Chinmay Tutorials [9929277130/0141-2741111]
Professional Factory..... Costing A series
Maximum Marks: 100
Time Duration: 3 hours
Total number of questions:35
Note: 0.25 negative marks will be allotted in case of each wrong answer
Q.1
Which of the following is not a category of financial statement ratios?
a)
Financial leverage
b)
Liquidity
c)
Profitability
d)
Reliability
Q.2
Dividend Payout Ratio is_______
a)
PAT/Capital
c)
Pref. Dividend / PAT
b)
d)
DPS /EPS
Pref. Dividend / Equity dividend
Q.3
A Ltd. financial statement shows the following data: Equity Rs. 5,67,500, Reserve &
surplus Rs. 3,87, 850, total debt Rs. 5,88,778 out of which Rs. 2,88,778 are long term
debt, fixed assets are Rs 11,44,128.
Current Ratio = ?
a)
2.48
b)
1.92
c)
3.68
d)
1.33
Q.4
Proprietary Ratio = 0.6
[Fixed Assets/Proprietary Fund]
Current Assets = Rs. 2,00,000
Current Liabilities = Rs. 80,000
Fixed Assets = ?
a)
3,00,000
c)
1,80,000
b)
d)
1,60,000
2,40,000
Q.5
Given the following information, calculate the company’s long term debt.
Current assets:
Rs. 1,25,000
Current liabilities
Rs. 85,000
Net fixed asset
Rs. 2,50,000
Total equity:
Rs. 2,00,000
a)
Rs. 3,75,000
b)
Rs. 50,000
c)
Rs. 2,85,000
d)
Rs. 90,000
Q.6
Capital gearing ratio is ________.
a)
Market test ratio
c)
Liquid ratio
b)
d)
Long-term solvency ratio
Turn over ratio
Q.7
The quick ratio formula uses which of the following?
a)
Total assets
b)
Cash
c)
Total current assets
d)
Inventory
Q.8
Debt-equity Ratio help to study________
a)
Solvency
c)
Profitability
1
b)
d)
Liquidity
Turnover
Chinmay Tutorials [9929277130/0141-2741111]
Professional Factory..... Costing A series
Q.9
State Bank of India received a gross Rs. 1,500 Crores demand deposits from the
customers and customers withdrawn Rs. 1,300 Crores of demand deposit during the
financial year 2015-2016. How will you classify this amount in the cash flow statement of
the bank?
a)
Opening activities Rs. 1,500 crores as inflow, financing activities Rs. 1,300 as
outflow.
b)
Investing activities Rs. 1,500 Crores as inflow, financing activities Rs. 1,300 as
outflow
c)
Financing activities, on net basis Rs. 200 Crores as inflow
d)
Operating Activities, on net basis Rs. 200 Crores as inflow
Q.10
Conversion cost includes cost of converting _______ into________
a)
Raw material, WIP
b)
Raw material, Finished goods
c)
WIP, Finished goods
d)
Finished goods, Saleable goods
Q.11
On 31st March, 2015 profit as per financial accounts is Rs. 60,412. A comparison cost
and financial accounts revealed the following:
Donation to the Prime Minister’s Relief Fund Rs. 10,000
Transfer to dividend equalization fund Rs. 25,900
Office overhead under absorbed Rs. 5,350.
Profit as per cost accounts =?
a)
Rs. 90,962
b)
Rs. 29,862
c)
Rs. 70,962
d)
Rs. 1,01,662
Q.12
Which of the following can be used for the treatment of under or over absorption of
overheads?
a)
Supplementary Rate
b)
Writing-off to Costing P&L A/c
c)
Carrying of overheads to next period
d)
Any of the above depending on the situation
Q.13
Which of the following can be shown on the “sources side” in fund flow statement?
