Q. The expenses incurred in extra work is
✅ Correct Answer: (A)
Debited in contract amount
Applied Cost Accounting MCQs and Notes
Q. Example for cost plus contract
✅ Correct Answer: (D)
Both a and b
Q. If the value of work certified equal to or more than 90% of contract price, profit to be credited is……………….
✅ Correct Answer: (C)
Estimated profit on completion*(Work certified/Contract price)
Q. In which situation, 2/3 of national profit credited to P & L a/c
✅ Correct Answer: (D)
If the value of work certified equal to or more than 50% but less than 90% of the contract price
Q. If the value of work certified less than 25% of contract price,profit to be credited to P&L is
✅ Correct Answer: (A)
No profit is credited to P & L a/c
Q. Retention money is retained by whom ………………….
✅ Correct Answer: (B)
Contractee
Q. The cost of work that has been done by the contractor on the closing date of account, but has not reach stipulated stages to qualify certification of architect of contractee
✅ Correct Answer: (B)
Work uncertified
Q. When variable cost per unit increases break even point ……………….
✅ Correct Answer: (A)
Increase
Q. During the recession period, the profits of a firm will decrease at a much slower rate whose P/V ratio is,
✅ Correct Answer: (D)
Very low
Q. During the boom period, the profits of a firm will increase at a much faster rate whose P/V ratio is,
✅ Correct Answer: (A)
Very high