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E-Book as per New Objective Examination Pattern of SPPU, E Book on MCQ: Cost & Works Accounting-II & III, First Edition: Oct. 2020, ©: With the Authors &Publisher, , Medium: English, , Cover Design By: Prof. Vikram Udar, , Published By:, Kshitija Publication, Pune, Sec.28 Sarthak Apartment,, Front of RM College, Akurdi, Pune – 411044, Contact No. 9423488805, , Every effort has been made to avoid errors or omissions in this book. In spite of this, errors may, have crept in any mistake, error or discrepancy so noted and shall be brought to our notice shall be, taken care of in the next edition. It is notified that neither the publisher nor the author shall be, responsible for any loss of action to any one, of any kind, in any manner, therefrom.

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DR. MADHAVI S. JADHAWRAO, (M.Com.,M.A.(Eco), B.Ed, M.Phil, SET,G.D.C.& A, Ph.D ), She is currently working as Asst. Professor in Pune District Education, Association‟s Waghire College, Saswad. She has passed B.Com& M.Com, with specialization in “Cost & Works Accounting”. She has completed her, Ph.D. in the Subject of Commerce & Management in year 2015. She has 18, years experience of teaching subjects like Business Mathematics &, Statistics, Business Management, and Business Administration. She is, awarded as “Best Teacher”. She is author of various text books like, Business Mathematics & Statistics, Consumer Protection & Business Ethics,, and Marketing. She has published Research papers at National &, International conference., DR. BHAGYASHREE R. NALE, (M.Com, M.Phil, SET,NET,Ph.D), She is currently working as an Assistant Professor in Pune District, Education Association's Waghire College, Saswad. She has 15 years, experience of teaching Subjects like Business Mathematics & Statistics,, Accountancy, Business Management, Business Communication, Business, Administration and Cost and work Accounting. She has also published, research papers at National and International Conference., DR. SWATI BABURAO SHINDE, (M.Com, M.Phil, Ph.D), She is currently working as an Assistant Professor in Pune District, Education Association‟s Mamasaheb Mohol College, Kothrud, Pune. She, has an 17 year‟s experience of teaching subjects like Accountancy, Business, Mathematics, Business Regulatory frame work, Cost & Works accounting., She is the author of various books of Basic accounting, Financial, Accounting and Corporate Accounting. She has also presented and, published research papers at National and International level., DR. SUCHETA DALVI, , (M.Com, B.Ed, NET, MBA, Ph.D), She is currently working as an Assistant Professor in Khadki Education, Society‟s Tikaram Jagannath College Khadki, Pune. She has passed M.Com, with specialization in „Advanced Accountancy and Costing‟. She has 15, years‟ experience of teaching subjects like Accountancy, Business, Mathematics, Business Regulatory frame work, Cost & Works accounting., She has also presented and published research papers at National and, International level., , KSHITIJA PUBLICATION, Pune, Sec. 28 Sarthak Apartment, Front of RM College Akurdi Pune 411 044, Mo. No: 9922836391/ 9423488805, , E-Mail ID: [email protected]

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , (Overheads and Methods of Costing), Sr. No., 1, 2, 3, 4, , Topic Title, Overheads, Accounting of overheads (Part-I), Accounting of overheads (Part-II), Activity Based Costing, , Page No., 02-05, 06-10, 11-15, 16-19, , 5, 6, , Methods of Costing, Contract Costing, , 20-23, 24-27, , 7, 8, , Process Costing, Service Costing, , 28-31, 32-35, , Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 1

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , Topic-1: OVERHEADS, 1. The cost per unit of variable costs_______, A. Increases with increase in volume, B. Remain constant, C. Constant to a certain volume, D. Decrease with increase in volume, , 2. A fixed cost is a cost which is incurred for an accounting period, and which is, _______, A. Always remains fixed, B. Increases with increase in activity level, C. Within certain activity levels remains constant, D. Vary with Volume, , 3. By element wise - costs are classified as_____, A. Indirect Materials, B. Factory overheads, C. Controllable Overheads, D. Normal overheads, , 4. Which of the following is not behaviour wise classification?, A. Fixed overheads, B. Variable overheads, C. Semi-variable overheads, D. Abnormal overhead, , 5. Costing systems typically used in service organizations include____, A. Standard costing, B. Job costing, C. Process costing, D. Both A&B, , Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 2

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , 6. Sales and distribution costs include______, A. Wages of helpers in factory., B. Advertising costs and other marketing costs, C. Legal expenses, D. Taxes & Insurance of factory, , 7., , Dividing shared costs on a fair basis is called _________ of the cost., A. Allocation, B. Apportionment, C. Absorption, D. Sharing, , 8. Prime cost plus a share of production overheads are the_____, A. Full production cost of the cost unit, B. Fully absorbed production cost of the cost unit, C. Marginal cost of the cost unit, D. Both A&B, , 9., , Costs that become part of the cost of goods manufactured are called______, A. Product costs, B. Prime cost, C. Period costs, D. Unit costs, , 10. Cost pertaining to a cost centre maybe broadly divided into two portions that, are __________, A. Direct and indirect, B. Variable & Semi-variable cost, C. Fixed & Variable cost, D. Fixed & Semi-variable cost, , Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 3

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , 11. A cost is termed as _______ if the total of the same does not change with changes, in the activity level., A. Fixed cost, B. Variable cost, C. Semi-variable cost, D. Fixed & Variable cost, , 12. Any expenditure over and above _______ is known as overhead., A. prime cost, B. Manufacturing cost, C. Production cost, D. Process cost, , 13. Wages of store keeper is an example of __________, A. Factory overheads, B. Office overheads, C. Selling overheads, D. Indirect Wages, , 14. Salary to works manager is an example of __________, A. Factory overheads, B. Office overheads, C. Selling overheads, D. Indirect Wages, , 15. Warehouse expenses is an example of _______, A. Distribution overhead, B. Office overheads, C. Research & Development expenses, D. Factory overheads, , Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 4

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , 16. Overhead costs are _______, A. Invisible, B. Visible, C. Allocatable, D. Directly chargeable to specific cost unit., , 17. ______ are related with to the periods therefore treated as period cost., A. Fixed overheads, B. Variable Overheads, C. Semi variable Overheads, D. Controllable overheads, , 18. Which of the following is an example of controllable overheads?, A. Factory rent and taxes, B. Cost of raw material, C. Managerial salary, D. Factory Insurance, , 19. As the efficiency is increased it will ______ the overhead cost., A. Reduced, B. Increased, C. Not changed, , 20. The sum of direct costs (i.e. direct material, direct labour,, Direct expenses) is known as ______, A. Prime cost, B. Marginal cost, C. Production cost, D. Standard cost, , Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 5

