Match The Following Accounting =Process of analyzing & interpretation Process Profitability statement =Indicates the amount of profit

earned status Book-Keeping =Books of Accounts statement =Profitability statement & Balance-sheet

Balance-sheet =Financial Financial

Salary paid to employee amounted Rs. 10,000, transferred to Trading A/C is an example of_______ Answer =Error of Commission Labour cost indicates that labour cost which cannot be identified with the individual cost centre and is incurred for those employees who are not engaged in the manufacturing process but only assist i Correct Answer= Remuneration To take make or buy decision under the marginal costing , if purchase price of the product is less than its variable cost it is advisable to go for manufacturing proposition. Correct Answer= False Over absorption of overheads may take place due to the reasons like ________ overheads being less than the ________ overheads Correct Answer= actual, estimated Question Income received in advance transfer to current liabilities =True Correct Answer

Bank reconciliation statement is the statement prepared to explain the ________ as to why the bank balance as per ________ and bank balance as per bank book does not match Correct Answer= reasons, pass book Fixed cost is the cost that tend to remain ________ irrespective of ________ Correct Answer= constant, level of activity A business is an activity carried out with the intention of earning the profit. Answer =True

If wages for the month of January, February and March are Rs.4,000, Rs.4,400 and Rs.4,600 respectively and if delay in payment of wages is month , payment of wages for the month of February is Correct Answer= 4,200 Management Accounting has a very _____scope and it requires ______organizational structure Answer- wide, elaborate Accounting is an art of recording, classifying & summarizing in a significant manner. Answer= True For a unit, if opening stock of raw material is 10,000 units, closing stock of raw material is 5,000 units and consumption is 3,20,000 units, what will be the quantum of raw material to be purchased Correct Answer- 3,15,000 Important advantages of Uniform Costing can be said to be Correct Answer= It is a useful tool for management control , It avoids cut throat competition , Weaker units can take advantage of settled systems of better managed units P/L A/C debit side includes Answer =salary , discount allowed , postage & telegram Actual costs may be affected due to inefficient functioning such as Correct Answer= Abnormal expenses , In efficient use of labour , In efficient use of material

Calculate Labour Efficiency Variance, If actual rate per hour is Rs.3.50/- , Standard rate is Rs.3/- per unit and standard hours are 15,000 and Actual hours are 13, 500. Correct Answer Rs.4500/( Favorable ) Sales quantity may be forecasted after taking into consideration various factors such as Correct Answer= Analysis of past trends , Market research , Reports by salesmen For taking make or buy decision marginal costing technique provide useful assistance. Answer =True Profitability statement indicates the amount of assets & liabilities. It is an appropriate basis of apportionment of depreciation expenditure

Correct

Correct Answer= False Answer =value of assets

The variable costs are controllable at the lower level. Correct Answer=True Balance sheet indicates the expenditure & income from the business. Answer= False Match The Following Journal =Book of original entry Ledger =Maintain all types of Accounts Assets= All the properties owned by the business Liabilities= All the amount owed by the business Drawing =Withdrawn for personal use A budget manual is a document setting out the ________ of the persons and ________ required for the budget control. Correct Answer Responsibilities Your Answer Responsibilities Correct Answer Forms and procedures Your Answer Forms and procedures True/False Question Credit balances in all the Personal & Real accounts appear on asset side. Correct Answer False 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 Multiple Choice Single Answer Question Omission of posting an amount in the ledger Correct Answer Error of Omission Your Answer Error of Omission True/False Question Non-operating / financial expenses are added while calculating net profit. Correct Answer False Your Answer True 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 A Budget Manual may contain the following particulars Correct Answer Duties and responsibilities of various executives , Functions and duties of Budget Officer , Scope of the Budget and area to be covered Your Answer Duties and responsibilities of various executives , Functions and duties of Budget Officer , Scope of the Budget and area to be covered Select The Blank Question Semi ________ overheads are neither ________ nor variable in nature. Correct Answer fixed Your Answer variable Correct Answer variable Your Answer fixed True/False Question Due to errors of principle the arithmetical accuracy of the trial balance does not get affected. Correct Answer True Your Answer True 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 Financial Accounting protects the interest of outsiders . it considers ________ transaction and it is a ________ requirement Correct Answer historical Your Answer historical Correct Answer legal Your Answer legal True/False Question Bin Card is having all the information of item received and issued. Correct Answer False Your Answer True Select The Blank Question Budgetary Control is useful for ________-and ________-as a powerful tool in the hands of management Correct Answer Cost control Your Answer Cost control Correct Answer Maximization of profits Your Answer Maximization of profits 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 Multiple Answer Question The material Requisition note contains Correct Answer Number and date , Department demanding the material , Signature of the authority approving the demand Your Answer Number and date , Department demanding the material , Signature of the authority

approving the demand Multiple Choice Multiple Answer Question Following error 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 Fixed overheads normally arise as a result of policy and are largely ________ in nature at the ________ level of the management Correct Answer uncontrollable Your Answer controllable Correct Answer lower Your Answer top True/False Question Budget is prepared for a fixed period of time. Correct Answer True Your Answer True Multiple Choice Single Answer Question Sold Goods of Amitabh worth Rs. 15,000 against 15% Trade discount. The Goods worth appear on account ___________ Correct Answer 12750 Your Answer 12750 Multiple Choice Single Answer Question This is not the non monetary incentive. Correct Answer Co-partnership Your Answer Co-partnership Multiple Choice Multiple Answer Question P/L A/C debit side includes Correct Answer salary , discount allowed , postage & telegram Your Answer salary , discount allowed , postage & telegram Select The Blank Question Along with financial accounting, ________ and ________ are the other streams of accounting Correct Answer Cost Accounting Your Answer Cost Accounting Correct Answer Management Accounting Your Answer Management Accounting True/False Question A very wide scope of Management Accounting is the limitation by itself. Correct Answer True Your Answer True at 6:44 AM 1 comments Links to this post Labels: Management Accounting Wednesday, March 12, 2008 Management Accounting - 2 True/False Question Credit balances in all the Personal & Real accounts appear on asset side.

Correct Answer False Your Answer False 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 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 1) Financial statements are basically in two forms i.e. profitability statement and balance sheet. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question The process of accounting has three streams of accounting ---------------,--------and ----------------------. Correct Answer Financial Accounting , Cost Accounting , Management Accounting Your Answer Financial Accounting , Cost Accounting , Management Accounting True/False Question Long term loan borrowed from financial institution comes under the heading of long term liabilities. Correct Answer True Your Answer True Match The Following Question Correct Answer Your Answer Book-Keeping Books of Accounts Books of Accounts 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 Financial status Multiple Choice Single Answer Question Judge the statement according to the criteria given : ' The accounting period for XYZ Ltd. ends on 31st December, 2003. It is noted that office rent for the month of December, 2003 is paid on 15th January, 2004. "According to concept of matching expenses with the revenues, this expenditure should be recorded in the books of accounts in January, Correct Answer The statement and its reason are both incorrect Your Answer The statement is correct but its reason is incorrect 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 Single Answer Question The installation and operation of ___________ accounting requires a very elaborate organizational structure and large number of rules & regulations Correct Answer Management Your Answer Management 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 Trading Match The Following Question Correct Answer Your Answer

Sunk Cost Historical Cost Historical Cost Cost Centre Facilitate the fixation of responsibility Facilitate the fixation of responsibility Cost Control Process of controlling costs of operations Process of controlling costs of operations Differential Cost Increase or Decrease in cost Increase or Decrease in cost Multiple Choice Multiple Answer Question Which of the following transactions should be excluded while preparing a cost sheet ? Correct Answer Interest on loan , Bad debts , Expenses on criminal law suit Your Answer Sale of scrap material , Interest on loan , Bad debts True/False Question In a Balance-Sheet right hand side is referred as assets side and left hand side is referred as liabilities. Correct Answer True Your Answer True True/False Question Credit note is an intimation send to person dealing with the business that his account being debited for the purpose indicated therein. Correct Answer False Your Answer False True/False Question Primary distribution is effected on the basis of service rendered to the service departments by the production departments. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question Marginal costing is found to be unsuccessful in the following situations :Correct Answer Impossible to distinguish costs into fixed and variable component. , With respect to capital intensive industries where fixed costs are very large and hence cannot be ignored , With respect to service industries where employee costs are very large and almost fixed in nature Your Answer

Impossible to distinguish costs into fixed and variable component. , With respect to capital intensive industries where fixed costs are very large and hence cannot be ignored , With respect to service industries where employee costs are very large and almost fixed in nature True/False Question Debit Note is an intimation sent to person dealing with the business that his account is being credited for the purpose indicated therein. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question Labour efficiency variance arises due to: Correct Answer Inefficient supervisor , Poor working conditions , Use of sub-standard quality of material Your Answer Inefficient supervisor , Poor working conditions , Use of sub-standard quality of material True/False Question Financial Accounting discloses the financial performance & financial statements of the business as a whole. Correct Answer True Your Answer True True/False Question Balance sheet indicates the expenditure & income from the business. Correct Answer False Your Answer True Select The Blank Question The indirect material cost, indirect labour cost and indirect expenses cost, collectively are termed as ________. Correct Answer Overhead Your Answer Overhead 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 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 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 P&L statement which is a period statement & relates to a certain period tells about results of operations. Correct Answer True Your Answer False Select The Blank Question Depreciation charged on office furniture on straight line basis is an example of ________. Correct Answer Administration overheads Your Answer Administration overheads True/False 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 Select The Blank Question Information as to the cost and profit / loss associated with the firm's operations is provided to the ________ by Management accounting. Correct Answer Management Your Answer Management True/False Question Danger level for inventory of materials means the safety stock of inventory. Correct Answer

False Your Answer True 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 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 Select The Blank Question ________ Accounting assists the management in establishing the plans to attain the economic objectives and take proper decisions for the attainment of its objectives. Correct Answer Management Your Answer Management 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 An increase in the maximum material inventory level , The incorrect choice of purchase order quantity , Failure to control the issue of materials from stores Multiple Choice Multiple Answer Question Management accounting is concerned with the following activities : Correct Answer Decision making , Safeguarding assets , Planning and controlling activities Your Answer Decision making , Safeguarding assets , Planning and controlling activities Multiple Choice Multiple Answer Question Features of double entry accounting system are . . . Correct Answer Every business transaction has two elements , When business receives something, it has to pay something , Every debit has a corresponding credit

Your Answer Every business transaction has two elements , When business receives something, it has to pay something , Every debit has a corresponding credit Select The Blank 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% True/False Question Maintenance Department is a service cost centre. 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 The difference between sales and cost of sales is termed as ________. Correct Answer Net Profit Your Answer Net Profit Select The Blank Question The final result disclosed by trading account is the ________profit earned by the organization. Correct Answer Gross Your Answer Gross Multiple Choice Multiple Answer Question Select the accounts to be disclosed on the liability side of the Balance sheet. Correct Answer Loan , Outstanding expenses , Creditors Your Answer Loan , Outstanding expenses , Creditors True/False Question Penalty paid for delay in payment to creditors represents uncontrollable cost.

Correct Answer False Your Answer False Multiple Choice Single Answer Question Which document facilitates estimating material cost of a particular job, before completion of that job? Correct Answer Bill of material Your Answer Material requisition note 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 Your Answer The net profit will not be affected Multiple Choice Single Answer Question It is said that adoption of uniform costing creates customer confidence because . . . Correct Answer Prices are reliable Your Answer Prices are reliable 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 at 6:35 AM 2 comments Links to this post Labels: Management Accounting Management Accounting - 1 Select The Blank Question Furniture account will always have a ________ balance. Correct Answer Debit Your Answer Nil Multiple Choice Multiple Answer Question Accounting is the art where transactions are Correct Answer Summarized , Classified , Recorded Your Answer

Summarized , Classified , Recorded True/False Question The phrase 'By Balance c/d.' written on the credit side of the rent account, indicates credit balance for this account. Correct Answer False Your Answer False 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 Accounting refers to the process of analyzing & interpreting the information already recorded in the books of accounts. Correct Answer True Your Answer True 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 True/False Question Standard costs are used for external reporting. Correct Answer False Your Answer False True/False Question It is said that the income statement represents wealth increase /decrease for the organisation. Correct Answer True Your Answer False Multiple Choice Single Answer Question

Mr. Oak, materials manager, spends 40% time in the factory and the remaining in office. If his annual salary is Rs.500,000/-, what amount should be charged as office overheads ? Correct Answer Rs.300,000/Your Answer Rs.200,000/Multiple Choice Multiple Answer Question The factors to be considered while preparing the direct materials budget are : Correct Answer Adequacy of material storing space , Availability of funds , Material in stores but reserved for specific purposes Your Answer Adequacy of material storing space , Availability of funds , Material in stores but reserved for specific purposes Multiple Choice Multiple Answer Question In which of the following situations, the flexible budget should be preferred? Correct Answer Sales are too difficult to predict , Supply level of input cannot be predicted , Varying levels of production activity Your Answer Sales are too difficult to predict , Supply level of input cannot be predicted , Varying levels of production activity Multiple Choice Multiple Answer Question Techniques of management accounting include: Correct Answer Marginal costing , Budgetary control , Standard costing Your Answer Marginal costing , Cost control , Budgetary control , Standard costing Match The Following Question Correct Answer Your Answer Profit and loss account Commission received Dividend paid Manufacturing account Work in Progress Land & Building Balance Sheet Land & Building Closing stock of finished goods Trading account Closing stock of finished goods Work in Progress 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 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 , Increase the sales volume , Increase the selling efforts Multiple Choice Multiple Answer Question From the following, select intangible assets: Correct Answer Goodwill , Patents , Trade Marks Your Answer Patents , Trade Marks , Investments True/False Question Bank reconciliation statement must be prepared before the preparation of profit and loss account and balance sheet. Correct Answer True Your Answer False Multiple Choice Single Answer Question Find the budget which is inadequate as a cost control technique : Correct Answer Fixed budget Your Answer Fixed budget True/False Question Predetermined rate of absorption of overheads helps in quick preparation of cost estimates and quoting prices. Correct Answer True Your Answer True Multiple Choice Single Answer Question Net sales Rs,7,50,000/-, opening stock Rs.1,14,375/-, purchases Rs.483,375/- and closing stock Rs.1,47,750/-. Calculate the Gross Profit. Correct Answer Rs.3,00,000/Your Answer Rs.3,00,000/-

Select The Blank Question ________ is an example of intangible asset. Correct Answer Goodwill Your Answer Land True/False Question Accounting is an art of recording, classifying & summarizing in a significant manner. Correct Answer True Your Answer True True/False Question Goods sent to the customers on approval basis should be treated as sales. 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 , Incurred in past , Relevant in decision making process True/False Question Profitability statement indicates the amount of assets & liabilities. Correct Answer False Your Answer True 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 Identify the steps involved in selecting the optimum product mix, when the limiting factor is number of labour hours and sales demand. Correct Answer For each product find the contribution per unit and per labour hour , Award ranks to each of the products based on contribution per limiting factor , Priority is given to fulfill the market demand of the

product which gives maximum contribution per labour hour. Your Answer For each product find the contribution per unit and per labour hour , Award ranks to each of the products based on contribution per limiting factor , Priority is given to fulfill the market demand of the product which gives maximum contribution per labour hour. Multiple Choice Multiple Answer Question Techniques of management accounting include: Correct Answer Marginal costing , Budgetary control , Standard costing Your Answer Marginal costing , Cost control , Budgetary control True/False Question The ideal budget period for a company engaged in generation and distribution of electricity is one year. 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 True/False Question According to Reducing Balance Method, the depreciation is provided at a predetermined percentage on the balance of cost of asset after deduction of the depreciation previously charged. Correct Answer True Your Answer True 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 Multiple Answer 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

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.29,200/Select The Blank Question A forecast is mere estimate of what is likely to happen, but ________ is the action plan to be followed. Correct Answer Budget Your Answer Budget True/False Question A very wide scope of Management Accounting is the limitation by itself. Correct Answer True Your Answer True Select The Blank Question The combination in which different products are sold by a company is known as ________. Correct Answer Sales mix Your Answer Sales mix Multiple Choice Single Answer Question The reporting method used in the costing system should be based on the principle of Correct Answer Management by exception Your Answer Management by objectives True/False Question Balance sheet indicates the financial status of the business at given period. Correct Answer True Your Answer True Multiple Choice Single Answer Question The wages paid to maintenance department workers who do repair work principally for production departments but also on the vehicles in the distribuiton department shoud be charged as: Correct Answer Service costs Your Answer

