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 & Balance-sheet Accounting Process of analyzing & interpretation Process of analyzing & interpretation Profitability statement Indicates the amount of profit earned Indicates the amount of profit earned Balance-sheet Financial status 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 Questi on 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