If the value of work certified less than 25% of contract price,profit to be credited to P&L is

1/3 of national profit credited to P & L a/c

No profit is credited to P & L a/c

1/3 of national profit credited to P & L a/c

2/3 of national profit credited to P & L a/c

If the value of work certified equal to or more than 90% of contract price, profit to be credited is .

1/3 * National profit * (Cash received/Work certified)

2/3 * National profit * (Cash received/Work certified)

Estimated profit on completion*(Work certified/Contract price)

1/3 * National profit * (Cash received/Work certified)

181 + Mcqs in Applied Cost Accounting in Bachelor of Commerce (B Com) Page 4 McqOptions

151.	The angle formed were the total cost line under sects the sale line is
A.	Angle of incidence
B.	margin of safety
C.	Breakeven point
D.	contribution
Answer» B. margin of safety

Discussion

152.	Job costing is .
A.	Method of costing
B.	technique of costing
C.	Cost ascertainment
D.	cost estimation
Answer» B. technique of costing

Discussion

153.	The method of costing applied in lathe is .
A.	Process costing
B.	marginal costing
C.	Absorption costing
D.	job costing
Answer» E.

Discussion

154.	A portion of work certified retained by contractee is known
A.	Retention money
B.	advance
C.	Fixed price contract
D.	fluctuating contract
Answer» B. advance

Discussion

155.	A point at which there is neither profit nor loss
A.	No profit no loss point
B.	Break even point
C.	Margin of safety
D.	contribution
Answer» C. Margin of safety

Discussion

156.	The method of costing applied in cycle parts manufacturing is ..
A.	Job costing
B.	process costing
C.	Batch costing
D.	contract costing
Answer» D. contract costing

Discussion

157.	Job costing can also be called as .. costing
A.	Specific order costing
B.	batch costing
C.	Transport costing
D.	Farm costing
Answer» B. batch costing

Discussion

158.	Job costing is applied when the product are of nature
A.	Similar
B.	Dissimilar
C.	Non separable
D.	none of these
Answer» C. Non separable

Discussion

159.	If the value of work certified less than 25% of contract price,profit to be credited to P&L is
A.	No profit is credited to P & L a/c
B.	1/3 of national profit credited to P & L a/c
C.	2/3 of national profit credited to P & L a/c
D.	None of these
Answer» B. 1/3 of national profit credited to P & L a/c

Discussion

160.	For each job a . Is given under job costing
A.	Distinct number
B.	Equal number
C.	Coding
D.	None of these
Answer» B. Equal number

Discussion

161.	Value of work done to the satisfaction of contractee
A.	Work certified
B.	Work un certified
C.	Fixed price contract
D.	fluctuating contract
Answer» C. Fixed price contract

Discussion

162.	If the value of work certified equal to or more than 90% of contract price, profit to be credited is .
A.	2/3 * National profit * (Cash received/Work certified)
B.	No profit credited to P&L a/c
C.	Estimated profit on completion*(Work certified/Contract price)
D.	1/3 * National profit * (Cash received/Work certified)
Answer» D. 1/3 * National profit * (Cash received/Work certified)

Discussion

163.	A factor that restrict the activities of a concern ..
A.	Contribution factor
B.	break even point
C.	Key factor
D.	margin of safety
Answer» D. margin of safety

Discussion

164.	Break even units can also be called as
A.	Break even output
B.	break even sales
C.	Margin of safety
D.	contribution
Answer» B. break even sales

Discussion

165.	Contract price is the cost of work done plus a percentage
A.	Cost plus contract
B.	target costing
C.	Fixed price contract
D.	fluctuating contract
Answer» B. target costing

Discussion

166.	Excess of actual sales over break even sales is
A.	Break even unit
B.	angle of incidence
C.	Margin of safety
D.	contribution
Answer» D. contribution

Discussion

167.	Excess of sales over break even sales is known as ..
A.	No profit no loss point
B.	Breakeven point
C.	Margin of safety
D.	contribution
Answer» D. contribution

Discussion

168.	.. is an angle formed in break even chart
A.	Margin of safety
B.	angle of incidence
C.	Contribution
D.	Break even point
Answer» C. Contribution

Discussion

169.	A portion of main contract entrusted to some one else
A.	Extra work
B.	Sub work
C.	Work in progress
D.	Sub contract
Answer» E.

