Accts assgn:13: Sejal

Multiple Choice Single Answer

Question An employee working under a bonus scheme saves 10 hours in a job for which the standard
time is 60 hours. Calculate the wages payable to him, if incentive bonus of 10% on the hourly rate is
payable when standard time (namely 100% efficiency) is achieved, and a further incentive bonus of 1%
on hourly rate for each 1% in excess of that 100% efficiency is payable. Assume that the normal rate of
payment is Rs.50/- per hour.
Correct Answer Rs.3,250/-

Multiple Choice Single Answer

Question At 60% capacity utilisation the overhead recovery rate is Rs.35/- per unit. At 70% capacity the
rate gets reduced to Rs.32/- per unit. What should be the recovery rate if the production attains 90%
capacity utilisation?
Correct Answer Rs.28/- per unit

Multiple Choice Multiple Answer

Question The production budget may be prepared in terms of :
Correct Answer Units produced , Production cost , Material cost, labour cost and overheads

Multiple Choice Single Answer

Question Tom company has sales of Rs.200,000/- with variable expenses of Rs.150,000/-, fixed
expenses of Rs.60,000/-, and an operating loss of Rs.10,000/-. By how much would Tom have to increase
its sales in order to achieve an operating income of 10% of sales?
Correct Answer Rs.200,000/-

Select The Blank

Question Angle formed by the intersection of total cost line and sales line is called angle of ________.
Correct Answer Incidence

True/False
Question All costs are controllable.
Correct Answer False

Select The Blank

Question In the adjustment entry passed for closing stock, the ________ account should be credited.
Correct Answer Trading

Multiple Choice Multiple Answer

Question Select the items which may be classified as selling and distribution overheads.
Correct Answer Delivery van expenses , Rent of finished goods warehouse , Sales research expenses

Select The Blank

Question Warehousing cost is an item of ________
Correct Answer Distribution overheads

Multiple Choice Multiple Answer

Question From the following, select current assets:
Correct Answer Sundry debtors , Stock , Pre paid expenses

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

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
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Match The Following
Question=Correct Answer
Book-Keeping=Books of Accounts
Financial statement=Profitability statement & Balance-sheet
Accounting=Process of analyzing & interpretation
Profitability statement=Indicates the amount of profit earned
Balance-sheet=Financial status

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

Multiple Choice Single Answer

Question Which cost is defined as an estimated cost, prepared in advance of production or supply,
estimated within a prescribed set of working conditions?
Correct Answer Standard cost

Select The Blank

Question Carriage charges paid for a new machine purchased if debited to carriage account would affect
the ________
Correct Answer Machinery A/c and carriage A/c

True/False
Question The variable costs are controllable at the lower lever.
Correct Answer True

Multiple Choice Multiple Answer

Question Purchased goods worth Rs.6,450/- on 10th March, 2004. However the goods were delivered
directly to the plant situated at Nagar and hence this transaction was not recorded in the purchase book,
which is maintained at the corporate office. Analyse the impact of this transaction.
Correct Answer The gross profit will increase by Rs.6,450/-

True/False
Question Fundamentally, changes in price and changes in sales volume give rise to sales variances.
Correct Answer True

Select The Blank

Question The ________ is responsible for material losses while in storage.
Correct Answer Store-keeper

True/False
Question A cash payment of Rs.1,000/- for traveling expenses has been entered in the books but not
debited to traveling A/c. The trial balance will NOT agree.
Correct Answer True

Select The Blank

Question Accounts representing expenses will have ________balance.
Correct Answer Debit

Multiple Choice Single Answer

Question It is discovered that sales effected on 31st March, 2004 worth Rs.42,000/- has not been
recorded in the books of accounts. Analyse the impact on the final statement of accounts.
Correct Answer The sundry debtors will increase by Rs.42,000/-

Multiple Choice Single Answer

Question The cost that indicates historical cost, which is incurred in past, is known as
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Correct Answer Sunk cost

Multiple Choice Single Answer

Question Purchases returns of Rs.18,000/- were wrongly transferred to the sales returns account.
Calculate its impact on net profit.
Correct Answer The net profit will not be affected

True/False
Question New companies can adopt Uniform costing system as a ready-made system.
Correct Answer True

True/False
Question A journal entry is passed for trade discount, but no entry is passed for cash discount.
Correct Answer False

Select The Blank

Question The assets which are suppoed to be used by the organisation to do business, are known as
________assets.
Correct Answer Fixed

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

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

Multiple Choice Multiple Answer

Question Management accounting is concerned with the following activities :
Correct Answer Decision making , Safeguarding assets , Planning and controlling activities

Multiple Choice Single Answer

Question The total production cost for making 20,000 units was Rs.21,000/- and the total production
cost for making 50,000 units was Rs.34,000/-. Once production exceeds 25,000 units, additional fixed
costs of Rs.4,000/- are incurred. The full production cost per unit of making 30,000 units is:
Correct Answer Re.0.98

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

Multiple Choice Single Answer

Question Which of the following is the most efficient use of the clock card?
Correct Answer To facilitate payment for time spend on the work premises

True/False
Question One of the main objection to the contribution approach of costing is that it ignores fixed cost.
Correct Answer True

Select The Blank

Question If the bank pays off the credit card bill, as per the standing instructions, the overdraft as per
bank book will be ________ the overdraft as per pass book.
Correct Answer Lesser than
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Select The Blank
Question The cash flow format is used for preparing the cash budget by the ________ method.
Correct Answer Adjusted Profits/Losses

True/False
Question The ideal budget period for a company engaged in generation and distribution of electricity is
one year.
Correct Answer False

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

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/-

Multiple Choice Multiple Answer

Question Examples of indirect material are
Correct Answer Consumable stores , Glue used in book binding , Nails used in packing boxes

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

Multiple Choice Single Answer

Question A cheque of Rs.400/- received and deposited into bank on 26th September, was credited in the
pass book but was omitted to be entered in the bank book: this error will result in :
Correct Answer Difference in the balance as per bank book and as per pass book

True/False
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

Match The Following

Question=Correct Answer
Drawings=Proprietor's account
Deferred revenue expenditure=Real account
Deferred revenue=expenditure written off Nominal account
Loan=Personal account

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

Multiple Choice Multiple Answer

Question The objects of cost accountancy are . .
Correct Answer To ascertain cost and profitability , Cost Control , Presentation of Information

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