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Multiple Choice Single Answer Question Insurance premium of Rs.18,000/- was paid on 15th January, 2004. The policy period is one year from the date of payment of insurance. On 31st March, 2004 what amount should be debited to the Profit and Loss account as expenditure on account of insurance premium? Correct Answer Rs.3,750/Your Answer True/False Question Rs.18,000/-

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

True/False Question

Uniform costing system is defined as a system using common concepts and standard accounting practices by different entities in different industry to facilitate inter-firm comparison. Correct Answer True Your Answer True

Select The Blank Question The analysis which is also referred as 'what if' analysis is known as________. Correct Answer Cost volume profit analysis Your Answer Cost variance analysis

Select The Blank Question In case of seasonal industry, the budget period may be taken as ________. Correct Answer One season Your Answer One season

Match The Following Question Correct Answer

Your Answer

Basic Standards Current Standards Expected Standards

Established for a longer period of time Established for a shorter period of time

Once established can never be altered Established for a shorter period of time

Anticipated to be Anticipated to be achieved in the budget achieved in the budget period period Anticipated to be achieved in future Anticipated to be achieved in future

Normal Standards

True/False Question

Receipts and payments method of cash budget is useful for preparing long term estimates. Correct Answer False Your Answer True

Select The Blank Question The final result disclosed by Profit & Loss Account is the ________ profit after taxes earned by the organization. Correct Answer Net Your Answer True/False Question Net

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

Multiple Choice Multiple Answer Question Purchased goods worth Rs.6,450/- on 10th March,

2004. However the goods were delivered directly to the plant situated at Nagar and hence this transaction was not recorded in the purchase book, which is maintained at the corporate office. Analyse the impact of this transaction. Correct Answer The gross profit will increase by Rs.6,450/Your Answer The purhases will increase by Rs.6,450/- , The closing stock will increase by Rs.6,450/- , The gross profit will increase by Rs.6,450/-

True/False Question

Marginal costing is a technique of cost control.

Correct Answer True Your Answer True

Multiple Choice Single Answer Question The overheads of a machine shop X should be apportioned using which of the following basis? Correct Answer Machine hours Your Answer Machine hours

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 , Per unit material cost Select The Blank Question Interest on ________ is credited to Capital account. Correct Answer Capital Your Answer Liabilities

Multiple Choice Single Answer Question XYZ Ltd. has sufficient idle capacity. It has received an enquiry for the supply of 300 units (packed in better box at an additional cost of Rs.20/- per box). The variable cost of manufacturing the product is Rs.150/-. The company expects a profit of Rs.6,000/- from this

wholesale offer. What minimum price should it quote for this deal? Correct Answer Rs.190/Your Answer Rs.190/-

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 Select The Blank Question The variance which denotes the variation in overhead recovery due to the budgeted quantity of products being greater or less than actual production, is known as ________ variance. Correct Answer Volume Your Answer Volume

Multiple Choice Multiple Answer Question Identify the causes due to which the cost of labour may be high: Correct Answer Excess staffing , Lack of experienced and efficient personnel , High labour turnover Your Answer Excess staffing , High labour turnover Multiple Choice Single Answer Question In the determination of factory overhad application rates, the numerator of the formula is the : Correct Answer Estimated factory overhead for the next period Your Answer Estimated factory overhead for the next period

Select The Blank Question If Rs.15,000/- has been paid to Kargil Relief Fund as the owner's personal contribution, ________ account should be debited in the books of accounts of the business. Correct Answer Drawings

Your Answer True/False Question

Cash

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

True/False Question

Generally speaking income represents wealth increase and business success; higher the income, lower will be the success of a business. Correct Answer False Your Answer False

Select The Blank Question The ________ is a perpetual inventory record. Correct Answer Bin card Your Answer True/False Question Bin card

It is said that marginal costs are used primarily in guiding decisions that are yet to be made. Correct Answer True Your Answer True

True/False Question

Factory rent is a direct cost to the factory as a whole but indirect to the production departments. 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 Multiple Answer Question The productive causes of idle time are : Correct Answer Instructions are not clearly given , Power failures , Machine breakdown Your Answer Instructions are not clearly given , Power failures , Machine breakdown Select The Blank Question The document which lays down the cost accounting plans and procedures to be followed by the constituent units is known as ________. Correct Answer uniform cost manual Your Answer True/False Question operating manual

Time-keeping facilitates the preparation of payroll.

Correct Answer True Your Answer True/False Question True

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

Multiple Choice Single Answer Question Metal India Ltd. is holding two accounts, savings and current, with the Central Bank of India. On 31st January, 2004 his ledger shows the following balances : Savings account Rs.5,000/-; Current accountRs.2,250/- (overdraft). It is found that a deposit of Rs.1,500/- made into the savings account on 20th January, 2004 has been entered in the ledger in the of Current account. Find the correct ledger balances of savings and current accounts. Correct Answer Savings account-Rs.6,500/-, current accountRs.3,750/- (overdraft) Your Answer Savings account-Rs.5,000/-, current accountRs.3,750/- (overdraft

Multiple Choice Single Answer Question The features of the Halsey Plan are: Correct Answer The benefit of time saved is divided equally between the employer and employee Your Answer The benefit of time saved is divided unequally between the employer and employee 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/-

Multiple Choice Multiple Answer Question Cost control procedure deals with : Correct Answer Establishment of plans , Comparison of actual and planed performance , Computation of variance Your Answer Establishment of plans , Computation of profit , Comparison of actual and planed performance , Computation of variance Multiple Choice Single Answer Question What will be the impact of following transactions on the cost of a lathe machine : (a) Transport charges on the lathe machine were debited to Carriage inward account, Rs.1,100/- (b) Cost of installing the machine stands debited to miscellaneous expenses account, Rs.200/Correct Answer Cost will increase by Rs.1,300/Your Answer Cost will decrease by Rs.1,300/-

Multiple Choice Multiple Answer Question The principal functions of the cost accounting department are : Correct Answer Classifying labour cost according to jobs, processes, etc. , Preparation of different reports based on direct, indirect labour cost, etc. , To focus on areas where labour cost may be reduced. Your Answer Preparation of different reports based on direct, indirect labour cost, etc. , To focus on areas where labour cost may be reduced.

LIST OF ATTEMPTED QUESTIONS AND ANSWERS 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 Multiple Answer Question Features of convention of consistency are . . . Correct Answer The accounting policies and procedures should be followed consistently , Facilitates the comparison of financial statements , It facilitates comparison of financial statements on period-toperiod basis Your Answer The accounting policies and procedures should be followed consistently , It facilitates comparison of financial statements on period-to-period basis True/False Question

The bin card and stores ledger, being independent records, comparison of these two records should be avoided. Correct Answer False Your Answer False

Match The Following Question Dividend paid Freight inwards Sales Freight outwards

Correct Answer Profit and loss appropriation account Manufacturing account Trading account Profit and loss account

Your Answer Profit and loss account Manufacturing account Capital account Trading account

Select The Blank Question Large angle of incidence indicates ________ amount of profits. Correct Answer higher Your Answer same

True/False Question

Error of commission refer to a situation where a transaction is not recorded in the books of account. Correct Answer False Your Answer True

Multiple Choice Single Answer Question Relevant costs in decision making are : Correct Answer Those costs which will arise as a result of the proposed action Your Answer Those costs which will arise as a result of the proposed action

Select The Blank Question ________is the summary of all the balances in all the accounts listed in ledger account of an organization at any given point of time. Correct Answer Trial Balance Your Answer Trial Balance

Multiple Choice Multiple Answer Question Overhead capacity variance is the outcome of: Correct Answer Shortage of labour , Enforced idle time, e.g.power breakdowns , Customer demand being more or less than anticipated Your Answer Shortage of labour , Enforced idle time, e.g.power breakdowns , Customer demand being more or less than anticipated True/False Question

Factory overheads consist of all overhead costs incurred from the stage of procurement of material till the production of finished goods. Correct Answer True Your Answer True

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 True

Multiple Choice Single Answer Question Included in the trial balance is the sales promotion suspense account with a debit balance of Rs.6,300/-. It is given that this

balance should be written off. Calculate its impact on profit of the company. Correct Answer The net profit will decrease by Rs.6,300/Your Answer The gross profit will increase by Rs.6,300/-

Select The Blank Question In calculation of total sales margin variance, the ________cost of sales is deducted from the actual sales revenue. Correct Answer Standard Your Answer Actual

Match The Following Question Increase in contribution will lead to Increase in fixed cost will lead to

Correct Answer Increase in profits Increase in break even point

Your Answer Increase in profit volume ratio Decrease in contribution Increase in profits Increase in break even point

Decrease in variable cost Increase in profit volume will lead to ratio Decrease in selling price will lead to Decrease in contribution

Multiple Choice Multiple Answer Question Marginal costing technique is useful in taking decisions relating to which of the following courses of action? Correct Answer Decision to drop a product line , Decision to accept a special offer at price lower than the normal selling price , Decision regarding temporary shut-downs Your Answer Decision to drop a product line , Decision to accept a special offer at price lower than the normal selling price , Decision to accept a special offer at price higher than the normal selling price , Decision regarding temporary shut-downs Multiple Choice Single Answer Question Basic objective of Uniform Costing is . . . Correct Answer comparison Your Answer To control cost

Select The Blank Question Re-order level should be higher than ________ but lesser than maximum stock level. Correct Answer Minimum level

Your Answer

Minimum level

True/False Question

The variable costs are controllable at the lower lever.

Correct Answer True Your Answer False

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

Select The Blank Question Goods returned by Pawan worth Rs.1,000/- is debited to Pawan's Account. In order to rectify the mistake, which account should be debited ? ________ Correct Answer Suspense account Your Answer Personal account

True/False Question

The purchase account should be debited when an order is placed with the supplier of material. Correct Answer False Your Answer False

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 Interest receivable is a________ for the organisation. Correct Answer Current sset Your Answer Long term asset

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 decrease by Rs.18,000/-

Multiple Choice Single Answer Question Amit sold Goods to Atul for Rs. 50,000/- on cash & Rs. 50,000/on credit basis. Amit allowed 10% discount for on the spot transaction. What is the amount that should be debited to the cash account? Correct Answer Rs.45,000/Your Answer Rs.50,000/-

Multiple Choice Single Answer Question Interest on bank loan, was paid till the quarter ending 30th September, 2003, Rs.36,000/-. Find the amount to be debited to the profit and loss account for the year ending on 31st March, 2004, assuming the loan is not yet repaid as on this date. Correct Answer Rs.72,000/Your Answer Rs.36,000/-

Multiple Choice Single Answer Question The features of the Halsey Plan are: Correct Answer The benefit of time saved is divided equally between the employer and employee Your Answer The benefit of time saved is divided equally between the employer and employee True/False Question

The sum of indirect material cost, indirect labour cost and indirect expenses is termed as factory cost. Correct Answer False Your Answer True

Multiple Choice Single Answer Question Determine re-order level from the following : Maximum daily consumption - 200 units; maximum delivery period - 12 days; average daily consumption - 150 units and average delivery period - 8 days. Correct Answer 2,400 units Your Answer 2,400 units

Select The Blank Question An error of partial omission can be rectified by either debiting or crediting the ________ account, as the case maybe. Correct Answer suspense Your Answer adjusted profit and loss

Multiple Choice Multiple Answer Question Select the examples of functional budgets: Correct Answer Sales budget , Production budget , Research and development budget Your Answer Sales budget , Production budget , Research and development budget Multiple Choice Single Answer Question With the help of the given information, find actual fixed overheads for actual output. Fixed overheads volume variance Rs.75,000/- (Favourable); fixed overheads efficiency variance Rs.95,000/- (Favourable); fixed overheads calendar variance Rs.20,000/- (Adverse); fixed voerheads expenditure variance Rs.100,000/- (Adverse) and standard fixed overheads for actual output -Rs.575,000/-. Correct Answer Rs.600,000/Your Answer Rs.525,000/-

Select The Blank Question Furniture account will always have a ________ balance. Correct Answer Debit Your Answer Credit

Select The Blank Question If the ordering cost ________s, then the economic order quantity will Increase. Correct Answer Increase Your Answer Increase

Multiple Choice Multiple Answer Question Which of the following information is included in the goods received note? Correct Answer Date of receipt of material , Quantity received , Description of goods Your Answer Date of receipt of material , Quantity received , Price of goods , Description of goods

Multiple Choice Multiple Answer Question Select the non-monetary incentives Correct Answer Health and safety services , Canteen facility , Loans at reduced rate of interest Your Answer Health and safety services , Canteen facility

True/False Question

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

True/False Question

Linking overhead to a cost unit is known as overhead absorption.

Correct Answer True Your Answer True

Multiple Choice Multiple Answer Question The operating profit as per cost statement may differ from the profit as per Profit and Loss Account due to existence of Correct Answer Depreciation on plant and machinery , Interest on loans taken from other , Interest on loans granted to others Your Answer Depreciation on plant and machinery , Interest on loans taken from other 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 Multiple Choice Multiple Answer Question Labour efficiency variance Rs.1,000/- (favourable); labour mix variance Rs.260/- (adverse) and labour rate variance Rs.300/(adverse). Compute labour cost variance and labour yield variance. Correct Answer Labour cost variance -Rs.700/- (Favourable) , Labour yield variance -Rs.1,260/- , Labour yield variance is favourable Your Answer Labour cost variance -Rs.700/- (Favourable) , Labour yield variance -Rs.1,260/True/False Question

The best way to reduce labour cost is to recruit cheap labour.

Correct Answer False Your Answer False

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 Select the items which may be classified as selling and distribution overheads. Correct Answer Delivery van expenses , Rent of finished goods warehouse , Sales research expenses Your Answer Delivery van expenses , Rent of finished goods warehouse , Sales research expenses Select The Blank Question In India the gas industry and electricity industry, and ________ industry are examples of industries using the uniform costing system. Correct Answer fertilizer Your Answer fertilizer

Multiple Choice Single Answer Question The process of recording the costs in a formal and systematic manner with the intention of preparing statistical data there from a ascertain the cost, is known as . . . Correct Answer Cost accounting Your Answer Cost accounting

Multiple Choice Single Answer Question Fixed deposit bearing interest @ 5.50%, for Rs.10,000/- was kept with Bank of India on 1st June, 2003, for a period of one year. The type of the fixed deposit is cumulative, i.e. interest shall be received only on maturity. What treatment should be given in the books of accounts on 31st March, 2004, the year ending date? Correct Answer An entry for Rs.458.34, debiting interest accrued but not due account should be passed Your Answer An entry for Rs.458.34, crediting interest accrued but not due account should be passed

True/False Question

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

True/False Question

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

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 False

True/False Question

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

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

The reports generated by financial accounting are meant for the use by management for effective decisions. Correct Answer True Your Answer True

Multiple Choice Multiple Answer

Question

Cost Accounting ______________.

Correct Answer Concerned with specific activities. , Classified according to their nature. , It deals with both i.e. past & present. Your Answer Concerned with specific activities. , Classified according to their nature. , It covers whole business Multiple Choice Multiple Answer Question Management Accounting __________________. Correct Answer Designed particularly for internal use only. , Looks forward in estimating the future along with past period. , This furnishes the necessary information to management. Your Answer Designed particularly for internal use only. , Looks forward in estimating the future along with past period. , This furnishes the necessary information to management. , Only a, b, c. Multiple Choice Multiple Answer Question Accounting is the art of ______________,____________ and ____________ in a significant manner and in terms of money transactions and events which are of a financial character and interpreting the res Correct Answer Summarizing , Classifying , Recording Your Answer Summarizing , Classifying , Recording

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 Match The Following Question Personal A/C Real A/C Nominal A/C Tangible assets

Correct Answer

Your Answer

Debit the receiver, Credit Debit the receiver, Credit the giver the giver Debit what comes in, Credit what goes out Debit all the expenses, Credit all the incomes Building, Machinery Debit what comes in, Credit what goes out Debit all the expenses, Credit all the incomes Building, Machinery

In tangible assets True/False Question

Patents, Trade marks

Patents, Trade marks

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 True

True/False Question

Amount invested in purchasing Fixed Asset is a revenue expenditure. Correct Answer False Your Answer False

True/False Question

As per double entry system o accounting , total of all debits should be equal to all credits. Correct Answer True Your Answer True

Multiple Choice Multiple Answer Question Convention of Consistency Materiality ________________ Correct Answer The accounting policies & procedures should follow consistently on period to period , It facilitates the comparison of financial statements on period to period , If any change the fact should be disclosed with its effects on profitability Your Answer The accounting policies & procedures should follow consistently on period to period , It facilitates the comparison of financial statements on period to period , If any change the fact should be disclosed with its effects on profitability Multiple Choice Multiple Answer Question Cash and---------------are the two systems of accounting. Correct Answer Mercantile Your Answer Mercantile

Multiple Choice Single Answer

Question

The opening balance of cash account is Rs. 25,000, cash received from debtors Rs. 30,000, sold goods amounted to Rs. 50,000, paid to creditors Rs. 20,000, purchase furniture Rs. 5000. What is the clos Correct Answer 80,000 Your Answer 80,000

Multiple Choice Single Answer Question Bank Reconciliation statement is required in case of Correct Answer difference between the bank balance as per the bank book and as per pass book Your Answer difference between the bank balance as per the bank book and as per pass book Match The Following Question Error of Principle Error of Omission Error of commission Compensating Error

Correct Answer Trial Balance does not get affected The transaction is totally omitted Wrong Posting Wrong classification

Your Answer Wrong Posting The transaction is totally omitted Wrong classification Trial Balance does not get affected Transferred to suspense account

Difference in trial balance Transferred to suspense account Multiple Choice Multiple Answer Question Direct Cost includes

Correct Answer Direct material , Direct labour , Direct expenses Your Answer Direct material , Direct labour , Direct expenses

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

Multiple Choice Multiple Answer Question The Prime Cost includes the aggregate of Correct Answer Direct Material Cost , Direct Labour Cost , Direct Expenses Your Answer Direct Material Cost , Direct Labour Cost , Direct Expenses

