CA Intermediate Paper 3

Process & Operation Costing MCQ

Chapter 10 • 12 Questions from ICAI Study Material

Questions

12

Est. Time

18 min

Source

ICAI Book

Sample Questions: Process & Operation Costing

Preview 3 of 12 questions from Chapter 10

1. The type of process loss that should not be allowed to affect the cost of good units is:

A) Abnormal loss ✓
B) Normal loss
C) Seasonal loss
D) Standard loss 2. 200 units were introduced in a process in which 20 units is the normal loss. If the actual output is 150 units, then there is: (a) No abnormal loss (b) No abnormal gain (c) Abnormal loss of 30 units (d) Abnormal gain of 30 units 3. 100 units are processed at a total cost of ₹ 160, normal loss is 10%, & scrap units are sold @ ₹ 0.25 each. If the output is 80 units, then the value of abnormal loss is: (a) ₹ (b) ₹ 16 (c) ₹ (d) ₹

2. When average method is used in process costing, the opening inventory costs are:

A) Subtracted from the new costs PROCESS AND OPERATION COSTING
B) Added to the new costs ✓
C) Kept separate from the costs of the new period
D) Averaged with other costs to arrive at total cost

3. Spoilage that occurs under inefficient operating conditions and is ordinarily controllable is called:

A) Normal spoilage
B) Abnormal spoilage ✓
C) Normal defectives
D) None of the above