Q. …………….. is the provision to increase the contract price increase in the Cost of construction over a particular level
✅ Correct Answer: (A)
Escalation clause
Applied Cost Accounting MCQs and Notes
Q. The work in the process of completion is known as …………….
✅ Correct Answer: (B)
work in progress
Q. ……….. is the portion of work certified not paid by the contractee till completion of the work
✅ Correct Answer: (C)
Retention money
Q. The person who gives the work on contract is known as ……
✅ Correct Answer: (B)
contractee
Q. A contract in which the contractor is given the lost of work done plus a certain percentage for profit is called …………………….
✅ Correct Answer: (A)
Cost plus contract
Q. Provision for increase in the contract price to accommodate increase in material and labour cost
✅ Correct Answer: (D)
Escalation price
Q. A cost do not change with changes in the level of activity is ………….
✅ Correct Answer: (B)
fixed cost
Q. Cost of producing an additional unit of output is ……………
✅ Correct Answer: (B)
marginal cost
Q. ……… is the difference b/w the sales and marginal cost of sale
✅ Correct Answer: (B)
contribution
Q. Where actual loss in a process is less than the anticipated loss , the difference b/w the two is considered to be …………..
✅ Correct Answer: (B)
Abnormal gain