Q. Contract testing is a basic method of
✅ Correct Answer: (B)
Specific order costing
Applied Cost Accounting MCQs and Notes
Q. When the completion stage of a contract is less than ¼ of the total expenditure on the contract is transferred to
✅ Correct Answer: (C)
Work in progress account
Q. In contract costing most of the items of cost are
✅ Correct Answer: (A)
Direct
Q. Job costing can be done in conjunction with
✅ Correct Answer: (D)
Marginal costing
Q. If the contract is almost complete, the amount of profit generally transferred to profit and loss account is equal to
✅ Correct Answer: (C)
Estimated profit*(Work certified/Contract price)
Q. In contract costing credit is taken only for a part of the profit on
✅ Correct Answer: (A)
Incomplete contract
Q. In job costing each job is a ……………..to which all cost are assigned
✅ Correct Answer: (B)
Cost unit
Q. In contract costing payment of cash to the contractor is made on the basis of
✅ Correct Answer: (C)
Certified work
Q. ……………..budget gives different budgeted cost for different levels of activity
✅ Correct Answer: (A)
Flexible budget
Q. ……………..budget provides information about the materials to be acquired from the market
✅ Correct Answer: (D)
Purchase budget