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , Topic-2: Accounting of Overheads (I), 1. In _______ reapportionment of the overhead cost of one service, , department is, , apportioned to another service department., A. Simultaneous Equation method, B. Repeated Distribution method, C. Trial and error method, , 2. The Basis of apportionment of creche expenses is _______, A. Number of female employees, B. Number of male employees, C. Number of employees, D. Both A & B, , 3) The Basis of apportionment of lighting is _________, A. Floor Area occupied by the department, B. Machine value, C. Time of supervision, D. Actual allocation, , 4) The Basis of apportionment of Supervisory labour is _____, A. Number of labours, B. Time of supervision, C. Number of machine hours, D. Another reasonable basis, , 5. In case of under absorption under absorbed production overhead are to be, _______ to the cost of various categories., A. Deducted, B. Added, C. Ignored, D. Carry forward, , Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 6

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , 6.When the amount of under or over absorbed overhead is not very large then, ______ Method is used., A. Write off to costing profit and loss account, B. Carry over to next accounting period, C. Supplementary rate, , 7.The process of apportioning the total overhead expenses of production department, among the units produced in that department is term as____, A. Overhead absorption, B. Apportionment of overhead, C. Allotment of overhead, 8. Overhead absorption is also called as ______, A. Overhead recovery, B. Allotment, C. Apportionment of overhead, D. Allocation of overhead, 9. Which of following is disadvantage of direct labour hour rate method?, A. The rate takes into account the time factor, B. It is suitable when most of the work is done by labour, C. It is not affected by the method of wage payment, D. More clerical work is involved in determination of rate, , 10. Which of the following is not advantage of percentage of direct labour cost method?, A. It is simple and less costly, B. Labour rate do not fluctuate much, C. The time factor is given fair consideration, D. It does not provide for varying skills of workers, , 11. If the material cost is predominant ______ is used., A. Direct material cost percentage rate method, B. Prime cost percentage rate method, C. Direct labour hour method, D. Direct labour hour method, , Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 7

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , 12. Prime cost plus production verhead is known as______, A. Manufacturing cost, B. selling and distribution cost, C. factory cost, D. production cost, , 13. Production overhead is equal to ______, A. Manufacturing cost - prime cost, B. Factory cost - selling and distribution cost, C. Manufacturing cost + prime cost, D. Factory cost + selling and distribution cost, , 14. Which is the correct sequence of distribution of overheads cost?, A. Collection and classification of overhead, allocation of overhead, apportion, of overhead, re apportionment of overhead, absorption of overhead, B. Allocation of overhead, Collection and classification of overhead, apportion of, overhead, re apportionment of overhead, absorption of overhead, C. Re- apportionment of overhead, absorption of overhead, Collection and, classification of overhead, allocation of overhead, apportion of overhead., D. Allocation of overhead, apportion of overhead, re apportionment of overhead,, absorption of overhead, Collection and classification of overhead, , 15. Systematic classification and codification are a prerequisite to the collection of, overhead is known as _______, A. Allocation, B. Codification, C. Apportionment, D. Reapportionment, , 16. ________ of overheads is always direct., A. Allocation, B. Apportionment, C. Classification, D. Codification, Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 8

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , 17. ________ deals with whole items of costs., A. Allocation, B. Apportionment, C. Classification, D. Codification, , 18. When overhead cannot be _______ it is_______, A. Allocated, apportioned, B. Apportioned, allocated, C. Classified, allocated, D. Distributed classified, , 19. Which of the following is not an example of production department?, A. Spinning department, B. Polishing department, C. melting shop, D. Production control department, , 20. Which of the following is not an example of service department?, A. Finishing department, B. Inspection department, C. Canteen, D. Production control department, , 21. The Basis of apportionment of store keeping expenses is______, A. Value of direct material, B. Weight of direct material, C. Floor area occupied, D. Insured value of stock, , Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 9

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , 22. The Basis of apportionment of compensation to worker is ______, A. Wages, B. Number of workers, C. Machine hours, D. Labour hours, , Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 10

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , Topic-3: ACCOUNTING OF OVERHEADS-II, 1. When the amount of over or under absorption is quite large it is transferred to, _____________, A. Costing profit and loss account, B. Overhead reserve account, C. Abnormal loss account, , 2. Which of the following is not overhead absorption rate?, A. Actual rate, B. Blanket rate, C. Multiple rate, D. Machine hour rate, , 3. When absorbed overheads are rupees 5000 and actual overheads are rupees 8000, there is _________, A. Under absorption of rupees 3000., B. Over Absorption of rupees 3000, C. Under absorption of rupees 5000, D. Over Absorption of rupees 5000, , 4. Which of the following is not a method of absorption?, A. Machine hour rate, B. Labour hour rate, C. Percentage of direct material cost method, D. Percentage on factory cost method, , 5. The Basis for apportionment of administrative expenses is ______, A. Floor Area, B. Number of employees, C. Number of units produced, D. Number of hours spent, , Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 11

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , 6. When the company is selling one uniform type of product _______ method is suitable., A. Rate per unit, B. Percentage on factory cost, C. Percentage on selling price, D. Percentage of prime cost method, , 7. If overhead incurred rupees 15000 and overhead absorbed rupees ______then there is, under absorption of rupees 900., A. 14100, B. 15900, C. 15000, D. 900, , 8. The difference between actual and absorbed factory overhead is called ______, A. Under absorbed overheads, B. Over absorbed overheads, C. Under or Over absorbed overheads, , 9. Which of the following rate is determined on the basis of budgeted overhead?, A. Predetermined rate, B. Blanket rate, C. Multiple rate, D. Actual rate, , 10.Which of the following general overhead rate applicable to the whole factory?, A. Predetermined rate, B. Blanket rate, C. Multiple rate, D. Actual rate, , Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 12