Multiple Choice Multiple Answer Question From the following particulars what must appear in purchase requisition Correct Answer Material to be purchased should be cleanly specified , Material should purchase whenever the market for the same is favorable , Purchase requisition should state the quantity of material required. Your Answer Material to be purchased should be cleanly specified , Purchase requisition should state the quantity of material required. Multiple Choice Multiple Answer Question Following points are taking into consideration for evaluation of receipts Correct Answer The Price , The trade discount is to be deducted , Other amounts such as sales tax, excise duty, octroi duty Your Answer The Price , The trade discount is to be deducted , Other amounts such as sales tax, excise duty, octroi duty Multiple Choice Multiple Answer Question While fixing the maximum level following factors are considered Correct Answer Maximum usage , Storage facilities , Availability of funds Your Answer True/False Question Maximum usage , Rate of consumption

Fixed cost tends to vary with time rather than with level of activity. Correct Answer True Your Answer True

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

Multiple Choice Single Answer Question Find out the break even point and profit if sales are Rs. 50,00,000 and P/V Ratio is 50% and margin of safety is 40% Correct Answer Rs.30,00,000 and Rs.10,00,000 Your Answer True/False Question Rs.30,00,000 and Rs.10,00,000

For better control, variances of a period may be compare with the previous period. Correct Answer True Your Answer True

True/False Question

Expected standards are more realistic and useful for cost control. Correct Answer True Your Answer True

True/False Question

The difference between standard cost and actual cost is termed as Variance. Correct Answer True Your Answer True

Multiple Choice Multiple Answer Question For reporting of variance, following propositions should be considered Correct Answer Responsibility of each individual should be defined , Reporting should be simple, clear and quick , Analysis of variance should be accurate. Your Answer Responsibility of each individual should be defined , Reporting should be simple, clear and quick , Analysis of variance should be accurate. Multiple Choice Multiple Answer Question Basic three steps in Standard Costing are

Correct Answer Setting standards , Comparing actuals with standards , Measurement of variance Your Answer Setting standards , Comparing actuals with standards , Measurement of variance Multiple Choice Single Answer Question Find out Labour Efficiency Variance, if Standard Rate is Rs.1.50/- per hour, Standard hours are 12,000 and Actual hours are 12,600. Correct Answer Rs.900/- ( Adverse ) Your Answer Rs.900/- ( Adverse )

Multiple Choice Single Answer Question Standard costs are the targets to be attained by the actual performance. Correct Answer Minimum Your Answer Minimum

Multiple Choice Single Answer Question Standard Costs are used as tool for Correct Answer Cost Control Your Answer Cost Control

Select The Blank Question Accounting to the matching principles of accounting, the ________ incurred during an accounting period are required to be match with ________ during that period Correct Answer cost Your Answer cost

Correct Answer revenues Your Answer revenues

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

Correct Answer Management Accounting Your Answer Cost Accounting

Select The Blank Question If the revenue expenditure is treated as ________ expenditure , it will not affect the agreement of ________ balance Correct Answer capital Your Answer capital

Correct Answer trial Your Answer trial

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 After material is received from the supplier, quantity actually received is compared with quantity ________-and ________-if any, are taken up with the supplier Correct Answer ordered Your Answer ordered

Correct Answer variation Your Answer variation

Select The Blank Question Under the daily ________ sheets method, each worker is provided with a daily time sheet on which time ________ by him on various jobs is expected to be mentioned Correct Answer time Your Answer work

Correct Answer spent

Your Answer

spent

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 90-100

Correct Answer 80% to90% Your Answer 101% to 125 %

Select The Blank Question Under Gannt Task bonus system where the output is ________ payment is made as per minimum time rate, output is ________ payment is made as per time wages plus some increase in wage rates Correct Answer below standard Your Answer below standard

Correct Answer at standard Your Answer at standard

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 selling overheads

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

Select The Blank Question The process of Allocation & apportionment can followed to decide the ________ of overheads to each budget center Correct Answer Allocation & apportionment Your Answer Distribution

Correct Answer Loading Your Answer

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 Daily Time sheets Time Keeping Department Time booking department Time Recording Clock Method True/False Question

Correct Answer

Your Answer

Time spent by worker on job Time spent by worker on job is recorded is recorded Recording of workers time Jobwise booking of time. Ticket number & clock card allotted to worker Recording of workers time Jobwise booking of time. Ticket number & clock card allotted to worker

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 Book-Keeping Financial statement Accounting Profitability statement Balance-sheet

Correct Answer Books of Accounts Profitability statement & Balance-sheet Process of analyzing & interpretation

Your Answer Books of Accounts Profitability statement & Balance-sheet Process of analyzing & interpretation

Indicates the amount of profit Indicates the amount of profit earned earned 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

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

MA1

Multiple Choice Single Answer Question KDL Ltd. charges depreciation @ 20% on written down value method. The net book value of its machinery on 1st January, 2003 was Rs.125,000/-. What will be the net book value of its machinery on year end, i.e.31st December, 2003, assuming there were no additions or disposals during the year? Correct Answer Rs.100,000/Your Answer Rs.100,000/True/False Question Malik started business by contributing cash Rs.50,000/- and his personal car worth Rs.25,000/-; thus his capital account should be credited with Rs.75,000/-. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question Select the non-monetary incentives Correct Answer Health and safety services , Canteen facility , Loans at reduced rate of interest Your Answer Health and safety services , Loans at reduced rate of interest Select The Blank Question The system which provides an opportunity to the small units to take advantage of the research work taken by the large scale units of the same industry is known as ________ system. Correct Answer Uniform costing Your Answer Uniform costing Multiple Choice Single Answer Question As cost centers facilitate the control function, in many cases, they are termed as . . . Correct Answer Responsibility centers Your Answer Responsibility centers Multiple Choice Single Answer Question Lata and Tara are partners of Latara & Co. As on 31st March, 2004 Lata's annual drawings were as Rs.25,000/- and Tara's annual drawings amounted to Rs.18,000/-. If interest on drawings is charged @ 15% p.a., what is the amount of income for Latara & Co.? Correct Answer Rs.6,450/Your Answer Rs.6,450/Multiple Choice Single Answer Question XYZ & Co. has taken a loan of Rs.100,000/- @ 15% p.a.on 1st October, 2003. Interest is to be paid on half yearly basis. What treatment should be given in the books of accounts of XYZ & Co. as on 31st March, 2004? Correct Answer Interest account should be debited with Rs.7,520.55 and outstanding interest account should be credited with Rs.7,520.55 Your Answer Interest account should be debited with Rs.7,520.55 and outstanding interest account should be credited with Rs.7,520.55 True/False Question Balance sheet indicates the financial status of the business at given period. Correct Answer True Your Answer False Multiple Choice Single Answer Question Labour turnover rate is best defined as : Correct Answer The number of leavers replaced divided by the average of employees on the payroll

Your Answer The number of leavers replaced divided by the average of employees on the payroll Multiple Choice Single Answer Question Which system provides an opportunity to companies to adopt the one best method of cost accounting system known to the industry ? Correct Answer Uniform costing Your Answer Uniform costing Multiple Choice Multiple Answer Question The key factor determines the : Correct Answer Level of activity , Capacity utilization , Level of sales Your Answer Level of activity , Capacity utilization , Level of sales Select The Blank Question If the ordering cost ________s, then the economic order quantity will Increase. Correct Answer Increase Your Answer Decrease Select The Blank Question The difference between sales and cost of sales is termed as ________. Correct Answer Net Profit Your Answer Contribution Margin Select The Blank Question The method which deals with ownership rights being given to workers is known as ________ method of remuneration. Correct Answer Co-partnership Your Answer Co-partnership Match The Following Question Correct Answer Your Answer Book-Keeping Books of Accounts Financial status Financial statement Profitability statement & Balance-sheet Profitability statement & Balancesheet 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 Books of Accounts

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 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 Accounting refers to the process of analyzing & interpreting the information already recorded in the books of accounts. Correct Answer True Your Answer False True/False Question Profitability statement indicates the amount of assets & liabilities. Correct Answer False Your Answer False 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 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 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 Select The Blank Question The short run financial plan which acts as a guide to achieve the predefined targets is known as ________. Correct Answer Budget Your Answer Budget True/False Question The process of accounting split into three steams i.e. financial, cost, management accounting. Correct Answer True Your Answer True Match The Following Question Correct Answer Your Answer Real A/C Debit what comes in, Credit what goes out Debit the receiver, Credit the giver 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 Rs.1 Personal A/C Debit the receiver, Credit the giver Debit what comes in, Credit what goes out

Select The Blank Question Indirect Cost is termed as ________. Correct Answer Overhead Your Answer Overhead 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 The objectives of cost accounting are : Correct Answer Cost control , Ascertain ment of cost of each product , Assist in managerial decision-making Your Answer Cost control , Ascertain ment of cost of each product , Assist in managerial decision-making Multiple Choice Single Answer Question The finance manager is responsible for which of the following budget? Correct Answer Cash budget Your Answer Cash budget Select The Blank Question Interest on ________ is credited to Capital account. Correct Answer Capital Your Answer Capital Select The Blank Question Under the average cost method of valuing material issues, new issue price is determined after ________ issue. Correct Answer Each Your Answer The next True/False Question The effect of price reduction is always reduction in the margin of safety and also reduction in the break even point. Correct Answer False Your Answer False True/False Question Price based on Uniform Costing may be taken to be reliable and representative of the whole industry. Correct Answer True Your Answer False 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 The level of control of the used of material in the production cycle , An increase in

the maximum material inventory level , Failure to control the issue of materials from stores Question If the total manufacturing overhead of a tiles producing factory amounted to Rs.15 lakhs and the overhead rate was Rs.5/- per sq.ft, then the production for the period can be stated as ________ sq.ft. tiles. Correct Answer 300000 Your Answer 300000 Question Accounting is the art where transactions are Correct Answer Summarized , Classified , Recorded Your Answer Classified , Recorded , Processed True/False Question If excess of cash is estimated in the cash budget, it may be possible to utilise it to give bonus to the employees. Correct Answer False Your Answer False True/False Question A fixed budget is useful only when the actual level of activity corresponds to the budgeted level of activity. Correct Answer True Your Answer True Question From the following select the examples of errors of commission Correct Answer Sales recorded in the sales register as Rs.2,020/- instead of Rs.2,200/- , Received cash from Sham, credited to Ram's account , Paid transport charges, credited to transport charges account Your Answer Sales recorded in the sales register as Rs.2,020/- instead of Rs.2,200/- , Received cash from Sham, credited to Ram's account Question The operating profit as per cost statement may differ from the profit as per Profit and Loss Account due to existence of Correct Answer Depreciation on plant and machinery , Interest on loans taken from other , Interest on loans granted to others Your Answer Depreciation on plant and machinery , Preliminary expenses written off Question Expenditure on income-tax is an example of ________. Correct Answer non-operating expenditure Your Answer administrative overheads 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 sales volume , Reduce cost of sales , Increase the selling efforts Question These are the preventive costs of labour turnover. Correct Answer Cost of maintaining good relations with the workers , Cost of medical services , Cost of welfare facilities Your Answer Cost of maintaining good relations with the workers , Cost of medical services , Cost of welfare facilities Question Select the items which may be classified as administration overheads. Correct Answer Depreciation on office furniture , Director's remuneration , Telephone expenses

Your Answer Director's remuneration , Telephone expenses Question Any amount of profit earned in the past which is not distributed to the owner, belongs to the creditors. Correct Answer False Your Answer True Question Management accounting is concerned with the following activities : Correct Answer Decision making , Safeguarding assets , Planning and controlling activities Your Answer Decision making , Planning and controlling activities LIST OF ATTEMPTED QUESTIONS AND ANSWERS MA2

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 Question Budgeted profit and loss account and budgeted balance sheet are also known as ________. Correct Answer Master budget Your Answer Master budget Match The Following Question Correct Answer Your Answer Drawings Proprietor's account Proprietor's account Deferred revenue expenditure Real account Real account Deferred revenue expenditure written off Nominal account Nominal account Loan Personal account Personal account

Question ________ Accounting is the process of analysis and interpretation of financial data collected with help of financial accounting & cost accounting Correct Answer Management Your Answer Management 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 Question A grinding machine is an example of impersonal cost centre Correct Answer True Your Answer True 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 , Budget of a transportation company Question Piece rate systems are very useful in the following circumstances:

Correct Answer Units of output are measurable , Job is standardised , The flow of work is regular Your Answer Work delays are frequent , Job is standardised , The flow of work is regular Question The process of recording the business transactions in a defined set of records is referred to as ________. Correct Answer Balance sheet Your Answer Trial Balance 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 Match The Following Question Correct Answer Your Answer Liabilities All the amount owed by the business All the amount owed by the business Drawing Withdrawn for personal use Withdrawn for personal use 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 Question Judge the given statement according to the given criteria. Goods being real account, when goods are lost by fire, the goods account should be debited because the goods are not going out of the factory. Correct Answer The statement is correct but the reason is incorrect Your Answer The statement and the reason both are incorrect Question A ________ inventory turnover period indicates efficient utilisation of material. Correct Answer Low Your Answer High Question Financial accounting may deal with the ascertainment of cost & calculation of profitability of the individual product. Correct Answer False Your Answer 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 False Question Financial Accounting primarily protects the interests of the outsiders dealing with organization in various capacities. Correct Answer True Your Answer False Question Purchased 200 shares of Bharat Forge Ltd. for Rs.850/- per share, which account should be debited? Correct Answer Investment account - Rs.170,000/Your Answer Investment account - Rs.170,000/-

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 Question The data for two materials P and Q is given below : Material P : opening stock Rs.80,000/-; closing stock Rs.40,000/- and purchases Rs.500,000/-. Material Q : opening stock Rs.170,000/-; closing stock Rs.60,000/- and purchases Rs.750,000/-. Identify which of the given statements relevant to the data given are correct. Correct Answer Inventory turnover period for material P is 40.5 days , Material P is faster moving material , Consumption of material Q is Rs.860,000/Your Answer Inventory turnover period for material P is 40.5 days , Material Q is faster moving material , Consumption of material Q is Rs.860,000/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 True Question Overhead absorption rate will be different at different capacity levels. Correct Answer True Your Answer True Question Accounting is the art where transactions are Correct Answer Summarized , Classified , Recorded Your Answer Summarized , Classified , Recorded Question Features of a cost sheet are as follows Correct Answer Indicates the total cost of production during a given period , Indicates the unit cost of production during a given period , Helps the management in fixing the selling price to be quoted for the Your Answer Indicates the total cost of production during a given period , Helps the management in fixing the selling price to be quoted for the , Helps the management in taking 'make' or 'buy' decision for the 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 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% Question The alternative courses of action for an integrated textile mill are: Correct Answer Sell cloth Your Answer Sell carpets Question Direct labour hour rate method of absorption of overheads is suitable where most of the production is done by using machines. Correct Answer False Your Answer True Question The Ezee Company Ltd. plans to sell 108,000 units of product E in first quarter

of 2004, 120,000 units in second quarter of 2004, 132,000 units in third quarter of 2004, 156,000 units in fourth quarter of 2004and 138,000 units in the first quarter of 20 Correct Answer 153,000 units Your Answer 136,000 units 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 True 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 Question Calculate the machine hour rate. The amount of overhead pertaining to June, 2004 to be apportioned is Rs.170,010/-. The machine cannot work without an operator. During the month June, 2004 the machine operator has been paid for 5,670 hours. Correct Answer Rs.29.98 Your Answer Rs.30/Question Uniform Costing simplifies the work of wage boards of fixing minimum wages and fair wages. Correct Answer True Your Answer True Question If the profit volume ratio is 25%, then the variable cost is equal to ________ of sales value. Correct Answer 0.75 Your Answer 0.75 Question Balance sheet is considered to be a part of the financial statements. Correct Answer True Your Answer True Question Select the cost that indicates increased or decreased total cost due to the increased or decreased volume of operations. Correct Answer Differential cost Your Answer Differential cost Question The objects of cost accountancy are . . Correct Answer To ascertain cost and profitability , Cost Control , Presentation of Information Your Answer To ascertain cost and profitability , Cost Control , Presentation of Information Question The process of attributing proportions of items of costs amongst const centres is called ________. Correct Answer Cost apportionment Your Answer Cost allocation Question 1) Financial statements are basically in two forms i.e. profitability statement and balance sheet. Correct Answer True Your Answer True Question The variance which measures the deviation of the rate actually paid to labour

as from the standard hourly rate is known as: Correct Answer Labour rate variance Your Answer Labour rate variance Question Advance received from customers is ________ for the organisation. Correct Answer A liability Your Answer A liability Question Financial Accounting discloses the financial performance & financial statements of the business as a whole. Correct Answer True Your Answer True Question If Rs.15,000/- has been paid to Kargil Relief Fund as the owner's personal contribution, ________ account should be debited in the books of accounts of the business. Correct Answer Drawings Your Answer Capital Question Furniture account will always have a ________ balance. Correct Answer Debit Your Answer Debit Question Product costs under direct costing include: Correct Answer Prime cost and variable factory overheads Your Answer Prime cost only Question Uniform costing may lead to monopolistic conditions within the industry, prices may be raised and customers may suffer. Correct Answer True Your Answer False Question The sum of indirect material cost, indirect labour cost and indirect expenses is termed as factory cost. Correct Answer False Your Answer False Question Items debited to Profit & Loss Account are Correct Answer Salary , Discount allowed , Postage & telegram Your Answer Salary , Discount allowed , Postage & telegram LIST OF ATTEMPTED QUESTIONS AND ANSWERS MA3

