601. Cost-plus contract is useful from the point of view of :
A. Contractor
B. Contractee
C. Both Contractor and contractee
D. None of them
602. In contract costing, contract account is prepared by the :
A. Contractor
B. Contractee
C. Both Contractor and Contractee
D. None of them
603. In a building contract of 2,40,000 $ , at the end of the year work certified is 1,60,000 $ and estimated profit is 15,000 $. What is how much benefit to be credited to benefit and misfortune account accepting money proportion is 80%?
A. 15,000 $
B. 12,000 $
C. 8,000 $
D. 10,000 $
604. Econom is batch quantity is that size of the batch of production where :
A. Average cost is minimum
B. Total cost is minimum
C. Set up cost of machine is least
D. Carrying cost is minimum
605. Production order means :
A. A request got from a client for the development of a particular thing
B. Instructions to the shops to proceed with the production of the product
C. A request to the vendor to give important materials for creation
D. None of them
606. In contract costing, valuation of which of the following does not include an element of profit :
A. Work in progress certified
B. Work in progress uncertified
C. Both A and B
D. None of them
607. A contract of 5,00,000 $ is 55 % complete as certified. It shows a national loss of 20,000 $. Bookkeeping treatment of this misfortune is :
A. Transfer 2/3 of this loss to P and L A/C
B. Transfer 2/3 x cash ratio of this loss to P an L A/C
C. Transfer 55 % of this loss to P and L A/C
D. Transfer of the entire amount of loss to P and L A/C
608. Direct cost chargeable to the contract does not include :
A. Materials
B. Storage lost
C. Labour
D. Both C and D
E. Supervision
609. While calculating the EOQ, the number of orders is calculated by?
(A) Dividing required units by ordered quantity
B) Multiplying the required units with ordered quantity
(C) Multiplying the ordered quantity with the cost per order
(D) Multiplying the required units with the cost per order
610. Period costs are?
(A) Expensed when the product is sold
(B) Included in the cost of goods sold
C) Related to a specific period
(D) Not expensed
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