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , 11. When the amount of under or over absorbed overhead is quite large then _______, method is used., A. Write off to costing profit and loss account, B. Carry over to next accounting period, C. Supplementary rate, , 12. In case of new projects, more output in the next period(s) then that in initial stages is, expected _______ Method is used., A. Write off to costing profit and loss account, B. Carry over to next accounting period, C. Supplementary rate, , 13. _______ method of absorption is followed in those industries, , where work is, , performed mainly on machines., A. Machine hour rate, B. Labour hour rate, C. Percentage of direct material cost, D. Percentage of direct labour cost, , 14 _______ is computed by dividing overhead by the budgeted base., A. Predetermined overhead rate, B. Actual overhead rate, C. Blanket rate, D. Multiple rate, , 15 _______ does not facility, its prompt cost ascertainment., A. Actual overhead rate, B. Blanket rate, C. Multiple rate, D. Predetermined overhead rate, , Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 13

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , 16 ______ is computed by dividing the total overhead of a department or cost centre by, the best for that department or cost centre., A. Actual overhead rate, B. Blanket overhead rate, C. Multiple overhead rate, D. Predetermined overhead rate, , 17 ______ Computed for the entire factory., A. Actual overhead rate, B. Blanket overhead rate, C. Multiple overhead rate, D. Predetermined overhead rate, , 18 ______ computed for each of the department separately., A. Actual overhead rate, B. Blanket overhead rate, C. Multiple overhead rate, D. Predetermined overhead rate, , 19 _______ is suitable where only one product is produced., A. Actual overhead rate, B. Blanket overhead rate, C. Multiple overhead rate, D. Predetermined overhead rate, , 20. ______ is suitable where two or more products are produced., A. Actual overhead rate, B. Blanket overhead rate, C. Multiple overhead rate, D. Predetermined overhead rate, , Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 14

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , 21. ______ Cannot be computed until the end of the accounting period., A. Actual overhead rate, B. Blanket overhead rate, C. Multiple overhead rate, D. Predetermined overhead rate, , Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 15

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , Topic-4: Activity Based Costing Techniques, 1. In the Activity based costing method implementation, the indirect costs are, allocated by using the ______, A. No cost pool, B. Sustained tracing, C. Support tracing, D. One or two cost pools, , 2. The costing system in which individual activities are identified as the cost object, is considered as _______, A. Manufactured costing, B. Base costing, C. Activity based costing, D. Allocation costing, E., 3. The type of costs that cannot be traced for individual products but help in, supporting the organization are classified as ______, A. Facility sustaining costs, B. Individual sustaining costs, C. Sustained tracing, D. Support tracing, , 4. In the activity-based costing method implementation, the output unit level costs, are classified as _______, A. Direct costs, B. Indirect cost, C. Labour cost, D. Raw material cost, , Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 16

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , 5. The hierarchy which is based on different types of cost allocation and drivers to, categorize cost pool activity is classified as _______, A. Price hierarchy, B. Activity hierarchy, C. Purpose hierarchy, D. Cost hierarchy, , 6. The product which requires large amount of resources but incur low per unit, cost is classified as ___________, A. Product under costing, B. Product over costing, C. Expected under cost, D. Expected over cost, , 7. The costs of undertaken activities to support individual products are, , classified, , as ________, A. Expected sustaining, B. Input sustaining, C. Product sustaining costs, D. Output sustaining, , 8. Cost drivers are _________, A. Activities that cause costs to increase as the activity increases, B. Accounting techniques used to control costs, C. Accounting measurements used to evaluate whether or not, , performance is, , proceeding according to plan., D.A mechanical basis, such as machine hours, computer time etc, , 9. ABC system can effectively support to Management by furnishing data at the, ______ and ______ level., A. Operational, Strategic, B. Strategic, Financial, C. Operational, Financial, D. Functional, Financial, Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 17

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , 10. ABC is attempts to absorb overheads into ______ on a more realistic basis., A. product cost, B. Labour cost, C. Material Cost, D. R & D Cost, , 11.Traditional accounting focused on product costing by tracing _____ to the product., A. Direct Cost, B. Indirect Cost, C. Both A & B, , 12. Which of the following is the correct sequence of stages in activity-based costing?, A. Identification of major activities, creation of cost pool,, Determination of activity cost drivers, Ascertainment of activity cost, driver rate, Charging of activity cost to products, B. Identification of major activities, Charging of activity cost to products, creation of, cost pool, Determination of activity cost drivers, Ascertainment of activity cost driver rate,, C. Ascertainment of activity cost driver rate, Charging of activity cost to products,, Identification of major activities, creation of cost pool, Determination of activity cost drivers, D. Identification of major activities, Ascertainment of activity cost driver rate,, creation of cost pool, Determination of activity cost drivers, Charging of activity cost to, products, , 13. Which of the following is not classification of activities?, A. Unit level, B. Batch level, C. Product level, D. Labor level, , 14. Which of the following cost drivers is used for material planning?, A. Volume of material receipts, B. Flow of product, C. Volume of activity, D. Number of machine breakdown, Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 18

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , 15. Activity based costing is a complement to _________, A. Total quality management, B. Budgetary control, C. CPM, D. PERT, , 16. which of the following is the correct sequence used while accounting treatment in, activity-based costing?, A. Identify significant activities, calculate the total cost of each, activity, find out the appropriate activity cost driver, calculate the, , activity cost, , driver rate, charge activity cost to end products jobs and processes., B. Identify significant activities, calculate the total cost of each activity, calculate the, activity cost driver rate, find out the appropriate activity cost driver, charge activity cost to, end products jobs and processes., C. Identify significant activities, find out the appropriate activity cost driver,, calculate the activity cost driver rate, charge activity cost to end products jobs and processes,, calculate the total cost of each activity., D. Identify significant activities, charge activity cost to end products jobs and, processes, calculate the total cost of each activity, find out the appropriate activity cost driver,, calculate the activity cost driver rate., , Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 19

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , Topic 5: Methods of Costing, 1. Job costing is suitable for______________., A. Firms manufacturing goods to customer’s specific requirements., B. Firms manufacturing small articles in large numbers., C. Firms manufacturing goods for common use., D. Firms manufacturing goods on a continuous basis., , 2. In job costing each job is of comparatively of ______ duration., A. Large, B. Short, C. Very large, D. Non of the above, , 3. In pharmaceutical formulation industry, generally ______ costing method is, used., A. Batch, B. Process, C. Job, D. Contract, , 4. In job costing each job is treated as a separate _______., A. Cost centre, B. Account, C. Cost unit, D. Overhead, , 5. In job costing, costs are accumulated and assigned___________., A. Service wise, B. Overhead wise, C. Control wise, D. Job wise, , Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 20

