LIST OF ATTEMPTED QUESTIONS AND ANSWERS

1. Accounting Process of analyzing & interpretation Process of analyzing &

interpretation
Profitability statement Indicates the amount of profit earned Indicates the
amount of profit earned
Balance-sheet Financial status Financial status
Book-Keeping Books of Accounts Books of Accounts
Financial statement Profitability statement & Balance-sheet Profitability
statement & Balance-sheet

Multiple Choice Single Answer

Question Salary paid to employee amounted Rs. 10,000, transferred to Trading
A/C is an example of_______
Correct Answer Error of Commission

Multiple Choice Single Answer

Question: Labour cost indicates that labour cost which cannot be identified with
the individual cost centre and is incurred for those employees who are not
engaged in the manufacturing process but only assist i
Correct Answer Remuneration
Your Answer Indirect

True/False
Question To take make or buy decision under the marginal costing , if purchase
price of the product is less than its variable cost it is advisable to go for
manufacturing proposition.
Correct Answer False
Your Answer False

Select The Blank

Question Over absorption of overheads may take place due to the reasons like
________ overheads being less than the ________ overheads
Correct Answer actual
Your Answer estimated
Correct Answer estimated
Your Answer actual

True/False
Question Income received in advance transfer to current liabilities
Correct Answer True
Your Answer True

Select The Blank

Question Bank reconciliation statement is the statement prepared to explain the
________ as to why the bank balance as per ________ and bank balance as
per bank book does not match
Correct Answer reasons
Your Answer reasons
Correct Answer pass book
Your Answer pass book

Select The Blank

Question Fixed cost is the cost that tend to remain ________ irrespective of
________
Correct Answer constant
Your Answer constant
Correct Answer level of activity
Your Answer level of activity

True/False
Question A business is an activity carried out with the intention of earning the
profit.
Correct Answer True
Your Answer True

Multiple Choice Single Answer

Question If wages for the month of January, February and March are Rs.4,000,
Rs.4,400 and Rs.4,600 respectively and if delay in payment of wages is ½ month
, payment of wages for the month of February is
Correct Answer 4,200
Your Answer 4,000

Select The Blank

Question Management Accounting has a very ________ scope and it requires
________ organizational structure
Correct Answer wide
Your Answer wide
Correct Answer elaborate
Your Answer elaborate

True/False
Question Accounting is an art of recording, classifying & summarizing in a
significant manner.
Correct Answer True
Your Answer True

Multiple Choice Single Answer

Question For a unit, if opening stock of raw material is 10,000 units, closing
stock of raw material is 5,000 units and consumption is 3,20,000 units, what will
be the quantum of raw material to be purchased
Correct Answer 3,15,000
Your Answer 3,15,000

Multiple Choice Multiple Answer

Question Important advantages of Uniform Costing can be said to be
Correct Answer It is a useful tool for management control , It avoids cut throat
competition , Weaker units can take advantage of settled systems of better
managed units
Your Answer It is a useful tool for management control , It avoids cut throat
competition , Weaker units can take advantage of settled systems of better
managed units

Multiple Choice Multiple Answer

Question P/L A/C debit side includes
Correct Answer salary , discount allowed , postage & telegram
Your Answer postage & telegram , salary , discount allowed

Multiple Choice Multiple Answer

Question Actual costs may be affected due to inefficient functioning such as
Correct Answer Abnormal expenses , In efficient use of labour , In efficient use of
material
Your Answer Abnormal expenses , In efficient use of labour , In efficient use of
material

Multiple Choice Single Answer

Question Calculate Labour Efficiency Variance, If actual rate per hour is
Rs.3.50/- , Standard rate is Rs.3/- per unit and standard hours are 15,000 and
Actual hours are 13, 500.
Correct Answer Rs.4500/- ( Favorable )
Your Answer Rs.4500/- ( Favorable )

Multiple Choice Multiple Answer

Question Sales quantity may be forecasted after taking into consideration various
factors such as
Correct Answer Analysis of past trends , Market research , Reports by salesmen
Your Answer Analysis of past trends , Market research , Reports by salesmen