Multiple Choice Multiple Answer Question Following are the examples of service cost centre Correct Answer Stores department , Transport department , Accounting department Your Answer Stores department , Transport department , Accounting department Multiple Choice Multiple Answer Question Select the entries which need to be rectified Correct Answer Purchase A/c ......... Dr. to Damodar's A/c (Being furniture purchased from Damodar) , Gopal's A/c ........... Dr. to cash A/c (Being entry for payment of railway freight for goods purchased) , Cash A/c ............Dr. to Suresh's A/c (Being cash received from Suresh for goods sold to him for) Your Answer Gopal's A/c ........... Dr. to cash A/c (Being entry for payment of railway freight for goods purchased) , Joshi's A/c ........... Dr. to Bank A/c. (Being entry for dishonour of cheque

which was originally issued by Joshi) , Cash A/c ............Dr. to Suresh's A/c (Being cash received from Suresh for goods sold to him for) 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 Multiple Choice Single Answer Question The bank book shows an overdraft of Rs.117/- as on 31st December, 2003. It is found that the pass book is debited with Rs.11/- representing a dishonoured cheque, originally received from Mr.A. The fact of dishonour was not recorded in the bank book. Find the balance as per pass book. Correct Answer Rs.128/- (overdraft) Your Answer Rs.106/- (credit) Multiple Choice Multiple Answer Question Identify the steps involved in the process of decision making : Correct Answer Determination of the problem , Ascertainment of alternative courses of action , Screening each alternative so as to select the best one Your Answer Determination of the solution , Ascertainment of alternative courses of action , Screening each alternative so as to select the best one Multiple Choice Multiple Answer Question Identify the fixed expenses from the following. Correct Answer Rent and taxes of the factory , Wages paid to indirect workers like cleaners, helpers,etc. , Salary paid to factory supervisor Your Answer Rent and taxes of the factory , Wages paid to indirect workers like cleaners, helpers,etc. , Salary paid to factory supervisor True/False Question Budgetary control is one of the techniques of management accounting. Correct Answer True Your Answer True True/False Question Management Accounting is a developed stage of Cost Accounting Correct Answer True Your Answer False True/False Question In the ledger account only credit entries relating to a particular account are posted. 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 , Not relevant in decision making process , Incurred in past Match The Following

Question Correct Answer Your Answer Global Tender Any supplier from the global market can fill the tender Any supplier from the global market can fill the tender Single Tender Tender from only one supplier Tender from only one supplier Limited Tender Tenders from reliable but few suppliers Tenders from reliable but few suppliers Open Tender Any supplier from the local market can fill the tender Any supplier from the local market can fill the tender

True/False Question Fixed overhead variances may be calculated either on the basis of units of output or on the basis of standard hours. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question Features of Taylor's differential piece rate system are as follows : Correct Answer Minima clerical work is involved in calculating the wages , Helps in building up an efficient labour force , Strong incentive to efficient and ambitious workers. Your Answer Minima clerical work is involved in calculating the wages , Helps in building up an efficient labour force , Strong incentive to efficient and ambitious workers. True/False Question Financial Accounting discloses the financial performance & Financial status of the business as a whole Correct Answer True Your Answer True Select The Blank Question Loss is equal to fixed cost minus ________ Correct Answer Contribution Your Answer Contribution 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 The document which lays down the cost accounting plans and procedures to be followed by the constituent units is known as ________. Correct Answer uniform cost manual Your Answer uniform cost manual True/False Question Cost Accounting is a legal requirement. Correct Answer False Your Answer False Select The Blank Question The principle of ________ is followed while preparing the financial statements. Correct Answer Going concern

Your Answer Going concern True/False Question Cash account can have a credit balance. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question Identify the causes due to which the cost of labour may be high: Correct Answer Excess staffing , Lack of experienced and efficient personnel , High labour turnover Your Answer Excess staffing , Lack of experienced and efficient personnel , High labour turnover Select The Blank Question Copy of a firm's account in the bank's ledger is known as ________. Correct Answer Bank statement Your Answer Bank book True/False Question Period cost is the cost assigned to the products. Correct Answer False Your Answer False Multiple Choice Single Answer Question Interest on drawings of partners should be credited to which account? Correct Answer Profit and loss account Your Answer Profit and loss account Multiple Choice Multiple Answer Question Labour turnover means : Correct Answer Influx and exit of employees , Quantitative measurement of instability of working force , Rate of change in the average working force Your Answer Influx and exit of employees , Quantitative measurement of instability of working force , Rate of change in the average working force True/False Question Book keeping is clerical while accounting is managerial Correct Answer True Your Answer True True/False Question Financial Statements which are generated as a result of the management accounting report & financial performance of the organization as a whole. Correct Answer False Your Answer False Match The Following Question Correct Answer Your Answer Fixed overheads Variability wise classification Variability wise classification Abnormal overheads Normality wise classification Normality wise classification Indirect Material Element wise classification Element wise classification

Administration overheads Function wise classification Function wise classification

Multiple Choice Single Answer Question The half-yearly sales of product X are as follows : 1st half -30,000 units; 2nd half 37,500 units. The production pattern of the company is based on 80% of the sales of the current six months and 20% of the budgeted sales of the next six months. Calcu Correct Answer 1st half -31,500 units; 2nd half - 30,000 units Your Answer 1st half -24,000 units; 2nd half - 30,000 units Select The Blank Question The variance which denotes the variation in overhead recovery due to the budgeted quantity of products being greater or less than actual production, is known as ________ variance. Correct Answer Volume Your Answer Efficiency Multiple Choice Single Answer Question Annual sales were Rs.10,50,000/- and sales returned by customers amounted to Rs.28,000/-. The salesmen are entitled to an incentive of 3% of net sales. Calculate the amount of incentive due to the salesmen. Correct Answer Rs.30,660/Your Answer Rs.30,660/True/False Question An entry in the stores ledger is required for transfer of material from one job to another in the same department. Correct Answer False Your Answer False Select The Blank Question As per the provisions of Section 209 of ________, all the company form of organisation is legally required to follow the mercantile or accrual system of accounting. Correct Answer The Companies Act, 1956 Your Answer The Companies Act, 1956 Multiple Choice Single Answer Question Sita and Gita are partners of SGL & Co. As on 1st August, 2003 Sita's capital stood as Rs.10,000/- and Gita's capital as Rs.18,000/-. If interest on capital is to be provided @ 10% p.a., what should be the treatment of this interest in the profitability statement, assuming there were no additions to capital during this period? Correct Answer Profit and loss account should be debited with Rs.1,866.67 Your Answer Profit and loss account should be debited with Rs.1,866.67 True/False Question GAIL having monopoly in the CNG (Compressed Natural Gas) market can implement the Uniform costing system. Correct Answer False Your Answer True True/False Question Bank reconciliation statement can be prepared on weekly basis. Correct Answer True Your Answer True Select The Blank Question The ________ ledger carries the individual accounts, whereas the general ledger

records the consolidated effect of the individual transactions. Correct Answer Control Your Answer Control Select The Blank Question In calculation of total sales margin variance, the ________cost of sales is deducted from the actual sales revenue. Correct Answer Standard Your Answer Actual True/False Question 1) Cost Accounting and Management Accounting are similar to each other in many respects. Correct Answer True Your Answer True True/False Question The reports generated by financial accounting are meant for the use by management for effective decisions. Correct Answer True Your Answer False Multiple Choice Multiple Answer Question Following errors 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 Token or disc method is a related to the system of ________. Correct Answer Time-keeping Your Answer Time-keeping True/False Question Cost Accounting may be considered to be a part of management Accounting. Correct Answer True Your Answer True 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 It is said that marginal costs are used primarily in guiding decisions that are yet to be made. Correct Answer True Your Answer True True/False Question Uniform Costing simplifies the work of wage boards of fixing minimum wages and fair wages. Correct Answer True Your Answer True

True/False Question Management Accounting is not at all a legal requirement Correct Answer True Your Answer True LIST OF ATTEMPTED QUESTIONS AND ANSWERS KMA1

Select The Blank Question The variance which measures the profit consequences of selling different products in proportions other than the standard, is known as ________ variance. Correct Answer Sales margin mix Your Answer Sales quantity Match The Following Question Correct Answer Your Answer Non-Operating income Issue of shares Issue of shares Plan of investment in fixed assets Capital Expenditure Budget Capital Expenditure Budget Plan for surplus/shortage of cash Cash Budget Cash Sales Operating income Cash Sales Cash Sales

Multiple Choice Multiple Answer Question Identify the variable expenses. Correct Answer Repairs of plant when it is undertaken by an outside agency , Carriage inward by hired carriers , Wages paid to casual workers Your Answer Repairs of plant when it is undertaken by an outside agency , Carriage inward by hired carriers , Wages paid to casual workers True/False Question It is said that marginal costs are used primarily in guiding decisions that are yet to be made. 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 Multiple Choice Single Answer Question Basic objective of Uniform Costing is . . . Correct Answer comparison Your Answer comparison Multiple Choice Single Answer Question Which of the following cost is also termed as Prime Cost ? Correct Answer Direct cost Your Answer Direct cost Multiple Choice Multiple Answer

Question Financial Accounting is Correct Answer Designed to supply information to internal/ external users , Referred as 'Historical' form of accounting , Concerned with financial factors Your Answer Designed to supply information to internal/ external users , Referred as 'Historical' form of accounting , Concerned with financial factors Select The Blank Question The method of remuneration under which the workers are given in share in profits of the organization, at a specified percentage, along-with their wages, is known as ________ method. Correct Answer Profit-sharing Your Answer Co-partnership 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. Multiple Choice Single Answer Question Select the cost that indicates increased or decreased total cost due to the increased or decreased volume of operations. Correct Answer Differential cost Your Answer Differential cost 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 , Reduce cost of sales , Increase the selling efforts Multiple Choice Multiple Answer Question The disadvantages of time rate system are : Correct Answer Ignores the efficiency of workers , Higher labour cost , Lack of motivation to increase productivity Your Answer Ignores the efficiency of workers , Higher labour cost , Lack of motivation to increase productivity Select The Blank Question An adjustment relating to outstanding expenses will ________ the net profit. Correct Answer Decrease Your Answer Decrease Multiple Choice Multiple Answer Question Select the appropriate rectification entries for the following transactions (i) Rs.200/received in respect of a bad debt previously written off was credited to Debtors account. (ii) Paid Rs.6,000/- to a Mr. Rao, clerk, as salary in lieu of notice. This amount was debited to his personal account (iii) Interest @ 5% p.a. on a loan of Rs.5,000/- was debited to general expenses account. Correct Answer Debtors A/c ..........Dr. Rs.200/- to bad debts recovered A/c Rs.200/- , Rs.6,000/- to Rao's A/c Rs.6,000/- , Rs.250/- to General Expenses A/c Rs.250/Your Answer Debtors A/c ..........Dr. Rs.200/- to bad debts recovered A/c Rs.200/- , Rs.6,000/to Rao's A/c Rs.6,000/- , Rs.250/- to General Expenses A/c Rs.250/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 Quantify the increase in profit on account of following errors : (a) Repairs of furniture amounting to Rs.2,000/- were debited to furniture account. Furniture is depreciated @10% p.a. (b) Interest received on bank deposits was credited to dividend received account, Rs.1,550/- (c) A television purchased for the managing director's office for Rs.45,000/- was debited to Interior decoration expenses. Correct Answer Rs.43,200/Your Answer Rs.44,750/Select The Blank Question The analysis which is also referred as 'what if' analysis is known as________. Correct Answer Cost volume profit analysis Your Answer Profit variance analysis True/False Question The sum of indirect material cost, indirect labour cost and indirect expenses is termed as Overheads. Correct Answer True Your Answer True Select The Blank Question In India the gas industry and electricity industry, and ________ industry are examples of industries using the uniform costing system. Correct Answer fertilizer Your Answer automobile True/False Question The balance sheet has three columns, viz. assets, liabilities and ledger folio. Correct Answer False Your Answer False Select The Blank Question Income Tax Act, recognise only one method of depreciation namely ________. Correct Answer Written down value method Your Answer Written down value method 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 Marginal costing technique is useful in taking decisions relating to which of the following courses of action? Correct Answer Decision to drop a product line , Decision to accept a special offer at price lower than the normal selling price , Decision regarding temporary shut-downs Your Answer Decision to drop a product line , Decision to accept a special offer at price lower than the normal selling price , Decision regarding temporary shut-downs Multiple Choice Multiple Answer Question The various areas in which uniform costing can be adopted are . . Correct Answer Valuation of inventories , Charging of depreciation , Apportionment of

overheads Your Answer Valuation of inventories , Charging of depreciation , Apportionment of overheads 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 Flood occurred on 18th March, 2004 and goods worth Rs.28,000/- were destroyed. The insurance company accepted on 28th March, 2004 the claim for Rs.10,000/- only. The claim amount was received on 2nd April, 2004. Find the impact of this transaction on net profit for the year ending 31st March, 2004. Correct Answer The net profit will decrease by Rs.18,000/Your Answer The net profit will increase by Rs.10,000/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 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 Single Answer Question Unearned commission of Rs.5,000/- needs to be recorded in the books of accounts. Find its correct impact. Correct Answer The asset side of the balance sheet will increase by Rs.5,000/Your Answer The asset side of the balance sheet will increase by Rs.5,000/Multiple Choice Multiple Answer Question Examples of indirect material are Correct Answer Consumable stores , Glue used in book binding , Nails used in packing boxes Your Answer Consumable stores , Glue used in book binding , Nails used in packing boxes True/False Question If excess of cash is estimated in the cash budget, it may be possible to utilise it to give bonus to the employees. Correct Answer False Your Answer False 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 True/False Question It is very easy to measure the portion of increased sales which is due to expenditure incurred for advertisement of the product Correct Answer False Your Answer True

Multiple Choice Multiple Answer Question Select the items which may be classified as administration overheads. Correct Answer Depreciation on office furniture , Director's remuneration , Telephone expenses Your Answer Depreciation on office furniture , Director's remuneration , Telephone expenses Multiple Choice Single Answer Question Which of the following is a correct definition of the key factor? Correct Answer The factor which limits the activites of the undertaking Your Answer The factor which the top management feel is important Select The Blank Question The varinace that attempts to ascertain the effect of change in sales volume on the difference between actual and budgeted contribution is known as ________ variance. Correct Answer Sales margin volume Your Answer Total sales margin 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 Select The Blank Question Depreciation is caused by use factor, obsolescence and ________. Correct Answer Time factor Your Answer Time factor Multiple Choice Single Answer Question A business's telephone bill should nromally be classified into which one of the following categories? Correct Answer Semi-variable cost Your Answer Semi-variable cost Select The Blank Question If the ordering cost ________s, then the economic order quantity will Increase. Correct Answer Increase Your Answer Increase True/False Question Depreciation under Reducing Balance Method is calculated as (Number of units * Rate of depreciation per unit) Correct Answer False Your Answer False Multiple Choice Multiple Answer Question Labour efficiency variance Rs.1,000/- (favourable); labour mix variance Rs.260/(adverse) and labour rate variance Rs.300/- (adverse). Compute labour cost variance and labour yield variance. Correct Answer Labour cost variance -Rs.700/- (Favourable) , Labour yield variance Rs.1,260/- , Labour yield variance is favourable Your Answer Labour cost variance -Rs.700/- (Favourable) , Labour yield variance -Rs.1,260/- , Labour yield variance is favourable Multiple Choice Single Answer

Question Which system can assist in fixing a common selling price for the industry as a whole on the basis of cost of production of all units belonging to that industry ? Correct Answer Uniform costing Your Answer Uniform costing True/False Question All cash sales are recorded in the sales register. Correct Answer False Your Answer True Match The Following Question Correct Answer Your Answer Transport facilities to employees Preventive cost of labour turnover Preventive cost of labour turnover Relationship between supervisor and worker Avoidable cause of labour turnover Avoidable cause of labour turnover Dismissal of employee Unavoidable cause of labour turnover Unavoidable cause of labour turnover Increased spoilage and defectives Replacement cost of labour turnover Replacement cost of labour turnover

True/False Question Profitability statement indicates the amount of assets & liabilities. Correct Answer False Your Answer False LIST OF ATTEMPTED QUESTIONS AND ANSWERS KMA2

True/False Question Balance sheet indicates the expenditure & income from the business. Correct Answer False Your Answer True True/False Question Uniform costing may lead to monopolistic conditions within the industry, prices may be raised and customers may suffer. Correct Answer True Your Answer True True/False Question Indirect material cost is an integral part of finished goods. Correct Answer False Your Answer False Multiple Choice Multiple Answer Question Select the various methods adopted for treatment of under or over absorbed overheads Correct Answer Use of supplementary rates , Carrying over the amount to remaining period , Writing off to the Costing Profit and Loss Account Your Answer Use of supplementary rates , Carrying over the amount to remaining period , Writing off to the Costing Profit and Loss Account

True/False Question Generally speaking income represents wealth increase and business success; higher the income, lower will be the success of a business. Correct Answer False Your Answer False Multiple Choice Single Answer Question It is difficult to apply Uniform costing system for an industry which has labour intensive companies as well as capital intensive companies, because : Correct Answer The cost structure is different Your Answer The cost structure is different 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 1) Financial statements are basically in two forms i.e. profitability statement and balance sheet. 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 Multiple Choice Single Answer Question Standard time required for a job is 10 hours, i.e.10 X 60 = 600 'Bs'. The worker has actually completed the job in 6 hours, i.e.6 X 60 = 360 'Bs'. Time wage rate is Rs.20/- per hour. Bonus is shared between the worker and the foreman in the ratio of 3:1. Calculate total earning of the worker as per Bedeaux Point System. Correct Answer Rs.180/Your Answer Rs.160/Multiple Choice Multiple Answer Question The objectives of Uniform costing system are as follows : Correct Answer To fix a common selling price for the industry as a whole , To compare efficiency of each unit against industry's overall performance , To compile reliable cost data for inter-firm comparison of costs Your Answer To fix a common selling price for the industry as a whole , To compile reliable cost data for inter-firm comparison of costs , To fix a common selling price so as to maximize profits of each unit Select The Blank Question Computation of gross wages, deductions and net wages payable is the function of the ________ department. Correct Answer Personnel Your Answer Cost accounting 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 Multiple Choice Multiple Answer Question Features of purchase requisition slip are : Correct Answer Raised when the stock of a raw material has fallen to the re-order level. , Indicates the type, quantity and quality of material required , The information about the price of material is excluded Your Answer Raised when the stock of a raw material has fallen to the re-order level. , Indicates the type, quantity and quality of material required , The information about the price of material is excluded Match The Following Question Correct Answer Your Answer Normal Standards Anticipated to be achieved in future Established for a longer period of time Basic Standards Established for a longer period of time Once established can never be altered Current Standards Established for a shorter period of time Established for a shorter period of time Expected Standards Anticipated to be achieved in the budget period Anticipated to be achieved in future

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 Trading account is an important account which will be used to analyse how successful and how efficiently the firm runs its business. Correct Answer True Your Answer True 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 Select The Blank Question Loans which are borrowed from financial institutions are to be paid off in 8 years, should be disclosed as ________ in the balance sheet. Correct Answer Long term liabilities Your Answer Long term liabilities

