LIST OF ATTEMPTED QUESTIONS AND ANSWERS
True/False
Question
Profitability statement indicates the amount of assets &
liabilities.
Correct Answer False
Your Answer
False
Select The Blank
Question
Advance received from customers is ________ for the
organisation.
Correct Answer A liability
Your Answer
A liability
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
Maintenance Department is a service cost centre.
Correct Answer True
Your Answer
True
Match The Following
Question
Correct Answer
Your Answer
Liabilities
All the amount owed by All the properties owned
the business
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Withdrawn for personal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Withdrawn for personal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 All the amount owed by
by the business
the business
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
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
True/False
Question
1) Financial statements are basically in two forms i.e.
profitability statement and balance sheet.
Correct Answer True
Your Answer
True
Multiple Choice Multiple Answer
Question
The data for XYZ Ltd. is as follows : Fixed assets
Rs.60,000/-; total cost Rs.105,000/-; working capital is equal
to 25% of the sales value. The company expects 25% return
on capital employed. Capital employed is equal to fixed
assets plus working capital. Select the correct answers:
Correct Answer Sales Rs.128,000/- , Return on capital employed , Working
capital Rs.32,000/Your Answer Working capital Rs.32,000/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
Variable cost
Select The Blank
Question
If the owner brings in personal calculator for office use,
________ account should be credited.
Correct Answer Capital
Your Answer
Capital
True/False
Question
The process of accounting split into three steams i.e.
financial, cost, management accounting.
Correct Answer True
Your Answer
True
True/False
Question
Financial Accounting discloses the financial performance &
financial statements of the business as a whole.
Correct Answer True
Your Answer
True
True/False
Question
Variable cost + Profit = Sales
Correct Answer False
Your Answer
False
True/False
Question
P&L statement which is a period statement & relates to a
certain period tells about results of operations.
Correct Answer True
Your Answer
True
Match The Following
Question
Correct Answer
Your Answer
Advantageously
applicable in similar
industries
Scope of uniform costing Fields covered by 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
Scope of uniform costing
Multiple Choice Single Answer
Question
A firm employs ten workers at an hourly rate of Rs.20/-.
They worked for 40 hours each and completed the job for
which standard time was 48 hours for each worker. Calculate
labour cost for the job under the Rowan Plan.
Correct Answer Rs.9,333.33
Your Answer
Rs.9,666.67
Multiple Choice Multiple Answer
Question
Features of material usage variance are :
Correct Answer Measures the difference between the quantity of materials
actually used and that should have been used. , Considers
standard price X actual quantity , Considers standard price X
standard quantity
Your Answer Measures the difference between the quantity of materials
actually used and that should have been used. , Considers
standard price X actual quantity , Considers standard price X
standard quantity
True/False
Question
Treating capital receipt as revenue income is an example of
errors of commission.
Correct Answer False
Your Answer
True
Multiple Choice Single Answer
Question
Basic objective of Uniform Costing is . . .
Correct Answer comparison
Your Answer
comparison
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
Multiple Choice Single Answer
Question
Two competing companies Hero Ltd. and Zero Ltd. sell the
same type of product in the market. Their forecasted profit
and loss accounts for the year ending December 2003 are as
follows : Hero Ltd.: Sales Rs.500,000/-; Variable cost
Rs.400,000/-; fixed costs Rs.50,000/-. Zero Ltd.:Sales
Rs.500,000/-; Variable cost Rs.300,000/-; fixed costs
Rs.150,000/-. You are
Correct Answer Hero Ltd.
Your Answer
Both will earn profits
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
For a manufacturing company, dividend received is a nonoperating income.
Correct Answer True
Your Answer
False
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 reorder 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 reorder level. , Raised to intimate the supplierteh quantity and
quality of new material required. , Indicates the type, quantity
and quality of material required
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 correct
Select The Blank
Question
Crane expenses should be apportioned on the basis of
________.
Correct Answer Number of hours crane worked in the department
Your Answer
Number of employees working on the crane
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
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-to-period basis
Your Answer The accounting policies and procedures should be followed
consistently , Facilitates the comparison of financial
statements , It facilitates comparison of financial statements
on period-to-period basis
Select The Blank
Question
Uniform costing is not a separate method of ________.
Correct Answer cost accounting
Your Answer
True/False
Question
costing
Suspense account is closed automatically after rectification of
all the errors.
Correct Answer True
Your Answer
False
True/False
Question
Manufacturing overheads represents all costs incurred in the
factory including direct material cost and direct labour cost.
Correct Answer False
Your Answer
True
Select The Blank
Question
Generally all the liabilities will have ________balance.
Correct Answer Credit
Your Answer
Debit
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
True/False
Question
Balance sheet indicates the expenditure & income from the
business.
Correct Answer False
Your Answer
True
Multiple Choice Single Answer
Question
Loan @ 12% p.a. of Rs.50,000/- was taken on 1st March,
2004. Find the interest expenditure on 31st March, 2004.
Correct Answer Rs.500/Your Answer
Rs.500/-
Select The Blank
Question
The sales forecast (quantity) should be compared with the
________ to find out whether it is possible for the firm to
handle this level of sales.
Correct Answer Production capacity
Your Answer
Production capacity
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 , Machining
department
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
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
You are using petrol as one of the raw materials. Daily you
purchase 1,000 litres of petrol at Rs.28.50 per ltire. 5% of it
generally gets lost due to spillage and evaporation. On a
particular hot and dry day, the issue of petrol from 1,000
litres drum was as follows : To job X 200 litres; job Y 400
litres and job Z 320 litres. After these issues the drum was
empty. Calculate per litre charge for use of petrol, quantum
of loss and total quantum of petrol used for jobs X,Y and Z.
Correct Answer Loss due to spillage and evaporation - 30 litres. , Rate of
charge per litre of petrol - Rs.30/Your Answer Rate of charge per litre of petrol - Rs.30.98 , Total petrol used
for jobs X, Y and Z - 920 litres
True/False
Question
Error of commission refer to calculation errors, totaling
errors, errors in carrying forward etc.
Correct Answer True
Your Answer
True
True/False
Question
Cheque received from a client on 28th September, 2004 must
be entered in the bank book only after it is credited in the
pass book.
Correct Answer False
Your Answer
False
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
Select The Blank
Question
The column which refers to the page number of the ledger is
known as ________.
Correct Answer Ledger folio
Your Answer
Ledger folio
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 Single Answer
Question
The direct material useage budget and direct material
purchase budget differ because of which of the following:
Correct Answer A planned change in the level of material stock
Your Answer
A planned change in the level of material stock