Accounting Practice MCQ Page 16
Multiple Choice questions for Accounting in the sets of 10 each on one page with questions and answers. All sets are useful in the preparation of subject tests for employment or admission.
Question: 1632 Contract price is not fixed in case of
- Cost-plus contracts
- Escalation clause
- De-escalation clause
- All of the above
Question: 1633 Cost plus contract is useful from the point view of
- contractor
- contractee
- both contractor and contractee
Question: 1634 In contract costing, contract account is prepared by the
- contractor
- contractee
- both by contractor and contractee
Question: 1635 In a building contract of Rs. 2,40,000, at the end of the work certified is Rs. 1,60,000 and estimated profit is Rs. 15,000. what is the amount of profit to be credited to profit and LOSS Account assuming cash ratio is 80%
- RS.15,000
- RS. 12,000
- RS. 8,000
Question: 1636 Economic batch quantity is that size of the batch of production where
- average cost is minimum
- total cost is minimum
- set-up cost of machine is minimum
- carrying cost is minimum
Question: 1637 Production order means
- an order received from a customer for the production of a specific item
- instructions to the shops to proceed with the production of the product
- an order to the store-keeper to issue necessary materials for proeuction
Question: 1638 In contract costing, valuation of which of he following dos not include an element of profit
- work in progress certified
- work in progress uncertified
- Both(a) and(b)
- Neither(a)nor(b)
Question: 1641 A contract of RS.5,00,000 is 55% complete as certified it shows a notional loss of RS 20,000. Accounting treatment of this loss is
- Transfer 2/3 of this loss to P&L A/c
- Transfer 2/3 X cash ratio of this loss to P&L A/c
- Transfer 55% of this loss to P&L A/c
- Transfer entire amount of loss to P&L A/c
Question: 1652 Direct cost chargeable to contract does not include
- Materials
- Labour
- Supervision
- Storage lost
- both(c)and (d)
Question: 1655 Which of the following items is not written on the credit side of the contract account
- work in progress-certified and uncertified
- Materials returned
- Cash received from contractee
- plant at site
Question: 1659 The type of process loss that should not affect the cost of inventories is
- abnormal loss
- normal loss
- seasonal loss
- standard loss
Question: 1663 During Jan. 1997, Marconi LTd. had tatal manufacturing cost of Rs.1,80,000. The business completed 14,000 units of product, of which 4,000 units were half completed in Dec 1996 and sarted production on an additional 6,000 units that production cost per unit was
- RS.18
- RS.16.36
- RS.12
- RS.9
Answers to the questions of Accounting on this page
Following list gives the correct choice for the answer of the Accounting mcqs.
1632 . D
1633 . C
1634 . A
1635 . C
1636 . B
1637 . B
1638 . B
1641 . D
1652 . D
1655 . C
1659 . A
1663 . C
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