MCQ for CA Intermediate COSTING - Chapter 9 - JOB AND CONTRACT COSTING

Sample Multiple Choice Questions (MCQ's) for CA Intermediate - Paper 1 - COST AND MANAGEMENT ACCOUNTING - Chapter 9: JOB AND CONTRACT COSTING - For Practice relevant for May/November 23 Examinations

 

Q1. Job costing is similar to that under Batch costing except with the difference that a:

  1. Job becomes a cost unit.
  2. Batch becomes the cost unit instead of a job
  3. Process becomes a cost unit
  4. None of the above.

Answer: 1

Q2. The main points of distinction between job and contract costing includes: 

  1. Length of time to complete
  2. Big jobs
  3. Activities to be done outside the factory area
  4. All of the above

Answer: 4

Q3. The most suitable cost system where the products differ in type of materials and work performed is :

  1. Job Costing
  2. Process Costing
  3. Operating Costing
  4. None of these.

Answer: 1

Q4. Which of the following statements is true:

  1. Job cost sheet may be used for estimating profit of jobs.
  2. Job costing cannot be used in conjunction with marginal costing.
  3. In cost plus contracts, the contractor runs a risk of incurring a loss.
  4. None of these. 

Answer: 1

Q5. Which of the following statements is true: 

  1. In job costing method, a cost sheet is prepared for each job.
  2. A production order is an order received from a customer for particular jobs.
  3. In contract costing, the contract which is complete up to one fourth of the total contract, one-fourth of the profit should be transferred to Profit & Loss Account.
  4. In contract costing profit of each contract is computed when the contract is completed.

Answer: 1

Q6. Which of the following statements is true:

  1. Job cost sheet may be prepared for facilitating routing and scheduling of the job
  2. Job costing can be suitably used for concerns producing uniformly any specific product
  3. Job costing cannot be used in companies using standard costing
  4. Neither (a) nor (b) nor (c)

Answer: 4

 

CA Intermediate COSTING - MCQ for Chapter 10 -   

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