Service costs Multiple Choice Single Answer Question M/s Vivek Enterprises has paid rent relating to the residence of Mr. Vivek, proprietor of Vivek Enterprises. This payment should be treated as Correct Answer Drawings Your Answer Capital Select The Blank Question Measurement of ________ gives an idea of the degree of mobility of labour. Correct Answer Labour turnover Your Answer Labour turnover Multiple Choice Single Answer Question Net profit for the year before charging commission to the manager, is Rs.111,775/-. The manager of the company is entitled to commission @ 8% on net profits after charging commission. Find the amount of commission due to the manager. Correct Answer Rs.8,279.63 Your Answer Rs.8,942/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 Control on purchase of material is exercised by the storekeeper. Correct Answer False Your Answer True Multiple Choice Single Answer Question

A company wishes to earn a 15% profit margin on selling price when quoting for a job. Which of the following is the profit margin of cost which will achieve the required profit margin ? Correct Answer 0.1765 Your Answer 0.15 Select The Blank Question Economical use of labour, materials and facilities can achieved with the help of ________. Correct Answer Budgetary control Question Furniture account will always have a ________ balance. Correct Answer Debit Accounting is the art where transactions are Correct Answer Summarized , Classified , Recorded Your Answer Summarized , Classified , Recorded True/False Question The phrase 'By Balance c/d.' written on the credit side of the rent account, indicates credit balance for this account. Correct Answer False Your Answer False 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 Accounting refers to the process of analyzing & interpreting the information already recorded in the books of accounts. Correct Answer True Your Answer True 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 True/False Question Standard costs are used for external reporting. Correct Answer False Your Answer False True/False Question It is said that the income statement represents wealth increase /decrease for the organisation. Correct Answer True Your Answer False

Multiple Choice Single Answer Question Mr. Oak, materials manager, spends 40% time in the factory and the remaining in office. If his annual salary is Rs.500,000/-, what amount should be charged as office overheads ? Correct Answer Rs.300,000/Your Answer Rs.200,000/Multiple Choice Multiple Answer Question The factors to be considered while preparing the direct materials budget are : Correct Answer Adequacy of material storing space , Availability of funds , Material in stores but reserved for specific purposes Your Answer Adequacy of material storing space , Availability of funds , Material in stores but reserved for specific purposes Multiple Choice Multiple Answer Question In which of the following situations, the flexible budget should be preferred? Correct Answer Sales are too difficult to predict , Supply level of input cannot be predicted , Varying levels of production activity Your Answer Sales are too difficult to predict , Supply level of input cannot be predicted , Varying levels of production activity Multiple Choice Multiple Answer Question Techniques of management accounting include: Correct Answer Marginal costing , Budgetary control , Standard costing Your Answer Marginal costing , Cost control , Budgetary control , Standard costing Match The Following Question Correct Answer Your Answer Profit and loss account Commission received Dividend paid Manufacturing account Work in Progress Land & Building Balance Sheet Land & Building Closing stock of finished goods Trading account Closing stock of finished goods Work in Progress 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 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 , Increase the sales volume , Increase the selling efforts Multiple Choice Multiple Answer Question From the following, select intangible assets: Correct Answer Goodwill , Patents , Trade Marks Your Answer Patents , Trade Marks , Investments

True/False Question Bank reconciliation statement must be prepared before the preparation of profit and loss account and balance sheet. Correct Answer True Your Answer False Multiple Choice Single Answer Question Find the budget which is inadequate as a cost control technique : Correct Answer Fixed budget Your Answer Fixed budget True/False Question Predetermined rate of absorption of overheads helps in quick preparation of cost estimates and quoting prices. Correct Answer True Your Answer True Multiple Choice Single Answer Question Net sales Rs,7,50,000/-, opening stock Rs.1,14,375/-, purchases Rs.483,375/- and closing stock Rs.1,47,750/-. Calculate the Gross Profit. Correct Answer Rs.3,00,000/Your Answer Rs.3,00,000/Select The Blank Question ________ is an example of intangible asset. Correct Answer Goodwill Your Answer Land True/False Question Accounting is an art of recording, classifying & summarizing in a significant manner. Correct Answer True Your Answer True True/False Question Goods sent to the customers on approval basis should be treated as sales. 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 , Incurred in past , Relevant in decision making process True/False Question Profitability statement indicates the amount of assets & liabilities. Correct Answer False

Your Answer True 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 Identify the steps involved in selecting the optimum product mix, when the limiting factor is number of labour hours and sales demand. Correct Answer For each product find the contribution per unit and per labour hour , Award ranks to each of the products based on contribution per limiting factor , Priority is given to fulfill the market demand of the product which gives maximum contribution per labour hour. Your Answer For each product find the contribution per unit and per labour hour , Award ranks to each of the products based on contribution per limiting factor , Priority is given to fulfill the market demand of the product which gives maximum contribution per labour hour. Multiple Choice Multiple Answer Question Techniques of management accounting include: Correct Answer Marginal costing , Budgetary control , Standard costing Your Answer Marginal costing , Cost control , Budgetary control True/False Question The ideal budget period for a company engaged in generation and distribution of electricity is one year. 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 True/False Question According to Reducing Balance Method, the depreciation is provided at a predetermined percentage on the balance of cost of asset after deduction of the depreciation previously charged. Correct Answer True Your Answer True 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 Multiple Answer 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 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.29,200/Select The Blank Question A forecast is mere estimate of what is likely to happen, but ________ is the action plan to be followed. Correct Answer Budget Your Answer Budget True/False Question A very wide scope of Management Accounting is the limitation by itself. Correct Answer True Your Answer True Select The Blank Question The combination in which different products are sold by a company is known as ________. Correct Answer Sales mix Your Answer Sales mix Multiple Choice Single Answer Question The reporting method used in the costing system should be based on the principle of Correct Answer Management by exception Your Answer Management by objectives True/False Question Balance sheet indicates the financial status of the business at given period. Correct Answer True Your Answer True Multiple Choice Single Answer Question The wages paid to maintenance department workers who do repair work principally for production departments but also on the vehicles in the distribuiton department shoud be charged as: Correct Answer Service costs Your Answer Service costs Multiple Choice Single Answer Question M/s Vivek Enterprises has paid rent relating to the residence of Mr. Vivek, proprietor of Vivek Enterprises. This payment should be treated as Correct Answer Drawings Your Answer Capital

Select The Blank Question Measurement of ________ gives an idea of the degree of mobility of labour. Correct Answer Labour turnover Your Answer Labour turnover Multiple Choice Single Answer Question Net profit for the year before charging commission to the manager, is Rs.111,775/-. The manager of the company is entitled to commission @ 8% on net profits after charging commission. Find the amount of commission due to the manager. Correct Answer Rs.8,279.63 Your Answer Rs.8,942/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 Control on purchase of material is exercised by the storekeeper. Correct Answer False Your Answer True Multiple Choice Single Answer Question A company wishes to earn a 15% profit margin on selling price when quoting for a job. Which of the following is the profit margin of cost which will achieve the required profit margin ? Correct Answer 0.1765 Your Answer 0.15 Select The Blank Question Economical use of labour, materials and facilities can achieved with the help of ________. Correct Answer Budgetary control Your Answer Cost control at 9:29 PM 0 comments Links to this post Labels: Management Accounting (Set II) Wednesday, April 8, 2009 Management Accounting - 5 LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Multiple Answer Question The selection of the supplier may depend upon the following aspects: Correct Answer Geographical location of the supplier , Price quoted by the supplier , Goodwill of the supplier Your Answer Geographical location of the supplier , Price quoted by the supplier , Goodwill of the supplier Multiple Choice Single Answer Question

Net book value of loose tools as on 1st April, 2003 was Rs.45,000/-. As on 31st March, 2004 the management felt that the real worth of these loose tools is only Rs.30,000/-. What can be done to achieve the desired reduction in the net book value of loose tools? Correct Answer By providing depreciation to the extent of Rs.15,000/Your Answer By providing depreciation to the extent of Rs.15,000/True/False Question Overhead absorption rate will be different at different capacity levels. 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 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 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 Select The Blank Question Information as to the cost and profit / loss associated with the firm's operations is provided to the ________ by Management accounting. Correct Answer Management Your Answer Management Select The Blank Question Factory cost of a product is Rs.335,000/-, if the selling overheads are charged @25% of factory cost, then the amount of selling overheads should be Rs.________/Correct Answer

83750 Your Answer 83750 Select The Blank Question Uniform costing is not a separate method of ________. Correct Answer cost accounting Your Answer cost accounting Multiple Choice Multiple Answer 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 Multiple Choice Single Answer Question The following figures relate to a company manufacturing a varied range of products : Year 2003 Total sales Rs.22,23,000/- and total cost Rs.19,83,600/-. Year 2004 : Total sales Rs.24,51,000/- and Total cost Rs.21,43,200/-. Assuming stability in prices, calculate the profit volume ratio Correct Answer 0.3 Your Answer 0.3 Multiple Choice Single Answer Question The cost of idle time incurred by employees that is considered normal for the production process should be charged to : Correct Answer Factory overheads Your Answer Direct labour Select The Blank Question Creche expenses may be appropriately approtioned on the basis of ________. Correct Answer Number of female workers Your Answer Number of female workers Multiple Choice Single Answer Question Opening stock of Rs.1,80,000/-, purchases Rs.8,00,000/-, freight inward Rs.35,000/-, closing stock Rs.2,00,000/-, direct wages Rs.2,35,000/-. Calculate the prime cost. Correct Answer Rs.10,50,000/Your Answer Rs.10,70,000/-

Multiple Choice Multiple Answer Question Limitations of Management Accounting includes------------------Correct Answer Its wide scope , Possibility of intuitive decision , Requires elaborate organizational structure Your Answer Its wide scope , Possibility of intuitive decision , Requires elaborate organizational structure Select The Blank Question Indirect Cost is termed as ________. Correct Answer Overhead Your Answer Overhead Multiple Choice Multiple Answer Question Features of Financial Accounting includes----------------Correct Answer It is a legal requirement , It protects the interest of outsiders , It considers historical transactions Your Answer It is a legal requirement , It protects the interest of outsiders , It considers historical transactions Multiple Choice Multiple Answer Question Identify the budgets for which the production manager sould be held responsible : Correct Answer Production budget , Production overheads budget , Plant utilisation budget Your Answer Production budget , Production overheads budget , Plant utilisation budget Multiple Choice Single Answer Question A group of 10 men and 20 women workers were expected to produce 400 units of a product in an 8 hour day. The standard hourly rate was fixed at Rs.25/- and Rs.15/-, respectively.Actually, a group of 15 men and 10 women workers was deployed and paid for 8 hours a day at an hourly rate of Rs.22/and Rs.18/-, respectively. Two hours were wasted for the entire group due to power failure and only 300 units were produced. Calculate labour rate variance. Correct Answer Rs.120/- (Favourable) Your Answer Rs.150/- (Favourable) Multiple Choice Multiple Answer Question Techniques of management accounting include: Correct Answer Marginal costing , Budgetary control , Standard costing Your Answer Cost control , Budgetary control , Standard costing True/False Question A grinding machine is an example of impersonal cost centre

Correct Answer True Your Answer True True/False Question Profitability statement indicates the amount of assets & liabilities. Correct Answer False Your Answer False Multiple Choice Single Answer Question Uniform costing system is useful in the following areas Correct Answer Classification of cost accounts Your Answer Preparing financial statements Multiple Choice Multiple Answer Question The features of multiplicity of key factors are as follows : Correct Answer More than one key factors , Refers to a complex situation , Can be resolved by using linear programming technique Your Answer More than one key factors , Refers to a complex situation , Can be resolved by using linear programming technique 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 Multiple Choice Multiple Answer Question A materials requisition form normally contains the following aspects: Correct Answer Quantity requisitioned , Per unit material cost , Job number Your Answer Quantity requisitioned , Job number 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 Your Answer Units produced , Production cost , Material cost, labour cost and overheads Multiple Choice Single Answer Question Panna Ltd. temporarily has excess production capacity. The idle plant facilties can be used to manufacture a low-margin item. The low-margin item should be produced if it can be sold for more than its: Correct Answer Variable costs Your Answer Variable costs 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 , Increase the sales volume , Reduce cost of sales True/False Question Receipts and payments method of cash budget is useful for preparing long term estimates. Correct Answer False Your Answer False Multiple Choice Multiple Answer Question Select the advantages of standard cost system. Correct Answer Provides reliable basis for budgeting , Facilitates delegation of authority , Promotes economy and efficiency Your Answer Provides reliable basis for budgeting , Facilitates delegation of authority True/False 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 False Select The Blank Question In case of seasonal industry, the budget period may be taken as ________. Correct Answer

One season Your Answer One season True/False Question Lack of efficient control on various aspects related to raw-material increases the material cost component of the finished product. Correct Answer True Your Answer True True/False Question Due to compensating errors the arithmetical accuracy of the trial balance is affected. Correct Answer False Your Answer False Multiple Choice Single Answer Question Material price variance for a job is Rs.800/- (Favourable). Actual quantity of material used is 100 kg whereasthe standard quantity of material is 120% of actual quantity. Actual price paid for the material is 80% of the standard price. Calculate material cost variance. Correct Answer Rs.1,600/- (Favourable) Your Answer Rs.800/- (Favourable) Select The Blank Question The process of recording the business transactions in a defined set of records is referred to as ________. Correct Answer Balance sheet Your Answer Profit and Loss Account Match The Following Question Correct Answer Your Answer Daily Time sheets Time spent by worker on job is recorded Time spent by worker on job is recorded Time Keeping Department Recording of workers time Recording of workers time Time booking department Jobwise booking of time. Jobwise booking of time. Time Recording Clock Method Ticket number & clock card allotted to worker Ticket number & clock card allotted to worker

True/False Question Purchased goods by paying Rs.35,000/-: In this case, the cash account should be debited. Correct Answer True Your Answer True Select The Blank Question If the customer is not likely to pay the amount receivable from him, this amount should to be treated as ________. Correct Answer Bad debts Your Answer Bad debts True/False Question Accounting is an art of recording, classifying & summarizing in a significant manner. Correct Answer True Your Answer True Match The Following Question Correct Answer Your Answer Book-Keeping Books of Accounts Books of Accounts 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 Financial status True/False Question The problem of multiple key factors can be solved with the help of techniques like linear programming, operations research, etc. Correct Answer True Your Answer True Select The Blank

Question The ________ books are preferred when the volume of transactions is very large. Correct Answer Subsidiary Your Answer Journal 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 True/False Question All costs are controllable. Correct Answer False Your Answer False at 6:03 AM 1 comments Links to this post Labels: Management Accounting (Set II) Monday, August 11, 2008 Management Accounting - 4 LIST OF ATTEMPTED QUESTIONS AND ANSWERS 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 Financial Accounting discloses the financial performance & financial statements of the business as a whole. Correct Answer True Your Answer True 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 P&L statement which is a period statement & relates to a certain period tells about results of operations. Correct Answer True Your Answer True 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 Financial accounting may deal with the ascertainment of cost & calculation of profitability of the individual product. Correct Answer False Your Answer False 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 Match The Following Question Correct Answer Your Answer Financial Accounting Systematic recording of business transactions Systematic recording of business transactions Cost Accounting Ascertainment of cost Ascertainment of cost Management Accounting Analyzing & interpretation of financial data Analyzing & interpretation of financial data Accounting Art of interpreting & classifying business transaction Art of interpreting & classifying business transaction Book Keeping Recording of business transactions Recording of business transactions Match The Following Question Correct Answer Your Answer Bills Payable Amount payable to supplier Amount payable to supplier Bills Receivable Amount received from the customer Amount received from the customer 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 Bad debts Amount not received from customer Amount not received from customer True/False Question Amount invested in purchasing Fixed Asset is a revenue expenditure. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question Going Concern Concept __________________ Correct Answer Indefinite longer period , Not likely to close down in shorter period , This affects the values of asset and liabilities Your Answer Indefinite longer period , Not likely to close down in shorter period , This affects the values of asset and liabilities Multiple Choice Multiple Answer

