( FASP - 01 )

QUESTION PAPER
LIMITED DEPARTMENTAL COMPETITIVE EXAMINATION - 2008
FOR THE POST OF CHARGEMAN-GR.II (T) & (NT)

SUBJECT: FACTORY ACCOUNTING & STORES PROCEDURE CODE: 3.00 / 231

Sr. No. … … … … … … … … … … … … … ROLL NO.

Signature of the Invigilator … … … … … … … … … … … … … … …

Date: 18.10.2008 Duration : 3 Hours.

Time: 14:00 Hrs to 17:00 Hrs. Max. Marks : 100

Instructions: Please read the following instructions carefully before writing your answers:
1) All Questions in Part – A, B & C are compulsory.
2) Each Questions in Part - A & B carries 1 mark and that in Part - C carries 5 marks.
3) There are four options - (A), (B), (C), (D) given against each question in Part - A out of which
only one is the most appropriate answer.
If (A) is correct, round on the correct option like (A) .
4) The discarded answer if any, must be crossed properly and supported by initial of the
candidate.
5) In Part – A & B, for each wrong answer 0.25 marks will be deducted. If more than one
options are marked, it will also be considered as wrong answer.
6) Use only blue or black ball pen. Use of Pencil is not allowed.
7) No sheet from the Question Paper / Answer Book should be detached.
8) You may do rough work, if required, on the blank sheets.
9) Please DO NOT repeat DO NOT write your name anywhere in the Question Paper.
If name or any other symbolic notation are found marked on the Question paper /
Answer sheet, this will render the candidate disqualified.

For Examiners only

Part - A & B
Correct Wrong No Total
Answers Answers Answers (80)
Part - A
60 Marks
Part - B
20 Marks
Part – C
Q.81 Q.82 Q.83 Q.84 Total
(5) (5) (5) (5) (20)

SUMMARY OF MARKS OBTAINED

Part - A & B Part – C Total
Marks (100)
(80) (20)
Obtained
 ( FASP - 02 )

PART - A
(Each question carries 1 mark)

Q.1. What is full form of EOQ ?

(A) Economic Ordering Quantity (B) Essential Ordering Quantity
(C) Essential Outstanding Quantity (D) Equal Order Quantity

Q.2. Annual Inventory Checking is carried out by:

(A) Store Holder (B) A Gazetted Officer
(C) Stock Verification Group (D) Accounts office

Q.3. One of the procedures for reducing physiological cause as a principle of minimising
hazards in dangerous and hazardous goods is:
(A) Rotation (B) Removal (C) Rolling (D) Releasing

Q.4. Loss Statements on Form ______ are raised when demurrage / wharfage becomes
payable because of the negligence or inaction of the consignor or consignee:
(A) IAFA–490 (B) IAFA–498 (C) IAFA–500 (D) IAFA–520

Q.5. Reserve / Guiding prices are fixed not more than _____ days before the auction:
(A) 4 (B) 3 (C) 2 (D) 1

Q.6. The loss of stores as posted in the ledger and accounted for in the P.S.A will be booked
to Work Order:
(A) 02/00023/00 & 02/00024/00 (B) 01/00020/00 & 01/00021/00
(C) 02/00020/00 & 02/00021/00 (D) 01/00023/00 & 01/00024/00

Q.7. What is the time limit, after which Railways will not be liable for any damages, after
termination of transit ?
(A) 4 days (B) 5 days (C) 6 days (D) 7 days

Q.8. The items on ‘Stores Charge’are accounted for in the:

(A) Priced Stores Ledger + Bin Cards (B) Priced Stores Ledger
(C) Bin Cards (D) Material Estimates

Q.9. CRVs are prepared on Form:

(A) IAF (Fac)–151 (B) IAF (Fac)–45 (C) IAFZ–2096 (D) IAFO–2096

Q.10. After every stock verification, the SV group will furnish _______ copies of stock taking
sheets to Accounts Office:
(A) 1 (B) 2 (C) 3 (D) 4