a)
Funds lost in operation
b)
Net increase in working capital
c)
Net decrease in working capital
d)
Redemption of debentures
Q.14
Standard cost per unit was rs. 288.89 for 182 kg of standard output. A standard loss of
10% is expected in production. Total input during the period was 200 kg. Material Yield
Variance = ?
a)
578F
b)
758F
c)
857F
d)
758A
Q.15
Sunk costs are_______
a)
Relevant for decision making
c)
Cost to be incurred in future
2
b)
d)
Not relevant for decision making
Future costs
Chinmay Tutorials [9929277130/0141-2741111]
Professional Factory..... Costing A series
Q.16
A Blanket Rate is :_______
a)
A single rate which used throughout the organization departments
b)
A double rates which used throughout the organization departments
c)
A single rates which used in different departments of the organization
d)
None of the given options
Q.17
Which of the following is not method of costing?
a)
Uniform costing
b)
c)
Operation costing
d)
Operating costing
Contract costing
Q.18
Accounts of S Ltd. shows that balance of cash and cash equivalents has been increased
by Rs. 19,200 as compared to last year. If cash flow statement revals net cash inflow
from financing activities is rs. 19,200 and cash outflow from investing activities is Rs.
4,80,000.
Cash from operating activities= ?
a)
RS. 5,18,400
b)
Rs. 4,99,200
c)
Rs. 4,60,800
d)
Rs. 4,80,000
Q.19
To allocate joint cost using market-based data, the method that estimates the value of
the joint products using the selling price less costs to complete the main products is
called the _____
a)
Constant gross-margin method
b)
Sales value at split-off point method
c)
Net realizable value method
d)
Physical-measure method
Q.20
In process, 100 units of raw materials were introduced at a cost of Rs. 1,000. The other
expenditure incurred by the process was Rs. 600. Of the units introduced, 10% are
normally lost in the course of manufacturing and they possess a scrap value of Rs.3
each. The output of process was only 75 units. Value of abnormal loss =?
a)
Rs. 262
b)
Rs. 1,308
c)
Rs. 30
d)
Rs. 267
Q.21
The following data relate to two activity levels of production:
No. of units
4,500
5,750
Overheads (Rs.)
2,69,750
2,89,125
Fixed overheads are Rs. 2,00,000 per period. The variable cost per unit=?
a)
Rs. 15.50
b)
Rs. 44.44
c)
Rs. 59.94
d)
None of the above
Q.22
Mr. Z runs a tempo service in the city. He furnishes you the following data:
Cost of vehicle
Rs. 2,75,000
Kilometer run during the year
15,000 km
Estimated life of vehicle
1,00,000 km
Scrap value
Rs. 25,000
Mr. Z prepares the operating cost sheet after every six months. Depreciation for the
given period to be shown in cost sheet=?
a)
37,500
b)
18750
c)
41,250
d)
20,625
3
Chinmay Tutorials [9929277130/0141-2741111]
Professional Factory..... Costing A series
Q.23
X Ltd. produces two joint products, G & H. the joint cost is Rs. 24,000. After processing
costs are Rs. 15,000 for G and Rs. 22,500 for H. Product G sells for Rs. 60 per unit and
producer H sell for Rs. 75 per unit.
If the company produces 1,000 units of G & 500 units of H. what is the proper amount of
joint cost that should be allocated to H, assuming that the estimated net- realizable-value
method of allocation of joint costs is used?
a)
Rs. 18,000
b)
Rs. 8,000
c)
Rs. 9,120
d)
Rs. 6,000
Q.24
If the notional profit on a contract for Rs. 3,00,000 is Rs. 60,000 and the contract is 60%
complete. The retention money is 20% of the certified value, then the amount of profit
that can be prudently credited to Profit and Loss A/c = ?
a)
Rs. 32,000
b)
Rs. 28,800
c)
Rs. 30,000
d)
Rs. 24,000
Q.25
Total passenger km of KM Ltd. was 14,40,000 for the year between Town X and Town
Y. The bus made 3 round trips per day. Seating capacity of the bus is 50 passengers
and daily occupancy rate was 80%. The bus runs on an average 25 days in a month.
