Applied Cost Accounting MCQs and Notes

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📊 Applied Cost Accounting
Q. If the contract is almost complete , the amount of profit generally transferred to profit and loss account is equal to
  • (A) Estimated profit * work certified/ contract price
  • (B) Estimated profit * contract price / work certified
  • (C) Notional profit * C.R/ W.C
  • (D) Notional profit W.C/ C.R
💬 Discuss
✅ Correct Answer: (A) Estimated profit * work certified/ contract price
📊 Applied Cost Accounting
Q. When the competition stage of a contract is less than ¼ , the total expenditure on the contract is transferred to ………… account
  • (A) Work in progres
  • (B) P/L a/c
  • (C) Estimated profit
  • (D) Notional profit
💬 Discuss
✅ Correct Answer: (A) Work in progres
📊 Applied Cost Accounting
Q. When a contract is debited with the original cost of the plant , it should credited with ………… at the end of the year
  • (A) Original cost of the plant
  • (B) Depreciated value of the stock
  • (C) Profit
  • (D) Estimated cost
💬 Discuss
✅ Correct Answer: (B) Depreciated value of the stock
📊 Applied Cost Accounting
Q. ………… is an important point to be determined in industries where batch costing is employed
  • (A) EBQ
  • (B) EOQ
  • (C) Re – order quantity
  • (D) Batch
💬 Discuss
✅ Correct Answer: (A) EBQ
📊 Applied Cost Accounting
Q. 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
💬 Discuss
✅ Correct Answer: (A) Job, Batch and contract costing
📊 Applied Cost Accounting
Q. In …………….. contract the contractor will get cost plus stipulated profit
  • (A) Sub contract
  • (B) cost plus contract
  • (C) job
  • (D) direct
💬 Discuss
✅ Correct Answer: (B) cost plus contract
📊 Applied Cost Accounting
Q. When the completion stage of the contract is more than half, the profit to be credited to P/L a/c will be equal to ………………..
  • (A) 2/3 *notional profit *CR/WC
  • (B) Estimated profit *W.C/contract price
  • (C) 1/3 * N.P * CR/W.C
  • (D) Total profit
💬 Discuss
✅ Correct Answer: (A) 2/3 *notional profit *CR/WC
📊 Applied Cost Accounting
Q. The loss incurred on an incomplete contract is transferred to ……… account
  • (A) Profit & loss a/c
  • (B) work in progress
  • (C) depreciation
  • (D) Machinery
💬 Discuss
✅ Correct Answer: (A) Profit & loss a/c
📊 Applied Cost Accounting
Q. ……………. In a contract , provides that the contract price would be suitably enhanced on the happening of a specified contingency
  • (A) Cost plus contract
  • (B) estimated profit
  • (C) Escalation\ clause
  • (D) EBQ
💬 Discuss
✅ Correct Answer: (C) Escalation\ clause
📊 Applied Cost Accounting
Q. In a contract costing most of the items of cost are ……………..
  • (A) Indirect
  • (B) direct
  • (C) normal
  • (D) fixed
💬 Discuss
✅ Correct Answer: (B) direct

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