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Created on March 17, 2026 By

CA Sonal Saboo

CMA Inter

Inter Cost Accounting PN-8 Quiz 9

This quiz is based on the CMA Cost Accounting paper.
Each question is multiple-choice with 4 options, and only 1 option is correct.
Attempt the quiz to test your understanding of CMA CA concepts.

1 / 25

Category: Cost Accounting PN-8

1. Cost of a particular service under operating costing is ascertained by preparing:

a. Cost sheet

b. Process account

c. Job cost sheet

d. Production account

2 / 25

Category: Cost Accounting PN-8

2. Which of following methods can be used when the joint products are of unequal quantity and used for captive consumption:

a. Physical units method

b. Net realisable value method

c. Technical estimates, using market value of similar goods

d. Market value at spit- off method

3 / 25

Category: Cost Accounting PN-8

3. Which of the following is an example of by-product:

a. Mustard seeds and mustard oil

b. Diesel and Petrol in an oil refinery

c. Edible oils and oil cakes

d. Curd and butter in a diary

4 / 25

Category: Cost Accounting PN-8

4. Under net realisable value method of apportioning joint costs to joint products, the selling & distribution cost is:

a. Ignored

b. Deducted from sales value

c. Deducted from further processing cost

d. Added to joint cost

5 / 25

Category: Cost Accounting PN-8

5. The main purposes of accounting of joint products and by-products is to:

a. Determine the replacement cost

b. Determine the opportunity cost

c. Determine profit or loss on each product line

d. None of the above

6 / 25

Category: Cost Accounting PN-8

6. Method of apportioning joint costs on the basis of output of each joint product at the point of split-offs is known as:

a. Physical unit method

b. Sales value method

c. Average cost method

d. Marginal cost and contribution method

7 / 25

Category: Cost Accounting PN-8

7. In sugar manufacturing industry molasses is also produced along with sugar. Molasses may be of small value as compared with the value of sugar and is known as:

a. Joint product

b. Common product

c. By-product

d. None of them

8 / 25

Category: Cost Accounting PN-8

8. A process account is debited by abnormal gain, the value is determined as:

a. Equal to the value of good units less closing stock

b. Equal to the value of normal loss

c. Cost of good units less realisable value of normal loss

d. Cost of good unit less realisable value of actual loss

9 / 25

Category: Cost Accounting PN-8

9. The value of abnormal loss is equal to :

a. Total cost of materials

b. Total process cost less cost of scrap

c. Total process cost less realisable value of normal loss less value of transferred out goods

d. Total process cost less realisable value of normal loss

10 / 25

Category: Cost Accounting PN-8

10. In which of the following situations an abnormal gain in a process occurs:

a. When normal loss is equal to actual loss

b. When the actual output is greater than the planned output

c. When actual loss is more than the expected

d. When actual loss is less than the expected loss

11 / 25

Category: Cost Accounting PN-8

11. Spoilage that occurs under inefficient operating conditions and is generally controllable is called .

a. Normal defectives

b. Abnormal spoilage

c. Normal spoilage

d. None of the above

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Category: Cost Accounting PN-8

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

a. Standard Loss

b. Normal Loss

c. Abnormal Loss

d. Seasonal Loss

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Category: Cost Accounting PN-8

13. Which of the statement is true?

a. Job costing can be suitably used for concerns producing any specific product uniformly

b. Job costing cannot be used in companies applying standard costing

c. Job cost sheet may be prepared to facilitate routing and scheduling of the job

d. Neither A, nor B, nor C

14 / 25

Category: Cost Accounting PN-8

14. Which of the following statements is true?

a. Batch costing is a variant of jobs costing

b. Job cost sheet may be used for estimating profit of jobs

c. Job costing cannot be used in conjunction with marginal costing

d. In cost plus contracts, the contractor runs a risk of incurring a loss

15 / 25

Category: Cost Accounting PN-8

15. Which of the following documents are used in job costing to record the issue of direct materials to a job?

a. Purchase order

b. Purchase requisition

c. Goods received note

d. Material requisition

16 / 25

Category: Cost Accounting PN-8

16. Economic batch quantity is that size of the batch of production where:

a. Carrying cost is minimum

b. Set-up cost of machine is minimum

c. Average cost is minimum

d. Both A. and B

17 / 25

Category: Cost Accounting PN-8

17. Batch costing is similar to that under job costing except with the difference that:

a. Process becomes a cost unit

b. Job becomes a cost unit

c. Batch become the cost unit instead of a job

d. None of the above

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Category: Cost Accounting PN-8

18. Batch costing is a type of:

a. Direct Costing

b. Process Costing

c. job Costing

d. Differential Costing

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Category: Cost Accounting PN-8

19. Job Costing is:

a. Suitable where similar products are produced on mass scale

b. Methods of costing used for non- standard and non- repetitive products

c. Technique of costing

d. Applicable to all industries regardless of the products or services provided

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Category: Cost Accounting PN-8

20. In case product produced or jobs undertaken are of diverse system, the system of costing to be used should be:

a. Operating Costing

b. Process Costing

c. Job Costing

d. None of the above

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Category: Cost Accounting PN-8

21. In order to determine cost of the products or services, different business firms follow:

a. Different techniques of costing

b. Uniform costing

c. Different methods of costing

d. None of the above

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Category: Cost Accounting PN-8

22. Cost plus contract is usually entered into those cases where .

a. Cost can be easily estimated

b. Cost of certified and uncertified work

c. Cost of certified work, cost of uncertified work and amount of profit transferred to Profit and Loss Account

d. Determination of contract cost with reasonable accuracy is not possible

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Category: Cost Accounting PN-8

23. Most of the expenses are direct in:

a. Job costing

b. Batch costing

c. Contact costing

d. None of the above

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Category: Cost Accounting PN-8

24. Cost Price is not fixed in case of:

a. Cost plus contracts

b. Escalation clause

c. De escalation clause

d. All of the above

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Category: Cost Accounting PN-8

25. The most suitable cost system where the products differ in type of material and work performed is:

a. Operating Costing

b. Job costing

c. Process costing

d. All of these.

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Inter PN-8 Cost Accounting Quiz 9

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