NAME : 6) If profit is 25% of cost, it will be ............

percent on
FATHER’S NAME : sales.
a) 20%
b) 25%
c) 15%
SESSION 2023-2024 d) 30%
7) If cash received is 120000, %of cash received is 80%,
UNIT- 2 TEST PAPER amount of work certified is :
COURSE – PAPER – P19 a) 110000
B.COM (NEP) b) 99000
4th SEM c) 125000
Multiple Choice SUBJECT- Cost d) 150000
Questions Accounting 8) Job costing is used in :
a) Printing press
b) Textile mill
1) Total sales are Rs. 500000, 25% profit on cost, total
c) Paper mill
profit would be :
d) Chemical works
a) Rs. 100000
9) Most logical method of valuing equivalent
b) Rs. 110000
production is :
c) Rs. 115000
a) Average
d) Rs. 112227 b) FIFO
2) Profits calculated by cost books is : c) LIFO
a) Estimated d) None of these
b) Real 10) If prime cost is Rs. 24000, office cost Rs. 30000,
c) Fictitious office overheads are 50% of factory overheads, then
d) Pre-decided factory cost would be :
3) Tender price is also known as : a) 25000
a) Cost price b) 21000
b) Quotation price c) 27000
c) Material Price d) 28000
d) None of these 11) The amount of work in progress consists of :
4) Which method of costing is best suited for computer a) Cost of work uncompleted
work ? b) Cost of work certified and uncertified
c) Value of work certified and cost of
a) Job costing
work uncertified
b) Process costing
d) Cost of work uncertified
c) Contract costing
12) Fifty units are processed at a cost of Rs. 80.
d) Operating costing
Normal loss is 10% and unit cost carries a scrap of 25
5) A bakery produces cakes, biscuit and bread. These paisa. If actual output is 40 units, transfer to costing
products should be treated as : profit and loss account on abnormal loss is :
a) Joint Products a) Rs. 7.50
b) By-Products b) Rs. 8.75
c) Co-products c) Rs. 8.20
d) None of these d) Rs. 8.85
13) In cost sheet realisable value of scrap is deducted d) No entry
from : 22) Total of prime cost and works overhead are
a) Cost of Production known as :
b) Works cost a) Works cost
c) Direct cost b) Total cost
d) None of these c) Cost of production
14) Contract costing is used in : d) Sale Price
a) Automobile industry 23) There are ………parties to a contract.
b) Aeroplane industry a) One
c) Building construction b) Two
d) None of these c) Three
d) Many
15) A process loss that does not affect the cost per 24) Cost of normal output of 800 units is Rs. 2400,
unit is : then value of abnormal wastage of 70 units will be :
a) Normal loss a) Rs. 205
b) Rs. 210
b) Abnormal loss
c) Standard loss c) Rs. 215
d) Rs. 200
d) None of these
25) Wages of delivery van driver is included in :
16) If nothing is mentioned specifically, the joint
a) Factory overheads
office overheads will be allocated in the ratio of :
b) Direct wages
a) Works cost
c) Selling and distribution overheads
b) Direct material
c) Prime cost d) None of these
26) A certificate specifying the value of work
d) None of these
17) Contract account is prepared : completed is issued by a .............. in contract costing
a) Surveyor
a) Both by contractor and contractee
b) Inspector
b) By contractor
c) By contractee c) Manager
d) Auditor
d) None of these
18) In process costing, coat per unit increases due to : 27) Wood pieces, left out in furniture should be
treated as :
a) Abnormal gain
a) Joint product
b) Normal gain
c) Normal loss b) Scrap
c) Waste
d) Abnormal loss
d) By-product
19) The other name of prime cost is :
28) Works cost is also known as :
a) Flat cost
a) Direct cost
b) Direct cost
c) First cost b) Cost of production
c) Manufacturing cost
d) All of these
d) None of these
20) Contract costing is also known as :
29) ............... aims at safeguarding the interest of
a) Terminal costing
contractor against, unforeseen rise in cost.