Distance between Town X & Town Y=?
a)
20 km
b)
25km
c)
50 km
d)
40 km
Q.26
Which of the following accounts makes the cost ledger self balancing?
a)
Overhead adjustment account
b)
Costing P&L Account
c)
Cost ledger control account
d)
None of the above
Q.27
Standard production =80units per week. Actual production =100units, Piece rate is Rs.2
per unit. Earning under Merrick Differential piece Rate system=?
a)
Rs. 240
b)
Rs. 176
c)
RS. 204
d)
Rs. 192
Q.28
Process 2 receives units from Process 1 and after carrying out work on the units
transfers them to process 3.
Opening WIP 200 units (25% complete)
800 units received from Process 1
Closing WIP 160 units (50% complete)
No units were scrapped
Units were transferred to Process 3 =?
a)
840 units
b)
1,000 units
c)
900 units
d)
None of the above
Q.29
________ is form of specific order costing which applies where work is undertaken as
per customer’s specific requirement
a)
Batch costing
b)
Operation costing
c)
Job costing
d)
Composite costing
Q.30
All indirect costs are debited to ________
a)
Manufacturing overhead control A/c
c)
Finished goods Control A/c
4
b)
d)
WIP Control A/c
Costing Profit & Loss A/c
Chinmay Tutorials [9929277130/0141-2741111]
Professional Factory..... Costing A series
Q.31
For return of materials from production to store which of the following entry is passed if
books are kept under Non-integrated Accounting System?
a)
Raw material control A/c
Dr
To WIP Control A/c
b)
WIP Control A/c
Dr.
To Raw material control A/c
c)
Raw material control A/c
Dr.
To General Ledger control A/c
d)
General Ledger Control A/c
Dr.
To Raw material control A/c
Q.32
______ is defined as, “the techniques and process of ascertaining costs”.
a)
Cost Accounting
b)
Management accounting
c)
Costing
d)
Cost Ascertainment
Q.33
Finished stock balance on 1-04-2014 = Rs. 30,780
Finished goods transferred to warehouse during the year= Rs. 2,02,900
Sales = Rs. 2,56,000.
The company’s gross profit is 25% on cost.
Finished Stock balance on 31.3.2015=?
a)
Rs. 28,880
b)
Rs. 83,880
c)
Rs. 41,680
d)
Rs. 19,880
Q.34
Marginal of safety is ______ or _______.
a)
sales minus break-even sales. Profit /PV ratio
b)
sales plus break –even sales, profit /PV ratio
c)
sales minus break-even sales, PV ratio /Profit
d)
Sale /break-even sales, PV ratio/ Profit
Q.35
In case of rising prices (inflation), FIFO method will:
a)
Provide lowest value of closing stock and profit
b)
Provide highest value of closing stock and profit
c)
provide highest value of closing stock but lowest value of profit
d)
Provide highest value of profit but lowest value of closing stock
Q.36
Standard Output =36 units,
Time rate = Rs. 2 per hour,
Piece rate = Rs. 2.5,
Standard hours in week = 45 hr.
Actual production = 36 units,
Earnings of workers under Gnatt’s task bonus plan=?
a)
Rs. 90
b)
Rs. 108
c)
Rs. 120
d)
Rs. 100
Q.37
Loss as per cost accounts is Rs. 58,500. A comparison cost and financial accounts
revealed the following :
Works overhead under recovered Rs. 3,120
Administrative overhead over recovered Rs. 1,700
5
Chinmay Tutorials [9929277130/0141-2741111]
Professional Factory..... Costing A series
Loss as per financial accounts =?
