631. Job costing is used in:
A. Repair shops
B. Furniture making
C. Printing presses
D. Automobile garages
E. All of these
632. Most of the expenses are direct in:
A. Job costing
B. Contract costing
C. Batch Costing
D. All of these
633. When a contract is not completed at the end of the accounting year, profit on an incomplete contract is:
A. Transferred to profit and loss accounts
B. Transferred to reserve
C. Moved halfway to benefit and misfortune account and somewhat to hold
D. None of them
634. When a contract is not completed at the end of the year, loss on an incomplete contract is:
A. Transferred to profit and loss account
B. Transferred to work in progress
C. Moved part of the way to benefit and misfortune account and halfway to work underway
D. None of them
635. When a contract is 40% complete, the amount of profit to be taken credit for is usually:
A. The amount of profit estimated
B. 40% of the estimated price
C. 1/3 of the estimated profit multiplied by the cash ratio
D. None of them
636. In contract accounts, the amount of work in progress consists of:
A. Cost of work finished, affirmed and uncertified
B. Cost of work uncompleted
C. The amount of profit not transferred to profit and loss account
D. A of the above
E. A, B, and C
637. Which of the given costs does not become part of the cost unit?
(A) Advertising expenses
B) Direct labor cost
(C) Factory overhead cost
(D) Cost of raw material
638. Which of the following is NOT a relevant cost to decision-making?
(A) Opportunity costs
(B) Relevant benefits
(C) Avoidable costs
D) Sunk costs
639. The amount of Depreciation on fixed assets will be fixed in nature if calculated under which of the following methods?
A) Straight line method
(B) Reducing balance method
(C) Sum of years digits method
(D) Double declining method
640. All of the following compose the cost of goods sold EXCEPT?
(A) Raw material
(B) Labor
C) Capital
(D) Factory overhead
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