LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Multiple Answer
Question
Business Entity Concept ______________.
Correct Answer
Business is separated from the owner. , The accounting
process carried out for the business , Separate legal entity
Your Answer
The accounting process carried out for the business ,
Separate legal entity , Business & person treated as one and same
Multiple Choice Single Answer
Question
Standard Costs are used as tool for
Correct Answer
Cost Control
Your Answer
Price fixation
True/False
Question
The danger level fixed below maximum level
Correct Answer
False
Your Answer
False
Multiple Choice Multiple Answer
Question
Following example comes under service cost centre
Correct Answer
Store department , Internal Transport department ,
Accounting/Costing department
Your Answer
Store department , Internal Transport department ,
Accounting/Costing department
Multiple Choice Single Answer
Question
The material physically received is compared with material
ordered as per the this order
Correct Answer
Purchase order
Your Answer
Goods received note
Match The Following
Question Correct Answer Your Answer
Straight Piece rate system The rate of payment is fixed per piece The
rate of payment is fixed per piece
Diemer system Halsey system & Gantt System Halsey system & Gantt System
Time rate System Worker is paid on the basis of time attended by him.
Worker is paid on the basis of time attended by him.
Payment by Result Workers are paid according to the production achieved
by him Workers are paid according to the production achieved by him
Differential Time rate Different hourly rates are fixed for different
levels of efficiency Different hourly rates are fixed for different
levels of efficiency
Multiple Choice Multiple Answer
Question
When bank balance as per pass book is considered then
following to be added.
Correct Answer
cheques deposited but not cleared , Interest debited
by bank , bank charges debited by bank
Your Answer
wrong credit given by bank
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
(No. of unit * Rate of depreciation per unit ) this formula
is used for written down value method.
Correct Answer
False
Your Answer
False
Multiple Choice Single Answer
Question
Sold Goods of Amitabh worth Rs. 15,000 against 15% Trade
discount. The Goods worth appear on account ___________
Correct Answer
12750
Your Answer
12750
Multiple Choice Multiple Answer
Question
Cash and---------------are the two systems of accounting.
Correct Answer
Mercantile
Your Answer
Credit
Multiple Choice Single Answer
Question
This cost indicates increased or decreased cost due to the
increased or decreased volume of operations.
Correct Answer
Differential cost
Your Answer
Differential cost
Match The Following
Question Correct Answer Your Answer
Fixed cost + variable cost Total cost Total cost
Total cost – fixed cost variable cost variable cost
sales- variable cost contribution contribution
contribution – fixed cost profit profit
Total cost + profit Sales Sales
Multiple Choice Single Answer
Question
Under the differential time rate method of wage payment
between 90% to 100% of efficiency following rate is offered.
Correct Answer
Rs. 1.40 per hour
Your Answer
Rs. 1.40 per hour
Multiple Choice Multiple Answer
Question
Important advantages of Uniform Costing can be said to be
Correct Answer
It is a useful tool for management control , It avoids
cut throat competition , Weaker units can take advantage of settled
systems of better managed units
Your Answer
It is a useful tool for management control , It avoids
cut throat competition , Weaker units can take advantage of settled
systems of better managed units
Select The Blank
Question
Along with financial accounting, ________ and ________ are
the other streams of accounting
Correct Answer
Cost Accounting
Your Answer
Cost Accounting
Correct Answer
Management Accounting
Your Answer
Management Accounting
Multiple Choice Single Answer
Question
Margin of safety are the sales beyond
Correct Answer
break even point
Your Answer
break even point
Multiple Choice Multiple Answer
Question
Indirect Labour Cost
Correct Answer
Wages paid to storekeeper , Salary of works manager ,
Wages paid to gatekeeper
Your Answer
Wages paid to storekeeper , Salary of works manager ,
Wages paid to gatekeeper
Select The Blank
Question
The difference between sales and factory/ works cost is
termed as ________ the difference between sales and ________ ermed as net
profit
Correct Answer
gross profit
Your Answer
gross profit
Correct Answer
cost of sales
Your Answer
cost of production
Multiple Choice Single Answer
Question
Labour cost is the cost of __________ paid to employees of
the organization.
Correct Answer
Remuneration
Your Answer
Remuneration
Multiple Choice Single Answer
Question
For a material, if standard quantity is 400 kg and standard
price is Rs.3.75/- per kg. Find out the Material Usage variance if actual
quantity is 500 kg and actual price is Rs.3.60/- per kg.