Q.11. When a cost card is closed and variation in respect of labour and material is found to be
beyond certain limit, the matter is brought to the notice of GM. What is this limit ?
(A) 5% (B) 10 % (C) 15 % (D) 25 %

Q.12. The normal life of a manufacturing warrant is:

(A) 12 months (B) 9 months (C) 6 months (D) 3 months

Q.13. Works Office issues warrants to a production shop in how many parts?
(A) One (B) Two (C) Three (D) Four
 ( FASP - 03 )

Q.14. A Semi Statement is prepared in respect of all:

(A) Outstanding warrants (B) Completed warrants
(C) Part completed warrants (D) Untouched warrants

Q.15. Accounting of R&D Expenditure is done under which work-order series number:
(A) 01 (B) 02 (C) 60 (D) 90

Q.16. Generally, the Price List of IFD items is published by whom and in which month for the
next financial year:
(A) Consignee Factory; March (B) Consignor Factory; January
(C) Consignor Factory; March (D) O.F. Board; January

Q.17. The Shop Budget Committee prepares an estimate of the:

(A) Direct Labour (DL) for the next year
(B) Direct Labour & VOH for the next year
(C) Direct Labour & FOH for the next year
(D) Direct Labour, VOH & FOH for the next year

Q.18. Under “Except System of Accounting” for components, the components after
manufacture remain deposited with the:
(A) Production Shop (B) Inspection Bond
(C) Assembly Shop (D) Stores Section

Q.19. For better preservation, paper items should be preserved in:

(A) Humidity controlled atmosphere (B) Anti-rust conditions
(C) Oil should be sprayed (D) Anti-termite should be sprayed

Q.20. Receipt Voucher number is allotted:

(A) Just after receipt & counting of material
(B) After inspection of material by QA / WIS
(C) After bringing the material on charge by go-down keeper
(D) None of the above

Q.21. In a civil trade quotation, GM can quote a price:

(A) Not below Direct Material (DM) + Direct Labour (DL)
(B) Not below Direct Material (DM) + Direct Labour (DL) + 20% (VOH + FOH)
(C) Below Direct Material (DM) + Direct Labour (DL)
(D) Needs OFB’s approval

Q.22. How much is the assessed life of a permanent building for calculating depreciation
charges:
(A) 40 years (B) 50 years (C) 60 years (D) 100 years

Q.23. Collection Supervisor:

(A) Takes a “Not received”endorsement on RR every day till the material is received
by him
(B) Makes claim on lorry drivers
(C) Collects only whatever is given by the Railways
(D) None of the above
 ( FASP - 04 )

Q.24. Class – III form of Extract is used for:

(A) SWOD (B) IFD (C) Indent (D) Extract

Q.25. With the On-Line PPC system in Indian Ordnance Factories:

(A) PSL balance and Bin balance must be same at any moment
(B) PSL and Bin balance can never be same at a given moment as documents
posted in each will be different
(C) PSL balance will be lagging behind the Bin balance till the document is posted
(D) Bin balance will be lagging behind the PSL balance till the document is posted in
the Bin card

Q.26. When excess material is found in the factory without any record, the following document
is prepared:
(A) Receipt vouchers (B) CRV (C) Bin Card (D) SHIS

Q.27. The budget of the Ordnance Factories got separated from the Army on:
(A) 01-04-1987 (B) 01-04-1978 (C) 01-04-1993 (D) 01-04-1991

Q.28. The full form of UAR is:

(A) Un-Authorised Rejection (B) Un-Avoidable Rejection
(C) Universally Accepted Report (D) None of these

Q.29. French chalk is applied for preservation of:

(A) Wooden items (B) Rubber items
(C) Woolen items (D) None of these

Q.30. For preservation of paint:

(A) Roll drums on periodical basis (B) Use cool places as per directives
(C) Protect against heat & light (D) Pack with naphthalene powder

