Costing MCQs

Question 1

Job costing method is the most suitable method for ________.

Accepted Answer

repair shops

Answer

oil process units

Answer

transport companies

Answer

sugar industries

Question 2

Which method of costing can be used in furniture manufacture industry?

Accepted Answer

Job costing

Answer

Contract costing

Answer

Process costing

Answer

Specific order costing

Question 3

Contract costing is most appropriate method of costing for ________.

Accepted Answer

construction industry

Answer

banking industry

Answer

textile mills

Answer

cement industry

Question 4

Cost of contract and profit or loss thereon are determined by preparing ________.

Accepted Answer

separate ledger a/c

Answer

cost sheet

Answer

profit and loss a/c

Answer

trading a/c

Question 5

The basis for determining profit to be taken into account on incomplete contract is ________.

Accepted Answer

percentage of work certified as done

Answer

cost of contract

Answer

contract price

Answer

uncertified work

Question 6

The amount paid to sub-contractor is ________.

Accepted Answer

debited to contract a/c

Answer

subtracted from the contract price

Answer

credited to contract a/c

Answer

added with the contract price

Question 7

Work uncertified is ________.

Accepted Answer

credited to contract a/c

Answer

debited to contract a/c

Answer

debited to contractor a/c

Answer

debited to profit and loss a/c

Question 8

In case of complete contract, the whole amount of profit is transferred to ________.

Accepted Answer

profit and loss a/c

Answer

contract a/c

Answer

work in progress a/c

Answer

contractee a/c

Question 9

Process a/c is ________.

Accepted Answer

nominal a/c

Answer

a real a/c

Answer

personal a/c

Answer

either nominal or real a/c