Question Cost of asset is 1,20,000, estimated scrap value 20,000, cost of assets subjected to depreciation 2,00,000, rate of depreciation is 10%. Calculate depreciation for 3 yrs as per the reducing balance m Correct Answer 20,000,18,000,16,200 Your Answer 20,000,18,000,16,200 Multiple Choice Multiple Answer Question Profit & Loss A/C credit side has Correct Answer Gross profit , Commission received , Interested received Your Answer Gross profit , Commission received , Interested received Multiple Choice Single Answer Question Juhi started business with Rs borrowed capital of Rs. 1,00,000 with 10% interest per year. What is the total amount of the capital Correct Answer 1,10,000 Your Answer 90,000 True/False Question Cheques issued but not yet presented the balance as per the bank pass book will be higher. Correct Answer True Your Answer False Multiple Choice Single Answer Question This cost indicates historical cost which is incurred in past. Correct Answer Sunk cost Your Answer Sunk cost Multiple Choice Single Answer Question Labour cost is the cost of __________ paid to employees of the organization. Correct Answer Remuneration Your Answer Remuneration Multiple Choice Single Answer Question Company having opening stock of Rs. 1,80,000 purchase Rs. 8,00,000. Freight Inward Rs, 35000 & closing stock Rs. 2,00,000, having direct wages Rs. 2,35,000. What will be prime cost. Correct Answer 10,50,000 Your Answer 10,50,000 Multiple Choice Multiple Answer Question For the proper interpretation and presentation of cost the overhead further classified as Correct Answer Factory overheads , Office and administration overheads , Selling & distribution overhead Your Answer Factory overheads , Office and administration overheads , Selling & distribution overhead True/False Question Valuation of returns indicates the material returned by store department to production department Correct Answer False Your Answer False True/False Question The wage payment system should take into consideration the external obligations such as the Minimum wages Act and the agreement entered into by the organization with the workers. Correct Answer True

Your Answer True True/False Question A good wage payment system will punish the workers for the matters beyond the control of the workers. Correct Answer False Your Answer False Multiple Choice Multiple Answer Question These are the features of fixed overheads Correct Answer total cost remains the same , per unit cost may vary , not dependent on volume of output Your Answer total cost remains the same , per unit cost may vary , not dependent on volume of output True/False Question Under marginal costing technique only fixed costs are considered as relevant for decision making. Correct Answer False Your Answer False True/False Question Product mix refers to the proportion in which various products of a company can be sold. Correct Answer True Your Answer True Multiple Choice Single Answer Question The cost that varies in direct proportion with the level of activity is called Correct Answer variable cost Your Answer variable cost Multiple Choice Multiple Answer Question Basic assumptions made by marginal costing are Correct Answer per unit selling price remains constant at all the levels of activities. , whatever is produced by the organisation is sold off. , per unit variable cost remain constant. Your Answer per unit selling price remains constant at all the levels of activities. , whatever is produced by the organisation is sold off. , per unit variable cost remain constant. Multiple Choice Single Answer Question Calculate Volume Variance, If budgeted production is 20,000 units, actual production is 22,000 units and Standard rate per unit is Rs.1.5/-. Correct Answer Rs.3,000/- ( Favorable ) Your Answer Rs.3,000/- ( Favorable ) Multiple Choice Single Answer Question Calculate Sales Price Variance, If actual price is Rs.5.40/- per unit, Standard price is Rs.5/per unit and actual sales volume is 500 units. Correct Answer Rs.200/- ( Favorable ) Your Answer Rs.200/- ( Favorable ) Multiple Choice Single Answer Question Standard Costs are used as tool for Correct Answer Cost Control Your Answer Price fixation Multiple Choice Single Answer

Question Standard Costing specifically relates to the function of Correct Answer Production Your Answer Production True/False Question Uniform Costing disturbs the healthy competition in the industry Correct Answer False Your Answer True Multiple Choice Multiple Answer Question Uniform Costing Methods may be advantageously applied Correct Answer In single organization having number of branches. , Number of companies in same industry. , Similar Industries such as cotton, jute etc. Your Answer In single organization having number of branches. , Number of companies in same industry. , Similar Industries such as cotton, jute etc. Multiple Choice Multiple Answer Question The following factors affects the budgeted advertisement cost Correct Answer Percentage of profits , Availability of funds , Competitors policy Your Answer Percentage of profits , Availability of funds , Competitors policy Multiple Choice Multiple Answer Question In Cash budget , Operating cash outflow includes Correct Answer Payment to Creditors , Cash purchases of raw material , Wages/salaries Your Answer Payment to Creditors , Cash purchases of raw material , Wages/salaries Multiple Choice Multiple Answer Question Characteristics of budget can be said to be Correct Answer It may be prepared in terms of quantity or money or both , It is prepared for a fixed period of time , It spells out objectives to be attained Your Answer It may be prepared in terms of quantity or money or both , It is prepared for a fixed period of time , It spells out objectives to be attained Select The Blank Question Like initial formation expenses, ________ and R & D are the examples of Deferred Revenue Expenditure Correct Answer Initial Advertisement Your Answer Purchase of an asset Correct Answer R & D Your Answer Select The Blank Question If ________ is not provided, the asset may appear in the Balance Sheet at an ________ amount Correct Answer depreciation Your Answer depreciation Correct Answer overstated Your Answer overstated Select The Blank Question If ________ books are the books which record the transactions in the chronological order, ________ is the book where transactions of a similar nature are pooled together Correct Answer subsidiary Your Answer jornal Correct Answer ledger Your Answer ledger

Select The Blank Question While selecting source of supply ________ epartment may call for the ________ from the prospective suppliers Correct Answer purchase Your Answer purchase Correct Answer quotation Your Answer quotation Select The Blank Question Preventive costs of labour turnover refers to all the costs which may be incurred by the organisation to keep workers happy and ________ them from ________ the job Correct Answer discourage Your Answer discourage Correct Answer leaving Your Answer leaving Select The Blank Question 4.Under the differential time rate method the wages are paid at Rs. 1.50 per hour between ________ efficiency and Rs.1.25 per hour between ________ efficiency Correct Answer 101% to 125 % Your Answer 101% to 125 % Correct Answer 80% to90% Your Answer 80% to90% Select The Blank Question Expenditure like general lighting are apportioned considering ________ as a base and expenditure like depreciation are apportioned considering ________ as a base. Correct Answer number of light points Your Answer number of light points Correct Answer value of assets Your Answer value of assets ________ and ________ are examples of element wise classification ofoverhead costs Correct Answer= Idirect material, indirect labour Break even point is a situation of no ________ no ________ Answer= profit, loss

A key factor is defined as the factor which, at a particular point of time or over a period will ________ the volume of ________ Correct Answer limit, output ) Organizational Behaviour (Old Pattern) (2) Organizational Behaviour (SET II) (3) Organizational Behaviour (SET III) (3) Organizational Behaviour (SET IV) (3) Organizational Behaviour (SET V) (3) Organizational Behaviour (SET VI) (3) Organizational Development (3) Organizational Development (Set 6) (1) Organizational Development (Set II) (3) Organizational Development (Set III) (3) Organizational Development (Set IV) (3) Organizational Development (Set V) (2) Performance and Potential Management (2) Performance and Potential Management(Set-2) (1)

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Software Engineering and Project Management(Set-5) (3) Software Engineering and Project Management(Set-6) (3) Strategic Finance (2) Strategic Finance (Set II) (2) Strategic Finance (Set III) (3) Strategic Finance (Set IV) (3) Strategic Finance (Set IX) (3) Strategic Finance (Set V) (3) Strategic Finance (Set VI) (3) Strategic Finance (Set VII) (3) Strategic Finance (Set VIII) (3) Strategic Finance (Set X) (3) Strategic Finance (Set XI) (1) Strategic Finance (Set-11) (2) Strategic Finance Notes (4) Strategic HR (3) Strategic HR (Set - II) (3) Strategic HR (Set-3) (2) Strategic Management (4) Strategic Management (Set - II) (4) Strategic Management (Set - III) (3) Strategic Management (Set - IV) (3) Strategic Management (Set - IX) (2) Strategic Management (Set - V) (3) Strategic Management (Set - VI) (3) Strategic Management (Set - VII) (3) Strategic Management (Set - VIII) (2) Strategic Management (Set - X) (2) Supply Chain Management (5) Supply Chain Management (Set - II) (3) Supply Chain Management (Set - III) (3) Supply Chain Management (Set - IV) (3) Supply Chain Management (Set - IX) (1) Supply Chain Management (Set - V) (3) Supply Chain Management (Set - VI) (3) Supply Chain Management (Set - VII) (3) Supply Chain Management (Set - VIII) (3) Supply Chain Management (Set IX) (2) Supply Chain Management(Set-10) (3) Taxation (5) Taxation (Set II) (3) Taxation (Set III) (2) Taxation (Set IV) (2) Taxation (Set V) (1) Techniques for Operations Efficiency (5) Techniques for Operations Efficiency(Set-2) (3) Techniques for Operations Efficiency(Set-3) (2) Techniques for Operations Efficiency(Set-4) (2) Techniques for Operations Efficiency(Set-5) (3) Techniques for Operations Efficiency(Set-6) (1) Total Quality Management(Set-1) (2) TQM and HR (1) TWM (Set - 1) (2) Web Technologies (3) Web Technologies (Set - VI) (3) Web Technologies (Set II) (3)

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Custom Search Monday, June 8, 2009 Management Accounting - 9 LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Multiple Answer Question The management of Horngreen Ltd. is deciding whether to continue working at loss or to temporarily shut down the factory. State the qualitative aspects that must be considered before arriving at a decision. Correct Answer Loss of trained personnel , Loss of regular customers , Expenditure required to restart the factory Your Answer Expenditure required to restart the factory Multiple Choice Single Answer Question The purchase budget for October is Rs.12,500/- and November is Rs.15,000/-. If the materials are purchased for cash the supplier is offering a rebate of 5%. If the materials are purchased on credit of 30 days, no rebate is offered. The company purchase Correct Answer October- NIL, November- Rs.26,750/Your Answer October- Rs.14,250/-, November- Rs.11,875/True/False Question Maintenance Department is a service cost centre. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question Ram and Laxman are partners of Kush & Bros. As on 1st April, 2003 Ram's capital is Rs.50,000/- and Laxman's capital is Rs.80,000/-. If interest on capital is to be provided @ 10% p.a., what will be amount of capital of each of the partners as on 31st March, 2004, assuming there were no additions during this period? Also, state the treatment of this item in the Profit and loss account. Correct Answer Ram's capital Rs.55,000/- , Laxman's capital Rs.88,000/- , Interest on capital should be debited to the Profit and loss account Your Answer Laxman's capital Rs.88,000/- , Interest on capital should be debited to the Profit and loss account Multiple Choice Single Answer Question Rs.2,650/- were paid to ABC Ltd. for maintenance of machine; which account should be debited for this transaction? Correct Answer Maintenance of machine account Your Answer ABC Ltd.'s Account Match The Following Question Correct Answer Your Answer Advantageously applicable in similar industries Scope of uniform costing Fields covered by uniform costing

Spirit of mutual trust Requisite for uniform costing Disadvantage of uniform costing Avoids cut throat competition Advantage of uniform costing Requisite for uniform costing Treatment given to research and development costs Fields covered by uniform costing Advantage of uniform costing Select The Blank Question Under the AB________ analysis, nuts and bolts used as material will be classified as category C. Correct Answer C Your Answer C 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 True and fair 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 Lack of experienced and efficient personnel , High labour turnover , No idle time 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 Multiple Choice Multiple Answer Question From the following, select intangible assets: Correct Answer Goodwill , Patents , Trade Marks Your Answer Goodwill , Patents , Trade Marks True/False Question According to Reducing Balance Method, the depreciation is provided at a predetermined percentage on the balance of cost of asset after deduction of the depreciation previously charged. Correct Answer True Your Answer False Select The Blank Question Average stock = ________ + (Order size / 2) Correct Answer Safety stock Your Answer Reorder level True/False Question High time wages means necessarily high cost of production. Correct Answer False Your Answer True 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 Marginal costing is also known as ________. Correct Answer Variable costing Your Answer Indirect costing Multiple Choice Single Answer 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/Multiple Choice Single Answer Question For a bought out material item the following are the relevant data : Ordering cost Rs.512/per order; holding cost is 40%; cost per item Rs.100/- and annual demand 1,000 units. The Purchase manager places 5 orders of equal quantity in one year, in order to avail the discount of 5% on the cost of the item. Work out the total cost to the organisation due to his ordering policy for this item. Correct Answer Rs.101,360/Your Answer Rs.101,360/True/False Question Due to compensating errors the arithmetical accuracy of the trial balance is affected. Correct Answer False Your Answer False Multiple Choice Single Answer Question From the given information compute the total cost variance. Material cost variance -Rs.4,400/- (Favourable); labour cost variance -Rs.450/- (Adverse); fixed overhead cost variance -Rs.22,000/- (Adverse); variable overhead cost variance -Rs.6,000/- (adverse). Correct Answer Rs.24,050/- (Adverse) Your Answer Rs.32,850/- (Favourable) Multiple Choice Single Answer Question Advance tax account should appear in which of the final statement of accounts. Correct Answer Asset side of the balance sheet Your Answer Debit side of the profit and loss account Match The Following Question Correct Answer Your Answer Operating income Cash Sales Cash Sales Non-Operating income Issue of shares Issue of shares Plan of investment in fixed assets Capital Expenditure Budget Cash Budget Plan for surplus/shortage of cash Cash Budget Capital Expenditure Budget Select The Blank Question Furniture account will always have a ________ balance. Correct Answer Debit Your Answer Inflated

Select The Blank Question Payment by ________ method lowers the cost of production through their impact on fixed costs. Correct Answer Results Your Answer Cash 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 , To portray the financial status 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 Absorption costing is more suitable for decision making than marginal costing Correct Answer False Your Answer True Select The Blank Question A low margin of safety indicates ________ fixed overheads. Correct Answer higher Your Answer higher Multiple Choice Single Answer Question Which of the following operations would normally be carried out first when preparing a master budget? Correct Answer Determining the budget period Your Answer Identifying the principal budget factor True/False Question Period cost is the cost assigned to the products. Correct Answer False Your Answer True Select The Blank Question Profit = Contribution per unit X ________. Correct Answer Margin of safety (units) Your Answer Sales (units) Multiple Choice Multiple Answer Question Which of the following aspects are mainly responsible for difficulty in application of Uniform costing system. Correct Answer Capital investment , Plant size , Location Your Answer Capital investment , Plant size , Loans taken 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 ABC Ltd. produces 10,000 units at 100% capacity utilization and its cost structure is as follows : Fixed cost Rs.50,000/-; variable costs Rs.30,000/- and semi-variable costs Rs.40,000/- (40% var Correct Answer Rs.13.85 Your Answer Rs.11.85 Select The Blank Question Loss of uninsured goods by fire was debited incorrectly to United India Assurance Company's account instead of debiting it to ________ account. Correct Answer Goods lost by fire Your Answer Goods lost by fire Multiple Choice Multiple Answer Question 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 Helpful in estimating the future along with past period , Useful in furnishing the necessary information to the management , A legal requirement. Multiple Choice Multiple Answer Question The disadvantages of supplementary overhead rates are: Correct Answer It can be determined only after the end of the accounting period , Defeats the basic concept of normal cost , Involves lot of clerical activity Your Answer Defeats the basic concept of normal cost , Involves lot of clerical activity , It can be determined only in the beginning of the accounting period 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 One of the main objection to the contribution approach of costing is that it ignores fixed cost. Correct Answer True Your Answer False 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 , Tendency of withholding information Select The Blank Question Uniform costing is not a separate method of ________. Correct Answer cost accounting Your Answer costing 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/Your Answer Rs.251,000/-

