Match The Following Question Correct Answer Your Answer 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 Your 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 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 at 6:44 AM 1 comments Links to this post Labels: Management Accounting

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 at 6:35 AM 2 comments Links to this post Labels: Management Accounting

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 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 at 9:29 PM 0 comments Links to this post Labels: Management Accounting (Set II)

Wednesday, April 8, 2009

Management Accounting - 5
LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Multiple Answer Question The selection of the supplier may depend upon the following aspects: Correct Answer Geographical location of the supplier , Price quoted by the supplier , Goodwill of the supplier Your Answer Geographical location of the supplier , Price quoted by the supplier , Goodwill of the supplier Multiple Choice Single Answer Question Net book value of loose tools as on 1st April, 2003 was Rs.45,000/-. As on 31st March, 2004 the management felt that the real worth of these loose tools is only Rs.30,000/-. What can be done to achieve the desired reduction in the net book value of loose tools? Correct Answer By providing depreciation to the extent of Rs.15,000/Your Answer By providing depreciation to the extent of Rs.15,000/True/False Question

Overhead absorption rate will be different at different capacity levels. Correct Answer True Your Answer True Select The Blank Question The budget that represents the funds investment for expansion, diversification, etc. is known as ________. Correct Answer Capital expenditure budget Your Answer Capital expenditure budget 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 Multiple Choice Single Answer Question The cost that indicates historical cost, which is incurred in past, is known as Correct Answer Sunk cost Your Answer Sunk cost 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 Select The Blank Question Factory cost of a product is Rs.335,000/-, if the selling overheads are charged @25% of factory cost, then the amount of selling overheads

should be Rs.________/Correct Answer 83750 Your Answer 83750 Select The Blank Question Uniform costing is not a separate method of ________. Correct Answer cost accounting Your Answer cost accounting Multiple Choice Multiple Answer Question Which of the following budgets may be termed as a long term budget? Correct Answer Capital expenditure budget , Research and Development expenditure budget , Budget of a transportation company Your Answer Capital expenditure budget , Research and Development expenditure budget Multiple Choice Single Answer Question The following figures relate to a company manufacturing a varied range of products : Year 2003 Total sales Rs.22,23,000/- and total cost Rs.19,83,600/-. Year 2004 : Total sales Rs.24,51,000/- and Total cost Rs.21,43,200/-. Assuming stability in prices, calculate the profit volume ratio Correct Answer 0.3 Your Answer 0.3 Multiple Choice Single Answer Question The cost of idle time incurred by employees that is considered normal for the production process should be charged to : Correct Answer Factory overheads Your Answer Direct labour Select The Blank Question

Creche expenses may be appropriately approtioned on the basis of ________. Correct Answer Number of female workers Your Answer Number of female workers Multiple Choice Single Answer Question Opening stock of Rs.1,80,000/-, purchases Rs.8,00,000/-, freight inward Rs.35,000/-, closing stock Rs.2,00,000/-, direct wages Rs.2,35,000/-. Calculate the prime cost. Correct Answer Rs.10,50,000/Your Answer Rs.10,70,000/Multiple Choice Multiple Answer Question Limitations of Management Accounting includes------------------Correct Answer Its wide scope , Possibility of intuitive decision , Requires elaborate organizational structure Your Answer Its wide scope , Possibility of intuitive decision , Requires elaborate organizational structure Select The Blank Question Indirect Cost is termed as ________. Correct Answer Overhead Your Answer Overhead Multiple Choice Multiple Answer Question Features of Financial Accounting includes----------------Correct Answer It is a legal requirement , It protects the interest of outsiders , It considers historical transactions Your Answer It is a legal requirement , It protects the interest of outsiders , It considers historical transactions Multiple Choice Multiple Answer Question

Identify the budgets for which the production manager sould be held responsible : Correct Answer Production budget , Production overheads budget , Plant utilisation budget Your Answer Production budget , Production overheads budget , Plant utilisation budget Multiple Choice Single Answer Question A group of 10 men and 20 women workers were expected to produce 400 units of a product in an 8 hour day. The standard hourly rate was fixed at Rs.25/- and Rs.15/-, respectively.Actually, a group of 15 men and 10 women workers was deployed and paid for 8 hours a day at an hourly rate of Rs.22/- and Rs.18/-, respectively. Two hours were wasted for the entire group due to power failure and only 300 units were produced. Calculate labour rate variance. Correct Answer Rs.120/- (Favourable) Your Answer Rs.150/- (Favourable) Multiple Choice Multiple Answer Question Techniques of management accounting include: Correct Answer Marginal costing , Budgetary control , Standard costing Your Answer Cost control , Budgetary control , Standard costing True/False Question A grinding machine is an example of impersonal cost centre 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

