Top 150+ Solved Applied Cost Accounting MCQ Questions Answer

From 1 to 15 of 177

Q. In a contract costing most of the items of cost are ……………..

a. Indirect

b. direct

c. normal

d. fixed

  • b. direct

Q. ……………. 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

  • c. Escalation\ clause

Q. The loss incurred on an incomplete contract is transferred to ……… account

a. Profit & loss a/c

b. work in progress

c. depreciation

d. Machinery

  • a. Profit & loss a/c

Q. When the completion stage of the contract is more than half, the profit tobe 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

  • a. 2/3 *notional profit *CR/WC

Q. In …………….. contract the contractor will get cost plus stipulated profit

a. Sub contract

b. cost plus contract

c. job

d. direct

  • b. cost plus contract

Q. 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

  • a. Job, Batch and contract costing

Q. When a contract is debited with the original cost of the plant , it shouldcredited with ………… at the end of the year

a. Original cost of the plant

b. Depreciated value of the stock

c. Profit

d. Estimated cost

  • b. Depreciated value of the stock

Q. When the competition stage of a contract is less than ¼ , the totalexpenditure on the contract is transferred to ………… account

a. Work in progres

b. P/L a/c

c. Estimated profit

d. Notional profit

  • a. Work in progres

Q. If the contract is almost complete , the amount of profit generallytransferred 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

  • a. Estimated profit * work certified/ contract price

Q. In a contract costing payment of cash to the contract is made on the basisof …………………………. Work

a. Certified

b. profit and loss a/c

c. contract price

d. cost

  • a. Certified

Q. Job costing is applied only in …………………. Concern

a. Small

b. large

c. medium

d. None of these

  • a. Small

Q. Contract costing is a basic method of …………….. costing

a. Specific order costing

b. batch costing

c. process costing

d. Unit costing

  • a. Specific order costing
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