Top 150+ Solved Cost and Works Accounting 2 MCQ Questions Answer
Q. First step in process costing system is to
a. compute cost for each equivalent unit
b. summarize total costs
c. compute output in units
d. summarize flow of output
Q. In Process industries there is a flow of ……………. from one operation to the nextoperation.
a. Material
b. Labour
c. Overhead
d. Expenses
Q. Make or But Decisions are involved before and after different……………….
a. Service.
b. Contract.
c. Processes.
d. Indirect Cost.
Q. In process costing each process is treated as a separate………………
a. Cost Centre
b. Cost Unit
c. Cost Structure
d. Cost Industry
Q. …………… are produced from the same basic raw materials.
a. Joint Product.
b. By Product
c. Main Product
d. Final Product
Q. Husk produced in the process of Rice milling, is an example of ………………
a. Joint Product.
b. By Product
c. Main Product
d. Final Product
Q. Joint Cost are ………………to individual joint products.
a. Non-Traceable
b. Separate
c. Traceable
d. Combined
Q. Subsequent cost are…………to individual product.
a. Non-Traceable
b. Separate
c. Traceable
d. Combined
Q. Skimmed milk and Butter are the example of……………..
a. Joint Product.
b. By Product
c. Main Product
d. Final Product
Q. Post separation costs are attributable to each ……. products.
a. Joint Product.
b. By Product
c. Main Product
d. Final Product.
Q. Process costing provides a system of costing where the following characteristicsoccur. Identify which of the following are correct:
a. Output is continually produced from the manufacturing process. Materials might be added in full at the start of a process or might be added gradually throughout the process.
b. There might be losses in the process. Process costing provides a method of measuring and costing incomplete WIP.
c. When more than one product is output, they might be called joint products or a by-product, depending upon the relative value of the products. Process costing offers methods of costing each of the different products.
d. All of the above are correct
Q. Examples of manufacturing where process costing is used include:
a. Chemicals manufacture, Petroleum refining, the manufacture of liquids
b. The continuous processing of high volumes of low-cost food items such as tins of peas or beans, or bottles of tomato ketchup.
c. Both A&B
d. None
Q. The task that sits at the heart of process costing is always to allocate the costs collected on the debit side of the account to the possible outputs (good output, closing WIP and lost units) on the credit side.
a. The above statement is correct
b. The above statement is incorrect
c. none
d. none