Uniform costing system is useful in the following areas Correct Answer Classification of cost accounts Your Answer Preparing financial statements Multiple Choice Multiple Answer Question The features of multiplicity of key factors are as follows : Correct Answer More than one key factors , Refers to a complex situation , Can be resolved by using linear programming technique Your Answer More than one key factors , Refers to a complex situation , Can be resolved by using linear programming technique True/False Question Balance sheet indicates the expenditure & income from the business. Correct Answer False Your Answer False True/False Question Interim dividend paid by the company should be debited to the profit and loss appropriation account. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question A materials requisition form normally contains the following aspects: Correct Answer Quantity requisitioned , Per unit material cost , Job number Your Answer Quantity requisitioned , Job number Multiple Choice Multiple Answer Question The production budget may be prepared in terms of : Correct Answer Units produced , Production cost , Material cost, labour cost and overheads

Your Answer Units produced , Production cost , Material cost, labour cost and overheads Multiple Choice Single Answer Question Panna Ltd. temporarily has excess production capacity. The idle plant facilties can be used to manufacture a low-margin item. The low-margin item should be produced if it can be sold for more than its: Correct Answer Variable costs Your Answer Variable costs 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 , Reduce cost of sales True/False Question Receipts and payments method of cash budget is useful for preparing long term estimates. Correct Answer False Your Answer False Multiple Choice Multiple Answer Question Select the advantages of standard cost system. Correct Answer Provides reliable basis for budgeting , Facilitates delegation of authority , Promotes economy and efficiency Your Answer Provides reliable basis for budgeting , Facilitates delegation of authority True/False Question The sales mix variance highlights the fact that the actual mix of sales has

been in the same ratio as budgeted. Correct Answer False Your Answer False Select The Blank Question In case of seasonal industry, the budget period may be taken as ________. Correct Answer One season Your Answer One season True/False Question Lack of efficient control on various aspects related to raw-material increases the material cost component of the finished product. Correct Answer True Your Answer True True/False Question Due to compensating errors the arithmetical accuracy of the trial balance is affected. Correct Answer False Your Answer False Multiple Choice Single Answer Question Material price variance for a job is Rs.800/- (Favourable). Actual quantity of material used is 100 kg whereasthe standard quantity of material is 120% of actual quantity. Actual price paid for the material is 80% of the standard price. Calculate material cost variance. Correct Answer Rs.1,600/- (Favourable) Your Answer Rs.800/- (Favourable) Select The Blank Question The process of recording the business transactions in a defined set of

records is referred to as ________. Correct Answer Balance sheet Your Answer Profit and Loss Account Match The Following Question Correct Answer Your Answer Daily Time sheets Time spent by worker on job is recorded Time spent by worker on job is recorded Time Keeping Department Recording of workers time Recording of workers time Time booking department Jobwise booking of time. Jobwise booking of time. Time Recording Clock Method Ticket number & clock card allotted to worker Ticket number & clock card allotted to worker True/False Question Purchased goods by paying Rs.35,000/-: In this case, the cash account should be debited. Correct Answer True Your Answer True Select The Blank Question If the customer is not likely to pay the amount receivable from him, this amount should to be treated as ________. Correct Answer Bad debts Your Answer Bad debts True/False Question Accounting is an art of recording, classifying & summarizing in a significant manner. 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 True/False Question The problem of multiple key factors can be solved with the help of techniques like linear programming, operations research, etc. Correct Answer True Your Answer True Select The Blank Question The ________ books are preferred when the volume of transactions is very large. Correct Answer Subsidiary Your Answer Journal Multiple Choice Multiple Answer Question If you are required to enforce uniform costing system in your industry, how would you proceed ? Correct Answer Collecting data from all units of your industry , Ensuring that the data

collected is complete and correct , Maintaining secrecy of the data collected Your Answer Collecting data from all units of your industry , Ensuring that the data collected is complete and correct , Allowing free access to all the units to the collected data True/False Question All costs are controllable. Correct Answer False Your Answer False at 6:03 AM 1 comments Links to this post Labels: Management Accounting (Set II)

