Top 50+ Solved Service Costing MCQ Questions Answer
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
Q. The items recorded on job cost sheet would include:
a. Job number, description of job, specifications, etc.
b. Customer details, estimated costs, selling price, estimated profit
c. Delivery date promised, actual delivery date, delivery note number
d. All of the above
Q. The usual method of fixing prices in a jobbing concern is cost plus pricing.
a. True
b. False
c. none
d. none
Q. Cost plus pricing means that a desired profit margin is added to total costs to arriveat the selling price.
a. False
b. True
c. none
d. none
Q. A computerised job accounting system contain which of the following features:
a. Every job will be given a job code number, which will determine how the data relating to the job is stored.
b. A separate set of codes will be given for the type of costs that any job is likely to incur. Thus ‘direct wages’, say, will have the same code whichever job they are allocated to.
c. In a sophisticated system, costs can be analysed both by job (for example all costs related to Job 456), but also by type (for example direct wages incurred on all jobs). It is therefore easy to perform control analysis and to make comparisons between jobs.
d. All of the above
Q. It is possible to use a job costing system to control the costs of an internal service department, such as the maintenance department and the printing department.
a. The above statement is correct
b. The above statement is incorrect
c. none
d. none