T.Y.B.
Com

Cost
Accounting

 

1. According to ICMA London, _______costing is
“that form of specific order costing, which applies where work is undertaken to
customers’ special requirements.”

a. Job

b. Batch

c. Process

d. Standard

ANS: A

 

2. A method of costing applied where costs are
collected and accumulated for each work order

a. Process costing

b. Contract costing

c. Operating costing

d. Job costing

ANS: D

 

3. Which of the following statements is not
true about job costing?

a. Production always against customers’ orders

b. Cost of each job ascertained separately

c. Job is of equal or longer duration compared to contracts

d. Job work is labour intensive

ANS: C

 

4. Which is a method of specific order costing?

a. Job costing

b. Process costing

c. Output costing

d. Service costing

ANS: A

 

5. The process of ascertaining cost after
incurring expenses is called

a. Marginal costing

b. Historical costing

c. Absorption costing

d. Standard costing

ANS: B

 

6. Which technique of costing uses analysis of
variances is a popular method for cost control?

a. Absorption costing

b. Marginal costing

c. Uniform costing

d. Standard costing

ANS: D

 

7. _____ is the practice of charging all direct
costs to operations, processes or products and writing off all indirect costs
to Profit and Loss account.

a. Direct costing

b. Absorption costing

c. Marginal costing

d. Historical costing

ANS: A

 

8. The processes of charging both fixed and
variable to operations, processes or products is called _____

a. Marginal costing

b. Historical costing

c. Absorption costing

d. Standard costing

ANS: C

 

9. Which technique of costing differentiates
between fixed and variable cost to analyse effect of changes in volume or type
of output on profit?

a. Marginal costing

b. Historical costing

c. Absorption costing

d. Standard costing

ANS: A

 

10. For recording the cost of each job, a job
_____ is prepared.

a. Profit & loss a/c

b. Cost sheet

c. Reconciliation statement

d. None of the above

ANS: B

 

11. What should be the price chargeable to a
job if total cost incurred is Rs. 4830 and profit is 25% on sales?

a. 1610

b. 1208

c. 1200

d. 1630

ANS: A

 

12. A factory uses job costing. Given details
obtained from its books: Direct materials Rs.90000, Direct wages – Rs.75000,
Selling OH – Rs.52500, Administration OH – Rs.42000, Factory OH – Rs.45000
& Profit – Rs. 60900. Calculate cost of production.

a. Rs. 2,17,500

b. Rs. 2,07,000

c. Rs. 2,52,000

d. Rs. 2,10,000

ANS: C

 

13. The method of costing applied in special
ship building is

a. Batch costing

b. Job costing

c. Process costing

d. None of the above

ANS: B

 

14. Job costing is

a. Method of costing

b. Technique of costing

c. Cost control technique

d. Cost estimation

ANS: A

 

15. Which of the following considers an
‘economic quantity’ for the purpose of cost reduction?

a. Job costing

b. Process costing

c. Batch costing

d. Contract costing

ANS: C

 

16. The method of costing applied in cycle part
manufacturing is

a. Batch costing

b. Job costing

c. Process costing

d. None of the above

ANS: A

 

17. The method of costing applied in a lathe is

a. Batch costing

b. Job costing

c. Process costing

d. None of the above

ANS: B

 

18. Production order with respect to a job is
issued by _______ department.

a. Production

b. Production Planning

c. Purchase

d. Sales

ANS: B

 

19. Scope of specific order costing is very
wide and includes

a. Job, Batch and contract costing

b. Process , Contract and unit costing

c. Batch , Job and process costing

d. Unit , service and transport costing

ANS: A

 

20. Economic batch quantity is used in batch
costing to

a. Meet specific customer requirements

b. Produce at the least possible cost

c. In order to ensure stock in anticipation of demand

d. None of these

ANS: B

 

21. For identification, each job or work order
received from a customer is allotted a

a. Production order

b. Batch number

c. Job number

d. Code number

ANS: C

 

22. The method of costing used to ascertain the
cost of customer specific jobs is

a. Job costing

b. Batch costing

c. Contract costing

d. Process costing

ANS: A

 

23. On completion of a job, a job completion report
is sent to

a. Cost accounting department

b. Storekeeper

c. Customer

d. Production department

ANS: A

 

24. ______ is the authorization to start work
on a job.

a. Production order

b. Requisition sheet

c. Invoice

d. Job cost sheet

ANS: A

 

25. In job costing, the basic document to
accumulate and ascertain the cost of each order is

a. Purchase order

b. Requisition sheet

c. Invoice

d. Job cost sheet

ANS: D

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