b) Job costing
c) Procession costing a) Escalation clause
b) De-escalation clause
d) Batch costing
c) Reserve clause
21) In process account, abnormal gain is written on
d) All of these
the :
a) Debit side
b) Credit side
c) Both ‘a’ and ‘b'
30) Normal process loss may rise due to : c) 30%
a) Evaporation d) 31%
b) Chemical reaction 38) When FIFO method is used in process costing,
c) Vaporization the opening stocks are :
d) Both ‘a’ and ‘b' a) Kept separate from the costs of the new period
31) Total cost Rs. 500000, 25% profit on sales, total b) Added to new costs
profit would be : c) Subtracted from the new costs
a) 110000 d) Averaged with other costs to arrive at total costs
b) 115000 39) An input of 1250 kgs of of material introduced
c) 160203 into the process and expected normal loss is 4% and
d) 166667 if the actual output from the process is 1075 units, the
32) When cash ratio is 85%, then the retention abnormal loss is .............. kgs.
money is : a) 125
a) 15% b) 150
b) 5% c) 200
c) 10% d) 100
d) 20% 40) If works overhead are Rs. 70000 of which 70%
33) Process costing system is also known as : fluctuates with sales. The amount of fixed part will
a) Continuous operation system be:
b) Job costing a) Rs. 21000
c) Batch costing b) Rs. 27000
d) Marginal costing c) Rs. 41000
34) On production of 5000 units, the wages cost exists d) Rs. 23000
Rs. 25000. For each additional unit there is increase 41) Normal loss is a loss which is :
in wages cost 10% more than proportionally. The a) Unavoidable in any process
wages cost on production of 8000 units will be : b) Avoidable in any process
a) Rs. 40000 c) Both ‘a’ and ‘b’
b) Rs. 27000 d) None of these
c) Rs. 41500 42) Per unit fixed cost increases when :
d) Rs. 42500 a) Variable cost increases
35)............... costing is used in mass production b) Quantity of production increases
industries. c) Quantity of production decreases
a) Job d) None of these
b) Process 43) ............. implies production of a process in
c) Contract complete units.
d) Batch a) Work certified
36) The work-in-progress at the end is 800 units b) Work in progress
which are complete upto 70%. Its equivalent units c) Equivalent production
are : d) None of these
a) Rs. 560 44) Abnormal gains will be ...........to the process
b) Rs. 600 account and ............ to abnormal gain account.
c) Rs. 520 a) Debited, debited
d) Rs. 640 b) Debited, credited
37) A producer sells its output for Rs. 20000 at Rs. 20 c) Credited, credited
per unit. The total fixed charges amount to Rs. 4000 d) Credited, debited
per annum and variable cost per unit is Rs. 10. The
percentage of profit on sales would be :
a) 22%
b) 23%
45) If the actual output is less than the normal
output, the difference between the two is known as :
a) Abnormal loss
b) Abnormal gain
c) Either (a) or (b)
d) None of these
46) A chemical process has normal wastage of 10% of
input. In a period, 2500 units of input is introduced
and there is an abnormal loss of 75 units. Find
quantity of good units produced :
a) 2200
b) 2175
c) 2300
d) 2400
47) Which of the following is most likely to use a
process cost accounting system ?
a) Construction company
b) Print shop
c) Ship builder
d) Sugar refiner
48) In the process cost accounting system, the flow of
goods in process inventories is assumed to be :
a) FIFO
b) LIFO
c) Weighted average
d) Specific invoice price
49) If total incurred cost in a production process are
Rs. 30000 and number of output units are 5000 units,
then unit cost will be :
a) Rs. 26
b) Rs. 6
c) Rs. 60
d) Rs. 16
50) The........... of value of work certified and
uncertified appearing in the contract account is
called work in progress.
a) Difference
b) Sum
c) Ratio
d) None of these