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , 6. Job costing is used in ___________ ., A. Chemical manufacturing, B. Ship building, C. Brick making, D. Cement production, , 7. A _________ number is allotted to each order and cost are accumulated and, determined for each order., A. Purchase order, B. Sales order, C. Job order, D. Payment order, , 8. Under batch costing a _________ is regarded as a single cost unit., A. Batch, B. Job, C. Contract, D. Process, , 9. Batch costing is used when items of ___________produced in a batch., A. Different nature, B. Raw material, C. Chemical, D. Identical nature, , 10. Transformer manufacturing adopt___________ costing., A. Batch costing, B. Contract costing, C. Job costing, D. Process costing, , Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 21

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , 11. A _______number is allotted to each order and costs are accumulated and, determined for each order., A. Contract, B. Process, C. Job order, D. Receipt, , 12. Where materials used and work performed differs product to product, which, one of the methods would be more suitable?, A. Job costing, B. Batch costing, C. Contract costing, D. Process costing, , 13. Manufacturers of components of television adopt___________ method of costing., A. Job, B. Batch, C. Contract, D. Single or output, , 14. Which one of the following is not a feature of job costing?, A. Work flow structure is not predetermined, B. Unique nature of work, C. Custom made work, D. Work is of long duration, 15. In __________ costing, the production is made always against customer’s, specification., A. Job, B. Batch, C. Process, D. Service, , Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 22

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , 16. From the following which costing method is more suitable for fabrication works?, A. Service, B. Job, C. Batch, D. Contract, , 17. ___________ is simply a method of cost finding., A. Accounting, B. Recording, C. Auditing, D. Costing, , 18. From the following which method of costing is used where a number of, components are separately manufactured and then assembled into a final, product?, A. Batch, B. Contract, C. Multiple, D. Class cost, , 19. A _______________ contains all relevant information regarding production and, other details of the job., A. Production order, B. Sales order, C. Payment order, D. Job order, , 20. Costs are collected ___________ under batch costing method., A. Process wise, B. Job wise, C. Batch wise, D. Account wise, , Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 23

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , Topic 6: Contract Costing, 1. In contract costing, the total loss if any is transferred to ______________, account., A. Trading A/c, B. Costing Profit & Loss A/c, C. Contract A/c, D. Contractee A/c, , 2. The contracts undertaken are completed away from the ___________ premises., A. Contractee’s, B. Contractor’s, C. Architect’s, D. None of the above, , 3. Contract costing method is similar to _______________costing., A. Process, B. Job, C. Batch, D. Service, , 4. Payment to sub contractors are charged to respective ___________., A. Process A/c, B. Purchase A/c, C. Contract A/c, D. Sales A/c, , 5. In a contract costing work is mainly involved in ____________ activity., A. Farming, B. Construction, C. Processing, D. Refining, , Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 24

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , 6. A contract is generally for _______ duration., A. Short, B. Long, C. Very short, D. Non of the above, , 7. If the work certified is _________ the notional profit is not consider for profit &, loss account., A. Below 25%, B. 25% to 50%, C. 50% to 80%, D. 100%, , 8. Under the ______ clause the contract price is increased for a given increase in, the prices of inputs., A. De-escalation, B. Escalation, C. Cost plus, D. Capital, , 9. Cost plus contract is mainly used in__________ contract., A. Government, B. Private, C. Company, D. Semi government, , 10. Escalation clause is generally included in case of _________ contract agreement., A. Variable price, B. Direct price, C. Fixed price, D. Total cost price, , Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 25

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , 11. Sub contract cost is always to be treated as _____to the contract., A. Direct cost, B. Indirect cost, C. Income, D. Expenditure, , 12. When cash ratio is _____ retention money is 13%., A. 57%, B. 67%, C. 100%, D. 87%, , 13. Work certified in a subsequent year is always _____ than that the in preceding, year., A. Equal, B. Less, C. Greater, D. Less than the equal, , 14. Profit in incomplete contract in known as notional profit because__, A. The profit is only an approximation., B. Real profit is ascertain when the contract is complete, C. There is no such incomplete contract, D. It is not real profit, , 15. Cost -plus- contract are undertaken for production of ___________products., A. Electrical, B. Agricultural, C. Highly specialised, D. Low quality, , Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 26

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , 16. Escalation Clause aims at safeguarding the interest of the _____________against, unforeseen rise in cost., A. Architect, B. Contractor, C. Contractee, D. Government, , 17. When the completion stage of the contract is more than half, the profit to be, credited to Profit and Loss account will be equal to _____________., A. 2/3rd of Notional profit x cash received Work certified, B. full Notional Profit., C. 1/3rd of Notional Profit x cash received Work certified, D. ½ of Notional Profit x cash received Work certified, , 18. In contract costing ________ clause is included in agreement on the basis of, which the contractee retains certain amount of the work certified ., A. Escalation, B. De-escalation, C. Retention money, D. Cost plus, , 19. ________ is the cost of that part of work in process which is being completed by, the contractor but not approved by the certifier., A. Work certified, B. Work uncertified, C. Retention money, D. Incomplete work, 20. Retention money serves as a ………with the contractee., A. Income, B. Expenses, C. Security, D. Profit, , Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 27

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , Topic 7: Process Costing, 1. Molasses in sugar industry is the example of _______ product., A. Joint, B. By, C. Main, D. Finished, , 2. Skimmed milk and butter are the example of ________ product., A. Finished, B. Main, C. Joint, D. By, , 3. In oil and petroleum refineries __________ costing may be adopted more, suitably., A. Job, B. Batch, C. Contact, D. Process, , 4. In process costing each process is treated as separate________., A. Cost unit, B. Cost centre, C. Account, D. Activity, , 5., , The __________ is a material residue from certain manufacturing operations, that has relatively minor scrap value., A. Raw material, B. Finished product, C. Scrap, D. Work in process, , Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 28

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , 6. ___________ is the portion of raw material that is lost in processing and which, has no recovery value., A. Scrap, B. Waste, C. Joint product, D. Finished product, , 7. Generally normal loss is _______., A. Avoidable, B. Unavoidable, C. Compulsory, D. Fixed, , 8. Balance in Abnormal loss account is transferred to ___________ account., A. Trading A/c, B. Purchases A/c, C. Sales A/c, D. Costing Profit & loss A/c, , 9. By products remain in stock are valued at _________ value for Balance sheet, purposes., A. Cost value, B. Market value, C. Nil value, D. Face value, , 10. If the actual loss is _______ than normal loss, it is termed as abnormal loss., A. More than, B. Less than, C. Equal, D. Greater than equal to, , Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 29

