LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Select The Blank
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
True/False
Question
Under time rate system a worker is paid on the basis of
production achieved by him in a given time.
Correct Answer
False
Your Answer
False
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
Which of the following costs is most likely to have a cost
behaviour pattern described as ..a fixed cost upto an activity level of
1,000 units, with a variable cost there after which decreases from 10
paise to 8 paise per unit at 2,000 units?
Correct Answer
Wages payment which is fixed for a minimum output
quantity after which a bonus per unit is paid which reduces when
activity
level exceeds 1,000 units
Your Answer
Material cost 12 paise per unit for the first 1,000
units followed by 10 paise per unit upto 2,000 units and 8 paise per
unit
thereafter.
True/False
Question
The phrase 'By Balance c/d.' written on the credit side of
the rent account, indicates credit balance for this account.
Correct Answer
False
Your Answer
False
Select The Blank
Question
In case of defective material being returned by the stores
department to the vendor, such material should be valued at
the________.
Correct Answer
Purchase price
Your Answer
Purchase price
True/False
Question
Piece rate system is suitable when quality of goods
produced is of extreme importance.
Correct Answer
False
Your Answer
False
True/False
Question
A firm earns profit when contribution is equal to fixed
costs under variable costing.
Correct Answer
False
Your Answer
False
Select The Blank
Question
While preparing trial balance, the balance as per ________
book is considered as bank balance.
Correct Answer
Bank
Your Answer
Bank
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/Select The Blank
Question
Contribution represents pool of resources available for
meeting all costs other than ________.
Correct Answer
Variable costs
Your Answer
Variable costs
Multiple Choice Multiple Answer
Question
Locate the steps involved in rectifying the errors in the
books of accounts
Correct Answer
Find the wrong entry passed , Find the correct entry
to be passed , Find the entry that will resolve the mistake in the
books
Your Answer
Find the wrong entry passed , Find the correct entry to
be passed , Find the entry that will resolve the mistake in the books
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
Select The Blank
Question
Overheads chargeable to a product, using direct labour
cost basis, may be calculated by multiplying percentage of direct
labour
cost and ________.
Correct Answer
Direct labour cost of the product
Your Answer
Number of labour hours worked
Multiple Choice Multiple Answer
Question
Causes for adverse material price variance are:
Correct Answer
Uneconomical size of purchase orders , Failure to
avail discounts allowed by suppliers. , Excessive freight charges
Your Answer
Uneconomical size of purchase orders , Failure to avail
discounts allowed by suppliers. , Excessive freight charges
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 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
Multiple Choice Single Answer
Question
200 units of material were purchased from X @ Rs.5/- per
unit and 300 units were purchased from Y @ Rs.6/- per unit. The
organisation follows FIFO system of pricing of issues and the above
purchases
have been recorded in stores ledger. 120 units have already been
issued.
60 units received from X are defective and are therefore returned. Find
the value of the material returned to X.
Correct Answer
Rs.300/Your Answer
Rs.300/True/False
Question
Long term loan borrowed from financial institution comes
under the heading of long term liabilities.
Correct Answer
True
Your Answer
True
Select The Blank
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
True/False
Question
Balance sheet indicates the financial status of the
business at given period.
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
Category C items, as per the ABC analysis, usually refers
to indirect material.
Correct Answer
True
Your Answer
True
True/False
Question
Balance sheet indicates the expenditure & income from the
business.
Correct Answer
False
Your Answer
False
Multiple Choice Multiple Answer
Question
These are the methods of measuring labour turnover.
Correct Answer
Replacement Method , Separation Method , Flux Method
Your Answer
Replacement Method , Separation Method , Flux Method
True/False
Question
According to the standard costing principles, only adverse
variance must be further investigated.
Correct Answer
False
Your Answer
True
Select The Blank
Question
Education facility to workers and their children, pension,
superannuation fund are examples of ________ incentives.
Correct Answer
Non-monetary
Your Answer
Motivational
Match The Following
Question Correct Answer Your Answer
Closed the account with State Bank of India Henceforth, there shall be
no difference in overdraft balances Henceforth, there shall be no
difference in overdraft balances
Debit side of bank book is overcast Overdraft as per bank book <
Overdraft as per pass book Overdraft as per bank book < Overdraft as
per pass
book
Interest on debentures directly credited by bank Overdraft as per bank
book > Overdraft as per pass book Overdraft as per bank book >
Overdraft as per pass book
Received sanction for a loan of Rs.10 lakhs Overdraft as per bank book
= Overdraft as per pass book Henceforth, there shall be maximum
differences in overdraft balances
Select The Blank
Question
The ________ adjustment is necessary to relfect the cost
for the use of fixed asset during the year.
Correct Answer
Depreciation
Your Answer
Depreciation
True/False
Question
A business is an activity carried out with the intention
of earning the profit.
Correct Answer
True
Your Answer
True
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
Multiple Choice Single Answer
Question
The purchase budget for October is Rs.12,500/- and
November is Rs.15,000/-. If the materials are purchased for cash the
supplier
is offering a rebate of 5%. If the materials are purchased on credit of
30 days, no rebate is offered. The company purchase
Correct Answer
October- NIL, November- Rs.26,750/Your Answer
October- Rs.11,875/-, November- Rs.14,250/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 margin mix
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
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
Control on purchase of material is exercised by the
storekeeper.
Correct Answer
False
Your Answer
False
Select The Blank
Question
In practical circumstances, the ________ are referred to
as application of funds.
Correct Answer
Assets
Your Answer
Assets
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/Match The Following
Question Correct Answer Your Answer
Ledger Maintain all types of accounts List of all types of accounts
Audit Reviewing internal control system Reviewing internal control
system
Accounting Process of analyzing & interpretation Process of analyzing &
interpretation
Journal Book of original entry Book of original entry
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
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 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
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 , Maintaining
secrecy of the data collected
True/False
Question
Uniform Costing simplifies the work of wage boards of
fixing minimum wages and fair wages.
Correct Answer
True
Your Answer
True
Multiple Choice Multiple Answer
Question
Marginal costing is found to be unsuccessful in the
following situations :Correct Answer
Impossible to distinguish costs into fixed and
variable component. , With respect to capital intensive industries
where
fixed costs are very large and hence cannot be ignored , With respect
to
service industries where employee costs are very large and almost fixed
in nature
Your Answer
Impossible to distinguish costs into fixed and variable
component. , With respect to service industries where employee costs
are very large and almost fixed in nature
True/False
Question
Accounting refers to the process of analyzing &
interpreting the information already recorded in the books of accounts.
Correct Answer
True
Your Answer
True
Multiple Choice Multiple Answer
Question
Master budget provides a basis for computing effect of
changes in :
Correct Answer
product mix of the company , sales volume ,
production facilities
Your Answer
product mix of the company , sales volume , production
facilities
True/False
Question
Accounting is an art of recording, classifying &
summarizing in a significant manner.
Correct Answer
True
Your Answer
True