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 Multiple Choice Multiple Answer Question For the month of November, a firm has budgeted sales of 20,000 units of X at a price of Rs.10/- and sale of 30,000 untis of Y at a price of Rs.6/- per unit. Actual sale during the month was 35,000 units of X at Rs.9/- per unit and 25,000 units of Y at Rs.8/- per unit. Calculate sales volume variance, sales mix variance and sales quantity variance. Correct Answer Sales volume variance -Rs.120,000/- (Favourable) , Sales mix variance -Rs.44,000/(Favourable) , Sales Quantity variance-Rs.76,000/- (Favourable) Your Answer Sales volume variance -Rs.120,000/- (Favourable) , Sales mix variance -Rs.44,000/(Favourable) , Sales Quantity variance-Rs.76,000/- (Favourable) True/False Question The purpose of the profit and loss account is to bring togethre information which relates to gross profit and the expenses for running the business. Correct Answer True Your Answer True Multiple Choice Single Answer Question A firm has purchased a plant to manufacture a new product, the cost data for which is given below : Estimated annual sales 24,000 units. Estimated costs : Materials Rs.4/- per unit; labour Re.0.60 per unit; overheads Rs.24,000/- per year; administrative expenses Rs.28,800/- per year and selling expenses are 15% of sales; Calculate the selling price per unit if profit per unit is Rs.1.02. Correct Answer Rs.9.20/Your Answer Rs.7.74/Multiple Choice Single Answer Question A company wishes to earn a 15% profit margin on selling price when quoting for a job. Which of the following is the profit margin of cost which will achieve the required profit margin ? Correct Answer 0.1765 Your Answer 0.15 at 4:03 AM 0 comments Links to this post Labels: Management Accounting (Set III) Management Accounting - 8 LIST OF ATTEMPTED QUESTIONS AND ANSWERS True/False Question Purchased goods by paying Rs.35,000/-: In this case, the cash account should be debited. Correct Answer True Your Answer False True/False Question The rates at which the depreciation is to be calculated are specified in the Income Tax Act 1961 and The Companies Act, 1956. Correct Answer True Your Answer True Select The Blank Question The various contents of a uniform cost manual are organisation, cost accounting system and ________. Correct Answer presentation of information Your Answer organisation structure

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 Multiple Choice Multiple Answer Question Select the examples of functional budgets: Correct Answer Sales budget , Production budget , Research and development budget Your Answer Sales budget , Production budget , Capital expenditure budget 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 Variable cost Match The Following Question Correct Answer Your Answer Closed the account with State Bank of India Henceforth, there shall be no difference in overdraft balances Henceforth, there shall be no difference in overdraft balances Debit side of bank book is overcast Overdraft as per bank book < Overdraft as per pass book Overdraft as per bank book = Balanceas per pass book Interest on debentures directly credited by bank Overdraft as per bank book > Overdraft as per pass book Overdraft as per bank book = Overdraft as per pass book Received sanction for a loan of Rs.10 lakhs Overdraft as per bank book = Overdraft as per pass book Overdraft as per bank book < Overdraft as per pass book 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 Your Answer Re.0.68 Select The Blank Question The process of finding the reasons for the difference in the balance as per bank book and pass book is known as ________. Correct Answer Reconciliation Your Answer Reconciliation Multiple Choice Multiple Answer Question State the features of these transactions : (i) Commission paid Rs.250/- was posted twice to Commission account (ii) Rs.5,000/- representing goods sold to A, was posted to the credit to commission received account (iii) Sold machine for Rs.8000/-, was credited to Sales account. Correct Answer The debit side of the trial balance will be in excess by Rs.250/- , Involves an error of principle , Involves an error of commission Your Answer The debit side of the trial balance will be in excess by Rs.250/- , Involves an error of principle , Involves an error of commission

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 Multiple Choice Single Answer Question Balance sheet is statement of Correct Answer All Assets and Properties Your Answer All Assets and Properties Select The Blank Question The closing stocks should ________ the cost of the goods which sent on approval basis. Correct Answer Be increased by Your Answer Not get affected by True/False Question Under the Rowan plan bonus is a fixed percentage. Correct Answer False Your Answer True True/False Question Idle time variance is always favourable. Correct Answer False Your Answer False 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 Your Answer Delivery van expenses , Rent of finished goods warehouse , Rent of raw material godown Select The Blank Question Information as to the cost and profit / loss associated with the firm's operations is provided to the ________ by Management accounting. Correct Answer Management Your Answer Cost Multiple Choice Single Answer Question Compute actual total cost based on the data given below: Total standard cost (standard material cost + standard labour cost) -Rs.19,633.33; labour rate variance-Rs.900/- (adverse); material price variance -Rs.90/- (Favourable); material yield variance -Rs.700/- (Favourable); labour yield variance -Rs.333.33 (Favourable). Correct Answer Rs.19,410/Your Answer Rs.17,610/Multiple Choice Single Answer Question The standard production for a particular work order is 20 units per day and piece rate wages is 60 paise per unit. Cost of material is 30 paise per unit. It is proposed to charge factory overheads equal to 100% of labour cost. Indicate the factory overhead per unit. Correct Answer Rs.1.50/Your Answer Rs.1.30/Multiple Choice Multiple Answer Question The suspense account has a debit balance of Rs.40,000/-. Select the transactions which are capable of nullifying this balance.

Correct Answer Conveyance expenses of Rs.25,000/- were posted on the wrong side of the account. , Purchased computer worth Rs.28,000/- was recorded in the ledger as , The total of the purchase book was cast short by Rs.44,000/Your Answer Free samples worth Rs.40,000/- distributed during the year were credited to sales account , Conveyance expenses of Rs.25,000/- were posted on the wrong side of the account. , Purchased computer worth Rs.28,000/- was recorded in the ledger as Multiple Choice Single Answer Question Panna Ltd. temporarily has excess production capacity. The idle plant facilties can be used to manufacture a low-margin item. The low-margin item should be produced if it can be sold for more than its: Correct Answer Variable costs Your Answer Variable costs Select The Blank Question Contribution represents pool of resources available for meeting all costs other than ________. Correct Answer Variable costs Your Answer Variable costs Select The Blank Question Goods returned to the suppliers from whom it was ________d is recorded in thePurchasereturn register. Correct Answer Purchase Your Answer Purchase Multiple Choice Multiple Answer Question From the available information calculate sales value variance and budgeted sales quantity of X.Actual sales of X -500 units; budgeted price per unit -Rs.12/-; actual price per unit-Rs.15/- and sales volume variance -Rs.1,200/- (Favourable). Correct Answer Budgeted sales - 400 units , Sales value variance -Rs.2,700/- , The sales value variance is favourable Your Answer The sales value variance is adverse True/False Question Depreciation, interest and property tax continue even when the operations are discontinued. Correct Answer True Your Answer True Select The Blank Question The balance of the suspense account will ________ after all the errors are Correct Answer become zero Your Answer become zero Multiple Choice Multiple Answer 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 True/False Question It is said that the income statement represents wealth increase /decrease for the organisation. Correct Answer True Your Answer False

Select The Blank Question The difference between sales and prime cost is known as ________. Correct Answer Gross Profit Your Answer Gross Profit Multiple Choice Multiple Answer Question In which of the following situations, the flexible budget should be preferred? Correct Answer Sales are too difficult to predict , Supply level of input cannot be predicted , Varying levels of production activity Your Answer Sales are too difficult to predict , Supply level of input cannot be predicted , Varying levels of production activity Multiple Choice Single Answer Question Debtors as on 31st March, 2004 stood as Rs.75,400/-. Out of this amount, Rs.15,884/- is receivable from ABC & Co. Also, Rs.21,555/- included in the creditors, indicates amount due to ABC & Co. Total creditors as on 31st March, 2004 = Rs.88,466/-. Find the amount of debtors and creditors that should be disclosed in the balance sheet as on 31st March, 2004. Correct Answer Debtors - Rs.59,516/-; Creditors - Rs.66,911/Your Answer Debtors - Rs.53,845/-; Creditors - Rs.72,582/Match The Following Question Correct Answer Your Answer Sunk Cost Historical Cost Historical Cost Cost Centre Facilitate the fixation of responsibility Facilitate the fixation of responsibility Cost Control Process of controlling costs of operations Process of controlling costs of operations Differential Cost Increase or Decrease in cost Increase or Decrease in cost Select The Blank Question Cost volume profit analysis focuses attention on the ________ effect of a particular course of action. Correct Answer short run Your Answer short and long run Multiple Choice Multiple Answer Question The balance as per bank book as on 30th June, 2004 is Rs.10,298/- while the balance as per pass book as on the same date is Rs.10,123.60. Select the transactions representing the reasons for this difference. Correct Answer Interest credited by bank, not entered in the bank book, Rs.125.60 , Cheques dishonoured not entered in the bank book Rs.200/- , Debit side of the cash book is overcast by Rs.100/Your Answer Interest credited by bank, not entered in the bank book, Rs.125.60 Multiple Choice Single Answer Question Uniform costing system is useful in the following areas Correct Answer Classification of cost accounts Your Answer Preparing financial statements True/False Question Revenue expenditure indicates the amount of funds spent during a certain period with the intention to receive the returns in future. Correct Answer False

Your Answer True 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 True True/False Question Cheque received from a client on 28th September, 2004 must be entered in the bank book only after it is credited in the pass book. Correct Answer False Your Answer False 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 compare efficiency of each unit against industry's overall performance , To compile reliable cost data for inter-firm comparison of costs 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/Your Answer The purhases will increase by Rs.6,450/- , The closing stock will increase by Rs.6,450/- , The gross profit will increase by Rs.6,450/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 Your Answer Carriage A/c Multiple Choice Multiple Answer Question Different types of tenders are : Correct Answer Singly tender , Open tender , Global tender Your Answer Multiple tender , Open tender , Global tender Multiple Choice Single Answer 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/Multiple Choice Single Answer Question Basic objective of Uniform Costing is . . . Correct Answer comparison Your Answer To control cost 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) Multiple Choice Single Answer Question A new computer worth Rs.35,000 was purchased on 18th June, 2003. The company has 10 such computers costing Rs.20,000/- each. The depreciation is charged @ 18% p.a. Find the depreciation on computers to be charged for the year. Correct Answer Rs.40,953.70 Your Answer Rs.36,000/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 Sales margin yield at 4:01 AM 0 comments Links to this post Labels: Management Accounting (Set III) Wednesday, June 3, 2009 Management Accounting - 7 Join here for getting FREE discount coupons for restaurants, shopping etc...

LIST OF ATTEMPTED QUESTIONS AND ANSWERS True/False Question Credit balances in all the Personal & Real accounts appear on asset side. Correct Answer False Your Answer False 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 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 1) Financial statements are basically in two forms i.e. profitability statement and balance sheet. Correct Answer True Your Answer True Multiple Choice Multiple Answer

Question The process of accounting has three streams of accounting ---------------,--------and ----------------------. Correct Answer Financial Accounting , Cost Accounting , Management Accounting Your Answer Financial Accounting , Cost Accounting , Management Accounting True/False Question Long term loan borrowed from financial institution comes under the heading of long term liabilities. Correct Answer True Your Answer True Match The Following Question Correct Answer Your Answer Book-Keeping Books of Accounts Books of Accounts

Financial statement Accounting

Profitability statement & Balance-sheet Profitability statement & Balance-sheet

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 Financial status

Multiple Choice Single Answer Question Judge the statement according to the criteria given : ' The accounting period for XYZ Ltd. ends on 31st December, 2003. It is noted that office rent for the month of December, 2003 is paid on 15th January, 2004. "According to concept of matching expenses with the revenues, this expenditure should be recorded in the books of accounts in January, Correct Answer The statement and its reason are both incorrect Your Answer The statement is correct but its reason is incorrect 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 Single Answer Question The installation and operation of ___________ accounting requires a very elaborate organizational structure and large number of rules & regulations Correct Answer Management Your Answer Management 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 Trading Match The Following Question Correct Answer Your Answer Sunk Cost Cost Centre Cost Control Historical Cost Historical Cost Facilitate the fixation of responsibility Process of controlling costs of operations Increase or Decrease in cost Facilitate the fixation of responsibility Process of controlling costs of operations

Differential Cost

Increase or Decrease in cost

Multiple Choice Multiple Answer Question Which of the following transactions should be excluded while preparing a cost sheet ? Correct Answer Interest on loan , Bad debts , Expenses on criminal law suit Your Answer Sale of scrap material , Interest on loan , Bad debts True/False Question In a Balance-Sheet right hand side is referred as assets side and left hand side is referred as liabilities. Correct Answer True Your Answer True True/False Question Credit note is an intimation send to person dealing with the business that his account being debited for the purpose indicated therein. Correct Answer False Your Answer False True/False Question Primary distribution is effected on the basis of service rendered to the service departments by the production departments. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question Marginal costing is found to be unsuccessful in the following situations :Correct Answer Impossible to distinguish costs into fixed and variable component. , With respect to capital intensive industries where fixed costs are very large and hence cannot be ignored , With respect to service industries where employee costs are very large and almost fixed in nature Your Answer Impossible to distinguish costs into fixed and variable component. , With respect to capital intensive industries where fixed costs are very large and hence cannot be ignored , With respect to service industries where employee costs are very large and almost fixed in nature True/False

Question Debit Note is an intimation sent to person dealing with the business that his account is being credited for the purpose indicated therein. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question Labour efficiency variance arises due to: Correct Answer Inefficient supervisor , Poor working conditions , Use of sub-standard quality of material Your Answer Inefficient supervisor , Poor working conditions , Use of sub-standard quality of material True/False Question Financial Accounting discloses the financial performance & financial statements of the business as a whole. Correct Answer True Your Answer True True/False Question Balance sheet indicates the expenditure & income from the business. Correct Answer False Your Answer True Select The Blank Question The indirect material cost, indirect labour cost and indirect expenses cost, collectively are termed as ________. Correct Answer Overhead Your Answer Overhead 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 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 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 P&L statement which is a period statement & relates to a certain period tells about results of operations. Correct Answer True Your Answer False Select The Blank Question Depreciation charged on office furniture on straight line basis is an example of ________. Correct Answer Administration overheads Your Answer Administration overheads True/False 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 Select The Blank Question Information as to the cost and profit / loss associated with the firm's operations is provided to the ________ by Management accounting. Correct Answer Management Your Answer Management True/False Question Danger level for inventory of materials means the safety stock of inventory. Correct Answer False Your Answer True 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 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 Select The Blank Question ________ Accounting assists the management in establishing the plans to attain the economic objectives and take proper decisions for the attainment of its objectives. Correct Answer Management Your Answer Management 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 An increase in the maximum material inventory level , The incorrect choice of purchase order quantity , Failure to control the issue of materials from stores Multiple Choice Multiple Answer Question Management accounting is concerned with the following activities : Correct Answer Decision making , Safeguarding assets , Planning and controlling activities Your Answer Decision making , Safeguarding assets , Planning and controlling activities Multiple Choice Multiple Answer Question Features of double entry accounting system are . . . Correct Answer Every business transaction has two elements , When business receives something, it has to pay something , Every debit has a corresponding credit Your Answer Every business transaction has two elements , When business receives something, it has to pay something , Every debit has a corresponding credit Select The Blank 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% True/False Question Maintenance Department is a service cost centre. 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 The difference between sales and cost of sales is termed as ________. Correct Answer Net Profit Your Answer Net Profit Select The Blank Question The final result disclosed by trading account is the ________profit earned by the organization. Correct Answer Gross Your Answer Gross Multiple Choice Multiple Answer

Question Select the accounts to be disclosed on the liability side of the Balance sheet. Correct Answer Loan , Outstanding expenses , Creditors Your Answer Loan , Outstanding expenses , Creditors True/False Question Penalty paid for delay in payment to creditors represents uncontrollable cost. Correct Answer False Your Answer False Multiple Choice Single Answer Question Which document facilitates estimating material cost of a particular job, before completion of that job? Correct Answer Bill of material Your Answer Material requisition note 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 Your Answer The net profit will not be affected Multiple Choice Single Answer Question It is said that adoption of uniform costing creates customer confidence because . . . Correct Answer Prices are reliable Your Answer Prices are reliable 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

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Multiple Choice Multiple Answer Question The objects of cost accountancy are :Correct Answer Your Answer To ascertain cost and profitability , Cost Control , Presentation of Information To ascertain cost and profitability , Cost Control , Presentation of Information

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

Multiple Choice Multiple Answer Question Features of material usage variance are :Correct Answer Your Answer Measures the difference between the quantity of materials actually used and that should have been used. , Considers standard price X actual quantity , Considers standard price X standard quantity Measures the difference between the quantity of materials actually used and that should have been used. , Considers standard price X actual quantity , Considers standard price X standard quantity

True/False Question Under the accelerating premium system incentive increases at a fast rate with the decrease in output. Correct False Answer Your False Answer True/False Question If the physical stock is less than the stock as per the stores ledger, such shortage should be treated as an issue of material. Correct True Answer Your False Answer Multiple Choice Single Answer Question An analysis of the time card of a worker on a machine shows that of the total 48 hours, he worked 45 hours (including 4 hours overtime) on production and that 3 hours was idle due to machine break-down. The rate of the worker is rupees ten per hour : but overtime is paid at 50 per cent extra. You are required to calculate the earnings of the worker. Correct Rs.500/Answer Your Rs.500/Answer True/False