True/False Question Financial Accounting discloses the financial performance & financial statements of the business as a whole. Correct Answer True Your Answer True Multiple Choice Single Answer Question The gross profit for the year 2004 is Rs.184,326/-. The depreciation on furniture for the year is Rs.24,561/-; dividend received amounted to Rs.12,000/- and the director's remuneration worked out to be Rs.95,784/-. Find the net profit for the year 2004. Correct Answer Rs.75,981/Your Answer Rs.75,981/Multiple Choice Multiple Answer Question The components of the selling and distribution cost budget are : Correct Answer Distribution expenses , Publicity expenditure , Salary of sales-office workers Your Answer Distribution expenses , Publicity expenditure , Salary of sales-office workers Multiple Choice Single Answer Question The present unit cost data for a product is as follows: selling price Rs.15/-, variable costs Rs.8/-. If selling prices are reduced by 10% and variable costs are increased by 12.5%. Which of the following is the amended contribution to sales ratio? Correct Answer 0.333 Your Answer 0.5 Multiple Choice Multiple Answer Question Select the correct statements. Ram's account.Dr. Rs.10,000 To Bank account Rs.10,000 Correct Answer Ram is a creditor , Rs.10,000/- has been paid to Ram , The payment is made by cheque Your Answer Ram is an employee , Rs.10,000/- has been paid to Ram , The payment is made by cheque Select The Blank Question Generally, all real accounts will have a ________ balance Correct Answer Debit Your Answer Debit Select The Blank Question A written order sent to inform the purchasing department of a need for materials is called a ________. Correct Answer Purchase requisition note Your Answer Purchase requisition note Multiple Choice Single Answer Question The overheads apportioned to three production departments A, B and C and two service departments P and Q are Rs.75,000/-; Rs.100,000/-; Rs.80,000/-; Rs.60,000/- and Rs.40,000/- respectively. Overheads of department P are shared by A, B, C and Q in the ratio of 4 : 3 : 2 : 1 and that of department Q are shared by A, B, C and P in the ratio of 3 : 3 : 2 : 2. Ascertain the total overheads of each production department. Correct Answer A -Rs.116,836/-; B -Rs.134,889/- and C -Rs.103,265/Your Answer A -Rs.116,836/-; B -Rs.146,837/- and C -Rs.176,838/Match The Following Question Correct Answer Your Answer

Purchase budget Forecast of quantity and value of materials Forecast of quantity and value of materials Budget committee Analyses the performance of different budget centres Analyses the performance of different budget centres Cash budget Assists in predicting shortage of cash Assists in predicting shortage of cash Budget Objective is performance evaluation Objective is performance evaluation

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 Single Answer Question Re-order quantity may be measured as : Correct Answer Maximum stock level - re-order level + (minimum usage X minimum re-order period) Your Answer Re-order level + minimum stock - (maximum usage X maximum re-order period) 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 Select The Blank Question If the total amount on the ________ side of commission account is more than the total of its credit side, the commission account is said to have a Debit balance. Correct Answer Debit Your Answer Debit Multiple Choice Multiple Answer Question These are the replacement costs of labour turnover. Correct Answer Inefficiency of new workers , Cost of selection and placement , Increased spoilage and defectives Your Answer Inefficiency of new workers , Cost of selection and placement , Increased spoilage and defectives True/False Question The labour cost which can be identified with the individual cost centre is known as the Direct Labour Cost. 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 Advance received from customers is ________ for the organisation. Correct Answer A liability

Your Answer A liability True/False Question Variable cost + Profit = Sales 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 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 True/False Question Cash account can have a credit balance. Correct Answer False Your Answer False Select The Blank Question An error of partial omission can be rectified by either debiting or crediting the ________ account, as the case maybe. Correct Answer suspense Your Answer profit and loss Multiple Choice Multiple Answer Question The objects of cost accountancy are . . Correct Answer To ascertain cost and profitability , Cost Control , Presentation of Information Your Answer To ascertain cost and profitability , Cost Control , Presentation of Information 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 Multiple Choice Single Answer Question The integrated form of all functional budgets is known as : Correct Answer Master budget Your Answer Master budget Select The Blank Question If overhead absorbed i.e. overheads charged to units during the period is more than the overhead incurred, it is said that the overheads are ________. Correct Answer Over-absorbed Your Answer Over-absorbed Select The Blank Question The final result disclosed by trading account is the ________profit earned by the organization. Correct Answer Gross

Your Answer Gross LIST OF ATTEMPTED QUESTIONS AND ANSWERS kma1

Select The Blank Question Number of days inventory is held can be calculated by dividing number of days in a year by ________. Correct Answer Inventory turnover ratio Your Answer Inventory turnover ratio True/False Question Budgetary control is one of the techniques of management accounting. Correct Answer True Your Answer True True/False Question All personal expenses of the owner should be debited to the organisation's profit and loss account. Correct Answer False Your Answer False 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 The amount of profit which is retained by the organisation is transferred to 'Reserves and Surplus' in the balance sheet. Correct Answer True Your Answer True Select The Blank Question Purchase of national saving certificates by the company from its profits, should be debited to ________ account. Correct Answer Investments Your Answer Investments True/False Question Yield variance equal to zero indicates that the standard yield and actual yield are the same. Correct Answer True Your Answer True True/False Question Book keeping is clerical while accounting is managerial Correct Answer True Your Answer True

Match The Following Question Correct Answer Your Answer Advantageously applicable in similar industries Scope of uniform costing Scope of uniform costing Spirit of mutual trust Requisite for uniform costing Requisite for uniform costing Avoids cut throat competition Advantage of uniform costing Advantage of uniform costing Treatment given to research and development costs Fields covered by uniform costing Fields covered by uniform costing

Multiple Choice Single Answer Question Calculate inventory holding period. Safety stock - 250 units; maximum stock - 6,500 units; re-order quantity - 3,800 units and material issued during 2003 is 24,000 units. Correct Answer 66.9 days Your Answer 67 days True/False Question Material mix and material yield variance can be calculated even when only one raw material is used for production. Correct Answer False Your Answer False Select The Blank Question A ________ inventory turnover period indicates efficient utilisation of material. Correct Answer Low Your Answer Low Multiple Choice Single Answer Question KDL Ltd. charges depreciation @ 20% on written down value method. The net book value of its machinery on 1st January, 2003 was Rs.125,000/-. What will be the net book value of its machinery on year end, i.e.31st December, 2003, assuming there were no additions or disposals during the year? Correct Answer Rs.100,000/Your Answer Rs.100,000/Multiple Choice Single Answer Question A lathe machine was purhcased on 31st March, 2004 for Rs.65,000/-, however it was installed only on 5th April, 2004. The depreciation is charged @ 15% p.a.. Find the amount of depreciation charge for the said lathe machine for the year ended 31st March, 2004. Correct Answer Nil Your Answer Nil Multiple Choice Single Answer Question A factory has 8 hours a day and the standard daily wage is Rs.80/-. Standard output per hour is 5 units. During a day worker P produced 30 units, Q produced 36 units and S produced 42 units. Calculate wages payable to P,Q and S under Merrick Multiple Piece Rate System. Correct Answer P - Rs.60/-; Q - Rs.79.20; S - Rs.100.80 Your Answer P - Rs.50/-; Q - Rs.69.20; S - Rs.79.80 Multiple Choice Single Answer Question A company budgets for a production of 150,000 units. The variable cost per unit is

Rs.14/- and fixed cost is Rs.2/- per unit. The company fixes its selling price to fetch a profit of 15% on total cost. What is the break even point for the company? Correct Answer 68,182 units Your Answer 61,182 units True/False Question Management Accounting is not at all a legal requirement Correct Answer True Your Answer True 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 Multiple Choice Single Answer Question An advertisement contract was made with an artist which stated that the remuneration will be 12% of net sales. On an average the monthly sales were Rs.36,000/-, however the average rate of sales return was 5% of that month's sale. Find the expenditure on account of advertisement. Correct Answer Rs.49,248/Your Answer Rs.49,248/Multiple Choice Multiple Answer Question Features of Taylor's differential piece rate system are as follows : Correct Answer Minima clerical work is involved in calculating the wages , Helps in building up an efficient labour force , Strong incentive to efficient and ambitious workers. Your Answer Minima clerical work is involved in calculating the wages , Helps in building up an efficient labour force , Strong incentive to efficient and ambitious workers. Multiple Choice Multiple Answer Question Select the correct formulae for calculating break even point. Correct Answer Fixed cost / (Selling price per unit - Variable cost per unit) , [Fixed cost / Marginal contribution] X Sales , [Fixed cost / (Fixed cost + Net Profit)] X Sales Your Answer Fixed cost / (Selling price per unit - Variable cost per unit) , [Fixed cost / Marginal contribution] X Variable cost , [Fixed cost / (Fixed cost + Net Profit)] X Sales 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 Variable overhead volume Multiple Choice Multiple Answer Question Select the transactions which can be entered in the Journal proper. Correct Answer Opening entries , Closing entries , Rectification entries Your Answer Opening entries , Closing entries , Rectification entries Multiple Choice Multiple Answer Question Management Accounting is Correct Answer Designed particularly for internal use , Helpful in estimating the future along with past period , Useful in furnishing the necessary information to the management Your Answer Designed particularly for internal use , Helpful in estimating the future along with past period , Useful in furnishing the necessary information to the management

Select The Blank Question Warehousing cost is an item of ________ Correct Answer Distribution overheads Your Answer Office overheads Select The Blank Question The lowest profit volume ratio can be ________%. Correct Answer 0 Your Answer 0.1 True/False Question Cost Accounting is a legal requirement. Correct Answer False Your Answer False True/False Question Management Accounting is a developed stage of Cost Accounting Correct Answer True Your Answer True True/False Question Trading account is used to analyse how successfully and how efficiently the firm runs, particularly with regards to the maintenance of the gross profit margin. Correct Answer True Your Answer True Multiple Choice Single Answer Question Calculate the earnings of workers Monica and Sonica under Taylor's differential piece rate system. Hours in a day =8; normal rate per unit = Rs.12/-; standard time per unit = 30 seconds; rate differential : 80% of piece rate below standard, 120% of piece rate at or above standard. Monica produces 900 units per day and Sonica produces 1,100 units per day. Correct Answer Monica -Rs.72/-; Sonica - Rs.132/Your Answer Monica -Rs.110/-; Sonica - Rs.90/True/False Question Standard costing is always accompanied by a system of budgeting but budgetary control may be operated in business where standard costing is impracticable. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question The factors that influence determination of budget period are : Correct Answer Type of budget, viz. Sales or capital expenditure budget , General economic conditions , Trade cycle of business Your Answer Type of budget, viz. Sales or capital expenditure budget , General economic conditions , Trade cycle of business Multiple Choice Multiple Answer Question Inventory holding cost comprises of : Correct Answer Cost of insurance , Rent of store house , Salary of store keeper Your Answer Rent of store house , Cost of material , Salary of store keeper Multiple Choice Multiple Answer Question Uniform costing system can be successfully implemented in any industry only when : Correct Answer Information is freely supplied by all the units , Well organised sector is ready to

share the technological improvements , Information furnished by the units is complete and correct Your Answer Information is freely supplied by all the units , Well organised sector is ready to share the technological improvements , Information furnished by the units is complete and correct True/False Question In marginal costing, under and over absorption of fixed overheads is bound to arise. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question Piece rate systems are very useful in the following circumstances: Correct Answer Units of output are measurable , Job is standardised , The flow of work is regular Your Answer Units of output are measurable , Work delays are frequent , Job is standardised Multiple Choice Single Answer Question Judge the following narrative according to the criteria given : There are many organizations whose sales fluctuate with fluctuations in the weather, viz. ice-cream, sweaters, etc. Correct Answer The statement and the reason are both incorrect Your Answer The statement and the reason are both correct True/False Question New companies can adopt Uniform costing system as a ready-made system. Correct Answer True Your Answer False Select The Blank Question An amount of Rs.200/- is received from P and is credited to Q. The rectification entry would affect ________ Correct Answer P's A/c and Q's A/c Your Answer P's A/c and Q's A/c Multiple Choice Single Answer Question Trade Discount refers to the discount . . . Correct Answer received on purchases Your Answer received on purchases True/False Question Cost Accounting may be considered to be a part of management Accounting. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question The various areas in which uniform costing can be adopted are . . Correct Answer Valuation of inventories , Charging of depreciation , Apportionment of overheads Your Answer Valuation of inventories , Charging of depreciation , Apportionment of overheads Select The Blank Question In India, where public undertakings operate along with the private sector undertakings, ________ enables a comparative assessment to be made of the two sectors. Correct Answer uniform costing Your Answer uniform costing Multiple Choice Single Answer Question A firm has monthly fixed cost commitment of Rs.200,000/-. It is producing only one

product which is sold at a price of Rs.80/- per unit. Per unit variable cost is Rs.50/-. Calculate annual break even point. Correct Answer 80,000 units Your Answer 64,000 units True/False Question 1) Cost Accounting and Management Accounting are similar to each other in many respects. Correct Answer True Your Answer True Multiple Choice Single Answer Question Cool-wind Ltd., manufactures fans, which at sold at Rs.400 pre piece. The cost of sales is composed of 40% of direct material, 30% wages and 30% overheads. An increase in material price by 25% and in wage rate by 10% is expected in the forthcoming year; as a result of which the profit at current selling price may dwindle by 39% of present gross profit. With the above information, you are required to determine the future selling price, if the present rate of gross profit is to be maintained. Correct Answer Rs.452/Your Answer Rs.452/True/False Question Credit balance in interest account indicates income for the organisation. Correct Answer True Your Answer True

LIST OF ATTEMPTED QUESTIONS AND ANSWERS 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 Multiple Answer Question Features of convention of consistency are . . . Correct Answer The accounting policies and procedures should be followed consistently , Facilitates the comparison of financial statements , It facilitates comparison of financial statements on period-toperiod basis Your Answer The accounting policies and procedures should be followed consistently , It facilitates comparison of financial statements on period-to-period basis True/False Question

The bin card and stores ledger, being independent records, comparison of these two records should be avoided. Correct Answer False

Your Answer

False

Match The Following Question Dividend paid Freight inwards Sales Freight outwards

Correct Answer Profit and loss appropriation account Manufacturing account Trading account Profit and loss account

Your Answer Profit and loss account Manufacturing account Capital account Trading account

Select The Blank Question Large angle of incidence indicates ________ amount of profits. Correct Answer higher Your Answer same

True/False Question

Error of commission refer to a situation where a transaction is not recorded in the books of account. Correct Answer False Your Answer True

Multiple Choice Single Answer Question Relevant costs in decision making are : Correct Answer Those costs which will arise as a result of the proposed action Your Answer Those costs which will arise as a result of the proposed action

Select The Blank Question ________is the summary of all the balances in all the accounts listed in ledger account of an organization at any given point of time. Correct Answer Trial Balance Your Answer Trial Balance

Multiple Choice Multiple Answer Question Overhead capacity variance is the outcome of:

Correct Answer Shortage of labour , Enforced idle time, e.g.power breakdowns , Customer demand being more or less than anticipated Your Answer Shortage of labour , Enforced idle time, e.g.power breakdowns , Customer demand being more or less than anticipated True/False Question

Factory overheads consist of all overhead costs incurred from the stage of procurement of material till the production of finished goods. Correct Answer True Your Answer True

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 True

Multiple Choice Single Answer Question Included in the trial balance is the sales promotion suspense account with a debit balance of Rs.6,300/-. It is given that this balance should be written off. Calculate its impact on profit of the company. Correct Answer The net profit will decrease by Rs.6,300/Your Answer The gross profit will increase by Rs.6,300/-

Select The Blank Question In calculation of total sales margin variance, the ________cost of sales is deducted from the actual sales revenue. Correct Answer Standard Your Answer Actual

Match The Following Question Increase in contribution will lead to Increase in fixed cost will lead to

Correct Answer Increase in profits Increase in break even point

Your Answer Increase in profit volume ratio Decrease in contribution Increase in profits Increase in break even point

Decrease in variable cost Increase in profit volume will lead to ratio Decrease in selling price will lead to Decrease in contribution

Multiple Choice Multiple Answer Question Marginal costing technique is useful in taking decisions relating to which of the following courses of action? Correct Answer Decision to drop a product line , Decision to accept a special offer at price lower than the normal selling price , Decision regarding temporary shut-downs Your Answer Decision to drop a product line , Decision to accept a special offer at price lower than the normal selling price , Decision to accept a special offer at price higher than the normal selling price , Decision regarding temporary shut-downs Multiple Choice Single Answer Question Basic objective of Uniform Costing is . . . Correct Answer comparison Your Answer To control cost

Select The Blank Question Re-order level should be higher than ________ but lesser than maximum stock level. Correct Answer Minimum level Your Answer Minimum level

True/False Question

The variable costs are controllable at the lower lever.

