Q. Normal loss is ___________in the normal course of events. It is inherent in the physical and chemical reactions that take place in a process.
✅ Correct Answer: (B)
Unavoidable
Cost and Works Accounting 2 MCQs and Notes
Q. Normal loss is usually expressed as a percentage of the input units of materials.
✅ Correct Answer: (A)
Correct
Q. In a process costing system loss might be:
✅ Correct Answer: (C)
Both A&B
Q. It is possible to have abnormal loss and abnormal gain on the same process account in the same period.
✅ Correct Answer: (A)
False
Q. Sub contract cost is always to be treated as ……………….to the contract.
✅ Correct Answer: (A)
Indirect charge
Q. Escalation Clause aims at safeguarding the interest of the ……………….against unforeseen rise in cost.
✅ Correct Answer: (A)
Contractor.
Q. Cost of defective materials should be……………………to costing P/L account and……………….to contract account.
✅ Correct Answer: (A)
Debited, Credited
Q. Work certified in a subsequent year is always ……………… than that the in preceding year.
✅ Correct Answer: (A)
Greater
Q. When cash ratio is …….. retention money is 13%.
✅ Correct Answer: (B)
87%
Q. Retention money serves as a ………with the contractee.
✅ Correct Answer: (A)
Security