Practice Test

Q1) When A contract is not completed at the end of accounting year, then profit on incomplete contract is transferred to : Show Answer

Q2) When a contract is not completed at the end of the year, loss on incomplete contract is transferred to : Show Answer

Q3) Contract price is not fixed : Show Answer

Q4) In contract accounts, the amount of work-in-progress consists of : Show Answer

Q5) Cost-plus contract is usually entered into in those cases where: Show Answer

Q6) When a contract is 50% complete, the amount of profit to be taken credit for is usually. : Show Answer

Q7) Cost plus contract is useful: Show Answer

Q8) In contract costing, contract account is prepared: Show Answer

Q9) If cash received on any contract account amounted to Rs. 1,50,000 being 80% of the wok certified then amount of work certified will be : Show Answer

Q10) If cash received any contract account amounted to Rs. 2,90,000 which was less than 20% of the certified work, then amount of work certified will be: Show Answer

Q11) If cash received on any contract account amounted to Rs. 1,60,000 being 4/5 of the work certified then amount of work certified will : Show Answer

Q12) The contract was completed in 13 weeks, at the end of which period plant was returned at a value of Rs. 16,000 after charging depreciation at 20%. The value of issued plant was Show Answer

Q13) Work on any contract to the value of Rs. 2,00,000 has been certified of which 75% has been received in cash, Cost work uncertified was Rs.50,000. Amount of work-in-progress will be shown in Balance Sheet of the contractor is : Show Answer

Q14) Value of work certified in relation to a particular contact is 60% of contract price and 100% of work certified has been received in cash . if profit taken to P & L A/c is Rs. 6,000 then amount of total earned profit will be : Show Answer

Q15) Work cost is also known as : Show Answer

Q16) Prime cost is also known as : Show Answer

Q17) Total or works cost and office overhead are known as : Show Answer

Q18) In a cost-sheet, stock of finished goods is adjusted at the stage of : Show Answer

Q19) In a cost-sheet, realisable value of scrap is deducted from: Show Answer

Q20) In a cost-sheet, stock of work-in-progress in adjusted at the stage of : Show Answer

Q21) In the absence of any clear information, joint factory overheads will be allocated in the ratio of : Show Answer

Q22) In the absence of any clear information, joint office overheads will be allocated in the ration of : Show Answer

Q23) If profits is 25% of cost, then it will be ________percent of sales: Show Answer

Q24) If profit is 50% of sales , then it will be _____ percent of cost: Show Answer

Q25) Cost price Rs. 18,000,33 1/3 % Profit on selling price, amount of profit will be : Show Answer

Q26) Total Costs are Rs.5,00,000, 20% Profit on Sales, Total Profit would be : Show Answer

Q27) Total cost Rs. 5,00,000, 20% Profit on cost , Total Profit would be : Show Answer

Q28) If Prime Cost Rs, 16,000 ; Factory Overheads : 25% of Prime Cost and Office overheads : 75% Factory overheads then Office Cost would be : Show Answer

Q29) If Prime Cost Rs. 24,000 ; Office Cost Rs .30,000; Office Overheads : 50% of factory Overheads then Factory Cost would be : Show Answer

Q30) If Prime Cost Rs.18,000; Factory Cost Rs.21,600; Factory Overhead : 45% of Direct Wages then Amount of Direct Materials would be : Show Answer

Q31) If Opening balance of material RS. 60,000 Closing balance Rs. 45,000 and Value of material used Rs. 75,000 then amount of material purchased would be; Show Answer

Q32) If units produced during the month are 10,000 (out of which 2,000 units were unsold ), cost of production is Rs. 62,000 and selling expenses per unit are Rs. 1.80 then Cost of Sales would be : Show Answer

Q33) A television company manufactures several component in batches. The following data relates to one component : Annual demand : 32000 units, Set-up cost per batch : Rs. 120 , Annual rate of interest : 12% Cost of production per unit Rs. 16. Show Answer

Q34) The set up cost of machine is Rs.120. A certain order requires 9,000 components to be made in the machine for execution of the order. Cost of production of the component is Rs. 40 each at it requires 15% of the cost for storing it for a year. Then Economic Batch quantity is _____units Show Answer

Q35) Tender Price is also known as ________ Show Answer

Q36) Tender price is calculated by ________ Show Answer

Q37) Tender is presented _____________ Show Answer

Q38) Tender price is calculated on the basis of : Show Answer

Q39) Tender price indicates Show Answer

Q40) Contract costing is a type of _______ costing. Show Answer

Q41) A person who undertakes the construction work as per terms and conditions agreed upon is called as ________ Show Answer