Correct Answer True Your Answer False

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

Select The Blank Question Goods returned by Pawan worth Rs.1,000/- is debited to Pawan's Account. In order to rectify the mistake, which account should be debited ? ________ Correct Answer Suspense account Your Answer Personal account

True/False Question

The purchase account should be debited when an order is placed with the supplier of material. Correct Answer False Your Answer False

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 Interest receivable is a________ for the organisation. Correct Answer Current sset Your Answer Long term asset

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 decrease by Rs.18,000/-

Multiple Choice Single Answer Question Amit sold Goods to Atul for Rs. 50,000/- on cash & Rs. 50,000/on credit basis. Amit allowed 10% discount for on the spot transaction. What is the amount that should be debited to the cash account? Correct Answer Rs.45,000/Your Answer Rs.50,000/-

Multiple Choice Single Answer Question Interest on bank loan, was paid till the quarter ending 30th September, 2003, Rs.36,000/-. Find the amount to be debited to the profit and loss account for the year ending on 31st March, 2004, assuming the loan is not yet repaid as on this date. Correct Answer Rs.72,000/Your Answer Rs.36,000/-

Multiple Choice Single Answer

Question

The features of the Halsey Plan are:

Correct Answer The benefit of time saved is divided equally between the employer and employee Your Answer The benefit of time saved is divided equally between the employer and employee True/False Question

The sum of indirect material cost, indirect labour cost and indirect expenses is termed as factory cost. Correct Answer False Your Answer True

Multiple Choice Single Answer Question Determine re-order level from the following : Maximum daily consumption - 200 units; maximum delivery period - 12 days; average daily consumption - 150 units and average delivery period - 8 days. Correct Answer 2,400 units Your Answer 2,400 units

Select The Blank Question An error of partial omission can be rectified by either debiting or crediting the ________ account, as the case maybe. Correct Answer suspense Your Answer adjusted profit and loss

Multiple Choice Multiple Answer Question Select the examples of functional budgets: Correct Answer Sales budget , Production budget , Research and development budget Your Answer Sales budget , Production budget , Research and development budget Multiple Choice Single Answer Question With the help of the given information, find actual fixed overheads for actual output. Fixed overheads volume variance Rs.75,000/- (Favourable); fixed overheads efficiency variance Rs.95,000/- (Favourable); fixed overheads calendar variance Rs.20,000/- (Adverse); fixed voerheads expenditure variance Rs.100,000/- (Adverse) and standard fixed overheads for actual output -Rs.575,000/-. Correct Answer Rs.600,000/Your Answer Rs.525,000/-

Select The Blank Question Furniture account will always have a ________ balance. Correct Answer Debit Your Answer Credit

Select The Blank Question If the ordering cost ________s, then the economic order quantity will Increase. Correct Answer Increase Your Answer Increase

Multiple Choice Multiple Answer Question Which of the following information is included in the goods received note? Correct Answer Date of receipt of material , Quantity received , Description of goods Your Answer Date of receipt of material , Quantity received , Price of goods , Description of goods Multiple Choice Multiple Answer Question Select the non-monetary incentives Correct Answer Health and safety services , Canteen facility , Loans at reduced rate of interest Your Answer Health and safety services , Canteen facility

True/False Question

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

True/False Question

Linking overhead to a cost unit is known as overhead absorption.

Correct Answer True Your Answer True

Multiple Choice Multiple Answer Question The operating profit as per cost statement may differ from the profit as per Profit and Loss Account due to existence of

Correct Answer Depreciation on plant and machinery , Interest on loans taken from other , Interest on loans granted to others Your Answer Depreciation on plant and machinery , Interest on loans taken from other 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 Multiple Choice Multiple Answer Question Labour efficiency variance Rs.1,000/- (favourable); labour mix variance Rs.260/- (adverse) and labour rate variance Rs.300/(adverse). Compute labour cost variance and labour yield variance. Correct Answer Labour cost variance -Rs.700/- (Favourable) , Labour yield variance -Rs.1,260/- , Labour yield variance is favourable Your Answer Labour cost variance -Rs.700/- (Favourable) , Labour yield variance -Rs.1,260/True/False Question

The best way to reduce labour cost is to recruit cheap labour.

Correct Answer False Your Answer False

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 Select the items which may be classified as selling and distribution overheads. Correct Answer Delivery van expenses , Rent of finished goods warehouse , Sales research expenses Your Answer Delivery van expenses , Rent of finished goods warehouse , Sales research expenses Select The Blank Question In India the gas industry and electricity industry, and ________ industry are examples of industries using the uniform costing system.

Correct Answer fertilizer Your Answer fertilizer

Multiple Choice Single Answer Question The process of recording the costs in a formal and systematic manner with the intention of preparing statistical data there from a ascertain the cost, is known as . . . Correct Answer Cost accounting Your Answer Cost accounting

Multiple Choice Single Answer Question Fixed deposit bearing interest @ 5.50%, for Rs.10,000/- was kept with Bank of India on 1st June, 2003, for a period of one year. The type of the fixed deposit is cumulative, i.e. interest shall be received only on maturity. What treatment should be given in the books of accounts on 31st March, 2004, the year ending date? Correct Answer An entry for Rs.458.34, debiting interest accrued but not due account should be passed Your Answer An entry for Rs.458.34, crediting interest accrued but not due account should be passed

LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Multiple Answer Question The advantages of written communication are

Correct Answer Accuracy , Can be recorded , Brevity Your Answer Accuracy , Can be recorded

Multiple Choice Multiple Answer Question Business letters can be useful in different ways like

Correct Answer Legal evidence , Permanent information , Recovering dues Your Answer Legal evidence , Permanent information , Recovering dues

Multiple Choice Multiple Answer Question Essential parts of business letters would be

Correct Answer Head address , Date , Outward number Your Answer Head address , Date , Outward number

Multiple Choice Multiple Answer Question The Head address includes

Correct Answer Tel no. , Name of organization Your Answer Tel no. , Name of organization , Name of person

Multiple Choice Multiple Answer Question The body of the letter may be divided into

Correct Answer Opening Para , Main communication , Closing paragraph Your Answer Reference Para , Opening Para , Main communication , Closing paragraph

Multiple Choice Multiple Answer Question Examples of salutations would be

Correct Answer Dear sir , Respected Sir Your Answer Thanking you , Yours faithfully , Respected Sir

Multiple Choice Multiple Answer Question The matter in the memorandum may include

Correct Answer Procedures , Rules , Instructions Your Answer True/False Question People external to the organization do not have any access to the costing records. Procedures , Rules , Instructions

Correct Answer True Your Answer True

Multiple Choice Multiple Answer Question Correct Answer Your Answer True/False Question A cheque received from a customer but not deposited into bank must be recorded in the cash book. Features of Financial Accounting includes----------------It is a legal requirement , It protects the interest of outsiders , It considers historical transactions It is a legal requirement , It protects the interest of outsiders , It considers historical transactions

Correct Answer True Your Answer False

Multiple Choice Single Answer Goods return by Pande worth Rs. 2000 should have appeared Question on the credit side of Pandes account for rectifying the same. Following account to be credited Correct Answer Suspense A/C Your Answer Goods A/C

Multiple Choice Single Answer Amit purchase of Rs. 6710 had been posted to the debit of the Question creditors A/C as 6170 rectifying the transaction the creditor A/C is to be debited amount to Rs Correct Answer 540 Your Answer 540

Multiple Choice Single Answer The periodical total of sales book was cash short by Rs. 5000 for Question rectifying the same, which A/C to be debited Correct Answer Suspense A/C Your Answer Cash A/C

Multiple Choice Single Answer Old furniture sold for Rs. 5400 has been entered as Rs 4500 in Question the cash book, for rectifying the same Suspense A/C credited to Rs Correct Answer 900 Your Answer 900

Multiple Choice Multiple Answer Question Correct Answer Your Answer True/False Question Due to compensating errors the arithmetical accuracy of the trial balance get affected. Following error affect the trial balance Wrong totaling of subsidiary books , Posting on the wrong side of an account , Omission of posting an account in the ledger Posting on the wrong side of an account , Omission of posting an account in the ledger

Correct Answer False

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

Match The Following Question Non-operating Income Non-operating Expense Selling & Distribution Factory Cost Total Cost Correct Answer Profit on sale of shares Dividend on shares Advertisement Your Answer Profit on sale of shares Dividend on shares Advertisement

Repair for factory building Repair for factory building Cost of finished goods Cost of finished goods

Multiple Choice Single Answer The prime cost is Rs. 10,00,000 the factory cost is Rs. Question 13,00,000, the total administration overheads are 14,00,000 and having selling overhead of Rs. 86000. What is the Total cost? Correct Answer 37,86,000 Your Answer 37,86,000

Multiple Choice Multiple Answer Question Non Operating Expenses includes

Correct Answer Loss on sale of asset , Goodwill , Only a, b Your Answer True/False Question Perpectual inventory system includes continuous verification of physical stock at regular intervals. Goodwill , Preliminary expenses written off

Correct Answer True Your Answer True

Multiple Choice Single Answer

Question

Under the differential time rate method of wage payment up to 80% of efficiency following rate is offered.

Correct Answer Rs. 1.00 per hour Your Answer True/False Question Per unit cost of variable overheads may reduce as the volume of output increases but the total overheads remain constant. Rs. 1.00 per hour

Correct Answer False Your Answer True/False Question Machine hour rate is calculated as (amount of overheads to be absorbed)/(labour hours required for production) False

Correct Answer False Your Answer False

Multiple Choice Single Answer Question This is the best example of element wise classification of cost.

Correct Answer material Your Answer material

Multiple Choice Single Answer Question This is an example of semi variable overheads.

Correct Answer electricity Your Answer electricity

Multiple Choice Multiple Answer Question wise classification of overheads takes the form of

Correct Answer indirect material , indirect labour , indirect expenses Your Answer 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. indirect material , indirect labour , indirect expenses

Correct Answer False

Your Answer True/False Question

False

Budget is prepared for a fixed period of time.

Correct Answer True Your Answer True/False Question Depreciation does not involve cash out flow True

Correct Answer True Your Answer True

Multiple Choice Multiple Answer Question Uncontrollable variances are

Correct Answer Strike , Change in customers demand , Devaluation of currency Your Answer Strike , Change in customers demand , Devaluation of currency

Multiple Choice Multiple Answer Question Correct Answer Your Answer Basic three steps in Standard Costing are Setting standards , Comparing actuals with standards , Measurement of variance Setting standards , Comparing actuals with standards , Measurement of variance

Multiple Choice Single Answer Calculate Labour Rate Variance, If actual rate per hour is Question Rs.3.50/- , Standard rate is Rs.3/- per unit and actual hours are 13, 500. Correct Answer Rs.6750/- ( Adverse ) Your Answer Rs.6750/- ( Favorable )

Multiple Choice Single Answer Calculate Labour Efficiency Variance, If actual rate per hour is Question 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 Following factors will have to be considered before preparing Question Production Budget in terms of quantity Production capacity , Co-ordination with Sales forecast , Correct Answer Management Policy Your Answer Co ordination with Stores department , Production capacity

Match The Following Question Maximum level Correct Answer The level above which actual stock should not exceed The level below which actual stock should not reduce Your Answer The level above which actual stock should not exceed The level below which actual stock should not reduce

Minimum level

Re-order level Danger level Fixation of inventory level

To take the step for Initiating proper action for procurement of further lots movement of material of material Below minimum level Below minimum level

To take the step for Initiating proper action for procurement of further lots movement of material of material

Select The Blank If ________ is not provided, the asset may appear in the Question Balance Sheet at an ________ amount Correct Answer depreciation Your Answer depreciation

Correct Answer overstated Your Answer overstated

Select The Blank Generally accounts of the assets will have ________ balance Question and liabilities will have ________ balance Correct Answer debits Your Answer debits

Correct Answer credits Your Answer credits

Select The Blank

Question

In financial statements P& L Accounts relates to a specific duration whereas ________ is for a given point of time

Correct Answer P& L Accounts Your Answer Balance sheet

Correct Answer Balance sheet Your Answer Select The Blank Along with financial accounting, ________ and ________ are the Question other streams of accounting Correct Answer Cost Accounting Your Answer Cost Accounting

Correct Answer Management Accounting Your Answer Management Accounting

Select The Blank Labour Turnover indicates ________ in labour force showing a Question highly increasing trend or highly ________ trend Correct Answer change Your Answer change

Correct Answer decreasing Your Answer decreasing

Select The Blank Preventive costs of labour turnover refers to all the costs which Question may be incurred by the organisation to keep workers happy and ________ them from ________ the job Correct Answer discourage Your Answer encourage

Correct Answer leaving Your Answer leaving

Select The Blank Expenditure like general lighting are apportioned considering Question ________ 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 number of light points

Select The Blank Under absorption of overheads may take place due to the Question reasons like ________ overheads being more than the ________ overheads Correct Answer actual Your Answer actual

Correct Answer estimated Your Answer estimated

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

Correct Answer lower Your Answer lower

Select The Blank A key factor is defined as the factor which, at a particular point of Question time or over a period will ________ the volume of ________ Correct Answer limit Your Answer limit

Correct Answer output Your Answer output

Select The Blank ________ of Trial Balance generally ensures ________ Question accuracy of the process of ledger posting . Correct Answer Talling Your Answer Talling

Correct Answer arithmetical

Your Answer

arithmetical

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 Daily Time sheets Time Keeping Department Time booking department Time Recording Clock Method True/False Question

Correct Answer

Your Answer

Time spent by worker on job Time spent by worker on job is recorded is recorded Recording of workers time Jobwise booking of time. Ticket number & clock card allotted to worker Recording of workers time Jobwise booking of time. Ticket number & clock card allotted to worker

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 Book-Keeping Financial statement Accounting Profitability statement Balance-sheet

Correct Answer Books of Accounts Profitability statement & Balance-sheet Process of analyzing & interpretation

Your Answer Books of Accounts Profitability statement & Balance-sheet Process of analyzing & interpretation

Indicates the amount of profit Indicates the amount of profit earned earned 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

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 Daily Time sheets Time Keeping Department Time booking department Time Recording Clock Method True/False Question

Correct Answer

Your Answer

Time spent by worker on job Time spent by worker on job is recorded is recorded Recording of workers time Jobwise booking of time. Ticket number & clock card allotted to worker Recording of workers time Jobwise booking of time. Ticket number & clock card allotted to worker

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 Book-Keeping Financial statement Accounting Profitability statement Balance-sheet

Correct Answer Books of Accounts Profitability statement & Balance-sheet Process of analyzing & interpretation

Your Answer Books of Accounts Profitability statement & Balance-sheet Process of analyzing & interpretation

Indicates the amount of profit Indicates the amount of profit earned earned 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

LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Multiple Answer Question Master budget provides a basis for computing effect of changes in :Correct Answer Production facilities , Product mix of the company , Sales volume Your Answer Production facilities , Product mix of the company , Sales volume

True/False Question

The bin card and stores ledger, being independent records, comparison of these two records should be avoided. 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 where as the 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.1,600/- (Favourable)

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 variance which denotes the variation in overhead recovery due to the budgeted quantity of products being greater or less than actual production, is known as ________ variance. Correct Answer Volume

Your Answer

Volume

True/False Question

The greater the volume of production, the greater is the unit cost of production. Correct Answer False Your Answer True

Multiple Choice Multiple Answer Question Financial Accounting ______________ Correct Answer Designed to supply information for internal/ external uses. , Deals with the transaction during specific period. , It is compulsory Your Answer Designed to supply information for internal/ external uses. , Deals with the transaction during specific period. , It is compulsory True/False Question

The labour cost which can be identified with the individual cost centre is known as the Direct Labour Cost. Correct Answer True Your Answer True

True/False Question

Suspense account is closed automatically after rectification of all the errors. Correct Answer True Your Answer True

Multiple Choice Multiple Answer Question Management Accounting __________________. Correct Answer Designed particularly for internal use only. , Looks forward in estimating the future along with past period. , This furnishes the necessary information to management. Your Answer Designed particularly for internal use only. , Looks forward in estimating the future along with past period. , This furnishes the necessary information to management. 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

Select The Blank Question Computation of gross wages, deductions and net wages payable is the function of the ________ department. Correct Answer Personnel Your Answer Personnel

Multiple Choice Multiple Answer Question Accounting is the art of ______________,____________ and ____________ in a significant manner and in terms of money transactions and events which are of a financial character and interpreting the res Correct Answer Summarizing , Classifying , Recording Your Answer Summarizing , Classifying , Recording

True/False Question

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

Match The Following Question Liabilities Drawing Journal Ledger Assets

Correct Answer All the amount owed by the business Withdrawn for personal use Book of original entry Maintain all types of Accounts All the properties owned by the business

Your Answer All the amount owed by the business Withdrawn for personal use Book of original entry Maintain all types of Accounts All the properties owned by the business

Select The Blank Question Excess direct labour wages will be disclosed by 'Direct labour ________ variance'. Correct Answer Rate Your Answer Usage

Select The Blank Question Income Tax Act, recognize only one method of depreciation namely ________. Correct Answer Written down value method Your Answer Written down value method

Multiple Choice Multiple Answer Question Features of convention of conservation are :Correct Answer Anticipates all future losses and expenses , Ignores all future incomes and profits, unless they are actually realized , Applicable to valuation of current assets Your Answer Anticipates all future losses and expenses , Ignores all future incomes and profits, unless they are actually realized , Applicable to valuation of current assets Multiple Choice Single Answer Question Interest on bank loan, was paid till the quarter ending 30th September, 2003, Rs.36,000/-. Find the amount to be debited to the profit and loss account for the year ending on 31st March, 2004, assuming the loan is not yet repaid as on this date. Correct Answer Rs.72,000/Your Answer Rs.72,000/-

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

Multiple Choice Multiple Answer Question While preparing sales budget the following factors must be considered :Correct Answer The number and types of products sold by the organization , Whether the organization's market share is increasing or decreasing? , Details of seasonal fluctuations in sales Your Answer The number and types of products sold by the organization , Whether the organization's market share is increasing or decreasing? , Details of seasonal fluctuations in sales Multiple Choice Single Answer Question Unearned commission of Rs.5,000/- needs to be recorded in the books of accounts. Find its correct impact. Correct Answer The asset side of the balance sheet will increase by Rs.5,000/Your Answer The asset side of the balance sheet will increase by Rs.5,000/-

Multiple Choice Single Answer Question Metal India Ltd. is holding two accounts, savings and current, with the Central Bank of India. On 31st January, 2004 his ledger shows the following balances : Savings account Rs.5,000/-; Current account Rs.2,250/- (overdraft). It is found that a deposit of Rs.1,500/- made into the savings account on 20th January, 2004 has been entered in the ledger in the of Current account. Find the correct ledger balances of savings and current accounts. Correct Answer Savings account-Rs.6,500/-, current account-Rs.3,750/(overdraft) Your Answer Savings account-Rs.5,000/-, current account-Rs.3,750/(overdraft Select The Blank Question The short run financial plan which acts as a guide to achieve the predefined targets is known as ________. Correct Answer Budget Your Answer Budget

Multiple Choice Single Answer Question A worker completes a job in a certain number of hours. The standard time allowed for the job is 10 hours, and the hourly rate of wages is Rs.10/-. The worker earns at 50% rate, a bonus of Rs.20/- under Halsey plan. Find out his total earnings under the Rowan plan. Correct Answer Rs.84/Your Answer Rs.70/-

Multiple Choice Single Answer Question Selecting an appropriate method of valuation of inventory is important because :Correct Answer It influences the figure of gross profit Your Answer It influences the figure of gross profit

True/False Question

Error of commission refer to a situation where a transaction is not recorded in the books of account. Correct Answer False Your Answer False

True/False Question

All costs are controllable.