Management Accounting 3
Multiple Choice Multiple Answer Question Master budget provides a basis for computing effect of changes in : Correct Answer product mix of the company , sales volume , production facilities Your Answer product mix of the company , sales volume , production facilities 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 Over absorption of overheads may take place due to the reasons like ________ overheads being less than the ________ overheads Correct Answer actual Your Answer actual Correct Answer estimated Your Answer estimated Select The Blank Question ________ Legal charges and ________ are the accounts which are shown on the debit side of Profit & Loss Account Correct Answer Like office rent, Your Answer Depreciation on Machinery Correct Answer Audit fees Your Answer Like office rent, Select The Blank Question ________ of Trial Balance generally ensures ________ accuracy of the process of ledger posting . Correct Answer Talling Your Answer Talling Correct Answer arithmetical Your Answer arithmetical True/False Question While calculating the minimum level, normal lead time is not necessary Correct Answer False Your Answer False True/False Question To Increase the existing production capacity, additional capital expenditure is required. Correct Answer True Your Answer True Multiple Choice Single Answer Question Labour cost indicates that labour cost which cannot be identified with the individual cost centre and is incurred for those employees who are not engaged in the manufacturing process but only assist i Correct Answer Remuneration Your Answer Remuneration Multiple Choice Single Answer Question During one week X makes 200 units. He receives wages for a guaranted 44hours per week at a rate of Rs. 1.50 per hour. Estimated time to produce one unit is 15 minutes. Time allowed is increased by 2 Correct Answer Rs. 83.60 Your Answer Rs. 78 Select The Blank Question Financial Accounting protects the interest of outsiders . it considers ________ transaction and it is a ________ requirement

Correct Answer historical Your Answer historical Correct Answer legal Your Answer legal Select The Blank Question variable cost is the cost that tend to ________ in direct proportion with ________ Correct Answer vary Your Answer vary Correct Answer level of activity Your Answer level of activity Multiple Choice Multiple Answer Question Office & Administration overhead includes Correct Answer Salary , Rent & Taxes , Stationary & postage Your Answer Stationary & postage , Traveling Expenses Multiple Choice Single Answer Question Calculate Labour Efficiency Variance, If actual rate per hour is Rs.3.50/- , Standard rate is Rs.3/- per unit and standard hours are 15,000 and Actual hours are 13, 500. Correct Answer Rs.4500/- ( Favorable ) Your Answer Rs.4500/- ( Favorable ) Multiple Choice Single Answer Question Cost-sheet may be prepared separately for each Correct Answer Different Cost Centre Your Answer Cost Centre Multiple Choice Single Answer Question The prime cost is Rs. 10,00,000 the factory cost is Rs. 13,00,000, the total administration overheads are 14,00,000 and having selling overhead of Rs. 86000. What is the Total cost? Correct Answer 37,86,000 Your Answer 37,00,000 Multiple Choice Multiple Answer Question The cost of asset is Rs. 1,10,000, Estimated scrap value 10,000,estimated life 10 yrs. Calculate the depreciation according to straight line method Correct Answer 10,000 Your Answer 10,000 Select The Blank Question To ascertain the ________ of all the transactions recorded in the ledger account, the account is required to be ________ Correct Answer Net effect Your Answer Net effect Correct Answer Balanced Your Answer Balanced

Management Accounting 3
Multiple Choice Multiple Answer Question Master budget provides a basis for computing effect of changes in : Correct Answer product mix of the company , sales volume , production facilities Your Answer product mix of the company , sales volume , production facilities 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 Over absorption of overheads may take place due to the reasons like ________ overheads being less than the ________ overheads Correct Answer actual Your Answer actual Correct Answer estimated Your Answer estimated Select The Blank Question ________ Legal charges and ________ are the accounts which are shown on the debit side of Profit & Loss Account Correct Answer Like office rent, Your Answer Depreciation on Machinery Correct Answer Audit fees Your Answer Like office rent, Select The Blank Question ________ of Trial Balance generally ensures ________ accuracy of the process of ledger posting . Correct Answer Talling Your Answer Talling Correct Answer arithmetical Your Answer arithmetical True/False Question While calculating the minimum level, normal lead time is not necessary Correct Answer False Your Answer False True/False Question To Increase the existing production capacity, additional capital expenditure is required. Correct Answer True Your Answer True Multiple Choice Single Answer Question Labour cost indicates that labour cost which cannot be identified with the individual cost centre and is incurred for those employees who are not engaged in the manufacturing process but only assist i Correct Answer Remuneration Your Answer Remuneration Multiple Choice Single Answer Question During one week X makes 200 units. He receives wages for a guaranted 44hours per week at a rate of Rs. 1.50 per hour. Estimated time to produce one unit is 15 minutes. Time allowed is increased by 2 Correct Answer Rs. 83.60 Your Answer Rs. 78 Select The Blank Question Financial Accounting protects the interest of outsiders . it considers ________ transaction and it is a ________ requirement Correct Answer historical Your Answer historical Correct Answer legal Your Answer legal Select The Blank Question variable cost is the cost that tend to ________ in direct proportion with ________ Correct Answer vary Your Answer vary Correct Answer level of activity Your Answer level of activity Multiple Choice Multiple Answer Question Office & Administration overhead includes Correct Answer Salary , Rent & Taxes , Stationary & postage

Your Answer Stationary & postage , Traveling Expenses Multiple Choice Single Answer Question Calculate Labour Efficiency Variance, If actual rate per hour is Rs.3.50/- , Standard rate is Rs.3/- per unit and standard hours are 15,000 and Actual hours are 13, 500. Correct Answer Rs.4500/- ( Favorable ) Your Answer Rs.4500/- ( Favorable ) Multiple Choice Single Answer Question Cost-sheet may be prepared separately for each Correct Answer Different Cost Centre Your Answer Cost Centre Multiple Choice Single Answer Question The prime cost is Rs. 10,00,000 the factory cost is Rs. 13,00,000, the total administration overheads are 14,00,000 and having selling overhead of Rs. 86000. What is the Total cost? Correct Answer 37,86,000 Your Answer 37,00,000 Multiple Choice Multiple Answer Question The cost of asset is Rs. 1,10,000, Estimated scrap value 10,000,estimated life 10 yrs. Calculate the depreciation according to straight line method Correct Answer 10,000 Your Answer 10,000 Select The Blank Question To ascertain the ________ of all the transactions recorded in the ledger account, the account is required to be ________ Correct Answer Net effect Your Answer Net effect Correct Answer Balanced elect The Blank 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 True/False 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 Multiple Choice Multiple Answer Question Direct Cost includes Correct Answer Direct material , Direct labour , Direct expenses Your Answer Direct material , Direct labour , Direct expenses Multiple Choice Single Answer Question Which of the following costs is most likely to have a cost behaviour pattern described as ..a fixed cost upto an activity level of 1,000 units, with a variable cost there after which decreases from 10 paise to 8 paise per unit at 2,000 units? Correct Answer Wages payment which is fixed for a minimum output quantity after which a bonus per unit is paid which reduces when activity level exceeds 1,000 units Your Answer Material cost 12 paise per unit for the first 1,000 units followed by 10 paise per unit upto 2,000 units and 8 paise per unit thereafter.

True/False Question The phrase 'By Balance c/d.' written on the credit side of the rent account, indicates credit balance for this account. Correct Answer False Your Answer False Select The Blank Question In case of defective material being returned by the stores department to the vendor, such material should be valued at the________. Correct Answer Purchase price Your Answer Purchase price True/False Question Piece rate system is suitable when quality of goods produced is of extreme importance. Correct Answer False Your Answer False True/False Question A firm earns profit when contribution is equal to fixed costs under variable costing. Correct Answer False Your Answer False Select The Blank Question While preparing trial balance, the balance as per ________ book is considered as bank balance. Correct Answer Bank Your Answer Bank 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.180/Select The Blank Question Contribution represents pool of resources available for meeting all costs other than ________. Correct Answer Variable costs Your Answer Variable costs Multiple Choice Multiple Answer Question Locate the steps involved in rectifying the errors in the books of accounts Correct Answer Find the wrong entry passed , Find the correct entry to be passed , Find the entry that will resolve the mistake in the books Your Answer Find the wrong entry passed , Find the correct entry to be passed , Find the entry that will resolve the mistake in the books 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 Select The Blank Question Overheads chargeable to a product, using direct labour cost basis, may be calculated by multiplying percentage of direct labour cost and ________. Correct Answer Direct labour cost of the product Your Answer Number of labour hours worked 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 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 compare efficiency of each unit against industry's overall performance , 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 Multiple Choice Single Answer Question 200 units of material were purchased from X @ Rs.5/- per unit and 300 units were purchased from Y @ Rs.6/- per unit. The organisation follows FIFO system of pricing of issues and the above purchases have been recorded in stores ledger. 120 units have already been issued. 60 units received from X are defective and are therefore returned. Find the value of the material returned to X. Correct Answer Rs.300/Your Answer Rs.300/True/False Question Long term loan borrowed from financial institution comes under the heading of long term liabilities. Correct Answer True Your Answer True Select The Blank 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 True/False Question Balance sheet indicates the financial status of the business at given period. 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 Category C items, as per the ABC analysis, usually refers to indirect material. Correct Answer True True/False Question Balance sheet indicates the expenditure & income from the business. Correct Answer False Your Answer False Multiple Choice Multiple Answer Question These are the methods of measuring labour turnover. Correct Answer Replacement Method , Separation Method , Flux Method Your Answer Replacement Method , Separation Method , Flux Method True/False

Question According to the standard costing principles, only adverse variance must be further investigated. Correct Answer False Your Answer True Select The Blank Question Education facility to workers and their children, pension, superannuation fund are examples of ________ incentives. Correct Answer Non-monetary Your Answer Motivational Match The Following Question Correct Answer Your Answer 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 True/False Question A business is an activity carried out with the intention of earning the profit. Correct Answer True Your Answer True True/False Question The purchase account should be debited when an order is placed with the supplier of material. Correct Answer False Your Answer False Multiple Choice Single Answer Question The purchase budget for October is Rs.12,500/- and November is Rs.15,000/-. If the materials are purchased for cash the supplier is offering a rebate of 5%. If the materials are purchased on credit of 30 days, no rebate is offered. The company purchase Correct Answer October- NIL, November- Rs.26,750/Your Answer October- Rs.11,875/-, November- Rs.14,250/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 margin mix 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 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 , Canteen facility True/False Question Control on purchase of material is exercised by the storekeeper. Correct Answer False Your Answer False Select The Blank Question In practical circumstances, the ________ are referred to as application of funds. Correct Answer Assets

Your Answer Assets Multiple Choice Single Answer Question The composition of selling costs is given below : 1 salaries 4% of sales, travelling expenses 1.5% of sales, and sales office 2% of sales. Find the amount of selling overheads if the sales are Rs.120,000/-. Correct Answer Rs.9,000/Your Answer Rs.9,000/Match The Following Question Correct Answer Your Answer Ledger Maintain all types of accounts List of all types of accounts Audit Reviewing internal control system Reviewing internal control system Accounting Process of analyzing & interpretation Process of analyzing & interpretation Journal Book of original entry Book of original entry 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 Multiple Choice Multiple Answer Question The characteristics of a good wage system are : Correct Answer Flexible , Economical to use , Easy to understand Your Answer Flexible , Economical to use , Easy to understand Multiple Choice Single Answer Question Fixed deposit bearing interest @ 5.50%, for Rs.10,000/was kept with Bank of India on 1st June, 2003, for a period of one year. The type of the fixed deposit is cumulative, i.e. interest shall be received only on maturity. What treatment should be given in the books of accounts on 31st March, 2004, the year ending date? Correct Answer An entry for Rs.458.34, debiting interest accrued but not due account should be passed Your Answer An entry for Rs.458.34, crediting interest accrued but not due account should be passed 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 , Maintaining secrecy of the data collected True/False Question Uniform Costing simplifies the work of wage boards of fixing minimum wages and fair wages. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question Marginal costing is found to be unsuccessful in the following situations :Correct Answer Impossible to distinguish costs into fixed and variable component. , With respect to capital intensive industries where fixed costs are very large and hence cannot be ignored , With respect to service industries where employee costs are very large and almost fixed

in nature Your Answer Impossible to distinguish costs into fixed and variable component. , With respect to service industries where employee costs are very large and almost fixed in nature True/False Question Accounting refers to the process of analyzing & interpreting the information already recorded in the books of accounts. Correct Answer True s True/False Question Balance sheet indicates the expenditure & income from the business. Correct Answer False Your Answer False Multiple Choice Multiple Answer Question These are the methods of measuring labour turnover. Correct Answer Replacement Method , Separation Method , Flux Method Your Answer Replacement Method , Separation Method , Flux Method True/False Question According to the standard costing principles, only adverse variance must be further investigated. Correct Answer False Your Answer True Select The Blank Question Education facility to workers and their children, pension, superannuation fund are examples of ________ incentives. Correct Answer Non-monetary Your Answer Motivational Match The Following Question Correct Answer Your Answer 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 True/False Question A business is an activity carried out with the intention of earning the profit. Correct Answer True Your Answer True True/False Question The purchase account should be debited when an order is placed with the supplier of material. Correct Answer False Your Answer False Multiple Choice Single Answer Question The purchase budget for October is Rs.12,500/- and November is Rs.15,000/-. If the materials are purchased for cash the supplier is offering a rebate of 5%. If the materials are purchased on credit of 30 days, no rebate is offered. The company purchase Correct Answer October- NIL, November- Rs.26,750/Your Answer October- Rs.11,875/-, November- Rs.14,250/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 margin mix

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 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 , Canteen facility True/False Question Control on purchase of material is exercised by the storekeeper. Correct Answer False Your Answer False Select The Blank Question In practical circumstances, the ________ are referred to as application of funds. Correct Answer Assets Your Answer Assets Multiple Choice Single Answer Question The composition of selling costs is given below : 1 salaries 4% of sales, travelling expenses 1.5% of sales, and sales office 2% of sales. Find the amount of selling overheads if the sales are Rs.120,000/-. Correct Answer Rs.9,000/Your Answer Rs.9,000/Match The Following Question Correct Answer Your Answer Ledger Maintain all types of accounts List of all types of accounts Audit Reviewing internal control system Reviewing internal control system Accounting Process of analyzing & interpretation Process of analyzing & interpretation Journal Book of original entry Book of original entry 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 Multiple Choice Multiple Answer Question The characteristics of a good wage system are : Correct Answer Flexible , Economical to use , Easy to understand Your Answer Flexible , Economical to use , Easy to understand Multiple Choice Single Answer Question Fixed deposit bearing interest @ 5.50%, for Rs.10,000/was kept with Bank of India on 1st June, 2003, for a period of one year. The type of the fixed deposit is cumulative, i.e. interest shall be received only on maturity. What treatment should be given in the books of accounts on 31st March, 2004, the year ending date? Correct Answer An entry for Rs.458.34, debiting interest accrued but not due account should be passed Your Answer An entry for Rs.458.34, crediting interest accrued but not due account should be passed