Q42) A person for whom construction is undertaken is called as ____ Show Answer

Q43) Work done and certified by the architect is called as ____ Show Answer

Q44) Work done and not certified by the architect is called as _____ Show Answer

Q45) ________ clause is included in the contract to protect the interest of the contractee in case of any defects found in the construction work. Show Answer

Q46) _______ clause is included in the contract to protect the interest of contractor in case cost of material and labour has gone up. Show Answer

Q47) _______ is a credit balance on contract account after recording all the expenses and losses and income and gains. Show Answer

Q48) Notional Profit includes ______ and ______ both. Show Answer

Q49) Realized profit is transferred to _________ account. Show Answer

Q50) Unrealized profit is transferred to _______ account. Show Answer

Q51) Sub-contract cost should be account ________ to contract account. Show Answer

Q52) Work uncertified is always valued at ____. Show Answer

Q53) _______ is credited to contract A/c when contract is 100% completed. Show Answer

Q54) If work certified is not given, it should be calculated on the basis of _______ Show Answer

Q55) A person for whom the work is undertaken is known as _____ Show Answer

Q56) When work done is less than 25% or 1/4 complete then ____ Show Answer

Q57) When work done is 1/4 (25%) or more but less than 1/2 (50%) then Show Answer

Q58) When work done is 1/2 (50%) or more then Show Answer

Q59) When work done is 100% or when the contract is completed, then & Loss A/c. Show Answer

Q60) If any plant is transferred from one contract to other contract, the transferee contract is ____ and transferor contract is ___ by the value of plant (W.D.V. of plant) Show Answer

Q61) Contractor prepares _______ to find out the estimated profit on completion. Show Answer

Q62) Depreciation on plant and machinery at site is calculated with the help of _____ Show Answer

Q63) Contract costing is at type of job costing. Show Answer

Q64) Each contract is considered as a separate unit of cost. Show Answer

Q65) The loss on contract which is not compensated is debited to contract A/c Show Answer

Q66) Cost of plant issued to site is debited to profit & loss A/c. Show Answer

Q67) If any material is transferred from one contract to other contract, the transferee contract is debited and transferor contract is credited. Show Answer

Q68) Plant returned from site to the stores is credited to the contract with W.D.V. of plant. Show Answer

Q69) Selling price of plant is credited to contract A/c and any Profit or Loss on sale is accounted separately in the contract A/c. Show Answer

Q70) Work done but uncertified is to be valued at market value. Show Answer

Q71) Contractor prepares memorandum contract A/c to find out the estimated profit on Completion. Show Answer

Q72) Calculation of profit on incomplete contract is of personal opinion. Show Answer

Q73) Mr. A undertook a contract for Rs. 5,00,000. Cash received was 80% of work certified which was Rs. 3,00,000. Find out amount of work certified. Show Answer

Q74) Mr. A undertook a contract for Rs. 5,00,000. Cash received was 80% of work certified which was Rs. 3,00,000. Find out % of work certified Show Answer

Q75) The contract was commenced on 1.1.2010 and total contract value was Rs. 8,00,000. On 15th Dec. 2010 the architect certified that 80% of the contract was completed and the contractor received payment of 75% of the value of work certified. Find Work certified? Show Answer

Q76) The contract was commenced on 1.1.2010 and total contract value was Rs. 8,00,000. On 15th Dec. 2010 the architect certified that 80% of the contract was completed and the contractor received payment of 75% of the value of work certified. Find cash received. Show Answer

Q77) The contract was commenced on 1.1.2010 and total contract value was Rs. 8,00,000. On 15th Dec. 2010 the architect certified that 80% of the contract was completed and the contractor received payment of 75% of the value of work certified. Find % of work done Show Answer

Q78) A firm started the work on the contract on 1st January, 2000. A firm has purchased machinery costing Rs. 1,50,000 on 1st April, 2000, it has a working life of five years and its scrap value has been estimated at Rs. 30,000. Calculated amount of depreciation to be charged to contract A/c. Show Answer

Q79) ____ is the aggregate expenditure incurred for manufacturing a product. Show Answer

Q80) ___ means calculation of cost of product only after they are incurred. Show Answer

Q81) Standard costing is also known as____ Show Answer

Q82) Only____ is charged to product cost. Show Answer

Q83) Cost other than direct expenses together are called as____ Show Answer

Q84) _____ is that cost which remains constant by any change in the volume of production. Show Answer

Q85) Thought total cost is the same for all the units of production, the per unit cost _____ as the units of production increases and the per unit cost _____ with the decreases in units of production. Show Answer

Q86) ____ is that cost which changes according to level of output. Show Answer

Q87) Variable cost is also called as __ Show Answer

Q88) ____ is that cost which is partly fixed and partly variable. Show Answer

Q89) Fixed cost = Total Semi-variable cost -___ Show Answer

Q90) ____ is that cost which can be identified with the final product. Show Answer