Correct Answer False Your Answer False

True/False Question

While passing the journal entry, it is of utmost importance to ensure that the total of amount debited is equal to the total of the amount credited. Correct Answer True Your Answer True

Match The Following Question Book-Keeping Financial statement Accounting Profitability statement Balance-sheet

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

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

Multiple Choice Multiple Answer Question Features of convention of materiality are :Correct Answer Transactions having material impact on profitability should be considered , Insignificant transactions will be ignored Your Answer Transactions having material impact on profitability should be considered , Insignificant transactions will be ignored Multiple Choice Multiple Answer Question The various areas in which uniform costing can be adopted are :Correct Answer Valuation of inventories , Charging of depreciation , Apportionment of overheads Your Answer Valuation of inventories , Charging of depreciation , Apportionment of overheads Multiple Choice Multiple Answer Question Following are the examples of service cost centre :Correct Answer Stores department , Transport department , Accounting department Your Answer Stores department , Transport department , Accounting department

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 Single Answer Question The overheads of a machine shop X should be apportioned using which of the following basis? Correct Answer Machine hours Your Answer Machine hours

Multiple Choice Single Answer Question P Ltd. produces a product having a monthly demand of 4,000 units. For every one unit of finished product one unit of a component X is required at purchase price of Rs.20/-. The ordering cost is Rs.120/- per order and the holding cost is 10% per annum. If the company places each order for 2,000 units due to financial constraints, what is the extra annual cost? Correct Answer Rs.80/Your Answer Rs.80/-

True/False Question

Factory overheads consist of all overhead costs incurred from the stage of procurement of material till the production of finished goods. Correct Answer True Your Answer True

Multiple Choice Multiple Answer Question The disadvantages of time rate system are :Correct Answer Ignores the efficiency of workers , Higher labour cost , Lack of motivation to increase productivity Your Answer Ignores the efficiency of workers , Higher labour cost , Lack of motivation to increase productivity 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

Select The Blank Question ________ is an example of intangible asset. Correct Answer Goodwill Your Answer Goodwill

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 Select the transactions which can be entered in the Journal proper :Correct Answer Opening entries , Closing entries , Rectification entries Your Answer Opening entries , Closing entries , Rectification entries

Multiple Choice Single Answer Question A firm has monthly fixed cost commitment of Rs.200,000/-. It is producing only one product which is sold at a price of Rs.80/- per unit. Per unit variable cost is Rs.50/-. Calculate annual break even point. Correct Answer 80,000 units Your Answer 80,000 units

Select The Blank Question In case of seasonal industry, the budget period may be taken as ________. Correct Answer One season Your Answer One season

Select The Blank Question The process of attributing proportions of items of costs amongst cost centres is called ________. Correct Answer Cost apportionment Your Answer Cost apportionment

Multiple Choice Single Answer

Question

Which system can assist in fixing a common selling price for the industry as a whole on the basis of cost of production of all units belonging to that industry? Correct Answer Uniform costing Your Answer Uniform costing

Select The Blank Question Angle formed by the intersection of total cost line and sales line is called angle of ________. Correct Answer Incidence Your Answer Incidence

LIST OF ATTEMPTED QUESTIONS AND ANSWERS True/False Question A business is an activity carried out with the intention of earning the profit. Correct Answer True Your Answer True True/False Question Balance sheet indicates the financial status of the business at given period. Correct Answer True Your Answer True 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 False Multiple Choice Multiple Answer Question Features of convention of conservation are . . . Correct Answer Anticipates all future losses and expenses , Ignores all future incomes and profits, unless they are actually realised , Applicable to valuation of current assets Your Answer Anticipates all future losses and expenses , Applicable to valuation of current assets , Applicable to valuation of non-current asset True/False Question Depreciation can be defined as a permanent, continuous and gradual reduction in the book value of a fixed asset. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question The suspense account has a debit balance of Rs.40,000/-. Select the transactions which are capable of nullifying this balance. Correct Answer Conveyance expenses of Rs.25,000/- were posted on the wrong side of the account. , Purchased computer worth Rs.28,000/- was recorded in the ledger as , The total of

the purchase book was cast short by Rs.44,000/Your Answer Free samples worth Rs.40,000/- distributed during the year were credited to sales account Multiple Choice Multiple Answer Question From the following select the examples of errors of commission Correct Answer Sales recorded in the sales register as Rs.2,020/- instead of Rs.2,200/- , Received cash from Sham, credited to Ram's account , Paid transport charges, credited to transport charges account Your Answer Purchases of fixed assets recorded in the purchase register , Received cash from Sham, credited to Ram's account , Paid transport charges, credited to transport charges account True/False Question Treating capital receipt as revenue income is an example of errors of commission. Correct Answer False Your Answer False Select The Blank Question Purchase day book for the month of April was under cast by Rs.1000/- which account should be credited ? ________ Correct Answer Suspense Account Your Answer Purchase Account Multiple Choice Single Answer Question Presentation of information to enable managerial decision making' is one of the objects of which of the following Correct Answer Cost Accounting Your Answer Management Accounting 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 , Not relevant in decision making process , Incurred in past True/False Question Penalty paid for delay in payment to creditors represents uncontrollable cost. Correct Answer False Your Answer False Select The Blank Question Revenues are more than the differential costs, then the proposed project should be ________ Correct Answer accepted Your Answer accepted Multiple Choice Single Answer Question Cost of fringe benefits provided to a factory worker should be charged to : Correct Answer Factory overheads Your Answer Factory overheads

True/False Question Indirect material indicates that material which can be identified with the individual cost centre Correct Answer False Your Answer False True/False Question For a manufacturing company, dividend received is a non-operating income. Correct Answer True 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 The process of recording the business transactions in a defined set of records is referred to as ________. Correct Answer Balance sheet Your Answer Trial Balance Select The Blank Question ________ Accounting is the process of analysis and interpretation of financial data collected with help of financial accounting & cost accounting Correct Answer Management Your Answer Management Multiple Choice Multiple Answer Question Identify the fixed expenses from the following. Correct Answer Rent and taxes of the factory , Wages paid to indirect workers like cleaners, helpers,etc. , Salary paid to factory supervisor Your Answer Rent and taxes of the factory , Wages paid to indirect workers like cleaners, helpers,etc. , Salary paid to factory supervisor Multiple Choice Multiple Answer Question The disadvantages of supplementary overhead rates are: Correct Answer It can be determined only after the end of the accounting period , Defeats the basic concept of normal cost , Involves lot of clerical activity Your Answer It can be determined only after the end of the accounting period , Involves lot of clerical activity , It can be determined only in the beginning of the accounting period Multiple Choice Single Answer Question Judge the sentence in italics according to criteria given below : " It is difficult to adopt Uniform costing system when a product can be manufactured by employing more than one method because the cost of production will vary according to the method used." Correct Answer The assertion and the reason are both correct Your Answer The assertion and the reason are both incorrect Multiple Choice Multiple Answer

Question The objectives of Uniform costing system are as follows : Correct Answer To fix a common selling price for the industry as a whole , To compare efficiency of each unit against industry's overall performance , To compile reliable cost data for inter-firm comparison of costs Your Answer To compare efficiency of each unit against industry's overall performance , To compile reliable cost data for inter-firm comparison of costs , To fix a common selling price so as to maximize profits of each unit True/False Question Uniform costing system is defined as a system using common concepts and standard accounting practices by different entities in different industry to facilitate inter-firm comparison. Correct Answer True Your Answer True Select The Blank Question The system which provides an opportunity to the small units to take advantage of the research work taken by the large scale units of the same industry is known as ________ system. Correct Answer Uniform costing Your Answer Uniform costing Match The Following Question Correct Answer Your Answer Spirit of mutual trust Requisite for uniform costing Requisite for uniform costing Avoids cut throat competition Advantage of uniform costing Advantage of uniform costing Treatment given to research and development costs Fields covered by uniform costing Fields covered by uniform costing Advantageously applicable in similar industries Scope of uniform costing Scope of uniform costing

Multiple Choice Multiple Answer Question In practical circumstances, control ledgers may be maintained for the following categories: Correct Answer Sundry debtors , Sundry creditors , Advance to Staff Your Answer Sundry debtors , Sundry creditors , Advance to Staff Select The Blank Question ________ is an example of intangible asset. Correct Answer Goodwill Your Answer Goodwill Multiple Choice Single Answer Question Annual maintenance of Rs.28,000/- was paid on 15th June, 2003 for a period of one year therefrom. Find the amount of prepaid maitenance expenditure for the year ended 31st March. Correct Answer Rs.5,833/-

Your Answer Rs.5,833/True/False Question Goods sent to the customers on approval basis should be treated as sales. Correct Answer False Your Answer False True/False Question The amount of profit which is retained by the organisation is transferred to 'Reserves and Surplus' in the balance sheet. Correct Answer True Your Answer True True/False Question Any amount of profit earned in the past which is not distributed to the owner, belongs to the creditors. Correct Answer False Your Answer True Match The Following Question Correct Answer Your Answer Deferred revenue expenditure Real account Real account Deferred revenue expenditure written off Nominal account Non-real account Loan Personal account Nominal account Drawings Proprietor's account Proprietor's account

True/False Question While preparing bank reconciliation statement for the month of September 2004, one should consider the balance as per bank book as on 1st September, 2004 and the balance as per pass book as on 30th September, 2004. Correct Answer False Your Answer True Select The Blank Question The ________ is responsible for material losses while in storage. Correct Answer Store-keeper Your Answer Warehouse- keeper 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 Multiple Choice Multiple Answer

Question These are the preventive costs of labour turnover. Correct Answer Cost of maintaining good relations with the workers , Cost of medical services , Cost of welfare facilities Your Answer Cost of maintaining good relations with the workers , Cost of medical services , Cost of welfare facilities Multiple Choice Single Answer Question Standard time required for a job is 10 hours, i.e.10 X 60 = 600 'Bs'. The worker has actually completed the job in 6 hours, i.e.6 X 60 = 360 'Bs'. Time wage rate is Rs.20/- per hour. Bonus is shared between the worker and the foreman in the ratio of 3:1. Calculate total earning of the worker as per Bedeaux Point System. Correct Answer Rs.180/Your Answer Rs.180/Multiple Choice Single Answer Question Hourly wage rate is Rs.25/- and the time allowed for a job is 15 hours. Harry completed the job in 12 hours. Calculate the effective hourly earnings for Harry under Halsey Plan. Correct Answer Rs.28.12 Your Answer Rs.28.12 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. , Existence of key factor which will limit the volume of output. , With respect to service industries where employee costs are very large and almost fixed in nature Select The Blank Question Profit = Contribution per unit X ________. Correct Answer Margin of safety (units) Your Answer Sales (units) Select The Blank Question Graphically, fixed cost line will be ________ the 'x-axis'. Correct Answer Parallel to Your Answer Perpendicular to 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 Fixed 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 sales volume , Reduce cost of sales , Increase the selling efforts Select The Blank Question Preparation of direct material ________ budget is the responsibility of the Purchase manager. Correct Answer Purchase Your Answer Purchase Multiple Choice Single Answer Question The budget manual must contain statement regarding: Correct Answer Objectives of the orgainsation Your Answer Objectives of the orgainsation Multiple Choice Single Answer Question The integrated form of all functional budgets is known as : Correct Answer Master budget Your Answer Master budget LIST OF ATTEMPTED QUESTIONS AND ANSWERS 1 True/False Question Accounting is an art of recording, classifying & summarizing in a significant manner. Correct Answer True Your Answer False True/False Question Profitability statement indicates the amount of assets & liabilities. Correct Answer False Your Answer False Select The Blank Question Income Tax Act, recognise only one method of depreciation namely ________. Correct Answer Written down value method Your Answer Straight line method Multiple Choice Multiple Answer Question For the given transaction find the wrong entry that has been passed in the books of accounts, the correct entry that should have been passed and the rectification entry required to rectify the mistake. "On 1st September, 2004 the total of the previous month's wages was debited to 'Manufacturing Wages Account". During the previous month, a new machine was installed, and the firm's own employees had spent time thereon; the previous month's wages for all such employees amounted to Correct Answer Machinery A/c. . . Dr. Rs.14,100/- To Manufacturing Wages A/c Rs.14,100/- , Machinery A/c . . . Dr. Rs.14,100/- To Cash A/c Rs.14,100/- , Rs.14,100/- To Cash A/c Rs.14,100/Your Answer Manufacturing Wages A/c. . . Dr. Rs.14,100/- To Machinery A/c Rs.14,100/, Machinery A/c. . . Dr. Rs.14,100/- To Manufacturing Wages A/c Rs.14,100/- , Machinery A/c . . . Dr. Rs.14,100/- To Cash A/c Rs.14,100/True/False Question Error of commission refer to calculation errors, totaling errors, errors in carrying

forward etc. Correct Answer True Your Answer True 6 True/False Question Error of commission refer to a situation where a transaction is not recorded in the books of account. Correct Answer False Your Answer False Select The Blank Question The term ________ indicates expenditure incurred on or attributable to a given thing. Correct Answer Cost Your Answer Expense Select The Blank Question Revenues are more than the differential costs, then the proposed project should be ________ Correct Answer accepted Your Answer accepted 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 Dividend received on amount invested in shares is an example of ________. Correct Answer non-operating income Your Answer non-operating income 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 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 Select The Blank Question The principle of ________ is followed while preparing the financial statements. Correct Answer Going concern Your Answer Closing concern Multiple Choice Single Answer Question The overheads of a machine shop X should be apportioned using which of the

10

11

12

13

14

following basis? Correct Answer Machine hours Your Answer Machine hours Select The Blank Question The various contents of a uniform cost manual are organisation, cost accounting system and ________. Correct Answer presentation of information Your Answer presentation of information Select The Blank Question In India the gas industry and electricity industry, and ________ industry are examples of industries using the uniform costing system. Correct Answer fertilizer Your Answer construction Multiple Choice Single Answer Question Which system involves adoption of same costing principles, practices and procedures by the individual firms of an industry ? Correct Answer Uniform costing Your Answer Uniform costing 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 Multiple Choice Multiple Answer Question Which of the following aspects are mainly responsible for difficulty in application of Uniform costing system. Correct Answer Capital investment , Plant size , Location Your Answer Capital investment , Plant size , Location True/False Question Price based on Uniform Costing may be taken to be reliable and representative of the whole industry. Correct Answer True Your Answer True Multiple Choice Single Answer Question Loss on account of goods lost due to earthquake should be debited to which account? Correct Answer Profit and loss account Your Answer Trading account Multiple Choice Single Answer Question If the proprietor has taken away goods worth Rs.5,500/- for personal use, find its impact on the proprietor's account in the organisatin. Correct Answer The capital will decrease by Rs.5,500/-

Your Answer The balance of drawings account will increase by Rs.5,500/Multiple Choice Single Answer Question Accrued income indicates: Correct Answer Current year's income not received in the current year Your Answer Current year's income not received in the current year True/False Question The actual loss incurred by a company, due to fire, is the extent of difference between the cost of goods destroyed and the amount of claim settled by the insurance company. Correct Answer True Your Answer True Match The Following Question Correct Answer Your Answer Freight inwards Manufacturing account Balance sheet Sales Trading account Trading account Freight outwards Profit and loss account Manufacturing account Dividend paid Profit and loss appropriation account Profit and loss account

Select The Blank Question The process of finding the reasons for the difference in the balance as per bank book and pass book is known as ________. Correct Answer Reconciliation Your Answer Reconciliation Multiple Choice Single Answer Question Which of the following transactions fall within the definition of the 'standing instruction' Correct Answer Club membership subscription Your Answer Bank interest Multiple Choice Single Answer Question The pass book showed a credit balance of Rs.1,000/-. This balance was after considering the dividend of Rs.25/- collected by bank and Rs.5/- charged as collection expenses: these enteries are not made in the bank book. Find the balance as per bank book. Correct Answer Rs.1,020/Your Answer Rs.1,030/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 Calculate inventory turnover ratio from the following : Maximum stock -7,000 units; minimum stock - 3,000 units and quantity of material issued during the year - 150,000 units. Correct Answer 30 Your Answer 15 Multiple Choice Single Answer Question Re-order quantity may be measured as : Correct Answer Maximum stock level - re-order level + (minimum usage X minimum reorder period) Your Answer Re-order level + minimum stock - (maximum usage X maximum re-order period) Multiple Choice Multiple Answer Question Labour turnover means : Correct Answer Influx and exit of employees , Quantitative measurement of instability of working force , Rate of change in the average working force Your Answer Influx and exit of employees , Quantitative measurement of instability of working force , Rate of change in the average working force Multiple Choice Multiple Answer Question Select the non-monetary incentives Correct Answer Health and safety services , Canteen facility , Loans at reduced rate of interest Your Answer Health and safety services , Canteen facility , Loans at reduced rate of interest True/False Question The best way to reduce labour cost is to recruit cheap labour. Correct Answer False Your Answer False True/False Question Under the accelerating premium system incentive increases at a fast rate with the decrease in output. Correct Answer False Your Answer False Multiple Choice Multiple Answer Question Select the correct formulae for calculating break even point. Correct Answer Fixed cost / (Selling price per unit - Variable cost per unit) , [Fixed cost / Marginal contribution] X Sales , [Fixed cost / (Fixed cost + Net Profit)] X Sales Your Answer Fixed cost / (Selling price per unit - Variable cost per unit) , [Fixed cost / Marginal contribution] X Sales , [Fixed cost / Marginal contribution] X Variable cost Multiple Choice Multiple Answer Question Merits of break even point analysis are as follows: Correct Answer Useful diagnostic tool. , Used for analysing the risk implication of alternative actions. , Used to graphically represent complicated data. Your Answer Useful diagnostic tool. , Used for analysing the risk implication of alternative actions. , Used to graphically represent complicated data.