Q.31. Services rendered by one Ordnance Factory to other Ordnance Factory are covered
under:
(A) Class I extract (B) Class II extract
(C) Class III extract (D) Class IV extract

Q.32. The work order numbers and warrant numbers are allocated by:
(A) Production section (B) Accounts office
(C) Works office (D) PV section

Q.33. A system in which separate warrants are issued for components and sub assemblies of
a particular assembly, is called:
(A) Sub warrant system (B) Except system
(C) Both (A) & (B) (D) None of these

Q.34. Standard Man Hours (SMH) is:

(A) Same as estimated man hours
(B) Estimated man hours + Rest allowance
(C) Estimated man hours + 25% Allowance for profit
(D) None of these
 ( FASP - 05 )

Q.35. The last two digits of the work order indicate:

(A) Factory code (B) Section code
(C) Work code (D) Customer code

Q.36. Step – ladder statement for allocation of overheads is prepared by:

(A) Planning office (B) Central budget committee
(C) Local Accounts office (D) None of these

Q.37. Labour charges for converting raw material into finished products are accounted as:
(A) Indirect labour charges (B) Labour overheads
(C) Variable overheads (D) Direct labour charges

Q.38. Cost cards are opened:

(A) On the basis of each warrant (B) For each section
(C) For each cost centre (D) For each factory

Q.39. S - series voucher is prepared for:

(A) Stock items (B) Semi-finished items
(C) Serviceable items (D) Surplus store to be used

Q.40. Meaning of Ground balance in store stock refers to:

(A) Balance shown in ledger (B) Balance shown in Bin Card
(C) Balance found on physical verification (D) Any of these

Q.41. Following documents are required to be made, for issue of material from stock to a sister
factory for machining assistance:
(A) Examination order and a 'P' voucher (B) S - voucher
(C) Examination order and a nominal issue voucher (D) None of these

Q.42. M - issue voucher is prepared for issue of:

(A) Items from stock inventory (B) Items manufactured by factory
(C) Nominal items (D) Capital items

Q.43. Bill of lading is connected with:

(A) Despatch by Air (B) Despatch by Sea
(C) Despatch by Rail (D) Despatch by Road

Q.44. '02' series of work orders represent expenses of:

(A) Fixed Overheads (B) Variable Overheads
(C) Direct material (D) None of these

Q.45. Following is an element of wages paid to a workman.

(A) Injury Pay (B) Compensation paid as per rules
(C) Festival Advance (D) None of these

Q.46. When a warrant remains incomplete at the end of the financial year:
(A) Warrant is closed and fresh warrant is issued next year
(B) Explanation for non-completion is called
(C) Board of Enquiry is constituted to know the reasons
(D) Semi statement is prepared
 ( FASP - 06 )

Q.47. The net expenditure for material for each warrant is posted in the:
(A) Cost card pertaining to the concerned warrant (B) Work order
(C) Bill of Material (D) Extract

Q.48. List of the type and number of parts needed to produce a given product is
known as:
(A) Production planning (B) Bill of materials
(C) Capacity planning (D) Operating budget

Q.49. Stock-pile is a:
(A) Revenue Expenditure (B) Capital Expenditure
(C) Nominal Expenditure (D) None of these

Q.50. The overheads which do not change with volume of production are known as:
(A) Rigid overheads (B) Volume overheads
(C) Fixed overheads (D) Non-flexible overheads

Q.51. While pricing receipt vouchers in case of imported stores, following elements are
taken in to account:
(A) Actual cost + Sea Freight + Port handling charges
(B) Actual cost + Sea Freight + Customs duty + Inland Freight
(C) Actual cost + Sea Freight + Customs duty + Port handling charges + Inland
Freight
(D) Actual cost + Sea Freight + Customs Duty + Port handling charges

Q.52. The term LIFO means:

(A) Last Item For Out (B) Last In First Out
(C) Last Issued For Overhead (D) Less Insured For Order

Q.53. Item which has not moved for last six months is categorized as:
(A) Non - moving (B) Slow - moving (C) Obsolete (D) None of these