True/False
Question For taking make or buy decision marginal costing technique provide
useful assistance.
Correct Answer True
Your Answer True

True/False
Question Profitability statement indicates the amount of assets & liabilities.
Correct Answer False
Your Answer False

Multiple Choice Single Answer

Question It is an appropriate basis of apportionment of depreciation expenditure
Correct Answer value of assets
Your Answer value of assets

True/False
Question The variable costs are controllable at the lower level.
Correct Answer True
Your Answer True
True/False
Question Balance sheet indicates the expenditure & income from the business.
Correct Answer False
Your Answer False

Match The Following

Question Correct Answer Your Answer
Journal Book of original entry Book of original entry
Ledger Maintain all types of Accounts Maintain all types of Accounts
Assets All the properties owned by the business All the properties owned by the
business
Liabilities All the amount owed by the business All the amount owed by the
business
Drawing Withdrawn for personal use Withdrawn for personal use

Select The Blank

Question A budget manual is a document setting out the ________ of the
persons and ________ required for the budget control.
Correct Answer Responsibilities
Your Answer Responsibilities
Correct Answer Forms and procedures
Your Answer Forms and procedures

True/False
Question Credit balances in all the Personal & Real accounts appear on asset side.
Correct Answer False
Your Answer True

True/False
Question The process of accounting split into three steams i.e. financial, cost,
management accounting.
Correct Answer True
Your Answer True

Multiple Choice Single Answer

Question Omission of posting an amount in the ledger
Correct Answer Error of Omission
Your Answer Error of Omission

True/False
Question Non-operating / financial expenses are added while calculating net
profit.
Correct Answer False
Your Answer True

True/False
Question Balance sheet indicates the financial status of the business at given
period.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question A Budget Manual may contain the following particulars
Correct Answer Duties and responsibilities of various executives , Functions and
duties of Budget Officer , Scope of the Budget and area to be covered
Your Answer Duties and responsibilities of various executives , Functions and
duties of Budget Officer , Scope of the Budget and area to be covered

Select The Blank

Question Semi ________ overheads are neither ________ nor variable in
nature.
Correct Answer fixed
Your Answer variable
Correct Answer variable
Your Answer fixed

True/False
Question Due to errors of principle the arithmetical accuracy of the trial balance
does not get affected.
Correct Answer True
Your Answer True

Multiple Choice Multiple Answer

Question Direct Cost includes
Correct Answer Direct material , Direct labour , Direct expenses
Your Answer Direct material , Direct labour , Direct expenses

Select The Blank

Question Financial Accounting protects the interest of outsiders . it considers
________ transaction and it is a ________ requirement
Correct Answer historical
Your Answer historical
Correct Answer legal
Your Answer legal

True/False
Question Bin Card is having all the information of item received and issued.
Correct Answer False
Your Answer True

Select The Blank

Question Budgetary Control is useful for ________-and ________-as a
powerful tool in the hands of management
Correct Answer Cost control
Your Answer Cost control
Correct Answer Maximization of profits
Your Answer Maximization of profits

True/False
Question Accounting refers to the process of analyzing & interpreting the
information already recorded in the books of accounts.
Correct Answer True
Your Answer True

Multiple Choice Multiple Answer

Question The material Requisition note contains
Correct Answer Number and date , Department demanding the material ,
Signature of the authority approving the demand
Your Answer Number and date , Department demanding the material , Signature
of the authority approving the demand

Multiple Choice Multiple Answer

Question Following error affect the trial balance
Correct Answer Wrong totaling of subsidiary books , Posting on the wrong side of
an account , Omission of posting an account in the ledger
Your Answer Wrong totaling of subsidiary books , Posting on the wrong side of an
account , Omission of posting an account in the ledger

Select The Blank

Question Fixed overheads normally arise as a result of policy and are largely
________ in nature at the ________ level of the management
Correct Answer uncontrollable
Your Answer controllable
Correct Answer lower
Your Answer top

True/False
Question Budget is prepared for a fixed period of time.
Correct Answer True
Your Answer True

