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Cost Accounting Test 4

Description: Useful for commerce students, SET,UGC exams.
Number of Questions: 30
Created by:
Tags: Cost Accounting Cost Concepts: Analysis and Behaviour Financial Accounting Job, Batch and Contract Costing
Attempted 0/30 Correct 0 Score 0

Directions: Choose the correct option for the given question:

Obsolescence is _____ depreciation.

  1. internal

  2. external

  3. direct

  4. indirect

  5. none of these


Correct Option: B

Directions: Choose the correct option for the given question:

The maximum possible capacity is called

  1. theoretical capacity

  2. practical capacity

  3. actual capacity

  4. all of the above

  5. none of these


Correct Option: A

Directions: Choose the correct option for the given question:

______ is the capacity available for use during the normal period.

  1. Abnormal capacity

  2. Normal capacity

  3. Direct capacity

  4. Indirect capacity

  5. None of these


Correct Option: B

Directions: Choose the correct option for the given question:

In cost ledger accounting, transactions are recorded on the basis of

  1. double entry

  2. single entry

  3. incomplete records

  4. accounting conventions

  5. GAAP


Correct Option: A

Directions: Choose the correct option for the given question:

General ledger adjustment accounts represent _____ accounts in financial books.

  1. real

  2. personal

  3. representative personal

  4. nominal

  5. none of these


Correct Option: B

Directions: Choose the correct option for the given question:

Postings in wage control account are made from

  1. wage sheet

  2. wage analysis sheet

  3. payroll

  4. wage register

  5. attendance register


Correct Option: B

Directions: Choose the correct option for the given question:

The balance of ______ represents the total balance of stock of each item of material.

  1. stock ledger

  2. stock ledger control account

  3. stock register

  4. stock ledger adjustment

  5. none of these


Correct Option: B

Directions: Choose the correct option for the given question:

______ are total accounts maintained in the cost ledger.

  1. Master accounts

  2. Control accounts

  3. General accounts

  4. Total accounts

  5. Main accounts


Correct Option: B

Directions: Choose the correct option for the given question:

Theoretical capacity is the _____ possible capacity.

  1. minimum

  2. maximum

  3. medium

  4. extreme

  5. none of these


Correct Option: B

Directions: Choose the correct option for the given question:

Control accounts are maintained in

  1. financing ledger

  2. production ledger

  3. marketing ledger

  4. cost ledger

  5. any of these


Correct Option: D

Directions: Choose the correct option for the given question:

At the end of any period, the total balance of ______ should be equal to the balance in the work-in-progress ledger control.

  1. works account

  2. jobs account

  3. process account

  4. all of these

  5. none of these


Correct Option: B

Directions: Choose the correct option for the given question:

______ is prepared to make the cost ledger self balancing.

  1. General ledger

  2. Special ledger

  3. Special journal

  4. General ledger adjustment

  5. None of these


Correct Option: D

Directions: Choose the correct option for the given question:

______ in cost ledger represents personal accounts in financial books.

  1. General ledger

  2. Main ledger

  3. Master ledger

  4. Special ledger

  5. General ledger adjustment account


Correct Option: E

Directions: Choose the correct option for the given question:

The closing balance of cost of sales account is transferred to

  1. profit and loss account

  2. costing profit and loss account

  3. cost of sales account

  4. general ledger account

  5. none of these


Correct Option: B

Directions: Choose the correct option for the given question:

The work-in-progress control account is credited with the

  1. cost of production

  2. cost of sales

  3. cost of finished goods

  4. cost of work-in-progress

  5. none of these


Correct Option: C

Directions: Choose the correct option for the given question:

An account is maintained for each job in _____ ledger.

  1. finished goods

  2. work-in-progress

  3. general

  4. special

  5. none of these


Correct Option: B

Directions: Choose the correct option for the given question:

The need of reconciliation arises in ______ accounting system.

  1. integral

  2. non-integral

  3. double entry

  4. single entry

  5. none of these


Correct Option: B

Directions: Choose the correct option for the given question:

Notional charges are _____ to costing profit to reconcile it with profit as per financial books.

  1. added

  2. deducted

  3. multiplied

  4. divided

  5. none of these


Correct Option: A

Directions: Choose the correct option for the given question:

Under _____ accounting system, cost and financial accounts are merged in one ledger.

  1. integral

  2. non-integral

  3. double entry

  4. single entry

  5. none of these


Correct Option: A

Directions: Choose the correct option for the given question:

In contract costing payment of cash to the contractor is made on the basis of _____ work.

  1. finished

  2. incompleted

  3. certified

  4. uncertified

  5. none of these


Correct Option: C

Directions: Choose the correct option for the given question:

When completion stage of contract is less than 1/4, the total expenditure on the contract is transferred to ______ account.

  1. finished goods

  2. work-in-progress

  3. expenditure

  4. contract

  5. none of these


Correct Option: B

Directions: Choose the correct option for the given question:

_____ is considered in industries, where batch costing is employed.

  1. EOQ

  2. EBQ

  3. ABC

  4. VED

  5. None of these


Correct Option: B

Directions: Choose the correct option for the given question:

Integral accounting system avoids ______ of records.

  1. duplication

  2. triplication

  3. merging

  4. both (1) and (2)

  5. all of the above


Correct Option: A

Directions: Choose the correct option for the given question:

In cost plus contracts, the contractor gets cost plus

  1. stipulated profit

  2. stipulated expense

  3. stipulated commission

  4. all the above

  5. none of these


Correct Option: A

Directions: Choose the correct option for the given question:

Specific order costing includes job and ____ batch costing.

  1. process

  2. work

  3. contract

  4. service

  5. unit


Correct Option: C

Directions: Choose the correct option for the given question:

In cement industries, unit of cost is per

  1. kg

  2. cm

  3. ton

  4. metric ton

  5. none of these


Correct Option: C

Directions: Choose the correct option for the given question:

In job costing, each _____ is a cost unit to which all costs are assigned.

  1. cost centre

  2. job

  3. worker

  4. contractor

  5. process


Correct Option: B

Directions: Choose the correct option for the given question:

_____ is applicable in canteens.

  1. Unit costing

  2. Operation costing

  3. Service costing

  4. Process costing

  5. Both (2) and (3)


Correct Option: E

Directions: Choose the correct option for the given question:

Statement of cost and profit when presented in T form is called

  1. cost sheet

  2. production account

  3. product account

  4. wage sheet

  5. none of these


Correct Option: B

Directions: Choose the correct option for the given question:

______ account does not record the balance of Stores Ledger Control Account.

  1. Profit and loss

  2. Costing profit and loss

  3. Income and expenditure

  4. All of the above

  5. None of these


Correct Option: A
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