Monday, August 11, 2008

Management Accounting - 4
LIST OF ATTEMPTED QUESTIONS AND ANSWERS True/False Question 1) Financial statements are basically in two forms i.e. profitability statement and balance sheet. Correct Answer True Your Answer True 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 Management Accounting is the process of analysis and interpretation of financial data collected with help of financial accounting and cost accounting Correct Answer True Your Answer True 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 True True/False Question Cost Accounting is concerned with calculation of the profitability and state of affairs of the organization as a whole. Correct Answer False Your Answer False True/False Question Financial accounting may deal with the ascertainment of cost & calculation of profitability of the individual product. Correct Answer False Your Answer False True/False Question Management Accounting aims at enabling the management to take the decisions about the future. It may consider future data as well as non-financial factors. Correct Answer True Your Answer True True/False Question Financial Accounting primarily protects the interests of the outsiders dealing with organization in various capacities. Correct Answer True Your Answer True Match The Following Question Correct Answer Your Answer Financial Accounting Systematic recording of business transactions Systematic recording of business transactions Cost Accounting Ascertainment of cost Ascertainment of cost Management Accounting Analyzing & interpretation of financial data Analyzing & interpretation of financial data Accounting Art of interpreting & classifying business transaction Art of interpreting & classifying business transaction Book Keeping Recording of business transactions Recording of business transactions Match The Following Question Correct Answer Your Answer Bills Payable Amount payable to supplier Amount payable to supplier Bills Receivable Amount received from the customer Amount received from the customer Trade Discount Not accounted for in the books of Accounts Not accounted

for in the books of Accounts Cash Discount Accounted for in the books of Accounts Accounted for in the books of Accounts Bad debts Amount not received from customer Amount not received from customer True/False Question Amount invested in purchasing Fixed Asset is a revenue expenditure. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question Going Concern Concept __________________ Correct Answer Indefinite longer period , Not likely to close down in shorter period , This affects the values of asset and liabilities Your Answer Indefinite longer period , Not likely to close down in shorter period , This affects the values of asset and liabilities Multiple Choice Multiple Answer Question Cost of asset is 1,20,000, estimated scrap value 20,000, cost of assets subjected to depreciation 2,00,000, rate of depreciation is 10%. Calculate depreciation for 3 yrs as per the reducing balance m Correct Answer 20,000,18,000,16,200 Your Answer 20,000,18,000,16,200 Multiple Choice Multiple Answer Question Profit & Loss A/C credit side has Correct Answer Gross profit , Commission received , Interested received Your Answer Gross profit , Commission received , Interested received Multiple Choice Single Answer Question Juhi started business with Rs borrowed capital of Rs. 1,00,000 with 10% interest per year. What is the total amount of the capital Correct Answer 1,10,000 Your Answer 90,000 True/False Question Cheques issued but not yet presented the balance as per the bank pass book will be higher. Correct Answer True Your Answer False Multiple Choice Single Answer Question This cost indicates historical cost which is incurred in past. Correct Answer Sunk cost Your Answer Sunk cost

Multiple Choice Single Answer Question Labour cost is the cost of __________ paid to employees of the organization. Correct Answer Remuneration Your Answer Remuneration Multiple Choice Single Answer Question Company having opening stock of Rs. 1,80,000 purchase Rs. 8,00,000. Freight Inward Rs, 35000 & closing stock Rs. 2,00,000, having direct wages Rs. 2,35,000. What will be prime cost. Correct Answer 10,50,000 Your Answer 10,50,000 Multiple Choice Multiple Answer Question For the proper interpretation and presentation of cost the overhead further classified as Correct Answer Factory overheads , Office and administration overheads , Selling & distribution overhead Your Answer Factory overheads , Office and administration overheads , Selling & distribution overhead True/False Question Valuation of returns indicates the material returned by store department to production department Correct Answer False Your Answer False True/False Question The wage payment system should take into consideration the external obligations such as the Minimum wages Act and the agreement entered into by the organization with the workers. Correct Answer True Your Answer True True/False Question A good wage payment system will punish the workers for the matters beyond the control of the workers. Correct Answer False Your Answer False Multiple Choice Multiple Answer Question These are the features of fixed overheads Correct Answer total cost remains the same , per unit cost may vary , not dependent on volume of output Your Answer total cost remains the same , per unit cost may vary , not dependent on volume of output

