Cost Accounting Concepts Questions and Answers

In relation to Cost accounting, which of the following statement is incorrect

A.It provides information to the management for proper planning, operation, control and decision making
B.It records the expenditure in an objective manner, i.e. according to the purpose for which the costs are incurred.
C.It reports operating results and financial position usually at the end of the year
D.The cost reports and statements are prepared as and when required by the management

Exam Year(s)

DSSSB - 2023,

Answer: C

The incorrect statement is that cost accounting reports operating results and financial position usually at the end of the year. That is a feature of financial accounting, which reports at the end of the accounting year. Cost accounting provides information for planning, control and decision-making, records expenditure objectively according to the purpose for which it is incurred, and prepares its reports and statements as and when management needs them, so the other three statements are correct.

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Which of the following statement/s is/are correct?
Statement-1: Contract Costing is a type of costing used in constructional activities such as construction of buildings, roads, bridges etc.
Statement-2: The person who takes contract for a price is called the Contractee and the person from whom it is taken is called the Contractor

A.Only statement-1 is correct
B.Only statement-2 is correct
C.Both statement-1 and statement-2 are correct
D.Both statement-1 and statement-2 are incorrect

Exam Year(s)

DSSSB - 2023,

Answer: A

Only statement-1 is correct. Contract costing is the costing method used for construction work such as buildings, roads and bridges, where each contract is a separate job. Statement-2 reverses the two parties: the person who gives the contract for a price is the contractee, and the person who undertakes and executes it is the contractor. Because statement-2 states it the wrong way round, it is incorrect.

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In a statements of reconciliation between cost and financial accounts, expenses shown only in financial accounts are

A.added to financial profit
B.added to costing profit
C.ignored
D.deducted from financial profit

Exam Year(s)

DSSSB - 2023,

Answer: A

Expenses shown only in the financial accounts are added to the financial profit. A reconciliation statement usually starts from the profit shown by the financial accounts to arrive at the profit in the cost accounts. Items that are charged in the financial accounts but not in the cost accounts, such as losses on sale of assets or interest paid, have reduced the financial profit, so adding them back gives the higher costing profit. Deducting them, or ignoring them, would not reconcile the two figures.

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Cost Accounting Concepts Questions and Answers

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Cost Accounting Concepts Questions and Answers

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