Top 150+ Solved Cost and Works Accounting 2 MCQ Questions Answer
Q. The production operations of most businesses can be categorized as either being:
a. Specific orders
b. Continuous operations
c. Both A or B
d. None
Q. Specific order costing methods are appropriate for organizations which produce costunits which are separately identifiable from one another.
a. The above statement is correct
b. The above statement is incorrect
c. none
d. none
Q. Identify the types of specific order costing.
a. Job costing
b. Batch costing
c. Process costing
d. Both A&B only
Q. Job costing is used when a business entity carries out tasks or jobs to meet specificcustomer orders.
a. The above statement is false
b. The above statement is true
c. none
d. none
Q. A job is a cost unit which consists of a single order or contract.
a. True
b. False
c. none
d. none
Q. Job costing is used when a business entity carries out tasks or jobs to meet specificcustomer orders.
a. True
b. False
c. none
d. none
Q. In Job costing a cost is calculated for each individual job, and this cost can be usedto establish the profit or loss from doing the job.
a. The above statement is incorrect
b. The above statement is correct
c. none
d. none
Q. Which of the following statement is correct with regard to job costing?
a. Job costing differs from most other types of costing system because each cost unit is a job, and no two jobs are exactly the same. Each job is costed separately.
b. The expected cost of a job has to be estimated so that a price for the job can be quoted to a customer.
c. A costing system should also calculate the actual cost of each job that has been carried out to work out the relative profitability of relevant jobs.
d. All of the above are correct
Q. Non-production overheads might be added to the cost of the job:
a. As a percentage of the prime cost of the job
b. As a percentage of the production cost of the job
c. Either A or B
d. None
Q. In job costing each job is given a unique:
a. Identity number, or job number
b. Account name
c. Costing system
d. None
Q. In a costing system, a job account is similar to a work in progress account, except that it is for one job only. In a company that specialises in jobbing work, the work in progress account is the total of all the individual job accounts.
a. The above statement is correct
b. The above statement is incorrect
c. none
d. none
Q. A separate record must therefore be maintained to show the details of individualjobs. Such records are often known as job cost sheets or job cost cards.
a. Correct
b. Incorrect
c. none
d. none