COST ACCOUNTING -B.COM 6TH SEMESTER

1. According to ICMA London, costing is “that form of specific order costing, which applies where work is undertaken to customers’ special requirements.”

• Job

• Batch

• Process

• Standard

A method of costing applied where costs are collected and accumulated for each work order

.

• Process costing

• Contract costing

• Operating costing

• Job costing

3. Which of the following statements is not true about job costing?

• Production always against customers’ orders

• Cost of each job ascertained separately

• Job is of equal or longer duration compared to contracts

• Job work is labour intensive

Which is a method of specific order costing?

• Job costing

• Process costing

• Output costing

• Service costing

The method of costing applied in special ship building is

• Batch costing

• Job costing

• Process costing

• None of the above

Which of the following considers an ‘economic quantity’ for the purpose of cost reduction?

• Job costing

• Process costing

• Batch costing

• Contract costing

The method of costing applied in cycle part manufacturing is

• Batch costing

• Job costing

• Process costing

• None of the above

Production order with respect to a job is issued by department.

• Production

• Production Planning

• Purchase

• Sales

Scope of specific order costing is very wide and includes

• Job, Batch and contract costing

• Process , Contract and unit costing

• Batch , Job and process costing

• Unit , service and transport costing

Economic batch quantity is used in batch costing to

• Meet specific customer requirements

• Produce at the least possible cost

• In order to ensure stock in anticipation of demand

• None of these