True/False Question Profit = Profit volume ratio X Margin of safety Correct Answer True Your Answer True True/False Question Marginal costing is a technique of cost control. Correct Answer True Your Answer False 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 Materials budget , Production budget , Production overheads budget Multiple Choice Single Answer Question The composition of selling costs is given below : 1 salaries 4% of sales, travelling expenses 1.5% of sales, and sales office 2% of sales. Find the amount of selling overheads if the sales are Rs.120,000/-. Correct Answer Rs.9,000/Your Answer Rs.9,000/Multiple Choice Single Answer Question Production costs of a factory for the year 2003-04 are as follows: direct labour cost Rs.100,000/-; direct material cost Rs.150,000/-; production overheads (fixed) Rs.50,000/- and production overheads (variable) Rs.80,000/-. The production manager projec Correct Answer Rs.426,800/Your Answer Rs.380,000/True/False Question It is very easy to measure the portion of increased sales which is due to expenditure incurred for advertisement of the product Correct Answer False Your Answer True Match The Following Question Correct Answer Your Answer Plan of investment in fixed assets Capital Expenditure Budget Capital Expenditure Budget Plan for surplus/shortage of cash Cash Budget Cash Budget Operating income Cash Sales Cash Budget Non-Operating income Issue of shares Issue of shares

Multiple Choice Multiple Answer

Question Overhead capacity variance is the outcome of: Correct Answer Shortage of labour , Enforced idle time, e.g.power breakdowns , Customer demand being more or less than anticipated Your Answer Use of sub-standard quality of material , Shortage of labour , Enforced idle time, e.g.power breakdowns Select The Blank Question The systematic process of identifying and reporting variance is known as ________. Correct Answer Variance analysis Your Answer Standard costing 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 True

LIST OF ATTEMPTED QUESTIONS AND ANSWERS Select The Blank Question ________ is the summary of all the balances in all the accounts listed in ledger account of an organization at any given point of time. Correct Answer Trial Balance Your Answer Trial Balance

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 Balance sheet

Multiple Choice Multiple Answer Question Pre-requisites of Uniform Costing are :Correct Answer Spirit of mutual trust , Free Exchange of ideas , No rivalry Your Answer Spirit of mutual trust , Free Exchange of ideas , No rivalry

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 , Per unit material cost , Job number

Multiple Choice Single Answer Question Judge the given statement according to the given criteria :Goods being real account, when goods are lost by fire, the goods account should be debited because the goods are not going out of the factory. Correct Answer The statement is correct but the reason is incorrect Your Answer The statement is correct but the reason is incorrect

Select The Blank Question A written order sent to inform the purchasing department of a need for materials is called a ________. Correct Answer Purchase requisition note Your Answer Purchase requisition note

Select The Blank Question The method of remuneration under which the workers are given in share in profits of the organization, at a specified percentage, along-with their wages, is known as ________ method. Correct Answer Profit-sharing Your Answer Profit-sharing

Multiple Choice Single Answer Question Which of the following transactions fall within the definition of the 'standing instruction'? Correct Answer Club membership subscription Your Answer Club membership subscription

Multiple Choice Multiple Answer Question Uniform costing system can be successfully implemented in any industry only when :Correct Answer Information is freely supplied by all the units , Well organized sector is ready to share the technological improvements , Information furnished by the units is complete and correct Your Answer Information is freely supplied by all the units , Well organized sector is ready to share the technological improvements , Information furnished by the units is complete and correct Multiple Choice Multiple Answer Question The factors which influence the selection of the method for absorption of overheads are:Correct Answer Manufacturing process , Type of industry , Nature of products

Your Answer

Type of industry , Nature of products , Manufacturing process

True/False Question

The bin card and stores ledger, being independent records, comparison of these two records should be avoided. Correct Answer False Your Answer False

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 Ledger

True/False Question

Price based on Uniform Costing may be taken to be reliable and representative of the whole industry. Correct Answer True Your Answer True

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

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

Multiple Choice Single Answer Question Judge the following narrative according to the criteria given : There are many organizations whose sales fluctuate with fluctuations in the weather, viz. ice-cream, sweaters, etc. Correct Answer The statement and the reason are both incorrect

Your Answer

The statement and the reason are both incorrect

Multiple Choice Single Answer Question In considering a special order situation that will enable a company to make use of presently idle capacity, which of the following costs would be irrelevant? Correct Answer Depreciation Your Answer Labour

Multiple Choice Single Answer Question XYZ Ltd. is selling 50,000 units of a product at Rs.40/- per unit. Variable cost is Rs.25/- per unit and fixed cost is Rs.200,000/-. The producer can increase sales volume by 20% by reducing the price by 10%. Do you recommend reduction in price? What will be profit if this action in undertaken? Correct Answer No; Revised profit Rs.460,000/Your Answer Yes; Revised profit Rs.460,000/-

True/False Question

One of the major drawback of the contribution approach to costing is that it ignores fixed cost. Correct Answer True Your Answer False

True/False Question

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

Multiple Choice Multiple Answer Question Labour efficiency variance arises due to:Correct Answer Inefficient supervisor , Poor working conditions , Use of substandard quality of material Your Answer Inefficient supervisor , Poor working conditions , Change in material mix 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

True/False Question

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

True/False Question

Profitability statement is a period statement & provides information about the results of operations. Correct Answer True Your Answer True

Match The Following Question Global Tender

Correct Answer Any supplier from the global market can fill the tender Tender from only one supplier

Your Answer Any supplier from the global market can fill the tender Tender from only one supplier

Single Tender Limited Tender Open Tender

Tenders from reliable but Tenders from reliable but few suppliers few suppliers Any supplier from the local Any supplier from the local market can fill the tender market can fill the tender

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 The characteristics of a good wage system are :Correct Answer Flexible , Economical to use , Easy to understand Your Answer Flexible , Economical to use , Easy to understand

Multiple Choice Multiple Answer Question The key factor determines the :-

Correct Answer Capacity utilization , Level of sales , Level of activity Your Answer Level of activity , Capacity utilization , Level of sales

Multiple Choice Multiple Answer Question Which of the following information is included in the goods received note? Correct Answer Date of receipt of material , Quantity received , Description of goods Your Answer Date of receipt of material , Quantity received , Description of goods Multiple Choice Single Answer Question XYZ Ltd. has a profit volume ratio of 40%. By what percentage should sales be increased to offset 20% reduction in selling price, so that the existing profit remains intact? Correct Answer 0.6 Your Answer 0.2

Select The Blank Question Interest receivable is a________ for the organization. Correct Answer Current asset Your Answer Current asset

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.10,50,000/-

Select The Blank Question The system which provides an opportunity to the small units to take advantage of the research work taken by the large scale units of the same industry is known as ________ system. Correct Answer Uniform costing Your Answer Uniform costing

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

Select The Blank Question The lowest profit volume ratio can be ________%. Correct Answer 0 Your Answer 0

Multiple Choice Multiple Answer Question Select the appropriate rectification entries for the following transactions (i) Rs.200/- received in respect of a bad debt previously written off was credited to Debtors account. (ii) Paid Rs.6,000/- to a Mr. Rao, clerk, as salary in lieu of notice. This amount was debited to his personal account (iii) Interest @ 5% p.a. on a loan of Rs.5,000/- was debited to general expenses account. Correct Answer Debtors A/c ..........Dr. Rs.200/- to bad debts recovered A/c Rs.200/- , Rs.6,000/- to Rao's A/c Rs.6,000/- , Rs.250/- to General Expenses A/c Rs.250/Your Answer Debtors A/c ..........Dr. Rs.200/- to bad debts recovered A/c Rs.200/- , Rs.6,000/- to Rao's A/c Rs.6,000/- , Rs.250/- to General Expenses A/c Rs.250/Match The Following Question Ledger Audit Accounting Journal

Correct Answer Maintain all types of accounts

Your Answer Maintain all types of accounts

Reviewing internal control Reviewing internal control system system Process of analyzing & interpretation Book of original entry Process of analyzing & interpretation Book of original entry

True/False Question

The cost of abnormal time may be recovered by inflating the hourly labour rate. Correct Answer True Your Answer True

Select The Blank

Question

Loans which are borrowed from financial institutions are to be paid off in 8 years, should be disclosed as ________ in the balance sheet. Correct Answer Long term liabilities Your Answer Long term liabilities

True/False Question

Under ABC analysis, category A represents items with high volumes. Correct Answer False Your Answer True

Multiple Choice Multiple Answer Question Select the accounts to be disclosed on the assets side of the Balance sheet :Correct Answer Furniture , Loan to Bank of U.S.A. , Land & building Your Answer Furniture , Land & building

True/False Question

Direct labour hour rate method of absorption of overheads is suitable where most of the production is done by using machines. Correct Answer False Your Answer False

True/False Question

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

Multiple Choice Single Answer Question From the given information compute the total cost variance. Material cost variance -Rs.4,400/- (Favourable); labour cost variance -Rs.450/- (Adverse); fixed overhead cost variance Rs.22,000/- (Adverse); variable overhead cost variance Rs.6,000/- (adverse). Correct Answer Rs.24,050/- (Adverse) Your Answer Rs.24,050/- (Adverse)

Select The Blank

Question

Adjustment entries always have ________ effects.

Correct Answer Two Your Answer Two

True/False Question

Standard costing is always accompanied by a system of budgeting but budgetary control may be operated in business where standard costing is impracticable. Correct Answer True Your Answer True

Multiple Choice Single Answer Question The profit volume ratio of BB & Co,. dealing in precision instruments, is 50% and the margin of safety is 40%. You are required to work out the break-even point and the net profit if the sale volume is Rs.50,00,000/Correct Answer Break even point-Rs.30,00,000/-, net profit-Rs.10,00,000/Your Answer Break even point-Rs.30,00,000/-, net profit-Rs.10,00,000/-

LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Multiple Answer Question The advantages of written communication are

Correct Answer Accuracy , Can be recorded , Brevity Your Answer Accuracy , Can be recorded

Multiple Choice Multiple Answer Question Business letters can be useful in different ways like

Correct Answer Legal evidence , Permanent information , Recovering dues Your Answer Legal evidence , Permanent information , Recovering dues

Multiple Choice Multiple Answer Question Essential parts of business letters would be

Correct Answer Head address , Date , Outward number Your Answer Head address , Date , Outward number

Multiple Choice Multiple Answer Question The Head address includes

Correct Answer Tel no. , Name of organization Your Answer Tel no. , Name of organization , Name of person

Multiple Choice Multiple Answer Question The body of the letter may be divided into

Correct Answer Opening Para , Main communication , Closing paragraph Your Answer Reference Para , Opening Para , Main communication , Closing paragraph

Multiple Choice Multiple Answer Question Examples of salutations would be

Correct Answer Dear sir , Respected Sir Your Answer Thanking you , Yours faithfully , Respected Sir

Multiple Choice Multiple Answer

Question

The matter in the memorandum may include

Correct Answer Procedures , Rules , Instructions Your Answer True/False Question People external to the organization do not have any access to the costing records. Procedures , Rules , Instructions

Correct Answer True Your Answer True

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 It is a legal requirement , It protects the interest of outsiders , It Your Answer considers historical transactions True/False Question A cheque received from a customer but not deposited into bank must be recorded in the cash book.

Correct Answer True Your Answer False

Multiple Choice Single Answer Goods return by Pande worth Rs. 2000 should have appeared Question on the credit side of Pandes account for rectifying the same. Following account to be credited Correct Answer Suspense A/C Your Answer Goods A/C

Multiple Choice Single Answer Amit purchase of Rs. 6710 had been posted to the debit of the Question creditors A/C as 6170 rectifying the transaction the creditor A/C is to be debited amount to Rs Correct Answer 540 Your Answer 540

Multiple Choice Single Answer The periodical total of sales book was cash short by Rs. 5000 for Question rectifying the same, which A/C to be debited

Correct Answer Suspense A/C Your Answer Cash A/C

Multiple Choice Single Answer Old furniture sold for Rs. 5400 has been entered as Rs 4500 in Question the cash book, for rectifying the same Suspense A/C credited to Rs Correct Answer 900 Your Answer 900

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 Posting on the wrong side of an account , Omission of posting Your Answer an account in the ledger True/False Question Due to compensating errors the arithmetical accuracy of the trial balance get affected.

Correct Answer False 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

Match The Following Question Non-operating Income Non-operating Expense Selling & Distribution Factory Cost Total Cost Correct Answer Profit on sale of shares Dividend on shares Advertisement Your Answer Profit on sale of shares Dividend on shares Advertisement

Repair for factory building Repair for factory building Cost of finished goods Cost of finished goods

Multiple Choice Single Answer The prime cost is Rs. 10,00,000 the factory cost is Rs. Question 13,00,000, the total administration overheads are 14,00,000 and having selling overhead of Rs. 86000. What is the Total cost? Correct Answer 37,86,000 Your Answer 37,86,000

Multiple Choice Multiple Answer Question Non Operating Expenses includes

Correct Answer Loss on sale of asset , Goodwill , Only a, b Your Answer True/False Question Perpectual inventory system includes continuous verification of physical stock at regular intervals. Goodwill , Preliminary expenses written off

Correct Answer True Your Answer True

Multiple Choice Single Answer Under the differential time rate method of wage payment up to Question 80% of efficiency following rate is offered. Correct Answer Rs. 1.00 per hour Your Answer True/False Question Per unit cost of variable overheads may reduce as the volume of output increases but the total overheads remain constant. Rs. 1.00 per hour

Correct Answer False Your Answer True/False Question False

Machine hour rate is calculated as (amount of overheads to be absorbed)/(labour hours required for production)

Correct Answer False Your Answer False

Multiple Choice Single Answer Question This is the best example of element wise classification of cost.

Correct Answer material Your Answer material

Multiple Choice Single Answer Question This is an example of semi variable overheads.

Correct Answer electricity Your Answer electricity

Multiple Choice Multiple Answer Question wise classification of overheads takes the form of

Correct Answer indirect material , indirect labour , indirect expenses Your Answer 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. indirect material , indirect labour , indirect expenses

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

Correct Answer True Your Answer True/False Question Depreciation does not involve cash out flow True

Correct Answer True Your Answer True

Multiple Choice Multiple Answer Question Uncontrollable variances are

Correct Answer Strike , Change in customers demand , Devaluation of currency Your Answer Strike , Change in customers demand , Devaluation of currency

Multiple Choice Multiple Answer Question Correct Answer Your Answer Basic three steps in Standard Costing are Setting standards , Comparing actuals with standards , Measurement of variance Setting standards , Comparing actuals with standards , Measurement of variance

Multiple Choice Single Answer Calculate Labour Rate Variance, If actual rate per hour is Question Rs.3.50/- , Standard rate is Rs.3/- per unit and actual hours are 13, 500. Correct Answer Rs.6750/- ( Adverse ) Your Answer Rs.6750/- ( Favorable )

Multiple Choice Single Answer Calculate Labour Efficiency Variance, If actual rate per hour is Question 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 Following factors will have to be considered before preparing Question Production Budget in terms of quantity Production capacity , Co-ordination with Sales forecast , Correct Answer Management Policy Your Answer Co ordination with Stores department , Production capacity

Match The Following Question Maximum level Correct Answer The level above which actual stock should not exceed The level below which actual stock should not reduce Your Answer The level above which actual stock should not exceed The level below which actual stock should not reduce

Minimum level

Re-order level Danger level Fixation of inventory level

To take the step for Initiating proper action for procurement of further lots movement of material of material Below minimum level Below minimum level

Initiating proper action for To take the step for procurement of further lots movement of material of material

Select The Blank If ________ is not provided, the asset may appear in the Question Balance Sheet at an ________ amount Correct Answer depreciation Your Answer depreciation

Correct Answer overstated Your Answer overstated

Select The Blank Generally accounts of the assets will have ________ balance Question and liabilities will have ________ balance Correct Answer debits Your Answer debits

Correct Answer credits Your Answer credits

Select The Blank In financial statements P& L Accounts relates to a specific Question duration whereas ________ is for a given point of time Correct Answer P& L Accounts Your Answer Balance sheet

Correct Answer Balance sheet Your Answer Select The Blank Along with financial accounting, ________ and ________ are the Question other streams of accounting Correct Answer Cost Accounting Your Answer Cost Accounting

Correct Answer Management Accounting Your Answer Management Accounting

Select The Blank Labour Turnover indicates ________ in labour force showing a Question highly increasing trend or highly ________ trend Correct Answer change

Your Answer

change

Correct Answer decreasing Your Answer decreasing

Select The Blank Preventive costs of labour turnover refers to all the costs which Question may be incurred by the organisation to keep workers happy and ________ them from ________ the job Correct Answer discourage Your Answer encourage

Correct Answer leaving Your Answer leaving

Select The Blank Expenditure like general lighting are apportioned considering Question ________ 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 number of light points

Select The Blank Under absorption of overheads may take place due to the Question reasons like ________ overheads being more than the ________ overheads Correct Answer actual Your Answer actual

Correct Answer estimated Your Answer estimated

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

Correct Answer lower Your Answer lower

Select The Blank A key factor is defined as the factor which, at a particular point of Question time or over a period will ________ the volume of ________ Correct Answer limit Your Answer limit

Correct Answer output Your Answer output

Select The Blank ________ of Trial Balance generally ensures ________ Question accuracy of the process of ledger posting . Correct Answer Talling Your Answer Talling

Correct Answer arithmetical Your Answer arithmetical

LIST OF ATTEMPTED QUESTIONS AND ANSWERS 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 Multiple Answer Question Features of convention of consistency are . . . Correct Answer The accounting policies and procedures should be followed consistently , Facilitates the comparison of financial statements , It facilitates comparison of financial statements on period-toperiod basis Your Answer The accounting policies and procedures should be followed consistently , It facilitates comparison of financial statements on period-to-period basis True/False Question

The bin card and stores ledger, being independent records, comparison of these two records should be avoided. Correct Answer False Your Answer False

Match The Following Question Dividend paid Freight inwards Sales Freight outwards

Correct Answer Profit and loss appropriation account Manufacturing account Trading account Profit and loss account

Your Answer Profit and loss account Manufacturing account Capital account Trading account

Select The Blank Question Large angle of incidence indicates ________ amount of profits. Correct Answer higher Your Answer True/False same

Question

Error of commission refer to a situation where a transaction is not recorded in the books of account. Correct Answer False Your Answer True

Multiple Choice Single Answer Question Relevant costs in decision making are : Correct Answer Those costs which will arise as a result of the proposed action Your Answer Those costs which will arise as a result of the proposed action

Select The Blank Question ________is the summary of all the balances in all the accounts listed in ledger account of an organization at any given point of time. Correct Answer Trial Balance Your Answer Trial Balance

Multiple Choice Multiple Answer Question Overhead capacity variance is the outcome of: Correct Answer Shortage of labour , Enforced idle time, e.g.power breakdowns , Customer demand being more or less than anticipated Your Answer Shortage of labour , Enforced idle time, e.g.power breakdowns , Customer demand being more or less than anticipated True/False Question

Factory overheads consist of all overhead costs incurred from the stage of procurement of material till the production of finished goods. Correct Answer True Your Answer True

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 True

Multiple Choice Single Answer Question Included in the trial balance is the sales promotion suspense account with a debit balance of Rs.6,300/-. It is given that this balance should be written off. Calculate its impact on profit of

the company. Correct Answer The net profit will decrease by Rs.6,300/Your Answer The gross profit will increase by Rs.6,300/-

Select The Blank Question In calculation of total sales margin variance, the ________cost of sales is deducted from the actual sales revenue. Correct Answer Standard Your Answer Actual

Match The Following Question Increase in contribution will lead to

Correct Answer Increase in profits

Your Answer Increase in profit volume ratio Decrease in contribution Increase in profits Increase in break even point

Increase in fixed cost will Increase in break even lead to point Decrease in variable cost Increase in profit volume will lead to ratio Decrease in selling price will lead to Decrease in contribution

Multiple Choice Multiple Answer Question Marginal costing technique is useful in taking decisions relating to which of the following courses of action? Correct Answer Decision to drop a product line , Decision to accept a special offer at price lower than the normal selling price , Decision regarding temporary shut-downs Your Answer Decision to drop a product line , Decision to accept a special offer at price lower than the normal selling price , Decision to accept a special offer at price higher than the norm al selling price , Decision regarding temporary shut-downs Multiple Choice Single Answer Question Basic objective of Uniform Costing is . . . Correct Answer comparison Your Answer To control cost

Select The Blank Question Re-order level should be higher than ________ but lesser than maximum stock level. Correct Answer Minimum level

Your Answer True/False Question

Minimum level

The variable costs are controllable at the lower lever.

