Applied Cost Accounting MCQs

M

Mr. Dubey • 51.17K Points
Coach

Q 1. The expenses incurred in extra work is

(A) Debited in contract amount
(B) Credited in contract amount
(C) Not shown in contract amount
(D) None of the above
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M

Mr. Dubey • 51.17K Points
Coach

Q 2. Example for cost plus contract

(A) Construction work in war
(B) Manufacture of ship in special type or design
(C) Construction of fish tank
(D) Both a and b
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M

Mr. Dubey • 51.17K Points
Coach

Q 3. If the value of work certified equal to or more than 90% of contract price, profit to be credited is……………….

(A) 2/3 * National profit * (Cash received/Work certified)
(B) No profit credited to P&L a/c
(C) Estimated profit on completion*(Work certified/Contract price)
(D) 1/3 * National profit * (Cash received/Work certified)
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M

Mr. Dubey • 51.17K Points
Coach

Q 4. In which situation, 2/3 of national profit credited to P & L a/c

(A) If the value of work certified equal to or more than 90% of the contract price
(B) If the value of work certified less than 25% of the contract price
(C) Both a and b
(D) If the value of work certified equal to or more than 50% but less than 90% of the contract price
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M

Mr. Dubey • 51.17K Points
Coach

Q 5. If the value of work certified less than 25% of contract price,profit to be credited to P&L is

(A) No profit is credited to P & L a/c
(B) 1/3 of national profit credited to P & L a/c
(C) 2/3 of national profit credited to P & L a/c
(D) None of these
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M

Mr. Dubey • 51.17K Points
Coach

Q 6. Retention money is retained by whom ………………….

(A) Contractor
(B) Contractee
(C) Both a and b
(D) None of these
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M

Mr. Dubey • 51.17K Points
Coach

Q 7. The cost of work that has been done by the contractor on the closing date of account, but has not reach stipulated stages to qualify certification of architect of contractee

(A) Work certified
(B) Work uncertified
(C) Contract price
(D) None of these
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M

Mr. Dubey • 51.17K Points
Coach

Q 8. When variable cost per unit increases break even point ……………….

(A) Increase
(B) Decreases
(C) Does not change
(D) Difficult to say
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M

Mr. Dubey • 51.17K Points
Coach

Q 9. During the recession period, the profits of a firm will decrease at a much slower rate whose P/V ratio is,

(A) Very high
(B) Moderate
(C) Low
(D) Very low
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M

Mr. Dubey • 51.17K Points
Coach

Q 10. During the boom period, the profits of a firm will increase at a much faster rate whose P/V ratio is,

(A) Very high
(B) Moderate
(C) Low
(D) Very low
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