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 , Maintaining secrecy of the data collected True/False Question Uniform Costing simplifies the work of wage boards of fixing minimum wages and fair wages. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question Marginal costing is found to be unsuccessful in the following situations :Correct Answer Impossible to distinguish costs into fixed and variable component. , With respect to capital intensive industries where fixed costs are very large and hence cannot be ignored , With respect to service industries where employee costs are very large and almost fixed in nature Your Answer Impossible to distinguish costs into fixed and variable component. , With respect to service industries where employee costs are very large and almost fixed in nature True/False Question Accounting refers to the process of analyzing & interpreting the information already recorded in the books of accounts. Correct Answer True Furniture account will always have a ________ balance. Correct Answer Debit Your Answer Nil Multiple Choice Multiple Answer Question Accounting is the art where transactions are Correct Answer Summarized , Classified , Recorded Your Answer Summarized , Classified , Recorded True/False Question The phrase By Balance c/d. written on the credit side of the rent account, indicates credit balance for this account. Correct Answer False Your Answer False 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 Accounting refers to the process of analyzing & interpreting the information already recorded in the books of accounts. Correct Answer True Your Answer True 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 True/False Question Standard costs are used for external reporting. Correct Answer False Your Answer False True/False Question It is said that the income statement represents wealth increase /decrease for the organisation. Correct Answer True Your Answer False Multiple Choice Single Answer Question Mr. Oak, materials manager, spends 40% time in the factory and the remaining in office. If his annual salary is Rs.500,000/-, what amount should be charged as office overheads ? Correct Answer Rs.300,000/Your Answer Rs.200,000/Multiple Choice Multiple Answer Question The factors to be considered while preparing the direct materials budget are : Correct Answer Adequacy of material storing space , Availability of funds , Material in stores but reserved for specific purposes Your Answer Adequacy of material storing space , Availability of funds , Material in stores but reserved for specific purposes Multiple Choice Multiple Answer Question In which of the following situations, the flexible budget should be preferred? Correct Answer Sales are too difficult to predict , Supply level of input cannot be predicted , Varying levels of production activity Your Answer Sales are too difficult to predict , Supply level of input cannot be predicted , Varying levels of production activity Multiple Choice Multiple Answer Question Techniques of management accounting include: Correct Answer Marginal costing , Budgetary control , Standard costing Your Answer Marginal costing , Cost control , Budgetary control , Standard costing Match The Following Question Correct Answer Your Answer Profit and loss account Commission received Dividend paid Manufacturing account Work in Progress Land & Building Balance Sheet Land & Building Closing stock of finished goods Trading account Closing stock of finished goods Work in Progress 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 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 , Increase the sales volume , Increase the selling efforts Multiple Choice Multiple Answer Question From the following, select intangible assets: Correct Answer Goodwill , Patents , Trade Marks Your Answer Patents , Trade Marks , Investments True/False Question Bank reconciliation statement must be prepared before the preparation of profit and loss account and balance sheet. Correct Answer True Your Answer False Multiple Choice Single Answer Question Find the budget which is inadequate as a cost control technique : Correct Answer Fixed budget Your Answer Fixed budget True/False Question Predetermined rate of absorption of overheads helps in quick preparation of cost estimates and quoting prices. Correct Answer True Your Answer True Multiple Choice Single Answer Question Net sales Rs,7,50,000/-, opening stock Rs.1,14,375/-, purchases Rs.483,375/- and closing stock Rs.1,47,750/-. Calculate the Gross Profit. Correct Answer Rs.3,00,000/Your Answer Rs.3,00,000/Select The Blank Question ________ is an example of intangible asset. Correct Answer Goodwill Your Answer Land True/False Question Accounting is an art of recording, classifying & summarizing in a significant manner. Correct Answer True Your Answer True True/False Question Goods sent to the customers on approval basis should be treated as sales. 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 , Incurred in past , Relevant in decision making process True/False Question Profitability statement indicates the amount of assets & liabilities. Correct Answer False Your Answer True 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 Identify the steps involved in selecting the optimum product mix, when the limiting factor is number of labour hours and sales demand. Correct Answer For each product find the contribution per unit and per labour hour , Award ranks to each of the products based on contribution per limiting factor , Priority is given to fulfill the market demand of the product which gives maximum contribution per labour hour. Your Answer For each product find the contribution per unit and per labour hour , Award ranks to each of the products based on contribution per limiting factor , Priority is given to fulfill the market demand of the product which gives maximum contribution per labour hour. Multiple Choice Multiple Answer Question Techniques of management accounting include: Correct Answer Marginal costing , Budgetary control , Standard costing Your Answer Marginal costing , Cost control , Budgetary control True/False Question The ideal budget period for a company engaged in generation and distribution of electricity is one year. 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 True/False Question According to Reducing Balance Method, the depreciation is provided at a predetermined percentage on the balance of cost of asset after deduction of the depreciation previously charged. Correct Answer True Your Answer True 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 Multiple Answer 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 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.29,200/Select The Blank Question A forecast is mere estimate of what is likely to happen, but ________ is the action plan to be followed. Correct Answer Budget Your Answer Budget True/False Question A very wide scope of Management Accounting is the limitation by itself. Correct Answer True Your Answer True Select The Blank Question The combination in which different products are sold by a company is known as ________. Correct Answer Sales mix Your Answer Sales mix Multiple Choice Single Answer Question The reporting method used in the costing system should be based on the principle of Correct Answer Management by exception Your Answer Management by objectives True/False Question Balance sheet indicates the financial status of the business at given period. Correct Answer True Your Answer True Multiple Choice Single Answer Question The wages paid to maintenance department workers who do repair work principally for production departments but also on the vehicles in the distribuiton department shoud be charged as: Correct Answer Service costs Your Answer Service costs Multiple Choice Single Answer Question M/s Vivek Enterprises has paid rent relating to the residence of Mr. Vivek, proprietor of Vivek Enterprises. This payment should be treated as Correct Answer Drawings Your Answer Capital Select The Blank Question Measurement of ________ gives an idea of the degree of mobility of labour. Correct Answer Labour turnover Your Answer Labour turnover Multiple Choice Single Answer Question

Net profit for the year before charging commission to the manager, is Rs.111,775/-. The manager of the company is entitled to commission @ 8% on net profits after charging commission. Find the amount of commission due to the manager. Correct Answer Rs.8,279.63 Your Answer Rs.8,942/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 Control on purchase of material is exercised by the storekeeper. Correct Answer False Your Answer True Multiple Choice Single Answer Question A company wishes to earn a 15% profit margin on selling price when quoting for a job. Which of the following is the profit margin of cost which will achieve the required profit margin ? Correct Answer 0.1765 Your Answer 0.15 Select The Blank Question Economical use of labour, materials and facilities can achieved with the help of ________. Correct Answer Budgetary control Credit balances in all the Personal & Real accounts appear on asset side. Correct Answer False Your Answer False 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 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 1) Financial statements are basically in two forms i.e. profitability statement and balance sheet. Correct Answer True

Your Answer True Multiple Choice Multiple Answer Question The process of accounting has three streams of accounting ,and -. Correct Answer Financial Accounting , Cost Accounting , Management Accounting Your Answer Financial Accounting , Cost Accounting , Management Accounting True/False Question Long term loan borrowed from financial institution comes under the heading of long term liabilities. Correct Answer True Your Answer True Match The Following Question Correct Answer Your Answer Book-Keeping Books of Accounts Books of Accounts 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 Financial status Multiple Choice Single Answer Question Judge the statement according to the criteria given : The accounting period for XYZ Ltd. ends on 31st December, 2003. It is noted that office rent for the month of December, 2003 is paid on 15th January, 2004. According to concept of matching expenses with the revenues, this expenditure should be recorded in the books of accounts in January, Correct Answer The statement and its reason are both incorrect Your Answer The statement is correct but its reason is incorrect 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 Single Answer Question The installation and operation of ___________ accounting requires a very elaborate organizational structure and large number of rules & regulations Correct Answer Management Your Answer Management 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 Trading

Match The Following Question Correct Answer Your Answer Sunk Cost Historical Cost Historical Cost Cost Centre Facilitate the fixation of responsibility Facilitate the fixation of responsibility Cost Control Process of controlling costs of operations Process of controlling costs of operations Differential Cost Increase or Decrease in cost Increase or Decrease in cost Multiple Choice Multiple Answer Question Which of the following transactions should be excluded while preparing a cost sheet ? Correct Answer Interest on loan , Bad debts , Expenses on criminal law suit Your Answer Sale of scrap material , Interest on loan , Bad debts True/False Question In a Balance-Sheet right hand side is referred as assets side and left hand side is referred as liabilities. Correct Answer True Your Answer True True/False Question Credit note is an intimation send to person dealing with the business that his account being debited for the purpose indicated therein. Correct Answer False Your Answer False True/False Question Primary distribution is effected on the basis of service rendered to the service departments by the production departments. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question Marginal costing is found to be unsuccessful in the following situations :Correct Answer Impossible to distinguish costs into fixed and variable component. , With respect to capital intensive industries where fixed costs are very large and hence cannot be ignored , With respect to service industries where employee costs are very large and almost fixed in nature Your Answer Impossible to distinguish costs into fixed and variable component. , With respect to capital intensive industries where fixed costs are very large and hence cannot be ignored , With respect to service industries where employee costs are very large and almost fixed in nature True/False Question Debit Note is an intimation sent to person dealing with the business that his account is being credited for the purpose indicated therein. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question Labour efficiency variance arises due to: Correct Answer Inefficient supervisor , Poor working conditions , Use of sub-standard quality of material

Your Answer Inefficient supervisor , Poor working conditions , Use of sub-standard quality of material True/False Question Financial Accounting discloses the financial performance & financial statements of the business as a whole. Correct Answer True Your Answer True True/False Question Balance sheet indicates the expenditure & income from the business. Correct Answer False Your Answer True Select The Blank Question The indirect material cost, indirect labour cost and indirect expenses cost, collectively are termed as ________. Correct Answer Overhead Your Answer Overhead 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 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 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 P&L statement which is a period statement & relates to a certain period tells about results of operations. Correct Answer True Your Answer False Select The Blank Question Depreciation charged on office furniture on straight line basis is an example of ________. Correct Answer Administration overheads Your Answer Administration overheads True/False 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 Select The Blank Question Information as to the cost and profit / loss associated with the firms operations is provided to the ________ by Management

accounting. Correct Answer Management Your Answer Management True/False Question Danger level for inventory of materials means the safety stock of inventory. Correct Answer False Your Answer True 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 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 Select The Blank Question ________ Accounting assists the management in establishing the plans to attain the economic objectives and take proper decisions for the attainment of its objectives. Correct Answer Management Your Answer Management 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 An increase in the maximum material inventory level , The incorrect choice of purchase order quantity , Failure to control the issue of materials from stores Multiple Choice Multiple Answer Question Management accounting is concerned with the following activities : Correct Answer Decision making , Safeguarding assets , Planning and controlling activities Your Answer Decision making , Safeguarding assets , Planning and controlling activities Multiple Choice Multiple Answer Question Features of double entry accounting system are . . . Correct Answer Every business transaction has two elements , When business receives something, it has to pay something , Every debit has a corresponding credit Your Answer Every business transaction has two elements , When business receives something, it has to pay something , Every debit has a corresponding credit Select The Blank 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% True/False Question Maintenance Department is a service cost centre. 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 The difference between sales and cost of sales is termed as ________. Correct Answer Net Profit Your Answer Net Profit Select The Blank Question The final result disclosed by trading account is the ________profit earned by the organization. Correct Answer Gross Your Answer Gross Multiple Choice Multiple Answer Question Select the accounts to be disclosed on the liability side of the Balance sheet. Correct Answer Loan , Outstanding expenses , Creditors Your Answer Loan , Outstanding expenses , Creditors True/False Question Penalty paid for delay in payment to creditors represents uncontrollable cost. Correct Answer False Your Answer False Multiple Choice Single Answer Question Which document facilitates estimating material cost of a particular job, before completion of that job? Correct Answer Bill of material Your Answer Material requisition note 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 Your Answer The net profit will not be affected Multiple Choice Single Answer Question It is said that adoption of uniform costing creates customer confidence because . . . Correct Answer Prices are reliable Your Answer Prices are reliable 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 Match The Following Question Correct Answer Your Answer 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 Financial status

Book-Keeping Books of Accounts Books of Accounts Financial statement Profitability statement & Balance-sheet Profitability statement & Balance-sheet Multiple Choice Single Answer Question Salary paid to employee amounted Rs. 10,000, transferred to Trading A/C is an example of_______ Correct Answer Error of Commission Your Answer Error of Commission Multiple Choice Single Answer Question Labour cost indicates that labour cost which cannot be identified with the individual cost centre and is incurred for those employees who are not engaged in the manufacturing process but only assist i Correct Answer Remuneration Your Answer Indirect True/False Question To take make or buy decision under the marginal costing , if purchase price of the product is less than its variable cost it is advisable to go for manufacturing proposition. Correct Answer False Your Answer False Select The Blank Question Over absorption of overheads may take place due to the reasons like ________ overheads being less than the ________ overheads Correct Answer actual Your Answer estimated Correct Answer estimated Your Answer actual True/False Question Income received in advance transfer to current liabilities Correct Answer True Your Answer True Select The Blank Question Bank reconciliation statement is the statement prepared to explain the ________ as to why the bank balance as per ________ and bank balance as per bank book does not match Correct Answer reasons Your Answer reasons Correct Answer pass book Your Answer pass book Select The Blank Question Fixed cost is the cost that tend to remain ________ irrespective of ________ Correct Answer constant Your Answer constant Correct Answer level of activity Your Answer level of activity 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 If wages for the month of January, February and March are Rs.4,000, Rs.4,400 and Rs.4,600 respectively and if delay in payment of wages is month , payment of wages for the month of February is Correct Answer 4,200 Your Answer 4,000 Select The Blank Question Management Accounting has a very ________ scope and it requires ________ organizational structure Correct Answer wide Your Answer wide Correct Answer elaborate Your Answer elaborate 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 For a unit, if opening stock of raw material is 10,000 units, closing stock of raw material is 5,000 units and consumption is 3,20,000 units, what will be the quantum of raw material to be purchased Correct Answer 3,15,000 Your Answer 3,15,000 Multiple Choice Multiple Answer Question Important advantages of Uniform Costing can be said to be Correct Answer It is a useful tool for management control , It avoids cut throat competition , Weaker units can take advantage of settled systems of better managed units Your Answer It is a useful tool for management control , It avoids cut throat competition , Weaker units can take advantage of settled systems of better managed units

Multiple Choice Multiple Answer Question P/L A/C debit side includes Correct Answer salary , discount allowed , postage & telegram Your Answer postage & telegram , salary , discount allowed Multiple Choice Multiple Answer Question Actual costs may be affected due to inefficient functioning such as Correct Answer Abnormal expenses , In efficient use of labour , In efficient use of material Your Answer Abnormal expenses , In efficient use of labour , In efficient use of material Multiple Choice Single Answer Question Calculate Labour Efficiency Variance, If actual rate per hour is Rs.3.50/- , Standard rate is Rs.3/- per unit and standard hours are 15,000 and Actual hours are 13, 500. Correct Answer Rs.4500/- ( Favorable ) Your Answer Rs.4500/- ( Favorable ) Multiple Choice Multiple Answer Question Sales quantity may be forecasted after taking into consideration various factors such as Correct Answer Analysis of past trends , Market research , Reports by salesmen Your Answer Analysis of past trends , Market research , Reports by salesmen True/False Question For taking make or buy decision marginal costing technique provide useful assistance. Correct Answer True Your Answer True True/False Question Profitability statement indicates the amount of assets & liabilities. Correct Answer False Your Answer False Multiple Choice Single Answer Question It is an appropriate basis of apportionment of depreciation expenditure Correct Answer value of assets Your Answer value of assets True/False Question The variable costs are controllable at the lower level. Correct Answer True Your Answer True True/False Question Balance sheet indicates the expenditure & income from the business. Correct Answer False Your Answer False Match The Following Question Correct Answer Your Answer 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 Liabilities All the amount owed by the business All the amount owed by the business Drawing Withdrawn for personal use Withdrawn for personal use Select The Blank Question A budget manual is a document setting out the ________ of the persons and ________ required for the budget control. Correct Answer Responsibilities Your Answer Responsibilities Correct Answer Forms and procedures Your Answer Forms and procedures True/False Question Credit balances in all the Personal & Real accounts appear on asset side. Correct Answer False 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 Multiple Choice Single Answer Question Omission of posting an amount in the ledger Correct Answer Error of Omission Your Answer Error of Omission True/False Question Non-operating / financial expenses are added while calculating net profit. Correct Answer False Your Answer True 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 A Budget Manual may contain the following particulars Correct Answer Duties and responsibilities of various executives , Functions and duties of Budget Officer , Scope of the Budget and area to be covered Your Answer Duties and responsibilities of various executives , Functions and duties of Budget Officer , Scope of the Budget and area to be covered Select The Blank Question Semi ________ overheads are neither ________ nor variable in nature. Correct Answer fixed Your Answer variable Correct Answer variable Your Answer fixed True/False Question Due to errors of principle the arithmetical accuracy of the trial balance does not get affected. Correct Answer True Your Answer True 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 Financial Accounting protects the interest of outsiders . it considers ________ transaction and it is a ________ requirement Correct Answer historical Your Answer historical Correct Answer legal Your Answer legal True/False Question Bin Card is having all the information of item received and issued. Correct Answer False Your Answer True Select The Blank Question Budgetary Control is useful for ________-and ________-as a powerful tool in the hands of management Correct Answer Cost control Your Answer Cost control Correct Answer Maximization of profits Your Answer Maximization of profits 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 Multiple Answer Question The material Requisition note contains Correct Answer Number and date , Department demanding the material , Signature of the authority approving the demand Your Answer Number and date , Department demanding the material , Signature of the authority approving the demand Multiple Choice Multiple Answer Question Following error 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 Fixed overheads normally arise as a result of policy and are largely ________ in nature at the ________ level of the management Correct Answer uncontrollable Your Answer controllable Correct Answer lower Your Answer top True/False Question Budget is prepared for a fixed period of time. Correct Answer True Your Answer True Multiple Choice Single Answer Question Sold Goods of Amitabh worth Rs. 15,000 against 15% Trade discount. The Goods worth appear on account ___________ Correct Answer 12750 Your Answer 12750