Multiple Choice Single Answer

Question Sold Goods of Amitabh worth Rs. 15,000 against 15% Trade discount.
The Goods worth appear on account ___________
Correct Answer 12750
Your Answer 12750

Multiple Choice Single Answer

Question This is not the non monetary incentive.
Correct Answer Co-partnership
Your Answer Co-partnership

Multiple Choice Multiple Answer

Question P/L A/C debit side includes
Correct Answer salary , discount allowed , postage & telegram
Your Answer salary , discount allowed , postage & telegram

Select The Blank

Question Along with financial accounting, ________ and ________ are the
other streams of accounting
Correct Answer Cost Accounting
Your Answer Cost Accounting
Correct Answer Management Accounting
Your Answer Management Accounting

True/False
Question A very wide scope of Management Accounting is the limitation by itself.
Correct Answer True
Your Answer True
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WEDNESDAY, MARCH 12, 2008

Management Accounting - 2

True/False
Question
Credit balances in all the Personal & Real accounts appear on asset side.
Correct Answer
False
Your Answer
False

Multiple Choice Multiple Answer

Question
Contents of Uniform Cost Manual are
Correct Answer
Organization , Cost Accounting system , Presentation of information
Your Answer
Organization , Cost Accounting system , Presentation of information

Multiple Choice Multiple Answer

Question
Uniform Costing Methods may be advantageously applied to . . .
Correct Answer
Single organization having number of branches. , Number of companies in same
industry , Similar Industries such as cotton, jute etc.
Your Answer
Single organization having number of branches. , Number of companies in same
industry , Similar Industries such as cotton, jute etc.

True/False
Question
1) Financial statements are basically in two forms i.e. profitability statement and
balance sheet.
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer

Question
The process of accounting has three streams of accounting ---------------,--------
and ----------------------.
Correct Answer
Financial Accounting , Cost Accounting , Management Accounting
Your Answer
Financial Accounting , Cost Accounting , Management Accounting

True/False
Question
Long term loan borrowed from financial institution comes under the heading of
long term liabilities.
Correct Answer
True
Your Answer
True

Match The Following

Question
Correct Answer
Your Answer
Book-Keeping
Books of Accounts
Books of Accounts
Financial statement
Profitability statement & Balance-sheet
Profitability statement & Balance-sheet
Accounting
Process of analyzing & interpretation
Process of analyzing & interpretation
Profitability statement
Indicates the amount of profit earned
Indicates the amount of profit earned
Balance-sheet
Financial status
Financial status

Multiple Choice Single Answer

Question
Judge the statement according to the criteria given : ' The accounting period for
XYZ Ltd. ends on 31st December, 2003. It is noted that office rent for the month
of December, 2003 is paid on 15th January, 2004. "According to concept of
matching expenses with the revenues, this expenditure should be recorded in the
books of accounts in January,
Correct Answer
The statement and its reason are both incorrect
Your Answer
The statement is correct but its reason is incorrect

Multiple Choice Multiple Answer

Question
Features of money measurement concept are . . .
Correct Answer
Only those transactions and facts are included expressed in terms of money are
considered , Imposes severe restrictions on the kind of information available
from financial statements , Works as a major drawback of financial accounting
Your Answer
Only those transactions and facts are included expressed in terms of money are
considered , Imposes severe restrictions on the kind of information available
from financial statements , Works as a major drawback of financial accounting

Multiple Choice Single Answer

Question
The installation and operation of ___________ accounting requires a very
elaborate organizational structure and large number of rules & regulations
Correct Answer
Management
Your Answer
Management

Select The Blank

Question
________account can be defined as the record of all the transactions pertaining
to a person, asset, liability income or expenditure which have taken place in a
specified period.
Correct Answer
Ledger
Your Answer
Trading

Match The Following

Question
Correct Answer
Your Answer
Sunk Cost
Historical Cost
Historical Cost
Cost Centre
Facilitate the fixation of responsibility
Facilitate the fixation of responsibility
Cost Control
Process of controlling costs of operations
Process of controlling costs of operations
Differential Cost
Increase or Decrease in cost
Increase or Decrease in cost
Multiple Choice Multiple Answer
Question
Which of the following transactions should be excluded while preparing a cost
sheet ?
Correct Answer
Interest on loan , Bad debts , Expenses on criminal law suit
Your Answer
Sale of scrap material , Interest on loan , Bad debts

