MCQ for CA Intermediate COSTING - Chapter 10 - PROCESS & OPERATION COSTING

Sample Multiple Choice Questions (MCQ's) for CA Intermediate - Paper 1 - COST AND MANAGEMENT ACCOUNTING - Chapter 10: PROCESS & OPERATION COSTING - For Practice relevant for May/November 23 Examinations

 

Q1. The type of process loss that should not be allowed to affect the cost of good units is: 

  1. Abnormal loss
  2. Normal loss
  3. Seasonal loss
  4. Standard loss

Answer: 1

Q2. 200 units were introduced in a process in which 20 units is the normal loss. If the actual output is 150 units, then there is:  

  1. No abnormal loss
  2. No abnormal gain
  3. Abnormal loss of 30 units
  4. Abnormal gain of 30 units

Answer: 1

Q3. 100 units are processed at a total cost of ₹ 160, normal loss is 10%, & scrap units are sold @ ₹ 0.25 each. If the output is 80 units, then the value of abnormal loss is: 

  1. ₹ 2.50
  2. ₹ 16
  3. ₹ 17.50
  4. ₹ 17.75

Answer: 1

Q4. When average method is used in process costing, the opening inventory costs are:

  1. Subtracted from the new costs
  2. Added to the new costs
  3. Kept separate from the costs of the new period
  4. Averaged with other costs to arrive at total cost

Answer: 1

Q5. The cost of normal process loss is -

  1. Absorbed by good units produced and amount realised by the sale of loss units should be debited to the process account. 
  2. Debited to costing profit and loss account.
  3. Absorbed by good units produced. 
  4. Debited to costing profit and loss account and amount realised by the sale of loss units should be credited to the process account. 

Answer: 1

Q6. The value of abnormal loss is equal to:

  1. Total cost of materials
  2. Total process cost less realizable value of normal loss
  3. Total process cost less cost of scrap
  4. Total process cost less realizable value of normal loss less value of transferred out goods.  

Answer: 1

Q7. A process account is debited by abnormal gain, the value is determined as:

  1. Equal to the value of normal loss
  2. Cost of good units less realizable value of normal loss
  3. Cost of good units less realizable value of actual loss
  4. Equal to the value of good units less closing stock

Answer: 1

 

CA Intermediate COSTING - MCQ for Chapter 11 -   

To get back to the Chapterwise MCQ List Page       

Hope you can find this article helpful. If you did like the content then Share it with your friends who are preparing for CA Inter Exams or who will be giving their CA Inter Exams in the near future.