
Sales variable cost = .. |
| A. | Marginal cost |
| B. | fixed cost |
| C. | Budget cost |
| D. | contribution |
| Answer» E. | |
| 134. |
Establishes the relationship between cost , volume of sales and profit is .. |
| A. | Marginal costing |
| B. | standard costing |
| C. | budgeting |
| D. | Cost volume profit analysis |
| Answer» E. | |
| 135. |
A cost both containing both fixed and variable elements .. |
| A. | Variable cost |
| B. | fixed cost |
| C. | total cost |
| D. | semi variable cost |
| Answer» D. semi variable cost | |
| 136. |
Retention money is retained by whom . |
| A. | Contractor |
| B. | Contractee |
| C. | Both a and b |
| D. | None of these |
| Answer» C. Both a and b | |
| 137. |
.. is the provision to increase the contract price increase in the Cost of construction over a particular level |
| A. | Escalation clause |
| B. | Desecration clause |
| C. | Retention money |
| D. | work certified |
| Answer» B. Desecration clause | |
| 138. |
Estimated profit on incomplete contract can also be called as , .. |
| A. | Net profit |
| B. | notional profit |
| C. | Work in progress |
| D. | net loss |
| Answer» C. Work in progress | |
| 139. |
A contract in which the price is fixed in advance is a .. contract |
| A. | Sub contract |
| B. | fixed price contract |
| C. | Cost plus contract |
| D. | Fixed cost with Escalation clause |
| Answer» C. Cost plus contract | |
| 140. |
A portion of the contact entrusted to somebody else is known as .. |
| A. | Extra work |
| B. | Sub contract |
| C. | Cost plus contract |
| D. | fixed price contract |
| Answer» C. Cost plus contract | |
| 141. |
The method of costing applied when articles are manufactured in definite batches is . |
| A. | Job costing |
| B. | operation costing |
| C. | Batch costing |
| D. | service costing |
| Answer» D. service costing | |
| 142. |
A method of costing applied where costs are collected and accumulated for each work order is . |
| A. | Process a/c |
| B. | contract costing |
| C. | Operating costing |
| D. | job costing |
| Answer» E. | |
| 143. |
Variable cost can also be called as |
| A. | Semi variable |
| B. | marginal cost |
| C. | Standard costing |
| D. | fixed cost |
| Answer» C. Standard costing | |
| 144. |
The angle formed at the point of incidence of sales line to total cost . |
| A. | Angle of incidence |
| B. | break even point |
| C. | Fixed cost |
| D. | total cost |
| Answer» B. break even point | |
| 145. |
The number of units to be manufactured in one batch |
| A. | Economic order Quantity |
| B. | Economic Quantity |
| C. | Economic batch Quantity |
| D. | ordering unit |
| Answer» D. ordering unit | |
| 146. |
The method of job costing is applied |
| A. | Biscuit manufacturing |
| B. | oil refining |
| C. | Medicine manufacturing |
| D. | Engineering work shop |
| Answer» E. | |
| 147. |
The method of batch costing is used in |
| A. | Manufacture of agriculture product |
| B. | construction of building |
| C. | Manufacturing medicines |
| D. | processing of oil |
| Answer» D. processing of oil | |
| 148. |
In which situation, 2/3 of national profit credited to P & L a/c |
| A. | If the value of work certified equal to or more than 90% of the contract price |
| B. | If the value of work certified less than 25% of the contract price |
| C. | Both a and b |
| D. | If the value of work certified equal to or more than 50% but less than 90% of the contract price |
| Answer» E. | |
| 149. |
Example for cost plus contract |
| A. | Construction work in war |
| B. | Manufacture of ship in special type or design |
| C. | Construction of fish tank |
| D. | Both a and b |
| Answer» E. | |
| 150. |
The excess of sales over variable cost is known as |
| A. | profit |
| B. | loss |
| C. | contribution |
| D. | margin |
| Answer» D. margin | |