a)
Rs. 63,320
c)
Rs. 59,920
b)
d)
Rs. 53,680
Rs. 57,080
Q.38-41
ABC Ltd. uses activity based costing to determine product costs for external financial
reports. ABC Ltd. has provided the following data:
Activity cost pools
overheads costs
Machine related (Machine hours)
Rs. 1,37,600
Batch set-up (set ups)
Rs. 5,32,800
General Factory
Rs. 1,05,300
Activity cost pool
Total
Expected Activity
Product X
Product Y
Machine related
8,000
1,000
7,000
Batch set-up
8,000
3,000
5,000
General factory
9,000
7,000
2,000
Q.38
The activity rate for the batch setup activity cost pool is closet to:______
a)
Rs. 66.60
b)
106.60
c)
Rs. 97.00
d)
Rs. 177.60
Q.39
The activity rate for the Machine related activity cost pool is closet to:_______
a)
Rs. 66.60
b)
106.60
c)
Rs. 97.00
d)
Rs. 17.20
Q.40
The total amount of overhead cost allocated to product X would be______
a)
Rs. 4,76,800
b)
Rs. 2,98,900
c)
Rs. 2,91,000
d)
Rs. 3,87,850
Q.41
The total amount of overhead cost allocated to Product Y would be_______
a)
Rs. 2,98,800
b)
Rs. 5,33,000
c)
Rs. 4,76,800
d)
Rs. 2,91,000
Q.42
Z Ltd. gives the following information :
Capital block to current assets = 3:2
Current Assets= Rs. 8,00,000
Debentures/Share capital = 1:2
Net Profit
= 10% turnover
Reserve
=2.5% of turnover
Total Sales
= Rs. 24,00,000
Share capital =?
a)
3,00,000
c)
4,00,000
Q.43
6
b)
d)
6,60,500
6,00,000
A Ltd. paid income tax on capital gains Rs. 2,16,300 resulting from disposal of fixed
assets. It should Be shown in ______.
a)
Operating activities
b)
Investing activities
c)
Financing activities
d)
by way of adjustment in cash & cash
equivalents at the end.
Chinmay Tutorials [9929277130/0141-2741111]
Professional Factory..... Costing A series
Q.44 If efficiency of worker is 125% then as per Emerson’s Empirical Plan he will get _____
a)
Time rate & 10% as bonus
b)
Time rate & 20% as bonus
c)
Time rate & 25%as bonus
d)
Time rate & 45% as bonus
Q.45
Danger level = ?
a)
(Maximum consumption * Lead time for emergency purchase)
b)
(Average consumption * Lead time for emergency purchase)
c)
(Minimum * Lead time for emergency purchase)
d)
Ordering level – (Average usage * Re-order period)
Q.46
Capital gearing ratio = 0.625
Long term debts = Rs. 5,00,000
Reserve to capital = 0.6
Reserve = ?
a)
8,00,000
c)
3,00,000
b)
d)
5,00,000
4,00,000
Q.47
While calculating dividend cover for preference shares numerator should be taken as
_______.
a)
EBIT
b)
Profit available for equity shareholder
c)
PAT
d)
PAT + Depreciation
Q.48
Income statement of S Ltd. for the year ended was as follows:
Net sales
Cost of sales
Depreciation
Salaries & wages
Operating expenses
Provisions for tax
Net operating profit
Other income
Profit on the sale of assets
Profit for the year
Net profit before working capital changes =?
a)
Rs. 3,696
b)
c)
Rs. 3,942
d)
Rs.
20,301
(15,984)
(2,534)
(375)
(891)
(57)
460
645
42___
1,147
Rs. 3,051
Rs. 4,317
Q.49
A company with a contribution/sale ratio of 33-1/3% and fixed cost of Rs. 3 lakhs per
month should have a monthly sales of Rs. ______ lakhs to maintain a margin of safety
of 10%
a)
8
b)
10
c)
12
d)
9
Q.50
_______ is the cost of selecting one course of action and the loosing of the
opportunities to carry out other course of action.
a)
Replacement cost
b)
Hypothetical cost
c)
Explicit cost
d)
Opportunity cost
7
Chinmay Tutorials [9929277130/0141-2741111]
Professional Factory..... Costing A series
Q.51
Cash flow statement of BB Ltd. shows the following position:
Cash inflows from operating activities Rs. 4,06,000
Cash outflow from investing activities Rs. 3,18,000
And cash outflow from financing activities Rs. 18,000
Cash & cash equivalent at the end was Rs. 1,35,000.
