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Cost and Works Accounting 2 MCQs: 138 Questions & Answers in Faculty

138 Cost and Works Accounting 2 MCQs in Faculty with answers & explanations. Page 3. Practice objective questions for competitive exams, interviews & self-as… Use the answer toggle below to show or hide all solutions, tap an option to check one question, or open a question for its own page.

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Cost and Works Accounting 2 MCQs: 138 Questions & Answers in Faculty

Normal loss is ___________in the normal course of events. It is inherent in the physical and chemical reactions that take place in a process.

Normal loss is usually expressed as a percentage of the input units of materials.

In a process costing system loss might be:

It is possible to have abnormal loss and abnormal gain on the same process account in the same period.

Sub contract cost is always to be treated as ……………….to the contract.

Escalation Clause aims at safeguarding the interest of the ……………….against unforeseen rise in cost.

Cost of defective materials should be……………………to costing P/L account and……………….to contract account.

Work certified in a subsequent year is always ……………… than that the in preceding year.

When cash ratio is …….. retention money is 13%.

Retention money serves as a ………with the contractee.

If the amount of work certified is less than………of the contract price,then no profit should be taken to Profit & Loss Account.

Variable overhead is overhead that increases as more production work is done. Total variable overhead expenditure therefore depends on the volume of production. Variable overhead is usually calculated as an amount for each direct labour hour worked.

Identify the circumstances where under- or over-recovery of overhead will occur:

Under or over absorption is caused by the actual fixed overhead and production volume being different from those figures used to calculate the predetermined rate.

The over-absorbed overhead is accounted for as an adjustment to the profit in the period, and is added to profit in the cost accounting income statement.

If the amount of production overheads absorbed into product costs is more than the actual production overhead expenditure, there is:

Allocation is where overheads are allocated to cost centres. If a cost centre is responsible for the entire cost of an item of expenditure, the entire cost is charged directly to the cost centre.

. The total amount of factory overhead represents:

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