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Worksheets

Process Costing

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

__________ is the excess of actual output over normal output.

a)

Actual output

b)

Abnormal Loss

c)

Normal Loss

d)

Abnormal Gain

2.

Scrap value of __________ is credited to process A/c.

a)

normal loss

b)

abnormal loss

c)

normal gain

d)

abnormal gain

3.

______________ are of relatively smaller / insignificant value.

a)

substitute product

b)

complementary product

c)

by-product

d)

joint product

4.

Balance in the abnormal loss account is transferred to _____

a)

Costing Profit & Loss A/c

b)

Balance sheet

c)

Process A/c

d)

Contract A/c

5.

In process accounts, _________ does not have a realisable value

a)

normal loss

b)

abnormal scrap loss

c)

scrap loss

d)

weight loss

6.

The loss which arises due to abnormal circumstances is _____ loss.

a)

Normal

b)

abnormal

c)

net

d)

gross

7.

In process accounts, _____ is treated as a part of the cost of production.

a)

normal loss

b)

abnormal loss

c)

net loss

d)

gross loss

8.

Normal Output is calculated as __________.

a)

Input less Abnormal Loss

b)

Input less Normal Loss

c)

Input less Abnormal Gain

d)

Input add Abnormal Loss

9.

In Process Costing, unit cost of a product is calculated as ___________.

a)

Normal Cost ÷ Normal Output

b)

Total Cost ÷ Normal Output

c)

Normal Cost ÷ Total Output

d)

Total Cost ÷ Total Output

10.

In process costing, each producing department is a __________

a)

cost unit

b)

cost centre

c)

investment centre

d)

sales centre

11.

Process costing is applicable in _________.

a)

construction industry

b)

ship building industry

c)

airline company

d)

Pharmaceutical industry

12.

The cost incurred prior to the point of separation of the joint or by-products are termed as _______.

a)

process cost

b)

joint cost

c)

main cost

d)

separable cost

13.

An item of low value incidentally arising in a process is called _________.

a)

joint product

b)

by-product

c)

scrap

d)

waste

14.

In a process, main product and by-product are differentiated by __________.

a)

number of units per processing period

b)

weight of output per period

c)

volume of output per period

d)

amount of sales value per unit

15.

In process costing, the net realisable value is calculated as _______.

a)

sales value at split off point

b)

sales price less fixed cost

c)

sales price less joint cost

d)

sales price less cost to complete the product

16.

By product has equal economic importance.

a)

True

b)

False

17.

In process costing _____ product is manufacured.

a)

customised

b)

unique

c)

standardised

d)

heterogeneous

18.

Scrap value of normal loss is _____ to process account.

a)

debited

b)

credited

c)

ignored

d)

not recorded

19.

Percentage of ________ is decided in advance.

a)

normal loss

b)

abnormal loss

c)

abnormal gain

d)

output

20.

_____ is treated as cost of production.

a)

Normal Loss

b)

Abnormal Loss

c)

Abnormal Gain

d)

Cost of Asset