Accounting Practice MCQ Page 19

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: 1720   When by-products are of small total value, its accounting should by
  1. apportioning a part of joint cost to by-products
  2. realisable value of by-products should be treated as miscullaneous income and transferred to P&L A/c
  3. realisable value of by-products should be apportioned over the main products
  4. Any of these
Question: 1723   Net realisable value of by-products at the split off point should be calculated by reverse cost method when
  1. BY products are of small total value
  2. BY-products are of considerable sales value
  3. BY-products require further processing for their sale
Question: 1729   Cost per unit is the average cost is applicable in
  1. Job costing
  2. Operating costing
  3. Multiple costing
  4. Contract costing
Question: 1732   Trimmings in timber industry should be treated as a
  1. waste
  2. scrap
  3. by-product
  4. joint product
Question: 1735   Which of the following methods of accounting of by-products should be applied when the by-product is to be utilised in the undertaking itself as material for some other process
  1. sales value method
  2. Other income method
  3. Opportunity cost method
  4. Reverse cost method
Question: 1737   Credit is given to the process account at a pre-determined value of the by-product under the
  1. Standard cost method
  2. opportunity cost method
  3. Reserve cost method
  4. sales value method
Question: 1742   The primary purpose of apportioning joint costs of a processing centre to various products produced is to
  1. develop accurate processing cost variances product-wise
  2. report more correct standard product costs for comparative analysis
  3. establish inventor cost assigned to unsold units
  4. record accurate cost of sales by product lines
  5. None of the above
Question: 1823   Given: input 1,000 units, Cost production RS 1,850 per Normal loss 10% of input, Actual loss 50 units, Scrap value Rs 0.50 per unit. What is the abnormal loss/gain
  1. 50 units abnormal loss
  2. 50 units abnormal gain
  3. 100 units abnormal gain
  4. 100 units abnormal loss
Question: 1826   In Q3.35,what is the cost per unit
  1. Rs. 2.18
  2. Rs. 2.05
  3. Rs. 2
  4. RS. 1.89
Question: 1828   Output of a process was 2,500 units, normal loss is 10% of input and abnormal loss 200 units. How many unis were introduced in the process
  1. 2,700
  2. 3,000
  3. 3,200
  4. 3,500
Question: 1842   In Q 3.37, What is the quantity of total loss
  1. 2700 units
  2. 300 units
  3. 350 units
  4. 500 units
Question: 1843   when quantity sold is 18,000 units, opening stock 2,000 units and closing stock 3,000 unis, what is the quantity produced
  1. 16,000 units
  2. 17,000 units
  3. 19,000 units
  4. 20,000 units