Top 150+ Solved Applied Cost Accounting MCQ Questions Answer
Q. When the completion stage of a contract is less than ¼ 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
Q. Contract testing is a basic method of
a. Specific costing
b. Specific order costing
c. Economic batch costing
d. Economic order costing
Q. 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
Q. At break even point, the contribution equal to
a. Fixed cost
b. Variable cost
c. Total cost
d. Zero
Q. 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
Q. The valuation of stock, in marginal costing, as compared to absorption costing is
a. Higher
b. Lower
c. Same
d. Difficult to say
Q. Contribution margin is also known as
a. Gross profit
b. Net profit
c. Earning before interest and tax
d. Marginal income
Q. 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
Q. 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
Q. 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
Q. 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
Q. 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
Q. 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
Q. When variable cost per unit increases break even point ……………….
a. Increase
b. Decreases
c. Does not change
d. Difficult to say