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , 11. In process costing the output of one process becomes the ______ of another, process., A. Output, B. Input, C. Finished product, D. Joint product, , 12. The cost of abnormal gain is computed on the basis of _______ production., A. Abnormal, B. Normal, C. Semi normal, D. Final, , 13. Normal wastage is credited to Process A/c and debited to ______ A/c., A. Abnormal Loss, B. Abnormal Gain, C. Normal wastage A/c, D. Costing Profit & loss A/c, , 14. When the actual loss in a process is less than the anticipated loss, the difference, between the two is considered to be ___________., A. Abnormal gain, B. Abnormal Loss, C. Gross loss, D. Net Loss, , 15. In a process costing system loss might be, A. Normal, B. Abnormal, C. Both A & B, D. None of the above, , Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 30

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , 16. The point at which joint products and by-products become separately, identifiable is known as:, A. Separation point, B. Break even point, C. The split off point, D. Either A or C, , 17. Which of the following statement is correct?, A. A by-product is not important as a sale-able item, and whatever revenue it, earns is a ‘bonus’ for the organisation. Because of their relative insignificance,, by-products are not separately costed., B. A joint product is regarded as an important sale-able item, and so it should be, separately costed. The profitability of each joint product should be assessed in, the cost accounts., C. Both A and B, D. None of the above, , 18. ________ is usually of greater commercial importance., A. Final product, B. Process produce, C. By product, D. Joint product., , 19. _______ are produced from the same basic raw material., A. Joint product, B. Final product, C. Raw material, D. By product, , 20. How are the sales proceeds from by-products treated?, A. As other income, B. As a deduction from joint process costs (this is the most commonly used, C. As revenue (adding it to the revenue from sales of other products), D. Either of the above, Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 31

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , Topic 8: Service costing, 1. In service costing, most of the costs are _______ in nature., A. Fixed, B. Variable, C. Semi variable, D. Semi fixed, , 2. The cost incurred in service organisation are grouped under two heads 1), ____________ and 2) standing charges., A. Fixed charges, B. Running charges, C. Maintaining charges, D. Production charges, , 3. The cost unit in passenger transport industry is _______., A. Per passenger, B. Per trip, C. Per kilometre, D. Passenger per kilometre, , 4. The cost unit used in hotel industry is __________., A. Per person, B. Per bed, C. Per day, D. Per bed per day, , 5. Service organisations do not produce__________ goods., A. Intangible, B. Tangible, C. Consumer, D. Luxurious, , Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 32

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , 6. Service organisations are in general ___________ intensive., A. Machine, B. Material, C. Labour, D. Capital, , 7. Standing charged denotes _____ costs., A. Total, B. Fixed, C. Variable, D. Semi variable, , 8. The cost unit in hospital is ________________., A. Per day, B. Per patient, C. Per patient per day, D. Per medicine, , 9. Service costing is also called as _______., A. Job costing, B. Batch costing, C. Contract costing, D. Operation costing., , 10. Per kilometre is an example of ___________cost unit., A. Composite, B. Simple, C. Semi simple, D. Semi composite, , 11. __________ cost is the cost incurred for providing services., A. Production, B. Administration, C. Operation, D. Distribution, Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 33

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , 12. _______ is that form of operation costing which applies where standardized, services are rendered., A. Process costing, B. Contract costing, C. Job costing, D. Service costing, , 13. _______ is that form of operation costing which applies where standardized, services are rendered., A. Stand by cost, B. Total cost, C. Production cost, D. Fixed cost, , 14. Ton kilometre is the cost unit used in _________costing., A. Process, B. Contract, C. Batch, D. Service, , 15. An example of composite unit in transport costing is:, A. Per passenger per seat, B. Per km per seat, C. Per passenger per km, D. Per passenger per travel, , 16. Per passenger per Km is the example of ________ cost unit., A. Composite, B. Fixed, C. Simple, D. Semi simple, , Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 34

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , 17. Operating costing system is more suitable to:, A. Service industries., B. Product industries, C. Manufacturing industries., D. Construction, , 18. Number of passenger kilometre = Number of passenger X __________., A. Number of buses, B. Number of trips, C. Number of kilometre, D. Number of drivers, , 19. Operating costing is more suitable to ________ organisation., A. Service, B. Production, C. Manufacturing, D. Not for profit, , 20. In service cost sheet costs are classified into _______., A. Administrative charges, B. Standing charges, maintenance and running cost, C. Factory charges, D. Distribution charges, , Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 35

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , (Costing Techniques & Cost Audit), , Ch. No., 1, 2, 3, 4, 5, 6, 7&8, , Topic Title, Marginal Costing, Budgetary Control, Uniform Costing and Interfirm Comparison, Introduction to Management Information, System in Costing, Standard Costing, Farm Costing, Cost Accounting Records Rules and Cost Audit, & Cost Audit (Legal Provision), , Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , Page No., 37-40, 41-44, 45-49, 50-51, 52-55, 56-57, 58-63, , 36

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , Chapter 1: Marginal Costing, 1) Marginal Costing is also known as-------------------A) Process Costing, B) Contract Costing, C) Variable Costing, D) Service Costing, , 2) Marginal Costing is a ------ of cost Accounting, A) Method, B) Process, C) Planning, D) Technique, , 3) ------------- Cost remains unaffected by changes to certain in the level of activity., A) Prime Cost, B) Fixed Cost, C) Variable Cost, D) Linear Cost, , 4) Which of the Following is the example of Fixed Cost?, A) Depreciation, B) Direct Labour Cost, C) Direct Expenses, D) Repairs and Maintenance, , 5) --------- Cost Vary directly with the volume of output., A) Variable, B) Fixed, C) Prime, D) Total, , 6) Which of the Following is the example of Variable cost?, Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 37