True/False
Question
In a Balance-Sheet right hand side is referred as assets side and left hand side is
referred as liabilities.
Correct Answer
True
Your Answer
True

True/False
Question
Credit note is an intimation send to person dealing with the business that his
account being debited for the purpose indicated therein.
Correct Answer
False
Your Answer
False

True/False
Question
Primary distribution is effected on the basis of service rendered to the service
departments by the production departments.
Correct Answer
False
Your Answer
True

Multiple Choice Multiple Answer

Question
Marginal costing is found to be unsuccessful in the following situations :-
Correct Answer
Impossible to distinguish costs into fixed and variable component. , With respect
to capital intensive industries where fixed costs are very large and hence cannot
be ignored , With respect to service industries where employee costs are very
large and almost fixed in nature
Your Answer
Impossible to distinguish costs into fixed and variable component. , With respect
to capital intensive industries where fixed costs are very large and hence cannot
be ignored , With respect to service industries where employee costs are very
large and almost fixed in nature
True/False
Question
Debit Note is an intimation sent to person dealing with the business that his
account is being credited for the purpose indicated therein.
Correct Answer
False
Your Answer
True

Multiple Choice Multiple Answer

Question
Labour efficiency variance arises due to:
Correct Answer
Inefficient supervisor , Poor working conditions , Use of sub-standard quality of
material
Your Answer
Inefficient supervisor , Poor working conditions , Use of sub-standard quality of
material

True/False
Question
Financial Accounting discloses the financial performance & financial statements
of the business as a whole.
Correct Answer
True
Your Answer
True

True/False
Question
Balance sheet indicates the expenditure & income from the business.
Correct Answer
False
Your Answer
True

Select The Blank

Question
The indirect material cost, indirect labour cost and indirect expenses cost,
collectively are termed as ________.
Correct Answer
Overhead
Your Answer
Overhead

Select The Blank

Question
A person in charge of a ________ may be held responsible for its proper
functioning and cost control.
Correct Answer
Cost centre
Your Answer
Cost centre

Multiple Choice Multiple Answer

Question
The organization chart shows the following aspects :
Correct Answer
Functional responsibility of different functional managers , Delegation of
authority to various managers , Inter-functional relationships of these managers
Your Answer
Functional responsibility of different functional managers , Delegation of
authority to various managers , Inter-functional relationships of these managers

True/False
Question
Uniform costing system is a pre-requisite to an inter-firm comparison of firms
belonging to the different industries.
Correct Answer
False
Your Answer
False

True/False
Question
P&L statement which is a period statement & relates to a certain period tells
about results of operations.
Correct Answer
True
Your Answer
False

Select The Blank

Question
Depreciation charged on office furniture on straight line basis is an example of
________.
Correct Answer
Administration overheads
Your Answer
Administration overheads

True/False
Question
Under time rate system a worker is paid on the basis of production achieved by
him in a given time.
Correct Answer
False
Your Answer
False
Select The Blank
Question
Information as to the cost and profit / loss associated with the firm's operations
is provided to the ________ by Management accounting.
Correct Answer
Management
Your Answer
Management

True/False
Question
Danger level for inventory of materials means the safety stock of inventory.
Correct Answer
False
Your Answer
True

True/False
Question
The role of the budget committee may be taken as an advisory role to the Chief
Executive.
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer

Question
The main advantages of profit sharing are :
Correct Answer
Employees try to increase productivity , Incentives are shared by all the
employees , Augments emplyees' efficiency
Your Answer
Employees try to increase productivity , Incentives are shared by all the
employees , Augments emplyees' efficiency

Select The Blank

Question
________ Accounting assists the management in establishing the plans to
attain the economic objectives and take proper decisions for the attainment of its
objectives.
Correct Answer
Management
Your Answer
Management