Cash & cash equivalent at the beginning =?
a)
Rs. 6,07,000
b)
Rs. 29,000
c)
Rs. 5,71,000
d)
Rs. 65,000
Q.52
On 31st March 2015 profit as per financial accounts is Rs. 60,412. A comparison cost
and financial accounts revealed the following:
The annual rental value of premises owned by the company, amounting to Rs.
10,800 was charged in cost accounts but not in financial accounts.
Selling & distribution expenses amounting to Rs. 16,490 were excluded from
costing records.
Profit as per cost accounts =?
a)
Rs. 66,102
b)
Rs.54,722
c)
Rs. 33,122
d)
Rs. 87,702
Q.53
The standard raw material cost for producing one unit of a finished product is Rs. 27.
Standard raw material usage for every unit of finished product is 3 kg. If 200 units were
produced and Rs. 5,518 was paid for 620 kg of raw material then the direct material
price variance is ________
a)
62F
b)
72A
c)
100F
d)
100A
Q.54
Mr. X owns a bus, which runs according to the following schedule:
Delhi to Chandigarh and back, the same day.
Distance covered – 150 km one way
No of day run each month – 8
Seating capacity of bus- 50 persons
Total passenger km.- 1,08,000
What is the occupancy rate = ?
a)
80%
b)
70%
c)
90%
d)
100%
Q.55
For a particular item of store, the following information are available:
Re-order quantity = 12 units
Maximum consumption per week = 300 units
Normal consumption per week = 200 units
Re-order period = 2 to 4 weeks
The Re-order level =?
a) 600 units
b) 400 units
C ) 1,200 units
d) None of the above
Q.56
Maximum Level = 6,832 units, Re-order level = 6,000 units, Minimum usage = 250 units,
Minimum delivery period = 5 week EOQ/Re-order quantity = ?
a) 2,082 units
b) 4,791 unts
c) 3,791 units
d) 2,750 units
8
Chinmay Tutorials [9929277130/0141-2741111]
Professional Factory..... Costing A series
Q.57
If opening balance of accounts receivable is Rs 2,68,800: closing balance is Rs
2,97,600 and total credit sales during the year was Rs 40,32,000. What is the cash
received from debtors under the direct method of cash flow statement?
a) Rs 40,60,800
b) Rs 45,98,400
c) Rs 40,03,200
d) Rs 43,00,800
Q.58-62
The capital structure of JCPL Ltd. is as follows:
Rs
Equity share of Rs 10 each
8,00,000
8% Preference share of Rs 10 each
6,25,000
10% Debenture of Rs 100 each
4,00,000
Income Statement
Q.58
Sales
(-) Variable cost
Rs
7,50,000
(3,60,000)
Contribution
(-) Fixed cost (Depreciation)
3,90,000
(90,000)
EBIT
3,00,000
Additional Information:
Tax rate 30%
Equity share dividend paid 15%
Market price per equity share Rs 20.