Multiple Choice Single Answer Question This is not the non monetary incentive. Correct Answer Co-partnership Your Answer Co-partnership Multiple Choice Multiple Answer Question P/L A/C debit side includes Correct Answer salary , discount allowed , postage & telegram Your Answer salary , discount allowed , postage & telegram Select The Blank Question Along with financial accounting, ________ and ________ are the other streams of accounting Correct Answer Cost Accounting Your Answer Cost Accounting Correct Answer Management Accounting Your Answer Management Accounting True/False Question A very wide scope of Management Accounting is the limitation by itself. Correct Answer True 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 Financial Accounting discloses the financial performance & financial statements of the business as a whole. Correct Answer True Your Answer True 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 P&L statement which is a period statement & relates to a certain period tells about results of operations. Correct Answer True Your Answer True 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 Financial accounting may deal with the ascertainment of cost & calculation of profitability of the individual product. Correct Answer False Your Answer False 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 Match The Following Question Correct Answer Your Answer Financial Accounting Systematic recording of business transactions Systematic recording of business transactions Cost Accounting Ascertainment of cost Ascertainment of cost Management Accounting Analyzing & interpretation of financial data Analyzing & interpretation of financial data Accounting Art of interpreting & classifying business transaction Art of interpreting & classifying business transaction Book Keeping Recording of business transactions Recording of business transactions Match The Following Question Correct Answer Your Answer Bills Payable Amount payable to supplier Amount payable to supplier Bills Receivable Amount received from the customer Amount received from the customer 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 Bad debts Amount not received from customer Amount not received from customer True/False Question Amount invested in purchasing Fixed Asset is a revenue expenditure. Correct Answer False Your Answer True

Multiple Choice Multiple Answer Question Going Concern Concept __________________ Correct Answer Indefinite longer period , Not likely to close down in shorter period , This affects the values of asset and liabilities Your Answer Indefinite longer period , Not likely to close down in shorter period , This affects the values of asset and liabilities Multiple Choice Multiple Answer Question Cost of asset is 1,20,000, estimated scrap value 20,000, cost of assets subjected to depreciation 2,00,000, rate of depreciation is 10%. Calculate depreciation for 3 yrs as per the reducing balance m Correct Answer 20,000,18,000,16,200 Your Answer 20,000,18,000,16,200 Multiple Choice Multiple Answer Question Profit & Loss A/C credit side has Correct Answer Gross profit , Commission received , Interested received Your Answer Gross profit , Commission received , Interested received Multiple Choice Single Answer Question Juhi started business with Rs borrowed capital of Rs. 1,00,000 with 10% interest per year. What is the total amount of the capital Correct Answer 1,10,000 Your Answer 90,000 True/False Question Cheques issued but not yet presented the balance as per the bank pass book will be higher. Correct Answer True Your Answer False Multiple Choice Single Answer Question This cost indicates historical cost which is incurred in past. Correct Answer Sunk cost Your Answer Sunk cost Multiple Choice Single Answer Question Labour cost is the cost of __________ paid to employees of the organization. Correct Answer Remuneration Your Answer Remuneration Multiple Choice Single Answer Question Company having opening stock of Rs. 1,80,000 purchase Rs. 8,00,000. Freight Inward Rs, 35000 & closing stock Rs. 2,00,000, having direct wages Rs. 2,35,000. What will be prime cost. Correct Answer 10,50,000 Your Answer 10,50,000 Multiple Choice Multiple Answer Question For the proper interpretation and presentation of cost the overhead further classified as Correct Answer Factory overheads , Office and administration overheads , Selling & distribution overhead Your Answer Factory overheads , Office and administration overheads , Selling & distribution overhead True/False Question Valuation of returns indicates the material returned by store department to production department Correct Answer False Your Answer False True/False Question The wage payment system should take into consideration the external obligations such as the Minimum wages Act and the agreement entered into by the organization with the workers. Correct Answer True Your Answer True True/False Question A good wage payment system will punish the workers for the matters beyond the control of the workers. Correct Answer False Your Answer False Multiple Choice Multiple Answer Question These are the features of fixed overheads Correct Answer total cost remains the same , per unit cost may vary , not dependent on volume of output Your Answer total cost remains the same , per unit cost may vary , not dependent on volume of output True/False Question Under marginal costing technique only fixed costs are considered as relevant for decision making. Correct Answer False Your Answer False True/False Question Product mix refers to the proportion in which various products of a company can be sold. Correct Answer True Your Answer True Multiple Choice Single Answer Question The cost that varies in direct proportion with the level of activity is called Correct Answer variable cost Your Answer variable cost

Multiple Choice Multiple Answer Question Basic assumptions made by marginal costing are Correct Answer per unit selling price remains constant at all the levels of activities. , whatever is produced by the organisation is sold off. , per unit variable cost remain constant. Your Answer per unit selling price remains constant at all the levels of activities. , whatever is produced by the organisation is sold off. , per unit variable cost remain constant. Multiple Choice Single Answer Question Calculate Volume Variance, If budgeted production is 20,000 units, actual production is 22,000 units and Standard rate per unit is Rs.1.5/-. Correct Answer Rs.3,000/- ( Favorable ) Your Answer Rs.3,000/- ( Favorable ) Multiple Choice Single Answer Question Calculate Sales Price Variance, If actual price is Rs.5.40/- per unit, Standard price is Rs.5/- per unit and actual sales volume is 500 units. Correct Answer Rs.200/- ( Favorable ) Your Answer Rs.200/- ( Favorable ) Multiple Choice Single Answer Question Standard Costs are used as tool for Correct Answer Cost Control Your Answer Price fixation Multiple Choice Single Answer Question Standard Costing specifically relates to the function of Correct Answer Production Your Answer Production True/False Question Uniform Costing disturbs the healthy competition in the industry Correct Answer False Your Answer True Multiple Choice Multiple Answer Question Uniform Costing Methods may be advantageously applied Correct Answer In single organization having number of branches. , Number of companies in same industry. , Similar Industries such as cotton, jute etc. Your Answer In single organization having number of branches. , Number of companies in same industry. , Similar Industries such as cotton, jute etc. Multiple Choice Multiple Answer Question The following factors affects the budgeted advertisement cost Correct Answer Percentage of profits , Availability of funds , Competitors policy Your Answer Percentage of profits , Availability of funds , Competitors policy Multiple Choice Multiple Answer Question In Cash budget , Operating cash outflow includes Correct Answer Payment to Creditors , Cash purchases of raw material , Wages/salaries Your Answer Payment to Creditors , Cash purchases of raw material , Wages/salaries Multiple Choice Multiple Answer Question Characteristics of budget can be said to be Correct Answer It may be prepared in terms of quantity or money or both , It is prepared for a fixed period of time , It spells out objectives to be attained Your Answer It may be prepared in terms of quantity or money or both , It is prepared for a fixed period of time , It spells out objectives to be attained Select The Blank Question Like initial formation expenses, ________ and R & D are the examples of Deferred Revenue Expenditure Correct Answer Initial Advertisement Your Answer Purchase of an asset Correct Answer R & D Your Answer Select The Blank Question If ________ is not provided, the asset may appear in the Balance Sheet at an ________ amount Correct Answer depreciation Your Answer depreciation Correct Answer overstated Your Answer overstated Select The Blank Question If ________ books are the books which record the transactions in the chronological order, ________ is the book where transactions of a similar nature are pooled together Correct Answer subsidiary Your Answer jornal Correct Answer ledger Your Answer ledger Select The Blank Question While selecting source of supply ________ epartment may call for the ________ from the prospective suppliers Correct Answer purchase

Your Answer purchase Correct Answer quotation Your Answer quotation Select The Blank Question Preventive costs of labour turnover refers to all the costs which may be incurred by the organisation to keep workers happy and ________ them from ________ the job Correct Answer discourage Your Answer discourage Correct Answer leaving Your Answer leaving Select The Blank Question 4.Under the differential time rate method the wages are paid at Rs. 1.50 per hour between ________ efficiency and Rs.1.25 per hour between ________ efficiency Correct Answer 101% to 125 % Your Answer 101% to 125 % Correct Answer 80% to90% Your Answer 80% to90% Select The Blank Question Expenditure like general lighting are apportioned considering ________ as a base and expenditure like depreciation are apportioned considering ________ as a base. Correct Answer number of light points Your Answer number of light points Correct Answer value of assets Your Answer value of assets Select The Blank Question ________ and ________ are examples of element wise classification ofoverhead costs Correct Answer Idirect material Your Answer Idirect material Correct Answer indirect labour Your Answer indirect labour Select The Blank Question Break even point is a situation of no ________ no ________ Correct Answer profit Your Answer profit Correct Answer loss Your Answer loss Select The Blank Question A key factor is defined as the factor which, at a particular point of time or over a period will ________ the volume of ________ Correct Answer limit Your Answer limit Correct Answer output Choice Multiple Answer Question The selection of the supplier may depend upon the following aspects: Correct Answer Geographical location of the supplier , Price quoted by the supplier , Goodwill of the supplier Your Answer Geographical location of the supplier , Price quoted by the supplier , Goodwill of the supplier Multiple Choice Single Answer Question Net book value of loose tools as on 1st April, 2003 was Rs.45,000/-. As on 31st March, 2004 the management felt that the real worth of these loose tools is only Rs.30,000/-. What can be done to achieve the desired reduction in the net book value of loose tools? Correct Answer By providing depreciation to the extent of Rs.15,000/Your Answer By providing depreciation to the extent of Rs.15,000/True/False Question Overhead absorption rate will be different at different capacity levels. 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 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 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 Select The Blank Question Information as to the cost and profit / loss associated with the firms operations is provided to the ________ by Management accounting. Correct Answer Management Your Answer Management Select The Blank Question Factory cost of a product is Rs.335,000/-, if the selling overheads are charged @25% of factory cost, then the amount of selling overheads should be Rs.________/Correct Answer 83750 Your Answer 83750 Select The Blank Question Uniform costing is not a separate method of ________. Correct Answer cost accounting Your Answer cost accounting Multiple Choice Multiple Answer 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 Multiple Choice Single Answer Question The following figures relate to a company manufacturing a varied range of products : Year 2003 Total sales Rs.22,23,000/- and total cost Rs.19,83,600/-. Year 2004 : Total sales Rs.24,51,000/- and Total cost Rs.21,43,200/-. Assuming stability in prices, calculate the profit volume ratio Correct Answer 0.3 Your Answer 0.3 Multiple Choice Single Answer Question The cost of idle time incurred by employees that is considered normal for the production process should be charged to : Correct Answer Factory overheads Your Answer Direct labour Select The Blank Question Creche expenses may be appropriately approtioned on the basis of ________. Correct Answer Number of female workers Your Answer Number of female workers

Multiple Choice Single Answer Question Opening stock of Rs.1,80,000/-, purchases Rs.8,00,000/-, freight inward Rs.35,000/-, closing stock Rs.2,00,000/-, direct wages Rs.2,35,000/-. Calculate the prime cost. Correct Answer Rs.10,50,000/Your Answer Rs.10,70,000/Multiple Choice Multiple Answer Question Limitations of Management Accounting includesCorrect Answer Its wide scope , Possibility of intuitive decision , Requires elaborate organizational structure Your Answer Its wide scope , Possibility of intuitive decision , Requires elaborate organizational structure Select The Blank Question Indirect Cost is termed as ________. Correct Answer Overhead Your Answer Overhead Multiple Choice Multiple Answer Question Features of Financial Accounting includes Correct Answer It is a legal requirement , It protects the interest of outsiders , It considers historical transactions Your Answer It is a legal requirement , It protects the interest of outsiders , It considers historical transactions Multiple Choice Multiple Answer Question Identify the budgets for which the production manager sould be held responsible : Correct Answer Production budget , Production overheads budget , Plant utilisation budget Your Answer Production budget , Production overheads budget , Plant utilisation budget Multiple Choice Single Answer Question A group of 10 men and 20 women workers were expected to produce 400 units of a product in an 8 hour day. The standard hourly rate was fixed at Rs.25/- and Rs.15/-, respectively.Actually, a group of 15 men and 10 women workers was deployed and paid for 8 hours a day at an hourly rate of Rs.22/- and Rs.18/-, respectively. Two hours were wasted for the entire group due to power failure and only 300 units were produced. Calculate labour rate variance. Correct Answer Rs.120/- (Favourable) Your Answer Rs.150/- (Favourable) Multiple Choice Multiple Answer Question Techniques of management accounting include: Correct Answer Marginal costing , Budgetary control , Standard costing Your Answer Cost control , Budgetary control , Standard costing True/False Question A grinding machine is an example of impersonal cost centre Correct Answer True Your Answer True True/False Question Profitability statement indicates the amount of assets & liabilities. Correct Answer False Your Answer False Multiple Choice Single Answer Question Uniform costing system is useful in the following areas

Correct Answer Classification of cost accounts Your Answer Preparing financial statements Multiple Choice Multiple Answer Question The features of multiplicity of key factors are as follows : Correct Answer More than one key factors , Refers to a complex situation , Can be resolved by using linear programming technique Your Answer More than one key factors , Refers to a complex situation , Can be resolved by using linear programming technique 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 Multiple Choice Multiple Answer Question A materials requisition form normally contains the following aspects: Correct Answer Quantity requisitioned , Per unit material cost , Job number Your Answer Quantity requisitioned , Job number 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 Your Answer Units produced , Production cost , Material cost, labour cost and overheads Multiple Choice Single Answer Question Panna Ltd. temporarily has excess production capacity. The idle plant facilties can be used to manufacture a low-margin item. The low-margin item should be produced if it can be sold for more than its: Correct Answer Variable costs Your Answer Variable costs 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 , Increase the sales volume , Reduce cost of sales True/False Question Receipts and payments method of cash budget is useful for preparing long term estimates. Correct Answer False Your Answer False Multiple Choice Multiple Answer Question Select the advantages of standard cost system. Correct Answer Provides reliable basis for budgeting , Facilitates delegation of authority , Promotes economy and efficiency Your Answer Provides reliable basis for budgeting , Facilitates delegation of authority

True/False 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 False Select The Blank Question In case of seasonal industry, the budget period may be taken as ________. Correct Answer One season Your Answer One season True/False Question Lack of efficient control on various aspects related to raw-material increases the material cost component of the finished product. Correct Answer True Your Answer True True/False Question Due to compensating errors the arithmetical accuracy of the trial balance is affected. Correct Answer False Your Answer False Multiple Choice Single Answer Question Material price variance for a job is Rs.800/- (Favourable). Actual quantity of material used is 100 kg whereasthe standard quantity of material is 120% of actual quantity. Actual price paid for the material is 80% of the standard price. Calculate material cost variance. Correct Answer Rs.1,600/- (Favourable) Your Answer Rs.800/- (Favourable) Select The Blank Question The process of recording the business transactions in a defined set of records is referred to as ________. Correct Answer Balance sheet Your Answer Profit and Loss Account Match The Following Question Correct Answer Your Answer Daily Time sheets Time spent by worker on job is recorded Time spent by worker on job is recorded Time Keeping Department Recording of workers time Recording of workers time Time booking department Jobwise booking of time. Jobwise booking of time. Time Recording Clock Method Ticket number & clock card allotted to worker Ticket number & clock card allotted to worker True/False Question Purchased goods by paying Rs.35,000/-: In this case, the cash account should be debited. Correct Answer True Your Answer True Select The Blank Question

If the customer is not likely to pay the amount receivable from him, this amount should to be treated as ________. Correct Answer Bad debts Your Answer Bad debts True/False Question Accounting is an art of recording, classifying & summarizing in a significant manner. Correct Answer True Your Answer True Match The Following Question Correct Answer Your Answer Book-Keeping Books of Accounts Books of Accounts 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 Financial status True/False Question The problem of multiple key factors can be solved with the help of techniques like linear programming, operations research, etc. Correct Answer True Your Answer True Select The Blank Question The ________ books are preferred when the volume of transactions is very large. Correct Answer Subsidiary Your Answer Journal 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 True/False Question All costs are controllable. Correct Answer False IST OF ATTEMPTED QUESTIONS AND ANSWERS Select The Blank Question Furniture account will always have a ________ balance. Correct Answer Debit Your Answer Nil Multiple Choice Multiple Answer Question Accounting is the art where transactions are Correct Answer Summarized , Classified , Recorded Your Answer Summarized , Classified , Recorded True/False Question The phrase By Balance c/d. written on the credit side of the rent account, indicates credit balance for this account.