Q91) Excise duty is an example of___ expenses. Show Answer

Q92) Works cost = Prime cost + ___ Show Answer

Q93) ____ = Works cost + Office & Administrative overheads. Show Answer

Q94) Cost of Sales/Total Cost=Cost of production + __ Show Answer

Q95) ___ gives the detail of different expenditure included in the total cost. Show Answer

Q96) Units sold = opening stock of F.G. + Production - ___ Show Answer

Q97) ____ is prepared with the help of past records, current situation and Future situation. Show Answer

Q98) ____statement helps to maintain co-ordination between cost accountant and financial account. Show Answer

Q99) Under ___ type of costing costs are determined and later on compared with actual costs incurred. Show Answer

Q100) Cost accounting is the process of accounting for___ Show Answer

Q101) Institute of Cost and Works Accountants of India was set up in ____ and statutory recognition was given in ____ Show Answer

Q102) On the basis of behaviour cost are classified into ____ Show Answer

Q103) ____ is incurred even at zero output. Show Answer

Q104) ____ is change according to change in output (production). Show Answer

Q105) On the basis of element of cost, costs are divided between ____ Show Answer

Q106) Loose Tools written off is an example of ____ Show Answer

Q107) ____ is a detail cost statement which shows the total figure of cost of product, profit earned and selling price. Show Answer

Q108) Closing stock of finished goods (Units) is valued at the ____ Show Answer

Q109) ____ is prepared to indicate causes of disagreement between cost records profit &financial records profit. Show Answer

Q110) Prime Cost + Factory overheads are termed as ___ Show Answer

Q111) Find out units produced, Units sold and closing stock of finished goods: Show Answer

Q112) Opening stock of finished goods 14,000 units Closing stock of finished goods 16,000 units Show Answer

Q113) Units produced = 40,000, Units sold = 30,000 Show Answer

Q114) If prime cost is ` 75,000, works overhead are 30% on prime cost and office overheads are 20% on Factory cost. What will be the cost of production? Show Answer

Q115) If work cost is ` 60,000, office overhead are 25% on work cost and selling overhead are 20% of cost of production. What will be the cost of sales? Show Answer

Q116) If prime cost Is ` 80,000, work overheads are 20% on work cost and office on cost 25% on cost of production and selling overheads 10% on cost of production. Find sales of profit 30% on sales? Show Answer

Q117) What will be selling price if cost ` 1,00,000 Profit 25% on cost Show Answer

Q118) What will be selling price if Cost ` 75,000 profit 20% on sales Show Answer

Q119) What will be selling price if Cost ` 1,20,000 Profit 33?% on cost Show Answer

Q120) What will be selling price if Cost ` 90,000 Profit 33?% on sales Show Answer

Q121) Costing is a technique and process of ascertainment of cost. Show Answer

Q122) Historical costing refers to present figures. Show Answer

Q123) Marginal costing is also known as direct costing. Show Answer

Q124) Cost accounting facilitate correct assessment of excise duty, sales tax, income tax etc. Show Answer

Q125) Government can regulate the prices of goods if the costing details are available. Show Answer

Q126) The main aim of inventory control is to minimize loss of material and there is no over investment in stock. Show Answer

Q127) Sales tax, wealth tax are included in cost accounting. Show Answer

Q128) Fixed cost is also called as ‘Period cost’. Show Answer

Q129) Fixed cost is generally controllable. Show Answer

Q130) Variable cost remains constant with increase/decrease in output (production). Show Answer

Q131) Variable cost is generally uncontrollable. Show Answer

Q132) Variable cost is direct cost. Show Answer

Q133) Direct cost is also called as chargeable cost Show Answer

Q134) Royalty on production is an example of indirect cost. Show Answer

Q135) Bad debts reserve is selling & distribution ohs. Show Answer

Q136) Financial expenses are included in cost-sheet Show Answer

Q137) Loss on sale of furniture is a non-operating expenditure hence it is not included in cost sheet. Show Answer

Q138) Dividend received is non-operating income hence included in cost-sheet. Show Answer

Q139) Custom duty paid for purchase of plant is capital expenditure hence it is not a part of cost sheet. Show Answer

Q140) Goodwill written off is a part of cost sheet. Show Answer

Q141) In estimated cost sheet, Factory overheads are recovered as a percentage of direct wages. Show Answer

Q142) Estimated cost sheet does not contain any type of stock. Show Answer

Q143) The basis of charging depreciation may be different in the cost and Financial records. Show Answer

Q144) Cost of production consists of prime cost, Factory overheads and office overhead. Show Answer

Q145) Cost of sales consists of Factory cost plus selling overheads. Show Answer