PPCE UNIT III & IV
1. The most reliable estimate is
(A) Detailed estimate
(B) Preliminary estimate
(C) Plinth area estimate
(D) Cube rate estimate
Ans. A
2. Pick up the correct statement from the following:
(A) The estimated value of the work excluding the amount for contingencies, work
charged establishment, tool and plants, is called work value
(B) The actual expenditure involved to complete a work including incidental, establishment and
travelling charges, is called actual cost
(C) The formal acceptance by the administrative department for incurring an
expenditure on the work, is called administrative approval
(D) All the above
Ans.D
3. The assumption on which the trapezoidal formula for volumes is based, is
(A) The end sections are parallel planes
(B) The mid-area of a pyramid is half the average area of the ends
(C) The volume of the Prismoidal is over-estimated and hence a Prismoidal correction is
applied
(D) All the above
Ans.D
4. Basic concept of cost accounting is
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Ans.C
5. Factory overhead can be charged on the basis of _______.
A.
material cost
B.
labour cost
C.
prime cost
D.
direct expenses
Ans.A
6. Direct expenses are also called as
A.
major expenses
B.
chargeable expenses
C.
overhead expenses
D.
sundry expenses
Ans B
7. Indirect material used in production is classified as
A.
office overhead
B.
selling overhead
C.
distribution overhead
D.
factory overhead
Ans D
8.Office and administrative expenses can be charged on the basis of
A.
material cost
B.
labour cost
C.
prime cost
D.
factory cost
Ans C
9. Warehouse rent is a part of ________.
A.
prime cost
B.
factory cost
C.
distribution cost
D.
production cost
Ans C
10. Tender is an _______.
A.
estimation of profit
B.
estimation of cost
C.
estimation of selling price
D.
estimation of units
Ans C
11.Total of all direct costs is termed as ________.
A.
prime cost
B.
works cost
C.
cost of sales
D.
cost of production
Ans A
12.Cost accounting concepts include all the following except ________.
A.
planning
B.
controlling
C.
profit sharing
D.
product costing
Ans C
13. Toy manufacturing industry should use
A.
B.
unit costing
process costing
C.
batch costing
D.
multiple costing
Ans C
14.The loss which arise in manufacturing activity on account of inherent nature of the product
is
A.
normal loss
B.
abnormal loss
C.
net loss
D.
gross loss
Ans. A
15. The main factor to be considered while preparing a detailed estimate, is
(A) Quantity of the materials
(B) Availability of materials
(C) Transportation of materials
(D) All the above
Ans. D
16.Labour productivity can NOT be measured by comparing ________.
A.
actual time with standard time
B.
total output with total man hours
C.
added value for the product with total wage cost
D.
total wage and total output
Ans. D
17. Forging is carried out at which temperature?
a) Below recrystallization temperature
b) Above recrystallization temperature
c) Below or above recrystallization temperature
d) Above melting point
Ans. D
18. Operating costing is not applicable to(a) Gujarat State Transport Co.
(b) Hotel Marriot
(c) Vadilal Sarabhai Hospital
(d) Oil and Natural Gas Co.
Ans D
19. There are certain costs which are not necessary to be taken into consideration while
selecting an alternative by management are called(a) Relevant costs
(b) Unavoidable costs
(c) Irrelevant costs
(d) Avoidable costs
Ans C
20. Depreciation is ...........expenditure.
A) variable
b) Fixed
c) Indirect
d) Semi-variable
Ans D
21. Average total costs are
A) the change in output divided by the change in total costs.
B) total costs divided by total output.
C) the change in total costs divided by the change in output.
D) total output divided by total costs.
Ans B
22. The long run is a time frame in which
A) the quantities of all resources are fixed.
B) the quantities of all resources can be varied.
C) the quantities of some resources are fixed and the quantities of other resources can be
varied.
D) all costs are sunk costs
Ans B
23. The short run is a period of time in which
A) nothing the firm does can be altered.
B) the amount of output is fixed.
C) prices and wages are fixed.
D) the quantities of some resources the firm uses are fixed.
Ans D
24. The marginal product of labor is the change in total product from a one-unit increase in
A) the wage rate.
B) both the quantity of labor and the quantity of capital employed.
C) the quantity of labor employed, holding the quantity of capital constant.
D) the quantity of capital employed, holding the quantity of labor constant.
Ans C
25. In drawing operation the metal flows due to.........
A.Ductility
B.Work hardening
C.Plasticity
D.Shearing
Ans C