Q. Cost -plus- contract are undertaken for production of ……………….products.
✅ Correct Answer: (D)
Highly specialized
Cost and Works Accounting 2 MCQs and Notes
Q. Escalation clause is generally included in case of …………..contract agreement .
✅ Correct Answer: (C)
Fixed Price
Q. A contract is generally of ………………..duration.
✅ Correct Answer: (A)
Long
Q. The contract undertaken are completed away from the ………………premises.
✅ Correct Answer: (A)
Contractors
Q. Profit in incomplete contract in known as notional profit because:
✅ Correct Answer: (D)
The profit is only an approximation.
Q. Profit remaining as reserve is :
✅ Correct Answer: (C)
Not taken into account.
Q. WIP in contract means:
✅ Correct Answer: (B)
Work certified and work uncertified
Q. If beginning work in process equivalent units are 2500 units, work done in current period equivalent units are 3800 units and ending work in process equivalent units are 5000, then complete equivalent units in current period are
✅ Correct Answer: (B)
1300 units
Q. Total costs incur in a production process, is divided by total number of output units to calculate the
✅ Correct Answer: (A)
unit costs
Q. The sum of value of work certified and uncertified appearing in the Contract Account is called ……………..
✅ Correct Answer: (D)
Work in Progress