Dividend cover for preference shares = ?
a) 1.1
b) 1.65
c) 3.46
d) 3.64
Q.59
Dividend cover for equity shares = ?
a) 1.1
b) 1.65
c) 3.46
d) 3.64
Q.60
Earning Yield = ?
a) 8.25%
c) 7.25%
9
b) 8.52%
d) 7.52%
Chinmay Tutorials [9929277130/0141-2741111]
Professional Factory..... Costing A series
Q.61
Q.62
Price Earning Ratio =
a) 12.12
c) 12.11
b) 11.11
d) 11.12
Net fund flow= ?
a) 12,000
c) 2,22,000
b) 1,02,000
d) 1,52,000
Q.63
The opening balance of the Equipment account was Rs 45,000: the ending balance was
Rs 54,000. The opening balance of accumulated Amortization account was Rs 24,000:
the ending balance was Rs 33,000, Equipment with a cost of Rs 6,000 and accumulated
amortization of Rs 5,000 was sold for Rs 1,200 cash. What was the amount of
amortization expense for the year ?
a) Rs 14,000
b) Rs 9,000
c) Rs 23,000
d) Rs 5,000
Q.64
A company makes one product, which has variable manufacturing costs of Rs 3.25 per
unit and variable selling and administrative costs of Rs 1.17 per unit. Fixed
manufacturing costs are Rs 42,300 per month and fixed selling and administrative costs
are Rs 29,900 per month. The company wants to earn an average monthly profit of Rs
15,000 and they expect to produce and sell an average of Rs 40,000 units of the product
per month. What is the minimum selling price management can be expected to set to
meet their profitability goals?
a) Rs 4.69
b) Rs 4.42
c) Rs 6.60
d) Rs 6.23
Q.65
Tom Ltd. has sales of Rs 2,00,000 with variable expenses Rs 1,50,000 Fixed expenses
Rs 60,000 and an operating loss of Rs 10,000. How much would Tom Ltd. have to
increase its sales in order to achieve an operating income of Rs 10% of sales?
a) Rs 4,00,000
b)Rs 2,51,000
c) Rs 2,31,000
d) Rs 2,00,000
Q.66-67
A company has two plants at Locations I & II, operating at 100% and 75% of their
capacities respectively. The following details are available:
Location I
Location II
Sales
200
75
Variable cost
140
54
Fixed cost
30
14
Q.66
What is the P/v ratio of merged plant?
a) 33.33%
b) 66.67%
C ) 14.77%
d) 29.33%
Q.67
Break even sales of merged plant ?
a)154.67 lakhs
b) 100 lakhs
C) 150 lakhs
d) 133.33 lakhs
10
Chinmay Tutorials [9929277130/0141-2741111]
Professional Factory..... Costing A series
Q.68-69
Particulars
Sales (1,00,000 units)
Variable cost
Fixed cost
Operating profit
Rs
10,00,000
(7,00,000)
(2,10,000)
90,000
Q.68
If Fixed costs increased by Rs 31,500 with no other cost or revenue factors changing,
the break-even sales in units would be:--a) 34,500
b) 80,500
c) 69,000
d) 94,500
Q.69
If effective income tax rate is 40%, the number of units would have to sell to earn an
after-tax profit of Rs 90,000 is :……
a) 1,00,000 units
b) 1,20,000 units
c) 1,12,000 units
d) 1,45,000 units
Q.70
Z Ltd. using WAC method gives the following particulars for Process A:
Work-in-progress opening balance on: 500 units (100% & 60% complete in respect of
material & conversion costs)
Units introduced: 19,500 units
Normal loss = 5% of total input
Units scrapped = 1,400 units,
Work-in-progress closing balance = 400 units (100% & 50% complete in respect of
material & conversion costs)
Equivalent units in respect of conversion cost=?
a) 20,000 units
b) 19,000 units
C ) 18,200 units
d) 18,800 units
Q.71
11
Following data pertains to process II.
Output of process I= Rs 28,200 (4,700 units)
Normal loss= 10% of input
Scrap value per unit= Rs 5
Direct wages = Rs 5,000
Direct expenses= Rs 9,910
Overheads are Rs 32,000 in total and chargeable as 200% of direct wages.