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , A) Rent and Taxes, B) Insurance, C) Depreciation, D) Repairs and Maintenance, , 7) The term contribution refers to ----------------A) The difference between selling price and fixed cost, B) The difference between selling price and profit, C) The Addition of selling price and fixed cost, D) The Addition of selling price and profit, , 8) Contribution = Fixed cost (+) ---------------A) Prime cost, B) Profit, C) Variable cost, D) Total cost, , 9) Profit Volume ratio is the ratio between ------------------ to sales., A) Total Cost, B) Variable Cost, C) Fixed Cost, D) Contribution, , 10) Contribution / Sales is equal to ---------A) BEP, B) P/V Ratio, C) Margin of Safety, D) Profit, , 11) The level of activity at which there is neither profit nor loss is called........, A) EOQ, B) P/V ratio, C) MS, D) Break Even Point (BEP), Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 38

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , 12) The Angle formed by the Sales line and the total cost line at the Break Even Point is known, as....., A) Angle of BEP, B) Angle of incidence, C) Angle of P/V, D) Angle of no profit no loss, , 13) The excess of normal sales over sales at breakeven point is called as, A) EOQ, B) P/V ratio, C) Limiting Factor, D) Margin of Safety, , 14) A ---------- Margin of safety indicates the soundness of the business., A) High, B) Low, C) Equal, D) Nil, , 15) Actual Sales in units Less Break Even Sales in Units is equal to......., A) Break Even Units, B) P/V ratio in Units, C) Margin of Safety in Units, D) Contribution per unit, , 16) ------------------- is a factor which limits the activity of company., A) Key Factor, B) Limiting Factor, C) A and B both, D) Safety Factor, , 17) ------------- Analysis help to the Manufacturer to take make or buy decision., Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 39

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , A) Service Cost, B) Farm Cost, C) Contract Cost, D) Marginal Cost, , 18) Margin of Safety at break-even point is always------------A) High, B) Zero, C) Low, D) Unit, , 19) Marginal Costing is the most useful technique for the -----------A) Customers, B) Shareholders, C) Management, D) Creditors, , 20) Marginal Cost of the Product represents the ------------ price for that product., A) Minimum, B) Maximum, C) Loss, D) Profit, , Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 40

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , Chapter 2: Budgetary Control, 1) A Budget is a plan of action express in ----A) Historical Terms, B) Financial Terms, C) Non-Financial Terms, D) B & C Both, , 2) A budget is a tool which helps the management in planning and control of ------------A) Manufacturing Activities, B) Selling Activities, C) Purchase Activities, D) All Business Activities, , 3) ---------- Budget is prepared for a particular level of activity., A) Fixed, B) Flexible, C) Sales, D) Production, , 4) ------------ Budget is designed to change according with the level of activity actually attained., A) Fixed, B) Flexible, C) Sales, D) Production, , 5) ----------- budget is prepared on the Functional Budget, A) Cash, B) Master, C) Production, D) Sales, , Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 41

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , 6) ------------ budget is prepared after the sales budget., A) Production, B) Master, C) Purchase, D) Cash, , 7) ---------- budget is prepared after the Production budget, A) Production Cost, B) Master, C) Purchase, D) Cash, , 8) The Budgets are classified on the basis of, A) Time, B) Flexibility, C) Functions, D) All of the above, , 9) The Sales data for last few year are compiled in a form is term as ---------A) Historical data, B) Forecasting, C) Time Series, D) Sales data, , 10) A statement of planned sales expressed in terms of quantity and value means ----A) Production budget, , B) Sales budget, , C) Cash budget, , D) Purchase budget, , 11) ---------- Budget is the future plan of receipts and payments of cash for the budget, period., A) Sales, B) Cash, C) Flexible, D) Fixed, Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 42

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , 12) ---------- budget is prepared after the functional budget., A) Summary, B) Cash, C) Sales, D) Profit, , 13) ----------- is a system of controlling cost which includes the preparation of budgets., A) Functional control, , B) Budgetary control, , C) Cost control, , D) Loss control, , 14) Which of the following is a not advantages of budgetary control, A) Guidance to the management, B) Only a tool of Management, C) Delegation of Authority, D) Compels Participation, , 15) Sales Budget is prepared by --------A) Production Manager, B) Marketing Manager, C) Sales Manager, D) Finance Manager, , 16) ------- budget is prepared for estimating the expenditure on fixed Assets required, during the budget period., A) Capital Expenditure, B) Current Expenditure, C) Historical Expenditure, D) Cost Expenditure, , 17) A budget is prepared for covering a period more than one year is called---------------A) Short term budget, B) Long term budget, C) Cash budget, D) Current budget, Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 43

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , 18) One of the objectives of preparing----------- budget is to avoid excessive inventory of, Work in Progress and Finished goods., A) Purchase, B) Production, C) Cash, D) Sales, , 19) Budget Period Depends upon----A) The type of budget, B) The nature of business, C) Length of trade cycle, D) All of the Above, , 20) ----------- budget is important tool for financial planning, A) Cash, B) Sales, C) Flexible, D) Fixed, , Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 44

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , Chapter 3: Uniform Costing and Interfirm Comparison, 1) Uniform Costing enables different firms to----- the costs., A) Trust, B) Compare, C) Measure, D) Combine, , 2) The use of several undertaking of the same costing principle and / or practice is, called as -----------A) Uniform Costing, B) Standard Costing, C) Process Costing, D) Contract Costing, , 3) Uniform Costing can be combined with--A) A costing Method like job or process, B) A costing Budget like Fixed or Flexible, C) A costing Method like Standard or Historical, D) A costing method as well as costing system, , 4) Uniform Costing Practiced only when two or more units follow ----------- costing, practices, A) Same, B) Vary, C) Different, D) Systems, , 5) Uniform costing may ---------- of any costing methods., A) Trust, B) Compare, C) Measure, D) Combination, , Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 45

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , 6) Uniform Costing cannot employed in ------------ industry., A) Steel, B) Coal, C) Process, D) Fertilizer, , 7) Uniform costing system firstly introduced in----------A) USA in1889, B) England in1890, C) America in 1889, D) India in 1890, , 8) One of the ----- of Uniform costing is to fix a common price which is acceptable to all., A) Principles, B) Methods, C) Limitation, D) Accounts, , 9) Uniform Costing helps ----------- in regulating the prices of the production, A) Government, B) Customers, C) Share Holders, D) Wholesalers, , 10) ------------- is the document , booklet or a bulletin in written form containing, introduction to the followed in connection with cost ascertainment and cost control., A) Budget Manual, B) Sales Manual, C) Costing Manual, D) Uniform Cost Manual., , Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 46

