Question 1

Profit planning is possible with…………costing

Accepted Answer

A)  Marginal
B)  Absorption
C)  Operation
D)  UnitE) A) and B)
F) B) and C)

Question 2

Marginal costing and …………analysis helps in decision making

Accepted Answer

A)  Service costing
B)  Unit costing
C)  Differential costing
D)  Absorption costingE) A) and B)
F) A) and C) C

Question 3

Marginal costing is a…………of costing

Accepted Answer

A)  Technique
B)  Type
C)  Method
D)  Both (a) &(c) E) A) and D)
F) All of the above A

Question 4

In marginal costing only…………is charged to products

Accepted Answer

A)  Fixed cost
B)  Variable cost
C)  Semi variable cost
D)  Semi fixed costE) C) and D)
F) A) and B)

Question 5

The finished product of last process is transferred to ……………… a/c

Accepted Answer

A)  Abnormal gain
B)  Abnormal loss
C)  Normal loss
D)  finished stockE) A) and B)
F) A) and C)

Question 6

………… is based on the distinction between fixed and variable cost

Accepted Answer

A)  Service costing
B)  Unit costing
C)  Process costing
D)  Marginal costingE) A) and C)
F) C) and D)

Question 7

In ………… costing no distinction is made between direct and indirect materials

Accepted Answer

A)  Job
B)  Contract
C)  Process
D)  ServiceE) A) and D)
F) A) and C)

Question 8

The cost incurred up to the point of separation are called …………cost

Accepted Answer

A)  Direct
B)  Process
C)  Byproduct
D)  CommonE) A) and C)
F) A) and B)

Question 9

Cost of ………… is not included in the cost of the process

Accepted Answer

A)  Abnormal los
B)  Normal loss
C)  Normal gain
D)  Abnormal gainE) B) and D)
F) B) and C)

Question 10

………… is the aggregate of fixed cost and profit

Accepted Answer

A)  Prime cost
B)  Contribution
C)  Work cost
D)  Cost of saleE) C) and D)
F) B) and C) B

Question 11

………… costs relate to processes and incurred after split off points

Accepted Answer

A)  Direct
B)  Process
C)  By product
D)  SubsequentE) A) and D)
F) A) and C)

Question 12

Marginal costing is the aggregate of …………plus variable overheads

Accepted Answer

A)  Work cost
B)  Variable cost
C)  Prime Cost
D)  Cost of productionE) B) and D)
F) A) and D)

Question 13

Joint costs are allocated according to…………value of individual products under the market value method

Accepted Answer

A)  Market
B)  Sales
C)  Cost
D)  Cost or marketE) A) and D)
F) None of the above

Question 14

………… is the point of production at which separate products are identified

Accepted Answer

A)  Ordering point
B)  Trade off point
C)  Split off point
D)  Matching pointE) All of the above
F) A) and D)

Question 15

An increase in physical sales volume…………P/V ratio

Accepted Answer

A)  Increase
B)  Decreases
C)  Either increase or decrease
D)  Do not affectE) A) and B)
F) All of the above

Question 16

In marginal costing stock of finished goods is valued at

Accepted Answer

A)  Fixed cost
B)  Market price
C)  Cost price
D)  Variable costE) All of the above
F) B) and C)

Question 17

Milk, butter cream, etc obtained in is example of

Accepted Answer

A)  By product
B)  joint product
C)  Co- product
D)  noneE) C) and D)
F) A) and C)

Question 18

…………is the system most useful for making make or buy decision

Accepted Answer

A)  Operation costing
B)  Marginal costing
C)  Unit costing
D)  Service costingE) B) and C)
F) A) and D)

Question 19

Abnormal gain =…………..

Accepted Answer

A)  normal cost of normal output /Actual output*units of A.L
B)  N.C of normal output / normal output * units of A. gain
C)  Normal output /Actual output * A. gain
D)  None of theseE) A) and C)
F) None of the above

Question 20

…………helps the management in cost control

Accepted Answer

A)  Marginal costing
B)  Operation costing
C)  Unit costing
D)  Absorption costingE) A) and B)
F) A) and C)

Exam 4: Costing and Product Analysis

Profit planning is possible with…………costing

Correct AnswerverifiedShow Answer

Marginal costing and …………analysis helps in decision making

Correct AnswerverifiedC

Marginal costing is a…………of costing

Correct AnswerverifiedA

In marginal costing only…………is charged to products

Correct AnswerverifiedShow Answer

The finished product of last process is transferred to ……………… a/c

Correct AnswerverifiedShow Answer

………… is based on the distinction between fixed and variable cost

Correct AnswerverifiedShow Answer

In ………… costing no distinction is made between direct and indirect materials

Correct AnswerverifiedShow Answer

The cost incurred up to the point of separation are called …………cost

Correct AnswerverifiedShow Answer

Cost of ………… is not included in the cost of the process

Correct AnswerverifiedShow Answer

………… is the aggregate of fixed cost and profit

Correct AnswerverifiedB

………… costs relate to processes and incurred after split off points

Correct AnswerverifiedShow Answer

Marginal costing is the aggregate of …………plus variable overheads

Correct AnswerverifiedShow Answer

Joint costs are allocated according to…………value of individual products under the market value method

Correct AnswerverifiedShow Answer

………… is the point of production at which separate products are identified

Correct AnswerverifiedShow Answer

An increase in physical sales volume…………P/V ratio

Correct AnswerverifiedShow Answer

In marginal costing stock of finished goods is valued at

Correct AnswerverifiedShow Answer

Milk, butter cream, etc obtained in is example of

Correct AnswerverifiedShow Answer

…………is the system most useful for making make or buy decision

Correct AnswerverifiedShow Answer

Abnormal gain =…………..

Correct AnswerverifiedShow Answer

…………helps the management in cost control

Correct AnswerverifiedShow Answer

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C

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A

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B

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