Output of process II= 4300 units
Value of Abnormal Gain of Process II=?
a) Rs 770
b) Rs 480
C ) Rs 840
d) Rs 560
Chinmay Tutorials [9929277130/0141-2741111]
Professional Factory..... Costing A series
Q.72
Total contract cost = Rs. 1,77,460
Contract price = Rs. 4,00,000
2/3rd of the contract was completed however, the Architect gave certificate only for Rs.
2,00,000, on which 80% was paid.
Work uncertified = ?
a)
Rs. 35,683
b)
Rs. 66,905
c)
Rs. 28,880
d)
Rs. 44,365
Q.73
In contract costing the _______ provides a safeguard against the default risk in the
contracts.
a)
Retention money
b)
Reserve
c)
Notional profit
d)
Cash received
Q.74
For contracts which are very near to completion, the profit is ascertained by the formula
_________.
a)
Estimated profit * (Work certified /contract price)
b)
Estimated profit * (Work certified /contract price) * (Cash received /Work certified)
c)
Estimated profit * (Cash received /Work certified) * (Cost of work / Total cost to
date)
d)
Any of the above in the absence of specific instruction
Q.75
Contract in which reimbursement is based on actual allowable cost plus a fixed fee is
called _______
a)
Special contract
b)
Cost plus contract
c)
Regular contract
d)
Cost contract
Q.76
Which of the following items not included while preparing a cost sheet?
a)
Cash discount
b)
Goodwill written off
c)
Dividend paid
d)
All of the above
Q.77
In costing an account giving details of cost of production cost of sales and profit made
during a particular period is called________.
a)
Cost sheet
b)
Income Statement
c)
Production Account
d)
Goods Produced account
Q.78
Direct Labour means ______
a)
Labour completing the work manually
b)
Labour which is recruited directly and not through contractors
c)
Permanent labour in the production department
d)
Labour which can be conveniently associated with a particular cost unit.
Q.79
Normal rate per hour= Rs. 100, Expected output = 25 units per hour, Actual production
in 8-hour day = 180 units.
Earning under piece rate system =?
a)
Rs. 800
b)
Rs. 45
c)
Rs. 745
d)
Rs. 720
12
Chinmay Tutorials [9929277130/0141-2741111]
Professional Factory..... Costing A series
Q.80
Which of the following formula s correct under “Barth Variable Bonus Plan” of wage
payment ?
a)
Hourly rate * √𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑡𝑖𝑚𝑒 ∗ 𝐴𝑐𝑡𝑢𝑎𝑙 𝑡𝑖𝑚𝑒
b)
Standard time * √𝐻𝑜𝑢𝑟𝑙𝑦 𝑟𝑎𝑡𝑒 ∗ 𝐴𝑐𝑡𝑢𝑎𝑙 𝑡𝑖𝑚𝑒
c)
Actual time * √𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑡𝑖𝑚𝑒 ∗ 𝐻𝑜𝑢𝑟𝑙𝑦 𝑡𝑖𝑚𝑒
d)
Actual time * √𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑜𝑢𝑡𝑝𝑢𝑡 ∗ 𝐴𝑐𝑡𝑢𝑎𝑙 𝑡𝑖𝑚𝑒
Q.81
Which of the following formula is correct for computation of labour efficiency ?
𝑇𝑖𝑚𝑒 𝑇𝑎𝑘𝑒𝑛
a)
Efficiency % = 𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑇𝑖𝑚𝑒 ∗ 100
b)
Efficiency % =
𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑜𝑢𝑡𝑝𝑢𝑡
𝐴𝑐𝑡𝑢𝑎𝑙 𝑜𝑢𝑡𝑝𝑢𝑡
∗ 100
c)
Efficiency % =
𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑜𝑢𝑡𝑝𝑢𝑡
𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑇𝑖𝑚𝑒
∗ 100
d)
Efficiency % =
𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑡𝑖𝑚𝑒
𝑇𝑖𝑚𝑒 𝑡𝑎𝑘𝑒𝑛
∗ 100
Q.82
______ refers to contract recording of the employees’ attendance time.
a)
Time booking
b)
Time keeping
c)
Time spending
d)
Time pass
Q.83
Labour turnover means
a)
Turnover generated by labour
b)
Rate of change n composition of labour force during a specified period
c)
Either of the above
d)
Both of the above
Q.84
Standard production per month per worker = 1,000 units, Actual production = 850 units,
Piece work rate is Rs. 50 per unit, Additional production bonus is Rs. 1,000 for each
percentage of actual production exceeding 80% of standard. Dearness allowance; Rs.
