Top 150+ Solved Cost and Works Accounting 2 MCQ Questions Answer
Q. In process costing questions, you will need to:
a. Identify the losses and output
b. Calculate the cost of good output, losses and WIP
c. Use the costs you have calculated to assign values to the good output, losses and WIP
d. All of the above
Q. It is possible to have abnormal loss and abnormal gain on the same process accountin the same period.
a. False
b. True
c. none
d. none
Q. Normal loss is usually expressed as a percentage of the input units of materials.
a. Correct
b. Incorrect
c. none
d. none
Q. Normal loss is ___________in the normal course of events. It is inherent in the physical and chemical reactions that take place in a process.
a. Avoidable
b. Unavoidable
c. none
d. none
Q. Normal loss comes with:
a. No recovery/scrape value
b. Recovery/scrape value
c. Either A or B
d. None
Q. If normal loss has a scrap value the company is able to recover some of the input costs to the process. The scrap value reduces the cost of the process.
a. The above statement is correct
b. The above statement is incorrect
c. none
d. none
Q. In some cases, a company might have to pay to dispose of losses in a process. The cost of disposal represents an additional cost to the process. To reflect this in the process account the normal loss is measured at zero but the expected costs of disposal are debited to the process account.
a. The above statement is incorrect
b. The above statement is correct
c. none
d. none
Q. When actual loss exceeds normal loss, there is:
a. Abnormal loss
b. Abnormal gain
c. Extra loss
d. None
Q. The difference between total actual loss and normal loss is abnormal loss.
a. Incorrect
b. Correct
c. none
d. none