Quiz  /  Costing Gate & PSU MCQ Questions With Answers

  • 1. 
    According to CIMA, England, “the technique and process of ascertaining cost” is called

  • Costing
  • Cost Accounting
  • Cost Accountancy
  • Cost

  • 2. 
    Fixed cost + profit =

  • Semi - variable cost
  • Margin of safety
  • Contribution
  • Standard profit

  • 3. 
    On _____ of the contract entire profit is transferred to P & L A/c.

  • 25% completion
  • 50% completion
  • 90% completion
  • completion

  • 4. 
    _______ time refers to the time for which wages are paid without any production

  • Over
  • Under
  • Excess
  • Idle

  • 5. 
    Fixed cost is also known as______________________________

  • Flexible cost
  • Marginal cost
  • Period cost
  • All of the above

  • 6. 
    _____ money is paid a certain period after completion of the contract.

  • work certified
  • work uncertified
  • retention
  • escalation

  • 7. 
    In process costing, the net realisable value is calculated as _______.

  • sales value at split off point
  • sales price less fixed cost
  • sales price less joint cost
  • sales price less cost to complete the product

  • 8. 
    The formula of Net Realizable value is:

  • Sales Price - Disposal Cost
  • Sales Price - Joint Cost
  • Product Sales Revenue - Allocated Cost
  • Product Sales Revenue - Total Expected Revenue

  • 9. 
    In process accounts, _____ is treated as a part of the cost of production.

  • normal loss
  • abnormal loss
  • net loss
  • gross loss

  • 10. 
    ............. can be achieved under efficient operating conditions

  • Ideal standards
  • Attainable standards
  • Margin standards
  • variance standards

  • 11. 
    In process accounts, _________ does not have a realisable value

  • normal loss
  • abnormal scrap loss
  • scrap loss
  • weight loss

  • 12. 
    An item of low value incidentally arising in a process is called _________.

  • joint product
  • by-product
  • scrap
  • waste

  • 13. 
    Profit on incomplete contract is calculated on the basis of _____ of completion.

  • stage
  • degree
  • retention
  • process

  • 14. 
    The total variable cost change _________________________with change in output

  • Consistently
  • Constantly
  • Proportionately
  • Un proportionately

  • 15. 
    In Process Costing, unit cost of a product is calculated as ___________.

  • Normal Cost ÷ Normal Output
  • Total Cost ÷ Normal Output
  • Normal Cost ÷ Total Output
  • Total Cost ÷ Total Output

  • 16. 
    Cost incurred by undertakings which do not manufacture any product but services is

  • Operation Costing
  • Operating Costing
  • Sunk Costing
  • Joint Costing

  • 17. 
    __________ is the excess of actual output over normal output.

  • Actual output
  • Abnormal Loss
  • Normal Loss
  • Abnormal Gain

  • 18. 
    Extra payment reuired to be paid for overtime work is called as overtime

  • Premium
  • Payment
  • Salary
  • Wages

  • 19. 
    P/V Ratio is an indicator of

  • the measurement of rate at which goods and services are bought and sold
  • the measurement of change in profit due to change in volume of sales
  • the measurement of volume of profit to be earned
  • None of the above

  • 20. 
    Margin of Safety is the difference between the

  • Planned sales and the planned profit
  • Actual sales and Break even sales
  • Planned sales and the break even sales
  • None of the above

  • 21. 
    Who is responsible for a materials usage variance?

  • The Purchasing Agent.
  • The Production Manager
  • The Production & Maintenance Managers
  • Supervisor

  • 22. 
    In process costing, each producing department is a __________

  • cost unit
  • cost centre
  • investment centre
  • sales centre
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