1,000 per month. Earnings = ?
a)
Rs. 48,500
b)
Rs. 47,500
c)
Rs. 42,500
d)
Rs. 50,000
Q.85
Re-order level = 3,750 units, Minimum level = 1,750 units, Average Delivery period = 2
weeks, Average Consumption = ?
a)
1,750 units
b)
1,250 units
c)
1,500 units
d)
1,000 units
Q.86
Which of the following details are recorded in bin card?
a)
Date of order and suppliers name along with address
b)
Record of quantities only
c)
Record of both quantities & values
d)
All of the above
Q.87
_______ represents the unusable loss, which can be sold. It is a residue, which is
measurable and has a minor value.
a)
Waste
b)
Scrap
c)
Spoilage
d)
Defective
13
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Professional Factory..... Costing A series
Q.88
Which of the following “Cost unit” is not used by the organization engaged in providing
services?
a)
Tonne km
b)
Passenger km
c)
Kilowatt hour
d)
Per meter
Q.89
The cost audit order can be given by the Central Government only in respect of Class of
Companies which is required to maintain books of account under the provisions of
______ of the Companies Act, 2013.
a)
Section 148
b)
Section 138
c)
Section 209(1)(d)
d)
Section 128
Q.90
Under two bin system issue of stock is made from _____ part.
a)
Smaller part
b)
Larger part
c)
Any part
d)
None
Q.91
In ______ purchasing, each department makes its own purchase.
a)
Centralized
b)
Decentralized
c)
Both (a) and(b)
d)
None
Q.92
Store Department prepares ________ for purchase of material
a)
Material Requisition note
b)
Bill of material
c)
Indents
d)
None
Q.93
At EOQ level Ordering Cost is equal to _______.
a)
Carrying cost
b)
Purchase cost
c)
Associated cost
d)
Total cost
Q.94
In case of normal loss of material due to wastage, effect on Total Cost will:
a)
Increased
b)
Decreased
c)
Same
d)
None
Q.95
The application of costing & Cost accounting principles, methods & techniques to the
science parts & practice of cost control and the ascertainment of profitability.
a)
Cost accounting
b)
Costing
c)
Cost accountancy
d)
NOTA
Q.96
These costs are note not related to the operations and can be controlled by
management by eliminating or reducing to a desirable level.
a)
Discretionary costs
b)
Committed cost
c)
Step costs
d)
Policy costs
Q.97
_______ is an item for which cost measurement is required eg. Product, Job:
a)
Cost driver
b)
Cost object
c)
Cost pool
d)
NOTA
Q.98
When the under or over absorbed overheads amount is significant, it should be disposed
off by:
a)
Carrying forward to next year
b)
Writing off to costing P&L A/c
c)
Using a supplementary rate
d)
All of the above
14
Chinmay Tutorials [9929277130/0141-2741111]
Professional Factory..... Costing A series
Q.99
CAS-9 is related with
a)
Direct material cost
c)
Packing material cost
b)
d)
Indirect material cost
Transportation material cost
Q.100 The Annexures to the Cost Auditor Report and Performa should be signed by
a)
The Chief Finance officer and the Managing Director
b)
One director and Secretary
c)
The Secretary and the Chief finance officer
d)
The officer in charge of cost accounts and the Secretary.
15
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Professional Factory..... Costing A series
Rough Work
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