Contract Costing MCQ | Cost Accounting MCQs (Free Resource)

Contract Costing MCQ

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1. Contract costing is a basic method of
(a) Historical costing
(b) Specific order costing
(c) Process costing
(d) Standard costing

2. Contract costing is a variant of _________ Costing.
(a) Job
(b) Process
(c) Unit
(d) Batch

3. Contract costing is usually applicable in
(a) Constructional Works
(b) Textile Mills
(c) Cement Industries
(d) Chemical Industries

4. __________ is the person for whom the Contract job is undertaken.
(a) Contractor
(b) Contractee
(c) Sub-contractor
(d) Job-worker

5. Which one of the following is not a contract cost ?
(a) Direct wages
(b) Depreciation of plant
(c) Sub-contractors’ fees
(d) Architects’ certificates

6. The degree of completion of work is determined by comparing the work certified with
(a) Contract price
(b) Work in progress
(c) Cash received on contract
(d) Retention money

7. In contract costing credit is taken only for a part of the profit on
(a) Completed contract
(b) Incomplete contract
(c) Work uncertified
(d) Work Certified

8. In contract costing payment of cash to the contractor is made on the basis of
(a) Uncertified work
(b) Certified work
(c) Work in progress
(d) Retention Money

9. The cost of any sub-contracted work is
(a) A direct expense of a contract and is debited to the contract account
(b) An indirect expense of a contract and is debited to the contract account
(c) A direct expense of a contract and is debited to the client account
(d) An indirect expense of a contract and is debited to the client account

10. Progress payments received by the contractor from the client are
(a) Debited to the contract account
(b) Credited to the contract account
(c) Debited to the client account
(d) Credited to the client account

Answers: 1)Specific order costing 2)Job 3)Constructional Works 4)Contractee 5)Architects’ certificates 6)Contract price 7)Incomplete contract 8)Certified work 9)A direct expense of a contract and is debited to the contract account 10)Credited to the client account

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