Multiple Choice Multiple Answer

Question
Which of the following is likely to be a contributory factor to the incidence of
excess expenditure on material cost?
Correct Answer
The level of control of the used of material in the production cycle , The incorrect
choice of purchase order quantity , Failure to control the issue of materials from
stores
Your Answer
An increase in the maximum material inventory level , The incorrect choice of
purchase order quantity , Failure to control the issue of materials from stores

Multiple Choice Multiple Answer

Question
Management accounting is concerned with the following activities :
Correct Answer
Decision making , Safeguarding assets , Planning and controlling activities
Your Answer
Decision making , Safeguarding assets , Planning and controlling activities

Multiple Choice Multiple Answer

Question
Features of double entry accounting system are . . .
Correct Answer
Every business transaction has two elements , When business receives
something, it has to pay something , Every debit has a corresponding credit
Your Answer
Every business transaction has two elements , When business receives
something, it has to pay something , Every debit has a corresponding credit

Select The Blank

Question
Under Differential Time Rate method payment is made at Rs. 1.40 per hour when
the level of efficiency is between________.
Correct Answer
90% to 100%
Your Answer
90% to 100%

True/False
Question
Maintenance Department is a service cost centre.
Correct Answer
True
Your Answer
True

True/False
Question
The process of accounting split into three steams i.e. financial, cost, management
accounting.
Correct Answer
True
Your Answer
True

Select The Blank

Question
The difference between sales and cost of sales is termed as ________.
Correct Answer
Net Profit
Your Answer
Net Profit

Select The Blank

Question
The final result disclosed by trading account is the ________profit earned by
the organization.
Correct Answer
Gross
Your Answer
Gross

Multiple Choice Multiple Answer

Question
Select the accounts to be disclosed on the liability side of the Balance sheet.
Correct Answer
Loan , Outstanding expenses , Creditors
Your Answer
Loan , Outstanding expenses , Creditors

True/False
Question
Penalty paid for delay in payment to creditors represents uncontrollable cost.
Correct Answer
False
Your Answer
False

Multiple Choice Single Answer

Question
Which document facilitates estimating material cost of a particular job, before
completion of that job?
Correct Answer
Bill of material
Your Answer
Material requisition note

Multiple Choice Single Answer

Question
Purchases returns of Rs.18,000/- were wrongly transferred to the sales returns
account. Calculate its impact on net profit.
Correct Answer
The net profit will not be affected
Your Answer
The net profit will not be affected

Multiple Choice Single Answer

Question
It is said that adoption of uniform costing creates customer confidence because . .
.
Correct Answer
Prices are reliable
Your Answer
Prices are reliable

Multiple Choice Single Answer

Question
An order for goods worth Rs.18,000/- was placed on 25th March, 2004. The
goods were received on 1st April, 2004. Calculate the impact of this transaction
on the final statements of accounts for the year ended 31st March, 2004.
Correct Answer
The net profit will not be affected
Your Answer
The net profit will not be affected
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Management Accounting - 1

Select The Blank

Question
Furniture account will always have a ________ balance.
Correct Answer
Debit
Your Answer
Nil

Multiple Choice Multiple Answer

Question
Accounting is the art where transactions are …
Correct Answer
Summarized , Classified , Recorded
Your Answer
Summarized , Classified , Recorded

True/False
Question
The phrase 'By Balance c/d.' written on the credit side of the rent account,
indicates credit balance for this account.
Correct Answer
False
Your Answer
False

Select The Blank

Question
The ________ variance is the difference between the actual variable overhead
incurred and the standard variable overhead charged to production.
Correct Answer
Total variable overhead
Your Answer
Total variable overhead

True/False
Question
Accounting refers to the process of analyzing & interpreting the information
already recorded in the books of accounts.
Correct Answer
True
Your Answer
True

Select The Blank

Question
The selection of ________ may depend upon the various factors like
characteristics of the business organisation, tax considerations, statutory
requirements etc.
Correct Answer
Accounting period
Your Answer
Accounting period

True/False
Question
Standard costs are used for external reporting.
Correct Answer
False
Your Answer
False