Q.54. Annual accounts of Ordnance Factories are prepared in:

(A) Two parts (B) Three parts (C) One part (D) Five parts

Q.55. Loss of stores due to ___________ have to be regularised with the findings of
Board of Inquiries:
(A) Suspected theft, fraud or neglect
(B) Any reason what so ever
(C) Any reasons including evaporation, spillage and such authorised technical
reasons
(D) None of the above
 ( FASP - 07 )

Q.56. Wagons can not be opened:

(A) Without the goods clerk being a witness (B) Without the security officer
(C) Without a Police Constable (D) None of the above

Q.57. A Labour Estimate will not have:

(A) Operation Description (B) Class of Labour
(C) Operation Time (D) Job Rate

Q.58. Non-Recurring revision of Rate means authorisation of:

(A) Additional operation time in an estimate
(B) Additional operation time in a warrant
(C) Additional money in a warrant
(D) Additional piece-work profit

Q.59. Step ladder Allocation of Overhead Expenditure means:

(A) Systematic Distribution of Service Section expenditure on Production
Sections
(B) Systematic Distribution of Service Section expenditure on Service Sections
(C) Systematic Distribution of Service Section expenditure on Administrative
Sections
(D) Systematic Distribution of Service Section expenditure on all Sections

Q.60. In XYZ analysis, X is the:

(A) List of High value active items whose value is 70 % of total value of all
the items held in the stock
(B) List of High value Direct items whose value is 70 % of total Direct items
consumed in the previous year
(C) List of High value stock items whose value is 70 % of total stock value
(D) List of High value Indirect items whose value is 70 % of total indirect
items consumed in the previous year
 ( FASP - 08 )

PART ? B

There are two options- 'T' for True and 'F' for False given against each statement in this part.
If ‘T’is correct, round on the correct option like T . Each question carries 1 mark.

Q.61. All claims on Railways must be preferred within six months

from the date of Booking of the consignment. T / F

Q.62. Pallets are used in reducing material handling cost. T / F

Q.63. VED classification is used for controlling spare parts inventory. T / F

Q.64. GM of each factory issues the price list of the items manufactured in the
previous year after 31st March. T / F

Q.65. 'Short Leave' can be granted with pay. T / F

Q.66. Statement of Accounts Receivable is part of Quasi - Commercial

Accounting. T / F

Q.67. In any factory, profit shown in Annual accounts is the same as Negative
Net Budget. T / F

Q.68. In the warrant number last four digits are used for sub-warrant number. T / F

Q.69. Salaries paid to supervisory personnel are fixed overhead expenses. T / F

Q.70. FIFO system is used for chemical stores. T / F

Q.71. Open delivery is taken when the packages are received very late. T / F

Q.72. Nominal transactions are not routed through store accounting documents. T / F

Q.73. Maintenance and repairs of building and depreciation of building are

fixed overhead charges. T / F

Q.74. Warrants are closed once in a month and forwarded to Accounts. T / F

Q.75. Warrants are closed by production section. T / F

Q.76. Transfer vouchers are prepared for transfer of expenditure from T / F

one work order to another.

Q.77. Red demand notes are used only in factories working on the except system. T / F

Q.78. The Accounts Office may carry out surprise physical stock verification. T / F
 ( FASP - 09 )

Q.79. Spot Estimates are prepared on the same form as SWOD. T / F

Q.80. Tools & gauges are considered to be stores on ‘Production Charge’. T / F

PART - C
(Each question carries 5 marks)

Q.81. What is meant by Annual Accounts ? How is it finalised in Ordnance Factories ?

What is the significance of compiling these on 30th June while production year closes on
31st March itself ?

Q.82. Write the procedure to be adopted for adjustment of discrepancy in a store

received against IFD from a sister Ordnance Factory.

Q.83. Write short notes on "Expense Voucher" and "Nominal Voucher".

Q.84. What are the situations in which NRM & NRR are raised ? How are these kept
under control ?