LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Multiple Answer
Question
The components of the selling and distribution cost budget are :
Correct Answer Distribution expenses , Publicity expenditure , Salary of salesoffice workers
Your Answer
Salary of sales-office workers , Distribution expenses , Publicity
expenditure
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
Re-order quantity may be measured as :
Correct Answer Maximum stock level - re-order level + (minimum usage X
minimum re-order period)
Your Answer
Maximum stock level - re-order level + (minimum usage X
minimum re-order period)
Multiple Choice Multiple Answer
Question
Features of money measurement concept are . . .
Correct Answer Only those transactions and facts are included expressed in
terms of money are considered , Imposes severe restrictions on
the kind of information available from financial statements ,
Works as a major drawback of financial accounting
Your Answer
Only those transactions and facts are included expressed in
terms of money are considered , Imposes severe restrictions on
the kind of information available from financial statements ,
Works as a major drawback of financial accounting
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
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
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 Normal cost of labour
turnover
turnover
Dismissal of employee
Unavoidable cause of
labour turnover
Replacement cost of
labour turnover
Increased spoilage and
defectives
Replacement cost of
labour turnover
Avoidable cause of labour
turnover
Multiple Choice Single Answer
Question
Which of the following is a valid classification of the salary paid
to the foreman in charge of the packing department?
Correct Answer Direct product cost
Your Answer
Indirect departmental cost
Multiple Choice Multiple Answer
Question
Special aspects of co-partnership include:
Correct Answer Workers are granted ownership rights , Indirect monetary
remuneration , The morale of the workers is increased
Your Answer
Workers are granted ownership rights , Indirect monetary
remuneration , The morale of the workers is increased
Select The Blank
Question
The handloom industry will have ________ fixed cost and high
variable cost.
Correct Answer Low
Your Answer
Average
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
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
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 various areas in which uniform costing can be adopted are .
.
Correct Answer Valuation of inventories , Charging of depreciation ,
Apportionment of overheads
Your Answer
Valuation of inventories , Charging of depreciation ,
Apportionment of overheads
Multiple Choice 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/-
Multiple Choice Single Answer
Question
The main object of establishing the maximum stock level for
material is :
Correct Answer To ensure that inventory never exceeds this limit
Your Answer
To avoid production stoppage due to lack of material
Select The Blank
Question
________ authorises the production department to issue
requistion for materials.
Correct Answer Bill of material
Your Answer
Bill of material
Select The Blank
Question
An adjustment relating to outstanding expenses will ________
the net profit.
Correct Answer Decrease
Your Answer
Decrease
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
Bank reconciliation statement is a systematic presentation of
errors made by the accountant.
Correct Answer False
Your Answer
False
True/False
Question
Accounting refers to the process of analyzing & interpreting the
information already recorded in the books of accounts.
Correct Answer True
Your Answer
True
Multiple Choice Single Answer
Question
The pass book showed a credit balance of Rs.1,000/-. This
balance was after considering the dividend of Rs.25/- collected
by bank and Rs.5/- charged as collection expenses: these
enteries are not made in the bank book. Find the balance as per
bank book.
Correct Answer Rs.1,020/Your Answer
Rs.980/-
Multiple Choice Single Answer
Question
Compute fixed overheads calendar variance when fixed
overhead volume variance is Rs.250/- (Favourable); fixed
overheads efficiency variance is Rs.2,150/- (Adverse) and fixed
overheads capacity variance is Rs.800/-(Favourable).
Correct Answer Rs.1,600/- (Favourable)
Your Answer
Rs.1,600/- (Adverse)
Match The Following
Question
Correct Answer
Your Answer
Ledger
Maintain all types of
accounts
Maintain all types of
accounts
Audit
Reviewing internal control Reviewing internal control
system
system
Accounting
Process of analyzing &
interpretation
Process of analyzing &
interpretation
Journal
Book of original entry
Book of original entry
Select The Blank
Question
Token or disc method is a related to the system of ________.
Correct Answer Time-keeping
Your Answer
Time-keeping
Multiple Choice Single Answer
Question
The cost of fixed asset is Rs. 1,00,000. Rs. 17,000 is charged as
depreciation. Calculate the rate of depreciation.
Correct Answer 0.17
Your Answer
0.17
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 hours crane worked in the department
Multiple Choice Single Answer
Question
Commission payable to General Manager is 10 % of the net
profits. If the net profit before charging commission is
Rs.29,200/-, then what will be the amount of his net profit after
commission?
Correct Answer Rs.26,545.45
Your Answer
Rs.26,788.99
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
Loss due to spillage and evaporation - 30 litres. , Rate of charge
per litre of petrol - Rs.30/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 good purchase system, for materials, prevents production
hold-ups due to:
Correct Answer Lack of material
Your Answer
Lack of material
True/False
Question
Linking overhead to a cost unit is known as overhead absorption.
Correct Answer True
Your Answer
True
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
True/False
Question
Uniform costing system is defined as a system using common
concepts and standard accounting practices by different entities
in different industry to facilitate inter-firm comparison.
Correct Answer True
Your Answer
True
Multiple Choice Multiple Answer
Question
Features of real account are . . .
Correct Answer Mainly deals with items which are having physical , Consists of
some intangible assets , examples include - Lane, Building,
Vehicles
Your Answer
Mainly deals with items which are having physical , Consists of
some intangible assets , examples include - Lane, Building,
Vehicles
True/False
Question
A business is an activity carried out with the intention of earning
the profit.
Correct Answer True
Your Answer
True
Multiple Choice Multiple Answer
Question
Select the 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 a creditor , Rs.10,000/- has been paid to Ram , The
payment is made by cheque
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
________account can be defined as the record of all the
transactions pertaining to a person, asset, liability income or
expenditure which have taken place in a specified period.
Correct Answer Ledger
Your Answer
Profit and loss
Multiple Choice Single Answer
Question
The store-keeper should initiate action for the purchase of a
material, when it reaches its :
Correct Answer Re-order level
Your Answer
Re-order level
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
Maintenance Department is a service cost centre.
Correct Answer True
Your Answer
True
True/False
Question
Balance sheet indicates the financial status of the business at
given period.
Correct Answer True
Your Answer
True
Select The Blank
Question
Profit = Contribution per unit X ________.
Correct Answer Margin of safety (units)
Your Answer
Margin of safety (units)
Multiple Choice Multiple Answer
Question
Identify the items which are correctly classified.
Correct Answer Carriage inward - Factory overheads , Carriage outward - Selling
and distribution overheads , Sales research expenses -Selling
and distribution overheads
Your Answer
Carriage inward - Factory overheads , Carriage outward - Selling
and distribution overheads , Sales research expenses -Selling
and distribution overheads
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