1. An automobile service unit uses ______________ costing.
a) specific order
b) batch
c) job
d) contract
2. Economic Batch Quantity depends on ______________ and ______________ costs.
a) Material, labour
b) set-up costs, carrying
c) transportation, carrying
d) warehousing, labour
3. When the completion stage of a contract is less than %, the total expenditure on the contract is
transferred to ______________ account.
a) Work-in-Progress
b) Profit and loss account
c) miscellaneous account
d) none of these
4. Room/day is the cost unit used in ______________
a) Hotels
b) hospital
c) schools
d) none of these
5. In transportation costing a composite unit such as ______________ is used.
a) passenger mile/km or Ten kilometer
b) per km
c) per passenger
d) per stop
6. A bus carries 25 passengers daily for 25 days and its mileage per month is 1000 kms. Its passenger
miles are ______________
a) 30,000
b) 12,500
c) 20,000
d) 25,000
7. Where raw material is to pass certain stages, before it is converted into finished goods, the method
of costing used is ______________
a) Job costing
b) Operating costing
c) Process Costing
d) both b and c
8. When actual loss is ______________ than the estimated loss, the difference between the two is
considered to be abnormal gain
a) More
b) less
c) higher
d) none of these
9. The cost of ______________ process loss is absorbed in the cost of production of good units.
a) Abnormal
b) normal
c) both a & b
d) none of these
10. ______________ arises where the actual process loss is less than the normal predetermined
process loss.
a) Normal loss
b) abnormal loss
c) abnormal gain
d) none of these