Top 150+ Solved Cost and Works Accounting 2 MCQ Questions Answer
Q. Escalation clause is generally included in case of …………..contract agreement .
a. Variable Cost
b. Fixed Cost
c. Fixed Price
d. Variable Price
Q. Cost -plus- contract are undertaken for production of ……………….products.
a. SSI
b. Small
c. Low value
d. Highly specialized
Q. Work certified in a subsequent year is always ……………… than that the inpreceding year.
a. Greater
b. Less
c. Equal
d. Greater than Equal to
Q. Cost of defective materials should be……………………to costing P/L accountand……………….to contract account.
a. Debited, Credited
b. Credited, Debited
c. Charged, record
d. Record, Apply
Q. Escalation Clause aims at safeguarding the interest of the ……………….against unforeseen rise in cost.
a. Contractor.
b. Contractee
c. Builder
d. Party
Q. Sub contract cost is always to be treated as ……………….to the contract.
a. Indirect charge
b. Direct charge
c. Income
d. Revenue
Q. The monetary value attributed to normal losses in a process should be
a. A share of the process cost according to the stage of completion of the losses.
b. A nil value with no other monetary adjustment under any circumstances.
c. A full share of process cost on the same as good output.
d. A nil share of process costs which have been reduced by the scrap value of the normal loss.
Q. Details for the past month of a continuous process are:
a. Opening W.I.P. (400 units) (60% complete)
b. Closing W.I.P. (600 units) (20% complete)
c. Unit started 1,000
d. Unit finished 800
Q. An abnormal gain in a process occurs in which of the following situations?
a. When actual losses are greater than the normal loss level.
b. When costs are reduced through increased machine speed
c. When actual losses are less than the normal level.
d. When the process output is greater than planne
Q. Where process scrap is recycled for use in conjunction with new material as well as being so externally, which of. the following is most likely to be the value at which is debited to the process?
a. At the same price as it sold externally.
b. At the cost of normal losses.
c. At the cost attached to abnormal losses.
d. Nil value.
Q. The physical flow of units into and out of departments is shown on the:
a. Quantities schedule.
b. Emulgent production schedule.
c. Cost of account for schedule.
d. Cost of Accounted for schedule.
Q. An equivalent unit of material or conversion cost is equal to
a. The amount of material conversion cost necessary to complete one unit of production.
b. A unit of work-in-process inventory.
c. The amount of material or conversion cost necessary to start a unit of production into work in process inventory.
d. Fifty percent of material or conversion cost of a unit to finished goods inventory
Q. Which of the following manufacturers would most likely not use a process-costaccounting system?
a. A producer of computer monitors.
b. A paint manufacturer.
c. A producer of frozen orange juice
d. A builder of customized yachts