True/False
Question
It is said that the income statement represents wealth increase /decrease for the
organisation.
Correct Answer
True
Your Answer
False

Multiple Choice Single Answer

Question
Mr. Oak, materials manager, spends 40% time in the factory and the remaining
in office. If his annual salary is Rs.500,000/-, what amount should be charged as
office overheads ?
Correct Answer
Rs.300,000/-
Your Answer
Rs.200,000/-

Multiple Choice Multiple Answer

Question
The factors to be considered while preparing the direct materials budget are :
Correct Answer
Adequacy of material storing space , Availability of funds , Material in stores but
reserved for specific purposes
Your Answer
Adequacy of material storing space , Availability of funds , Material in stores but
reserved for specific purposes

Multiple Choice Multiple Answer

Question
In which of the following situations, the flexible budget should be preferred?
Correct Answer
Sales are too difficult to predict , Supply level of input cannot be predicted ,
Varying levels of production activity
Your Answer
Sales are too difficult to predict , Supply level of input cannot be predicted ,
Varying levels of production activity

Multiple Choice Multiple Answer

Question
Techniques of management accounting include:
Correct Answer
Marginal costing , Budgetary control , Standard costing
Your Answer
Marginal costing , Cost control , Budgetary control , Standard costing

Match The Following

Question
Correct Answer
Your Answer
Profit and loss account
Commission received
Dividend paid
Manufacturing account
Work in Progress
Land & Building
Balance Sheet
Land & Building
Closing stock of finished goods
Trading account
Closing stock of finished goods
Work in Progress

True/False
Question
While preparing the labour cost budget, factors such as overtime working or
night shift working may be ignored.
Correct Answer
False
Your Answer
False

Multiple Choice Multiple Answer

Question
If the sales forecast is less than the past sales but the top management insists
upon a certain amount of additional profits, then following steps can be taken to
achieve the target profit
Correct Answer
Increase the selling price , Reduce cost of sales , Increase the selling efforts
Your Answer
Increase the selling price , Increase the sales volume , Increase the selling efforts

Multiple Choice Multiple Answer

Question
From the following, select intangible assets:
Correct Answer
Goodwill , Patents , Trade Marks
Your Answer
Patents , Trade Marks , Investments

True/False
Question
Bank reconciliation statement must be prepared before the preparation of profit
and loss account and balance sheet.
Correct Answer
True
Your Answer
False

Multiple Choice Single Answer

Question
Find the budget which is inadequate as a cost control technique :
Correct Answer
Fixed budget
Your Answer
Fixed budget

True/False
Question
Predetermined rate of absorption of overheads helps in quick preparation of cost
estimates and quoting prices.
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer

Question
Net sales Rs,7,50,000/-, opening stock Rs.1,14,375/-, purchases Rs.483,375/-
and closing stock Rs.1,47,750/-. Calculate the Gross Profit.
Correct Answer
Rs.3,00,000/-
Your Answer
Rs.3,00,000/-

Select The Blank

Question
________ is an example of intangible asset.
Correct Answer
Goodwill
Your Answer
Land

True/False
Question
Accounting is an art of recording, classifying & summarizing in a significant
manner.
Correct Answer
True
Your Answer
True

True/False
Question
Goods sent to the customers on approval basis should be treated as sales.
Correct Answer
False
Your Answer
False

Multiple Choice Multiple Answer

Question
Features of Sunk cost are . . .
Correct Answer
Indicates historical cost , Not relevant in decision making process , Incurred in
past
Your Answer
Indicates historical cost , Incurred in past , Relevant in decision making process

True/False
Question
Profitability statement indicates the amount of assets & liabilities.
Correct Answer
False
Your Answer
True

True/False
Question
A business is an activity carried out with the intention of earning the profit.
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer

Question
Identify the steps involved in selecting the optimum product mix, when the
limiting factor is number of labour hours and sales demand.
Correct Answer
For each product find the contribution per unit and per labour hour , Award
ranks to each of the products based on contribution per limiting factor , Priority
is given to fulfill the market demand of the product which gives maximum
contribution per labour hour.
Your Answer
For each product find the contribution per unit and per labour hour , Award
ranks to each of the products based on contribution per limiting factor , Priority
is given to fulfill the market demand of the product which gives maximum
contribution per labour hour.