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , 11) The comparison of the result of the different firms with each other is known as....., A) Intro firm comparison, B) Interfirm comparison, C) Intra firm comparison, D) Comparative assessment, , 12) ----------- is a management technique of efficiency improvement and identification of, weaknesses., A) Standard Costing, B) Inter firm comparison, C) Marginal Costing, D) Intro firm comparison, , 13) Interfirm comparison is a -------------- technique, A) Management, B) Administrative, C) Production, D) Sales, , 14) Interfirm comparison is a natural outcome of ----------A) Variable Costing, B) Uniform Costing, C) Process Costing, D) Service Costing, , 15) Interfirm comparison becomes meaningless in the absence of -----------------A) Variable Costing, B) Uniform Costing, C) Process Costing, D) Service Costing, , Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 47

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , 16) ------------ firm comparison facilitates research and development, A) Inter, B) Process, C) Manufacturing, D) Service, , 17) Inter firm comparison involves ascertainment comparative ----------------- of firms, A) Performance, B) Efficiency, C) Cost and profit, D) All of the above, , 18) Inter firm comparison helps ----------- in effecting price regulations., A) Government, B) Customers, C) Share Holders, D) Wholesalers, , 19) Interfirm comparison helps to ------------- areas of inefficiencies and weaknesses., A) Minimize, B) Maximize, C) Equal, D) Multiply, , 20) ------------ is a Management techniques of efficiency improvement and identification, of weaknesses., A) Interfirm comparison, B) Standard Costing, C) Marginal Costing, D) Management Audit, , Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 48

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , 21) ---------------------- Costing is pre- requisite of interfirm comparison., A) Standard Costing, B) Interfirm comparison, C) Marginal Costing, D) Target Costing, , 22) ------------- Costing System facilitates interfirm Comparison., A) Standard Costing, B) Interfirm comparison, C) Marginal Costing, D) Uniform Costing, , 23) Interfirm Comparison leads to ------------- Competitions., A) Unhealthy, B) Healthy, C) Neutral, D) Negative, , 24) ---------------- is the techniques of comparing the performance of the firm., A) Target Costing, B) Interfirm comparison, C) Standard Costing, D) Uniform Costing, , 25) Inter-firm comparison is ----------------- Technique., A) Management, B) Accounting, C) Auditing, D) Financial, , Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 49

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , Chapter 4: Introduction to Management Information System, 1) Full form of MIS is----------A) Marketing Information Success, B) Management Information Success, C) Management Information System, D) Marketing information system, , 2) The purpose of ---------- is to extract data from various sources and drive insights that, drive business growth., A) Marketing Information Success, B) Management Information Success, C) Management Information System, D) Marketing information system, , 3) ---------------- Information in an organization to provide right information at the right, time, at the right place to facilitate managerial decision making., A) Marketing Information Success, B) Management Information Success, C) Management Information System, D) Marketing information system, , 4) Critical Success Factors (CSF) methodology is developed by --------------- of MIT, A) John Rockart, B) Wetherbe and Devis, C) John Devis, D) John lucky, , 5) End/ Means (E/M) Analysis methodology is developed by ----------- at the University, of Minnesota., A) John Rockart, B) Wetherbe and Devis, C) John Devis, D) John lucky, Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 50

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , 6)------------ Management System under MIS consists of a set of formal methods, developed for planning and controlling on organization costs., A) Cost, B) Expenses, C) Revenue, D) Income, , 7) Which of the Following are parts of Strategies for plan achievement?, A) Development Strategy, B) System Development Strategy, C) Manpower Composition, D) All of the above, , 8) Which of the Following Reports are the outputs of Management Information System, (MIS), A) Schedule Reports, B) Key – indicator Reports, C) Demand Reports, D) All of the above, , 9) Which of the Following Conceptual Design Model Of Management Information, System (MIS), A) Process Model, B) Logical Model, C) Physical Model, D) All of the above, , 10) ---------- Models are usually a graphical depiction of the logical relationship between the, resources, activities, outputs and outcomes of a Programme., A) Process Model, B) Logical Model, C) Physical Model, D) Cost Model, , Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 51

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , Chapter 5: Standard costing, 1) -----------enables a comparative assessment between public and private undertakings., A) Variable Costing, B) Uniform Costing, C) Process Costing, D) Service Costing, , 2) Standard costing techniques with a process costing system gives best result in--------------------- industries., A) Process, B) Service, C) Contract, D) Job, , 3) When actual cost exceeds the standard cost the difference is known as-------------A) Adverse, B) Favourable, C) Plus, D) Additional, , 4) When standard cost exceeds the actual cost the difference is known as-------------A) Adverse, B) Favourable, C) Plus, D) Additional, , 5) Entire techniques of standard costing is based on the principle of-----------A) Exception, B) Standard, C) Normal, D) Ideal, , Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 52

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , 6) Time and Motion study is used basically to set----------- Standard, A) Cost, B) Labour Efficiency, C) Material, D) Overhead, , 7) Standard cost are expressed on a ------------- basis, A) Per unit, B) Total Cost, C) Hourly, D) Usage, , 8) Pre-determined costs are ------------- costs computed in advance of production., A) Historical, B) Future, C) Current, D) Normal, , 9) Standards are set for a --------------- period., A) Current, B) Given, C) Definite, D) Indefinite, , 10) The setting of standard cost require-----------A) Price and Quantities, B) Purchase and Sales, C) Profit and loss, D) Profit and price, , 11) Historical costs are valid only for ----------------- accounting period., A) Current, B) Indefinite, C) Fixed, D) Basic, Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 53

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , 12) Idle time variance shows the impact of time----------------A) Lost, B) Profit, C) Hour, D) Cost, , 13) A standard established for use over a long term is knows as ----------- Standard, A) Variable, B) Material, C) Basic, D) Total, , 14) Differences between standard cost and actual cost is equal to, A) Cost Variance, B) Overhead Variance, C) Expenses Variance, D) Time Variance, , 15) Labour Idle Time Variance = Idle hours (X) -------------A) Standard Rate, B) Standard Hour, C) Actual Rate, D) Actual Hour, , 16) Material Mix Variance = (Standard cost of standard Mix) - (---------------------------), A) Standard unit of standard Mix, B) Actual cost of Actual Mix, C) Actual cost of standard Mix, D) Standard cost of Actual Mix, , 17) -------------- costing is a technique that can be applied to all methods of costing, A) Unit, B) Process, C) Standard, D) Job, Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 54