Discussion

170.	The cost which varies proportionate to increase in production is .. cost
A.	Fixed
B.	variable cost
C.	Semi variable cost
D.	break even cost
Answer» C. Semi variable cost

Discussion

171.	Un avoidable loss inherent in the material
A.	Normal los
B.	abnormal loss
C.	Accidental loss
D.	spoilage
Answer» B. abnormal loss

Discussion

172.	In costing production is always made for stock
A.	Job costing
B.	batch costing
C.	Process costing
D.	contract costing
Answer» C. Process costing

Discussion

173.	Cost of product in each stage is calculated in . Costing
A.	Contract costing
B.	marginal costing
C.	Multiple costing
D.	process costing
Answer» E.

Discussion

174.	The cost which remains constant with change in level of activities is called
A.	Variable cost
B.	marginal cost
C.	Standard cost
D.	fixed cost
Answer» E.

Discussion

175.	Incidental residue from manufacture with recoverable value
A.	Scrap
B.	spoilage
C.	Defective
D.	loss
Answer» B. spoilage

Discussion

176.	The cost of work that has been done by the contractor on the closing date of account, but has not reach stipulated stages to qualify certification of architect of contractee
A.	Work certified
B.	Work uncertified
C.	Contract price
D.	None of these
Answer» C. Contract price

Discussion

177.	.. product are produced incidental to the main product
A.	Joint product
B.	By product
C.	Co product
D.	none of these
Answer» C. Co product

Discussion

178.	When variable cost per unit increases break even point .
A.	Increase
B.	Decreases
C.	Does not change
D.	Difficult to say
Answer» B. Decreases

Discussion

179.	The portion of value of work that has been done by the contractor and architect or supervisor of the contractee certified that work is ..
A.	Work uncertified
B.	Contract price
C.	Work certified
D.	Retention money
Answer» D. Retention money

Discussion

180.	During the recession period, the profits of a firm will decrease at a much slower rate whose P/V ratio is,
A.	Very high
B.	Moderate
C.	Low
D.	Very low
Answer» E.

Discussion

181.	A cost do not change with changes in the level of activity is .
A.	Variable cost
B.	fixed cost
C.	sunk cost
D.	total cost
Answer» C. sunk cost

Discussion

Explore topic-wise MCQs in Bachelor of Commerce (B Com).

The angle formed were the total cost line under sects the sale line is

Job costing is .

The method of costing applied in lathe is .

A portion of work certified retained by contractee is known

A point at which there is neither profit nor loss

The method of costing applied in cycle parts manufacturing is ..

Job costing can also be called as .. costing

Job costing is applied when the product are of nature

If the value of work certified less than 25% of contract price,profit to be credited to P&L is

For each job a . Is given under job costing

Value of work done to the satisfaction of contractee

If the value of work certified equal to or more than 90% of contract price, profit to be credited is .

A factor that restrict the activities of a concern ..

Break even units can also be called as

Contract price is the cost of work done plus a percentage

Excess of actual sales over break even sales is

Excess of sales over break even sales is known as ..

.. is an angle formed in break even chart

A portion of main contract entrusted to some one else

The cost which varies proportionate to increase in production is .. cost

Un avoidable loss inherent in the material

In costing production is always made for stock

Cost of product in each stage is calculated in . Costing

The cost which remains constant with change in level of activities is called

Incidental residue from manufacture with recoverable value

The cost of work that has been done by the contractor on the closing date of account, but has not reach stipulated stages to qualify certification of architect of contractee

.. product are produced incidental to the main product

When variable cost per unit increases break even point .

The portion of value of work that has been done by the contractor and architect or supervisor of the contractee certified that work is ..

During the recession period, the profits of a firm will decrease at a much slower rate whose P/V ratio is,

A cost do not change with changes in the level of activity is .