Correct Answer
Rs.375/-( Adverse )
Your Answer
Rs.375/-( Adverse )
Multiple Choice Multiple Answer
Question
Labour Efficiency Standards are decided by considering
following factors
Correct Answer
Records of past performance , Time & Motion Study ,
Trial Runs
Your Answer
Records of past performance , Time & Motion Study , Trial
Runs
Select The Blank
Question
A budget manual is a document setting out the ________ of
the persons and ________ required for the budget control.
Correct Answer
Responsibilities
Your Answer
Responsibilities
Correct Answer
Forms and procedures
Your Answer
Forms and procedures
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
Multiple Choice Single Answer
Question
Selling price per tonne is Rs. 69.50 , variable cost per
tonne is Rs. 35.50 and fixed cost is Rs. 18,02000. Find out the BEP in
units,
Correct Answer
53000
Your Answer
53000
Select The Blank
Question
To ascertain the ________ of all the transactions recorded
in the ledger account, the account is required to be ________
Correct Answer
Net effect
Your Answer
Net effect
Correct Answer
Balanced
Your Answer
Balanced
True/False
Question
Depreciation does not involve cash out flow
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
True/False
Question
Wage payment system should be properly tied up with quality
control procedures to ensure that the workers are paid only for good and
quality production.
Correct Answer
True
Your Answer
True
Select The Blank
Question
Preventive costs of labour turnover refers to all the costs
which may be incurred by the organisation to keep workers happy and
________ them from ________ the job
Correct Answer
discourage
Your Answer
discourage
Correct Answer
leaving
Your Answer
leaving
Select The Blank
Question
Semi ________ overheads are neither ________ nor variable in
nature.
Correct Answer
fixed
Your Answer
variable
Correct Answer
variable
Your Answer
fixed
Multiple Choice Multiple Answer
Question
In Cash budget Operating cash inflow includes
Correct Answer
Cash Sales , Collection from Debtors ,
Interest/Dividend received
Your Answer
Cash Sales , Collection from Debtors , Interest/Dividend
received
True/False
Question
If the product is labour intensive, more stress may be
necessary on inventory control procedure.
Correct Answer
False
Your Answer
True
True/False
Question
Balance sheet indicates the financial status of the business
at given period.
Correct Answer
True
Your Answer
True
True/False
Question
A good wage payment system will not punish the workers for
the matters beyond the control of the workers.
Correct Answer
True
Your Answer
True
True/False
Question
Fixed assets do not give the returns during the same period
during which they are paid for
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer
Question
The material issued to production department may be returned
back to the stores because material issued in excess requirement and
Correct Answer
Material issued is defective
Your Answer
Material issued is defective
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
Following are called the element of Cost
Correct Answer
Material , Labour , Expenses
Your Answer
Material , Labour , Expenses
Select The Blank
Question
________ of Trial Balance generally ensures ________
accuracy of the process of ledger posting .
Correct Answer
Talling
Your Answer
Talling
Correct Answer
arithmetical
Your Answer
arithmetical
Multiple Choice Multiple Answer
Question
Convention of Materiality __________________
Correct Answer
Only those transactions will be considered which have
material impact on profitability , Insignificant transaction will be
ignored , The cost of non-used should not be considered as the item of
cost
Your Answer
Only those transactions will be considered which have
material impact on profitability , Insignificant transaction will be
ignored , The cost of non-used should not be considered as the item of
cost
True/False
Question
Amount with drawn for personal purpose drawing A/C to be
debited.
Correct Answer
True
Your Answer
True
Select The Blank
Question
Under the repeated distribution method the overheads of
________ department are distributed to other departments on agreed
________
Correct Answer
service
Your Answer
service
Correct Answer
percentage
Your Answer
percentage
True/False
Question
Under time rate system a worker is paid on the basis of
production achieved by him.
Correct Answer
False
Your Answer
True
Multiple Choice Single Answer
Question
Calculate Labour Rate Variance, If actual rate per hour is
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/- ( Adverse )
Multiple Choice Multiple Answer
Question
The causes of idle time can be analysed as
Correct Answer
Administrative causes , Productive causes , economic
causes
Your Answer
Administrative causes , Productive causes , economic
causes
Multiple Choice Multiple Answer
Question
Cost Accountancy is a science, art and practice of a cost
Accountant.
Correct Answer
Science indicates the possession and the application
of relevant systematic knowledge. , Art indicates the skill and ability.
, Practice indicates continuous effects on the part of cost accountant.
Your Answer
Science indicates the possession and the application of
relevant systematic knowledge. , Art indicates the skill and ability. ,
Practice indicates continuous effects on the part of cost accountant.