Correct Answer True Your Answer False

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

Select The Blank Question Goods returned by Pawan worth Rs.1,000/- is debited to Pawan's Account. In order to rectify the mistake, which account should be debited ? ________ Correct Answer Suspense account Your Answer True/False Question Personal account

The purchase account should be debited when an order is placed with the supplier of material. Correct Answer False Your Answer False

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 Interest receivable is a________ for the organisation. Correct Answer Current sset Your Answer Long term asset

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 decrease by Rs.18,000/-

Multiple Choice Single Answer Question Amit sold Goods to Atul for Rs. 50,000/- on cash & Rs. 50,000/on credit basis. Amit allowed 10% discount for on the spot transaction. What is the amount that should be debited to the cash account? Correct Answer Rs.45,000/Your Answer Rs.50,000/-

Multiple Choice Single Answer Question Interest on bank loan, was paid till the quarter ending 30th September, 2003, Rs.36,000/-. Find the amount to be debited to the profit and loss account for the year ending on 31st March, 2004, assuming the loan is not yet repaid as on this date. Correct Answer Rs.72,000/Your Answer Rs.36,000/-

Multiple Choice Single Answer Question The features of the Halsey Plan are: Correct Answer The benefit of time saved is divided equally between the employer and employee Your Answer The benefit of time saved is divided equally between the employer and employee True/False Question

The sum of indirect material cost, indirect labour cost and indirect expenses is termed as factory cost. Correct Answer False Your Answer True

Multiple Choice Single Answer Question Determine re-order level from the following : Maximum daily consumption - 200 units; maximum delivery period - 12 days; average daily consumption - 150 units and average delivery period - 8 days. Correct Answer 2,400 units Your Answer 2,400 units

Select The Blank Question An error of partial omission can be rectified by either debiting or crediting the ________ account, as the case maybe. Correct Answer suspense Your Answer adjusted profit and loss

Multiple Choice Multiple Answer Question Select the examples of functional budgets: Correct Answer Sales budget , Production budget , Research and development budget Your Answer Sales budget , Production budget , Research and development budget Multiple Choice Single Answer Question With the help of the given information, find actual fixed overheads for actual output. Fixed overheads volume variance Rs.75,000/- (Favourable); fixed overheads efficiency variance Rs.95,000/- (Favourable); fixed overheads calendar variance Rs.20,000/- (Adverse); fixed voerheads expenditure variance Rs.100,000/- (Adverse) and standard fixed overheads for actual output -Rs.575,000/-. Correct Answer Rs.600,000/Your Answer Rs.525,000/-

Select The Blank Question Furniture account will always have a ________ balance. Correct Answer Debit Your Answer Credit

Select The Blank Question If the ordering cost ________s, then the economic order quantity will Increase. Correct Answer Increase Your Answer Increase

Multiple Choice Multiple Answer Question Which of the following information is included in the goods received note? Correct Answer Date of receipt of material , Quantity received , Description of goods Your Answer Date of receipt of material , Quantity received , Price of goods , Description of goods

Multiple Choice Multiple Answer Question Select the non-monetary incentives Correct Answer Health and safety services , Canteen facility , Loans at reduced rate of interest Your Answer Health and safety services , Canteen facility True/False Question

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

True/False Question

Linking overhead to a cost unit is known as overhead absorption. Correct Answer True Your Answer True

Multiple Choice Multiple Answer Question The operating profit as per cost statement may differ from the profit as per Profit and Loss Account due to existence of Correct Answer Depreciation on plant and machinery , Interest on loans taken from other , Interest on loans granted to others Your Answer Depreciation on plant and machinery , Interest on loans taken from other 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 Multiple Choice Multiple Answer Question Labour efficiency variance Rs.1,000/- (favourable); labour mix variance Rs.260/- (adverse) and labour rate variance Rs.300/(adverse). Compute labour cost variance and labour yield variance. Correct Answer Labour cost variance -Rs.700/- (Favourable) , Labour yield variance -Rs.1,260/- , Labour yield variance is favourable Your Answer Labour cost variance -Rs.700/- (Favourable) , Labour yield variance -Rs.1,260/True/False

Question

The best way to reduce labour cost is to recruit cheap labour.

Correct Answer False Your Answer True/False Question False

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

Multiple Choice Multiple Answer Question Select the items which may be classified as selling and distribution overheads. Correct Answer Delivery van expenses , Rent of finished goods warehouse , Sales research expenses Your Answer Delivery van expenses , Rent of finished goods warehouse , Sales research expenses Select The Blank Question In India the gas industry and electricity industry, and ________ industry are examples of industries using the uniform costing system. Correct Answer fertilizer Your Answer fertilizer

Multiple Choice Single Answer Question The process of recording the costs in a formal and systematic manner with the intention of preparing statistical data there from a ascertain the cost, is known as . . . Correct Answer Cost accounting Your Answer Cost accounting

Multiple Choice Single Answer Question Fixed deposit bearing interest @ 5.50%, for Rs.10,000/- was kept with Bank of India on 1st June, 2003, for a period of one year. The type of the fixed deposit is cumulative, i.e. interest shall be received only on maturity. What treatment should be given in the books of accounts on 31st March, 2004, the year ending date? Correct Answer An entry for Rs.458.34, debiting interest accrued but not due account should be passed Your Answer An entry for Rs.458.34, crediting interest accrued but not due account should be passed

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

MA1

Multiple Choice Single Answer Question KDL Ltd. charges depreciation @ 20% on written down value method. The net book value of its machinery on 1st January, 2003 was Rs.125,000/-. What will be the net book value of its machinery on year end, i.e.31st December, 2003, assuming there were no additions or disposals during the year? Correct Answer Rs.100,000/Your Answer Rs.100,000/True/False Question Malik started business by contributing cash Rs.50,000/- and his personal car worth Rs.25,000/-; thus his capital account should be credited with Rs.75,000/-. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question Select the non-monetary incentives Correct Answer Health and safety services , Canteen facility , Loans at reduced rate of interest Your Answer Health and safety services , Loans at reduced rate of interest Select The Blank Question The system which provides an opportunity to the small units to take advantage of the research work taken by the large scale units of the same industry is known as ________ system. Correct Answer Uniform costing Your Answer Uniform costing Multiple Choice Single Answer Question As cost centers facilitate the control function, in many cases, they are termed as . . . Correct Answer Responsibility centers Your Answer Responsibility centers Multiple Choice Single Answer Question Lata and Tara are partners of Latara & Co. As on 31st March, 2004 Lata's annual drawings were as Rs.25,000/- and Tara's annual drawings amounted to Rs.18,000/-. If interest on drawings is charged @ 15% p.a., what is the amount of income for Latara & Co.? Correct Answer Rs.6,450/Your Answer Rs.6,450/Multiple Choice Single Answer Question XYZ & Co. has taken a loan of Rs.100,000/- @ 15% p.a.on 1st October, 2003. Interest is to be paid on half yearly basis. What treatment should be given in the books of accounts of XYZ & Co. as on 31st March, 2004? Correct Answer Interest account should be debited with Rs.7,520.55 and outstanding interest account should be credited with Rs.7,520.55 Your Answer Interest account should be debited with Rs.7,520.55 and outstanding interest account should be credited with Rs.7,520.55 True/False Question Balance sheet indicates the financial status of the business at given period. Correct Answer True Your Answer False Multiple Choice Single Answer Question Labour turnover rate is best defined as :

Correct Answer The number of leavers replaced divided by the average of employees on the payroll Your Answer The number of leavers replaced divided by the average of employees on the payroll Multiple Choice Single Answer Question Which system provides an opportunity to companies to adopt the one best method of cost accounting system known to the industry ? Correct Answer Uniform costing Your Answer Uniform costing Multiple Choice Multiple Answer Question The key factor determines the : Correct Answer Level of activity , Capacity utilization , Level of sales Your Answer Level of activity , Capacity utilization , Level of sales Select The Blank Question If the ordering cost ________s, then the economic order quantity will Increase. Correct Answer Increase Your Answer Decrease Select The Blank Question The difference between sales and cost of sales is termed as ________. Correct Answer Net Profit Your Answer Contribution Margin Select The Blank Question The method which deals with ownership rights being given to workers is known as ________ method of remuneration. Correct Answer Co-partnership Your Answer Co-partnership Match The Following Question Correct Answer Your Answer Book-Keeping Books of Accounts Financial status Financial statement Profitability statement & Balance-sheet Profitability statement & Balancesheet 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 Books of Accounts 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 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 Accounting refers to the process of analyzing & interpreting the information already recorded in the books of accounts. Correct Answer True Your Answer False True/False Question Profitability statement indicates the amount of assets & liabilities. Correct Answer False Your Answer False 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 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 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 Select The Blank Question The short run financial plan which acts as a guide to achieve the predefined targets is known as ________. Correct Answer Budget Your Answer Budget True/False Question The process of accounting split into three steams i.e. financial, cost, management accounting. Correct Answer True Your Answer True Match The Following Question Correct Answer Your Answer Real A/C Debit what comes in, Credit what goes out Debit the receiver, Credit the giver 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 Rs.1 Personal A/C Debit the receiver, Credit the giver Debit what comes in, Credit what goes out Select The Blank Question Indirect Cost is termed as ________. Correct Answer Overhead Your Answer Overhead 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 The objectives of cost accounting are : Correct Answer Cost control , Ascertain ment of cost of each product , Assist in managerial decision-making Your Answer Cost control , Ascertain ment of cost of each product , Assist in managerial decision-making Multiple Choice Single Answer Question The finance manager is responsible for which of the following budget? Correct Answer Cash budget Your Answer Cash budget Select The Blank Question Interest on ________ is credited to Capital account. Correct Answer Capital Your Answer Capital Select The Blank Question Under the average cost method of valuing material issues, new issue price is determined after ________ issue. Correct Answer Each Your Answer The next True/False Question The effect of price reduction is always reduction in the margin of safety and also reduction in the break even point. Correct Answer False Your Answer False True/False Question Price based on Uniform Costing may be taken to be reliable and representative of the whole industry. Correct Answer True Your Answer False 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 The level of control of the used of material in the production cycle , An increase in the maximum material inventory level , Failure to control the issue of materials from stores Question If the total manufacturing overhead of a tiles producing factory amounted to Rs.15 lakhs and the overhead rate was Rs.5/- per sq.ft, then the production for the period can be stated as ________ sq.ft. tiles. Correct Answer 300000 Your Answer 300000 Question Accounting is the art where transactions are Correct Answer Summarized , Classified , Recorded Your Answer Classified , Recorded , Processed True/False Question If excess of cash is estimated in the cash budget, it may be possible to utilise it to give bonus to the employees. Correct Answer False Your Answer False True/False Question A fixed budget is useful only when the actual level of activity corresponds to the budgeted level of activity. Correct Answer True Your Answer True Question From the following select the examples of errors of commission Correct Answer Sales recorded in the sales register as Rs.2,020/- instead of Rs.2,200/- , Received cash from Sham, credited to Ram's account , Paid transport charges, credited to transport charges account Your Answer Sales recorded in the sales register as Rs.2,020/- instead of Rs.2,200/- , Received cash from Sham, credited to Ram's account Question The operating profit as per cost statement may differ from the profit as per Profit and Loss Account due to existence of Correct Answer Depreciation on plant and machinery , Interest on loans taken from other , Interest on loans granted to others Your Answer Depreciation on plant and machinery , Preliminary expenses written off Question Expenditure on income-tax is an example of ________. Correct Answer non-operating expenditure Your Answer administrative overheads 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 sales volume , Reduce cost of sales , Increase the selling efforts Question These are the preventive costs of labour turnover. Correct Answer Cost of maintaining good relations with the workers , Cost of medical services , Cost of welfare facilities Your Answer Cost of maintaining good relations with the workers , Cost of medical services , Cost of welfare facilities Question Select the items which may be classified as administration overheads.

Correct Answer Depreciation on office furniture , Director's remuneration , Telephone expenses Your Answer Director's remuneration , Telephone expenses Question Any amount of profit earned in the past which is not distributed to the owner, belongs to the creditors. Correct Answer False Your Answer True Question Management accounting is concerned with the following activities : Correct Answer Decision making , Safeguarding assets , Planning and controlling activities Your Answer Decision making , Planning and controlling activities LIST OF ATTEMPTED QUESTIONS AND ANSWERS MA2

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 Question Budgeted profit and loss account and budgeted balance sheet are also known as ________. Correct Answer Master budget Your Answer Master budget Match The Following Question Correct Answer Your Answer Drawings Proprietor's account Proprietor's account Deferred revenue expenditure Real account Real account Deferred revenue expenditure written off Nominal account Nominal account Loan Personal account Personal account Question ________ Accounting is the process of analysis and interpretation of financial data collected with help of financial accounting & cost accounting Correct Answer Management Your Answer Management 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 Question A grinding machine is an example of impersonal cost centre Correct Answer True Your Answer True 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 , Budget of a transportation company

Question Piece rate systems are very useful in the following circumstances: Correct Answer Units of output are measurable , Job is standardised , The flow of work is regular Your Answer Work delays are frequent , Job is standardised , The flow of work is regular Question The process of recording the business transactions in a defined set of records is referred to as ________. Correct Answer Balance sheet Your Answer Trial Balance 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 Match The Following Question Correct Answer Your Answer Liabilities All the amount owed by the business All the amount owed by the business Drawing Withdrawn for personal use Withdrawn for personal use 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 Question Judge the given statement according to the given criteria. Goods being real account, when goods are lost by fire, the goods account should be debited because the goods are not going out of the factory. Correct Answer The statement is correct but the reason is incorrect Your Answer The statement and the reason both are incorrect Question A ________ inventory turnover period indicates efficient utilisation of material. Correct Answer Low Your Answer High Question Financial accounting may deal with the ascertainment of cost & calculation of profitability of the individual product. Correct Answer False Your Answer 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 False Question Financial Accounting primarily protects the interests of the outsiders dealing with organization in various capacities. Correct Answer True Your Answer False Question Purchased 200 shares of Bharat Forge Ltd. for Rs.850/- per share, which account should be debited?

Correct Answer Investment account - Rs.170,000/Your Answer Investment account - Rs.170,000/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 Question The data for two materials P and Q is given below : Material P : opening stock Rs.80,000/-; closing stock Rs.40,000/- and purchases Rs.500,000/-. Material Q : opening stock Rs.170,000/-; closing stock Rs.60,000/- and purchases Rs.750,000/-. Identify which of the given statements relevant to the data given are correct. Correct Answer Inventory turnover period for material P is 40.5 days , Material P is faster moving material , Consumption of material Q is Rs.860,000/Your Answer Inventory turnover period for material P is 40.5 days , Material Q is faster moving material , Consumption of material Q is Rs.860,000/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 True Question Overhead absorption rate will be different at different capacity levels. Correct Answer True Your Answer True Question Accounting is the art where transactions are Correct Answer Summarized , Classified , Recorded Your Answer Summarized , Classified , Recorded Question Features of a cost sheet are as follows Correct Answer Indicates the total cost of production during a given period , Indicates the unit cost of production during a given period , Helps the management in fixing the selling price to be quoted for the Your Answer Indicates the total cost of production during a given period , Helps the management in fixing the selling price to be quoted for the , Helps the management in taking 'make' or 'buy' decision for the 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 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% Question The alternative courses of action for an integrated textile mill are: Correct Answer Sell cloth Your Answer Sell carpets Question Direct labour hour rate method of absorption of overheads is suitable where most of the production is done by using machines. Correct Answer False Your Answer True

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anuj sinha

9414251406

9414251406

anuj sinha

9414251406

9414251406

anuj sinha

9414251406

9414251406

anuj sinha

9414251406

9414251406

anuj sinha

9414251406

9414251406

anuj sinha

9414251406

9414251406

anuj sinha

9414251406

9414251406

anuj sinha

9414251406

9414251406

anuj sinha

9414251406

9414251406

anuj sinha

9414251406

9414251406

anuj sinha

9414251406

9414251406

anuj sinha

9414251406

9414251406

anuj sinha

9414251406

9414251406

anuj sinha

9414251406

9414251406

anuj sinha

9414251406

9414251406

anuj sinha

9414251406

9414251406

anuj sinha

9414251406

9414251406

anuj sinha

9414251406

9414251406

anuj sinha

9414251406

9414251406

anuj sinha

9414251406

9414251406

anuj sinha

9414251406

9414251406

anuj sinha

9414251406

9414251406

anuj sinha

9414251406