Multiple Choice Multiple Answer

Question
Techniques of management accounting include:
Correct Answer
Marginal costing , Budgetary control , Standard costing
Your Answer
Marginal costing , Cost control , Budgetary control

True/False
Question
The ideal budget period for a company engaged in generation and distribution of
electricity is one year.
Correct Answer
False
Your Answer
False

Select The Blank

Question
The ________ adjustment is necessary to relfect the cost for the use of fixed
asset during the year.
Correct Answer
Depreciation
Your Answer
Depreciation

True/False
Question
According to Reducing Balance Method, the depreciation is provided at a
predetermined percentage on the balance of cost of asset after deduction of the
depreciation previously charged.
Correct Answer
True
Your Answer
True

Select The Blank

Question
Crane expenses should be apportioned on the basis of ________.
Correct Answer
Number of hours crane worked in the department
Your Answer
Number of hours crane worked in the department

Multiple Choice Multiple Answer

Question
Essentials for effective implementation of budgetary control system are
Correct Answer
Commitment of top management , Clearly defined objectives , Continous budget
education
Your Answer
Commitment of top management , Clearly defined objectives , Continous budget
education

Multiple Choice Single Answer

Question
Commission payable to General Manager is 10 % of the net profits. If the net
profit before charging commission is Rs.29,200/-, then what will be the amount
of his net profit after commission?
Correct Answer
Rs.26,545.45
Your Answer
Rs.29,200/-

Select The Blank

Question
A forecast is mere estimate of what is likely to happen, but ________ is the
action plan to be followed.
Correct Answer
Budget
Your Answer
Budget

True/False
Question
A very wide scope of Management Accounting is the limitation by itself.
Correct Answer
True
Your Answer
True

Select The Blank

Question
The combination in which different products are sold by a company is known as
________.
Correct Answer
Sales mix
Your Answer
Sales mix

Multiple Choice Single Answer

Question
The reporting method used in the costing system should be based on the
principle of
Correct Answer
Management by exception
Your Answer
Management by objectives

True/False
Question
Balance sheet indicates the financial status of the business at given period.
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer

Question
The wages paid to maintenance department workers who do repair work
principally for production departments but also on the vehicles in the
distribuiton department shoud be charged as:
Correct Answer
Service costs
Your Answer
Service costs

Multiple Choice Single Answer

Question
M/s Vivek Enterprises has paid rent relating to the residence of Mr. Vivek,
proprietor of Vivek Enterprises. This payment should be treated as
Correct Answer
Drawings
Your Answer
Capital

Select The Blank

Question
Measurement of ________ gives an idea of the degree of mobility of labour.
Correct Answer
Labour turnover
Your Answer
Labour turnover

Multiple Choice Single Answer

Question
Net profit for the year before charging commission to the manager, is
Rs.111,775/-. The manager of the company is entitled to commission @ 8% on net
profits after charging commission. Find the amount of commission due to the
manager.
Correct Answer
Rs.8,279.63
Your Answer
Rs.8,942/-

Match The Following

Question
Correct Answer
Your Answer
Total cost
Cost of finished goods
Cost of finished goods
Non operating income
Profit on sale of investment
Profit on sale of investment
Selling and distribution overheads
Advertisement expenses
Advertisement expenses
Factory overheads
Repair for factory building
Repair for factory building

True/False
Question
Control on purchase of material is exercised by the storekeeper.
Correct Answer
False
Your Answer
True
Multiple Choice Single Answer
Question
A company wishes to earn a 15% profit margin on selling price when quoting for a
job. Which of the following is the profit margin of cost which will achieve the
required profit margin ?
Correct Answer
0.1765
Your Answer
0.15

Select The Blank

Question
Economical use of labour, materials and facilities can achieved with the help of
________.
Correct Answer
Budgetary control
Your Answer
Cost control