Cost and Works Accounting 2 MCQs and Notes | MCQ Buddy

M

Mr. Dubey

🎓 Coach ⭐ 103.11K Points

📊 Cost and Works Accounting 2

Q. The relative sales value method is the most widely used method of apportioning joint costs because (ignoring the effect of further processing costs) it assumes that all products achieve the same profit margin.

(A) True
(B) False
(C) none
(D) none

💬 Discuss

✅ Correct Answer: (A) True

M

Mr. Dubey

🎓 Coach ⭐ 103.11K Points

📊 Cost and Works Accounting 2

Q. The units basis has the following limitations.

(A) Where the products separate during the processes into different states, for example where one product is a gas and another is a liquid, this method is unsuitable.
(B) This method does not take into account the relative income-earning potentials of the individual products, with the result that one product might appear very profitable and another appears to be incurring losses.
(C) Both A&B
(D) None

💬 Discuss

✅ Correct Answer: (C) Both A&B

M

Mr. Dubey

🎓 Coach ⭐ 103.11K Points

📊 Cost and Works Accounting 2

Q. In Units basis, Common costs are apportioned between joint products on the basis of the total number of units produced. The cost per unit is the same for all the joint products. (This is also described as the physical quantities basis).

(A) Correct
(B) Incorrect
(C) none
(D) none

💬 Discuss

✅ Correct Answer: (A) Correct

M

Mr. Dubey

🎓 Coach ⭐ 103.11K Points

📊 Cost and Works Accounting 2

Q. Which of the methods of apportionment is normally used for apportioning common costs between joint products?

(A) Units basis
(B) Sales value at the split-off point basis
(C) Net realizable value
(D) Either of the above

💬 Discuss

✅ Correct Answer: (D) Either of the above

M

Mr. Dubey

🎓 Coach ⭐ 103.11K Points

📊 Cost and Works Accounting 2

Q. In order to calculate a cost for each joint product, the common costs must be ________ between the joint products.

(A) Identified
(B) Allocated
(C) Apportioned
(D) None

💬 Discuss

✅ Correct Answer: (C) Apportioned

M

Mr. Dubey

🎓 Coach ⭐ 103.11K Points

📊 Cost and Works Accounting 2

Q. An overhead absorption rate is used to:

(A) Share out common costs over benefiting cost canters
(B) Find the total overheads for a cost centre
(C) Charge overheads to products
(D) Control overheads

💬 Discuss

✅ Correct Answer: (C) Charge overheads to products

M

Mr. Dubey

🎓 Coach ⭐ 103.11K Points

📊 Cost and Works Accounting 2

Q. Which of the following is/are the basic object/s of job analysis?

(A) Determination of wage rates
(B) Ascertain the relative worth of each job
(C) Breaking up job into its basic elements
(D) All of the given options

💬 Discuss

✅ Correct Answer: (A) Determination of wage rates

M

Mr. Dubey

🎓 Coach ⭐ 103.11K Points

📊 Cost and Works Accounting 2

Q. The following method is an improvement over the percentage on direct labour cost method.

(A) Machine hour rate
(B) Percentage on prime cost
(C) Percentage on direct material cost
(D) Man hour rate

💬 Discuss

✅ Correct Answer: (D) Man hour rate

M

Mr. Dubey

🎓 Coach ⭐ 103.11K Points

📊 Cost and Works Accounting 2

Q. The overhead cost for a particular job =

(A) man hour rate x man hours spent on that job
(B) man hour rate / man hours spent on that job
(C) man hour rate + man hours spent on that job
(D) man hour rate – man hours spent on that jab

💬 Discuss

✅ Correct Answer: (A) man hour rate x man hours spent on that job

M

Mr. Dubey

🎓 Coach ⭐ 103.11K Points

📊 Cost and Works Accounting 2

Q. To control costs it is essential to keep control on

(A) Prime cost
(B) Overheads
(C) Indirect materials and tools cost
(D) All of the above

💬 Discuss

✅ Correct Answer: (D) All of the above

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