True/False Question Under marginal costing technique only fixed costs are considered as relevant for decision making. Correct Answer False Your Answer False True/False Question Product mix refers to the proportion in which various products of a company can be sold. Correct Answer True Your Answer True Multiple Choice Single Answer Question The cost that varies in direct proportion with the level of activity is called Correct Answer variable cost Your Answer variable cost Multiple Choice Multiple Answer Question Basic assumptions made by marginal costing are Correct Answer per unit selling price remains constant at all the levels of activities. , whatever is produced by the organisation is sold off. , per unit variable cost remain constant. Your Answer per unit selling price remains constant at all the levels of activities. , whatever is produced by the organisation is sold off. , per unit variable cost remain constant. Multiple Choice Single Answer Question Calculate Volume Variance, If budgeted production is 20,000 units, actual production is 22,000 units and Standard rate per unit is Rs.1.5/-. Correct Answer Rs.3,000/- ( Favorable ) Your Answer Rs.3,000/- ( Favorable ) Multiple Choice Single Answer Question Calculate Sales Price Variance, If actual price is Rs.5.40/- per unit, Standard price is Rs.5/- per unit and actual sales volume is 500 units. Correct Answer Rs.200/- ( Favorable ) Your Answer Rs.200/- ( Favorable ) Multiple Choice Single Answer Question Standard Costs are used as tool for Correct Answer Cost Control Your Answer Price fixation

Multiple Choice Single Answer Question Standard Costing specifically relates to the function of Correct Answer Production Your Answer Production True/False Question Uniform Costing disturbs the healthy competition in the industry Correct Answer False Your Answer True Multiple Choice Multiple Answer Question Uniform Costing Methods may be advantageously applied Correct Answer In single organization having number of branches. , Number of companies in same industry. , Similar Industries such as cotton, jute etc. Your Answer In single organization having number of branches. , Number of companies in same industry. , Similar Industries such as cotton, jute etc. Multiple Choice Multiple Answer Question The following factors affects the budgeted advertisement cost Correct Answer Percentage of profits , Availability of funds , Competitors policy Your Answer Percentage of profits , Availability of funds , Competitors policy Multiple Choice Multiple Answer Question In Cash budget , Operating cash outflow includes Correct Answer Payment to Creditors , Cash purchases of raw material , Wages/salaries Your Answer Payment to Creditors , Cash purchases of raw material , Wages/salaries Multiple Choice Multiple Answer Question Characteristics of budget can be said to be Correct Answer It may be prepared in terms of quantity or money or both , It is prepared for a fixed period of time , It spells out objectives to be attained Your Answer It may be prepared in terms of quantity or money or both , It is prepared for a fixed period of time , It spells out objectives to be attained Select The Blank Question Like initial formation expenses, ________ and R & D are the examples of Deferred Revenue Expenditure Correct Answer Initial Advertisement Your Answer Purchase of an asset

Correct Answer R & D Your Answer Select The Blank Question If ________ is not provided, the asset may appear in the Balance Sheet at an ________ amount Correct Answer depreciation Your Answer depreciation Correct Answer overstated Your Answer overstated Select The Blank Question If ________ books are the books which record the transactions in the chronological order, ________ is the book where transactions of a similar nature are pooled together Correct Answer subsidiary Your Answer jornal Correct Answer ledger Your Answer ledger Select The Blank Question While selecting source of supply ________ epartment may call for the ________ from the prospective suppliers Correct Answer purchase Your Answer purchase Correct Answer quotation Your Answer quotation Select The Blank Question Preventive costs of labour turnover refers to all the costs which may be incurred by the organisation to keep workers happy and ________ them from ________ the job Correct Answer discourage Your Answer discourage Correct Answer leaving Your Answer leaving Select The Blank Question 4.Under the differential time rate method the wages are paid at Rs. 1.50 per hour between ________ efficiency and Rs.1.25 per hour between ________ efficiency Correct Answer 101% to 125 % Your Answer 101% to 125 % Correct Answer 80% to90% Your Answer 80% to90% Select The Blank

Question Expenditure like general lighting are apportioned considering ________ as a base and expenditure like depreciation are apportioned considering ________ as a base. Correct Answer number of light points Your Answer number of light points Correct Answer value of assets Your Answer value of assets Select The Blank Question ________ and ________ are examples of element wise classification ofoverhead costs Correct Answer Idirect material Your Answer Idirect material Correct Answer indirect labour Your Answer indirect labour Select The Blank Question Break even point is a situation of no ________ no ________ Correct Answer profit Your Answer profit Correct Answer loss Your Answer loss Select The Blank Question A key factor is defined as the factor which, at a particular point of time or over a period will ________ the volume of ________ Correct Answer limit Your Answer limit Correct Answer output Your Answer output