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , 18) Material cost variance is equal to, A) SR x ( SH - AH), B) AH x ( SR - AR), C) SP x ( SQ - AQ), D) MPV + MUV, , 19) Labour Efficiency Variance is equal to, A) SR x ( SH - AH), B) AH x ( SR - AR), C) SP x ( SQ - AQ), D) MPV + MUV, , 20) Labour Rate Vatiance is equal to, A) SR x ( SH - AH), B) AH x ( SR - AR), C) SP x ( SQ - AQ), D) MPV + MUV, , 21) Material Usage Variances is equal to, A) SR x (SH x AH), B) AH x (SR - AR), C) SP x (SQ - AQ), D) MPV + MUV, , 22) Controllable variance are transferred to -------------- account, A) Income and expenditure, B) Profit and loss, C) Cost of Sales, D) Receipt and Payment, , 23) Non-Controllable variance are transferred to -------------- account, A) Income and expenditure, B) Profit and loss, C) Cost of Sales, D) Receipt and Payment, Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 55

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , Chapter 6: Farm Costing, 1) ------------ Costing operate under ‘monoculture’ system., A) Farm, B) Contract, C) Process, D) Margin, , 2) Which of the following are part /parts of farm?, A) Dairy, B) Poultry, C) Pig, D) All of the above, , 3) --------------- cost accounting records have been a valuable source of data for aiding, farm management in decision making., A) Farm, B) Contract, C) Process, D) Margin, , 4) Which of the Following is / are the essential records for farm cost accounting., A) Inventory, B) Supplemental data records, C) Financial Records, D) All of the above, , 5) ----------- is the example of direct cost in Farm Costing, A) Fertilizer, B) Overheads, C) Depreciation, D) Maintenance, , Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 56

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , 6) Depreciation opportunity cost of own inputs is ------- type of cost, A) Cash, B) Non-Cash, C) Fixed, D) Marginal, , 7) The livestock account are less standardized than the ------------- accounts, A) Crops, B) Selling, C) Production, D) Service, , Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 57

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , Chapter 7 & 8: Cost Accounting Record Rules & Cost Audit, (Legal Provision), 1) Cost Audit is the Verification of --------------A) Cost Accounts, B) Financial Accounts, C) Cost and Financial Accounts, D) Income and Expenditure Statement, , 2) Cost Audit aims to establishing truth and fairness of -------------------A) Cost Statement, B) Financial Statement, C) Cost and Financial Statement, D) Income and Expenditure Statement, , 3) The work of cost auditor and financial auditor are ------------- interrelated., A) Wholly, B) Partly, C) Not, D) Frequently, , 4) ------------- audit assists the government in the fixation of proper prices of product., A) Cost, B) Efficiency, C) Management, D) Sales, , 5) Cost audit report covers a period of one ------------------- year., A) Previous, B) Current, C) Next, D) Current and next, , Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 58

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , 6) ------------- audit report certifies the true and fair view of cost of production of, manufacturing company., A) Financial, B) Cost, C) Management, D) Sales, , 7) Cost audit is the application of auditing principles and procedures in the field of -----A) Production Accounting, B) Financial Accounting, C) Management Accounting, D) Cost Accounting, , 8) ------------ Audit helps in analyzing SWOT of the organisation., A) Cost, B) Efficiency, C) Management, D) Sales, , 9) Cost audit has to be completed and the report submitted within ------------ days from, the end of the year for which audit is relates., A) 120, B) 150, C) 180, D) 130, , 10) Cost Auditing Standards deals with ------------A) Auditors Responsibility, B) Auditors powers, C) Auditors flexibility, D) Auditors right, , Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 59

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , 11) ------- audit is often introduced for the purpose of price fixation., A) Financial, B) Cost, C) Management, D) Sales, , 12) The cost auditor must be a member of the ------------- holding a certificate of, practice., A) ICWAI, B) ICAI, C) IIT, D) IDBI, , 13) The cost auditor to be appointed within ---------days of the beginning of the financial, year., A) 180 Days, B) 120 Days, C) 150 Days, D) 230 Days, , 14) ------------- includes plan of operations to be followed for conducting cost audit., A) Cost audit Programme, B) Planning, C) Blue print, D) Audit work sheet, , 15) ---------- audit is conducted by outside parties or organisation., A) Internal, B) External, C) Cost, D) Management, , Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 60

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , 16) Efficiency audit also called as -------------- audit., A) Profitability, B) Propriety, C) Cost, D) Internal, , 17) Cost audit helps in detection of ------------A) Errors and fraud, B) Standards, C) Behaviors, D) Principles and Rules, , 18) CAS-1 deals with-------------A) Classification of cost, B) Capacity determination, C) Overheads, D) Cost of Production for captive consumption, , 19) Cost Accounting Standard (CAS) - 2 deals with-------------A) Classification of cost, B) Capacity determination, C) Overheads, D) Cost of Production for captive consumption, , 20) Cost Accounting Standard (CAS) - 3 deals with-------------A) Classification of cost, B) Capacity determination, C) Overheads, D) Cost of Production for captive consumption, , 21) Cost Accounting Standard (CAS) - 4 deals with-------------A) Classification of cost, B) Capacity determination, C) Overheads, D) Cost of Production for captive consumption, Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 61

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , 22) Cost Accounting Standard (CAS) - 5 deals with-------------A) Classification of cost, B) Capacity determination, C) Overheads, D) Determination of average transportation cost., , 23) Cost audit involves propriety audit and -------------A) Efficiency Audit, B) Budget Manual, C) Financial Accounting, D) Management Audit, , 24) Cost Audit initially introduced in the year---------------A) 1965, B) 1975, C) 1985, D) 1980, , 25) Cost Audit has a ------------- looking approach., A) Current, B) Backward, C) Forward, D) Previous, , 27) Cost Accounting Standards (CAS) --------------- Deals with the method of collection,, allocation, apportionment and absorption of overheads., A) CAS-2, B) CAS-1, C) CAS-4, D) CAS-3, , Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 62

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Written By: DR. M. S. JADHAWRAO, DR. B. R. NALE, DR. S. B. SHINDE DR. S. R. DALVI, , 27) Cost Audit is advantages to-----------A) The Management, B) The Government, C) The Shareholders, D) All of the above, , 28) ------------ is a systematic and detailed investigation of cost records., A) Cost Investigation, B) Cost Audit, C) Financial Audit, D) Records Investigation, , Cost & Works Accounting-II & III (MCQ), , KSHITIJA PUBLICATION, PUNE, , 63