Correct Answer False Your Answer False 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 Accounting refers to the process of analyzing & interpreting the information already recorded in the books of accounts. Correct Answer True Your Answer True 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 True/False Question Standard costs are used for external reporting. Correct Answer False Your Answer False True/False Question It is said that the income statement represents wealth increase /decrease for the organisation. Correct Answer True Your Answer False Multiple Choice Single Answer Question Mr. Oak, materials manager, spends 40% time in the factory and the remaining in office. If his annual salary is Rs.500,000/-, what amount should be charged as office overheads ? Correct Answer Rs.300,000/Your Answer Rs.200,000/Multiple Choice Multiple Answer Question The factors to be considered while preparing the direct materials budget are : Correct Answer Adequacy of material storing space , Availability of funds , Material in stores but reserved for specific purposes Your Answer Adequacy of material storing space , Availability of funds , Material in stores but reserved for specific purposes Multiple Choice Multiple Answer Question In which of the following situations, the flexible budget should be preferred? Correct Answer Sales are too difficult to predict , Supply level of input cannot be predicted , Varying levels of production activity Your Answer Sales are too difficult to predict , Supply level of input cannot be predicted , Varying levels of production activity Multiple Choice Multiple Answer Question Techniques of management accounting include: Correct Answer Marginal costing , Budgetary control , Standard costing Your Answer Marginal costing , Cost control , Budgetary control , Standard costing Match The Following Question Correct Answer Your Answer Profit and loss account Commission received Dividend paid Manufacturing account Work in Progress Land & Building Balance Sheet Land & Building Closing stock of finished goods Trading account Closing stock of finished goods Work in Progress 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 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 , Increase the sales volume , Increase the selling efforts Multiple Choice Multiple Answer Question From the following, select intangible assets: Correct Answer Goodwill , Patents , Trade Marks Your Answer Patents , Trade Marks , Investments True/False Question Bank reconciliation statement must be prepared before the preparation of profit and loss account and balance sheet. Correct Answer True Your Answer False Multiple Choice Single Answer Question Find the budget which is inadequate as a cost control technique : Correct Answer Fixed budget Your Answer Fixed budget True/False Question Predetermined rate of absorption of overheads helps in quick preparation of cost estimates and quoting prices.

Correct Answer True Your Answer True Multiple Choice Single Answer Question Net sales Rs,7,50,000/-, opening stock Rs.1,14,375/-, purchases Rs.483,375/- and closing stock Rs.1,47,750/-. Calculate the Gross Profit. Correct Answer Rs.3,00,000/Your Answer Rs.3,00,000/Select The Blank Question ________ is an example of intangible asset. Correct Answer Goodwill Your Answer Land True/False Question Accounting is an art of recording, classifying & summarizing in a significant manner. Correct Answer True Your Answer True True/False Question Goods sent to the customers on approval basis should be treated as sales. 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 , Incurred in past , Relevant in decision making process True/False Question Profitability statement indicates the amount of assets & liabilities. Correct Answer False Your Answer True 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 Identify the steps involved in selecting the optimum product mix, when the limiting factor is number of labour hours and sales demand. Correct Answer For each product find the contribution per unit and per labour hour , Award ranks to each of the products based on contribution per limiting factor , Priority is given to fulfill the market demand of the product which gives maximum contribution per labour hour. Your Answer For each product find the contribution per unit and per labour hour , Award ranks to each of the products based on contribution per limiting factor , Priority is given to fulfill the market demand of the product which gives maximum contribution per labour hour. Multiple Choice Multiple Answer Question Techniques of management accounting include: Correct Answer Marginal costing , Budgetary control , Standard costing Your Answer Marginal costing , Cost control , Budgetary control True/False Question The ideal budget period for a company engaged in generation and distribution of electricity is one year. 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 True/False Question According to Reducing Balance Method, the depreciation is provided at a predetermined percentage on the balance of cost of asset after deduction of the depreciation previously charged. Correct Answer True Your Answer True 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 Multiple Answer 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 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.29,200/-

Select The Blank Question A forecast is mere estimate of what is likely to happen, but ________ is the action plan to be followed. Correct Answer Budget Your Answer Budget True/False Question A very wide scope of Management Accounting is the limitation by itself. Correct Answer True Your Answer True Select The Blank Question The combination in which different products are sold by a company is known as ________. Correct Answer Sales mix Your Answer Sales mix Multiple Choice Single Answer Question The reporting method used in the costing system should be based on the principle of Correct Answer Management by exception Your Answer Management by objectives True/False Question Balance sheet indicates the financial status of the business at given period. Correct Answer True Your Answer True Multiple Choice Single Answer Question The wages paid to maintenance department workers who do repair work principally for production departments but also on the vehicles in the distribuiton department shoud be charged as: Correct Answer Service costs Your Answer Service costs Multiple Choice Single Answer Question M/s Vivek Enterprises has paid rent relating to the residence of Mr. Vivek, proprietor of Vivek Enterprises. This payment should be treated as Correct Answer Drawings Your Answer Capital Select The Blank Question Measurement of ________ gives an idea of the degree of mobility of labour. Correct Answer Labour turnover Your Answer Labour turnover Multiple Choice Single Answer Question Net profit for the year before charging commission to the manager, is Rs.111,775/-. The manager of the company is entitled to commission @ 8% on net profits after charging commission. Find the amount of commission due to the manager. Correct Answer Rs.8,279.63 Your Answer Rs.8,942/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 Control on purchase of material is exercised by the storekeeper. Correct Answer False Your Answer True Multiple Choice Single Answer Question A company wishes to earn a 15% profit margin on selling price when quoting for a job. Which of the following is the profit margin of cost which will achieve the required profit margin ? Correct Answer 0.1765 Your Answer 0.15 Select The Blank Question Economical use of labour, materials and facilities can achieved with the help of ________. Correct Answer Budgetary control Credit balances in all the Personal & Real accounts appear on asset side. Correct Answer False Your Answer False 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 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 1) Financial statements are basically in two forms i.e. profitability statement and balance sheet. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question The process of accounting has three streams of accounting ,and -. Correct Answer Financial Accounting , Cost Accounting , Management Accounting Your Answer Financial Accounting , Cost Accounting , Management Accounting True/False Question Long term loan borrowed from financial institution comes under the heading of long term liabilities. Correct Answer True Your Answer True Match The Following Question Correct Answer Your Answer Book-Keeping Books of Accounts Books of Accounts 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 Financial status Multiple Choice Single Answer Question Judge the statement according to the criteria given : The accounting period for XYZ Ltd. ends on 31st December, 2003. It is noted that office rent for the month of December, 2003 is paid on 15th January, 2004. According to concept of matching expenses with the revenues, this expenditure should be recorded in the books of accounts in January, Correct Answer The statement and its reason are both incorrect Your Answer The statement is correct but its reason is incorrect 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 Single Answer Question The installation and operation of ___________ accounting requires a very elaborate organizational structure and large number of rules & regulations Correct Answer Management Your Answer Management 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 Trading Match The Following Question Correct Answer Your Answer Sunk Cost Historical Cost Historical Cost Cost Centre Facilitate the fixation of responsibility Facilitate the fixation of responsibility Cost Control Process of controlling costs of operations Process of controlling costs of operations Differential Cost Increase or Decrease in cost Increase or Decrease in cost Multiple Choice Multiple Answer Question Which of the following transactions should be excluded while preparing a cost sheet ? Correct Answer Interest on loan , Bad debts , Expenses on criminal law suit Your Answer Sale of scrap material , Interest on loan , Bad debts True/False Question In a Balance-Sheet right hand side is referred as assets side and left hand side is referred as liabilities. Correct Answer True Your Answer True True/False Question Credit note is an intimation send to person dealing with the business that his account being debited for the purpose indicated therein. Correct Answer False Your Answer False True/False Question Primary distribution is effected on the basis of service rendered to the service departments by the production departments. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question Marginal costing is found to be unsuccessful in the following situations :Correct Answer Impossible to distinguish costs into fixed and variable component. , With respect to capital intensive industries where fixed costs are very large and hence cannot be ignored , With respect to service industries where employee

costs are very large and almost fixed in nature Your Answer Impossible to distinguish costs into fixed and variable component. , With respect to capital intensive industries where fixed costs are very large and hence cannot be ignored , With respect to service industries where employee costs are very large and almost fixed in nature True/False Question Debit Note is an intimation sent to person dealing with the business that his account is being credited for the purpose indicated therein. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question Labour efficiency variance arises due to: Correct Answer Inefficient supervisor , Poor working conditions , Use of sub-standard quality of material Your Answer Inefficient supervisor , Poor working conditions , Use of sub-standard quality of material True/False Question Financial Accounting discloses the financial performance & financial statements of the business as a whole. Correct Answer True Your Answer True True/False Question Balance sheet indicates the expenditure & income from the business. Correct Answer False Your Answer True Select The Blank Question The indirect material cost, indirect labour cost and indirect expenses cost, collectively are termed as ________. Correct Answer Overhead Your Answer Overhead 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 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 , Interfunctional relationships of these managers 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 P&L statement which is a period statement & relates to a certain period tells about results of operations. Correct Answer True Your Answer False Select The Blank Question Depreciation charged on office furniture on straight line basis is an example of ________. Correct Answer Administration overheads Your Answer Administration overheads True/False 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 Select The Blank Question Information as to the cost and profit / loss associated with the firms operations is provided to the ________ by Management accounting. Correct Answer Management Your Answer Management True/False Question Danger level for inventory of materials means the safety stock of inventory. Correct Answer False Your Answer True 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 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

Select The Blank Question ________ Accounting assists the management in establishing the plans to attain the economic objectives and take proper decisions for the attainment of its objectives. Correct Answer Management Your Answer Management 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 An increase in the maximum material inventory level , The incorrect choice of purchase order quantity , Failure to control the issue of materials from stores Multiple Choice Multiple Answer Question Management accounting is concerned with the following activities : Correct Answer Decision making , Safeguarding assets , Planning and controlling activities Your Answer Decision making , Safeguarding assets , Planning and controlling activities Multiple Choice Multiple Answer Question Features of double entry accounting system are . . . Correct Answer Every business transaction has two elements , When business receives something, it has to pay something , Every debit has a corresponding credit Your Answer Every business transaction has two elements , When business receives something, it has to pay something , Every debit has a corresponding credit Select The Blank 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% True/False Question Maintenance Department is a service cost centre. 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 The difference between sales and cost of sales is termed as ________. Correct Answer Net Profit Your Answer Net Profit Select The Blank Question The final result disclosed by trading account is the ________profit earned by the organization. Correct Answer Gross Your Answer Gross Multiple Choice Multiple Answer Question Select the accounts to be disclosed on the liability side of the Balance sheet. Correct Answer Loan , Outstanding expenses , Creditors Your Answer Loan , Outstanding expenses , Creditors True/False Question Penalty paid for delay in payment to creditors represents uncontrollable cost. Correct Answer False Your Answer False Multiple Choice Single Answer Question Which document facilitates estimating material cost of a particular job, before completion of that job? Correct Answer Bill of material Your Answer Material requisition note 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 Your Answer The net profit will not be affected Multiple Choice Single Answer Question It is said that adoption of uniform costing creates customer confidence because . . . Correct Answer Prices are reliable Your Answer Prices are reliable 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 Purchased goods by paying Rs.35,000/-: In this case, the cash account should be debited. Correct Answer True Your Answer False

True/False Question The rates at which the depreciation is to be calculated are specified in the Income Tax Act 1961 and The Companies Act, 1956. Correct Answer True Your Answer True Select The Blank Question The various contents of a uniform cost manual are organisation, cost accounting system and ________. Correct Answer presentation of information Your Answer organisation structure 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 Multiple Choice Multiple Answer Question Select the examples of functional budgets: Correct Answer Sales budget , Production budget , Research and development budget Your Answer Sales budget , Production budget , Capital expenditure budget Multiple Choice Single Answer Question A businesss telephone bill should nromally be classified into which one of the following categories? Correct Answer Semi-variable cost Your Answer Variable cost Match The Following Question Correct Answer Your Answer Closed the account with State Bank of India Henceforth, there shall be no difference in overdraft balances Henceforth, there shall be no difference in overdraft balances Debit side of bank book is overcast Overdraft as per bank book < Overdraft as per pass book Overdraft as per bank book = Balanceas per pass book Interest on debentures directly credited by bank Overdraft as per bank book > Overdraft as per pass book Overdraft as per bank book = Overdraft as per pass book Received sanction for a loan of Rs.10 lakhs Overdraft as per bank book = Overdraft as per pass book Overdraft as per bank book < Overdraft as per pass book 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 Your Answer Re.0.68 Select The Blank Question The process of finding the reasons for the difference in the balance as per bank book and pass book is known as ________. Correct Answer Reconciliation Your Answer Reconciliation Multiple Choice Multiple Answer Question State the features of these transactions : (i) Commission paid Rs.250/- was posted twice to Commission account (ii) Rs.5,000/- representing goods sold to A, was posted to the credit to commission received account (iii) Sold machine for Rs.8000/-, was credited to Sales account. Correct Answer The debit side of the trial balance will be in excess by Rs.250/- , Involves an error of principle , Involves an error of commission Your Answer The debit side of the trial balance will be in excess by Rs.250/- , Involves an error of principle , Involves an error of commission 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 Multiple Choice Single Answer Question Balance sheet is statement of Correct Answer All Assets and Properties Your Answer All Assets and Properties Select The Blank Question The closing stocks should ________ the cost of the goods which sent on approval basis. Correct Answer Be increased by Your Answer Not get affected by True/False Question Under the Rowan plan bonus is a fixed percentage. Correct Answer False Your Answer True True/False Question Idle time variance is always favourable.

Correct Answer False Your Answer False 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 Your Answer Delivery van expenses , Rent of finished goods warehouse , Rent of raw material godown Select The Blank Question Information as to the cost and profit / loss associated with the firms operations is provided to the ________ by Management accounting. Correct Answer Management Your Answer Cost Multiple Choice Single Answer Question Compute actual total cost based on the data given below: Total standard cost (standard material cost + standard labour cost) -Rs.19,633.33; labour rate variance-Rs.900/- (adverse); material price variance -Rs.90/- (Favourable); material yield variance -Rs.700/- (Favourable); labour yield variance -Rs.333.33 (Favourable). Correct Answer Rs.19,410/Your Answer Rs.17,610/Multiple Choice Single Answer Question The standard production for a particular work order is 20 units per day and piece rate wages is 60 paise per unit. Cost of material is 30 paise per unit. It is proposed to charge factory overheads equal to 100% of labour cost. Indicate the factory overhead per unit. Correct Answer Rs.1.50/Your Answer Rs.1.30/Multiple Choice Multiple Answer Question The suspense account has a debit balance of Rs.40,000/-. Select the transactions which are capable of nullifying this balance. Correct Answer Conveyance expenses of Rs.25,000/- were posted on the wrong side of the account. , Purchased computer worth Rs.28,000/- was recorded in the ledger as , The total of the purchase book was cast short by Rs.44,000/Your Answer Free samples worth Rs.40,000/- distributed during the year were credited to sales account , Conveyance expenses of Rs.25,000/- were posted on the wrong side of the account. , Purchased computer worth Rs.28,000/- was recorded in the ledger as Multiple Choice Single Answer Question Panna Ltd. temporarily has excess production capacity. The idle plant facilties can be used to manufacture a lowmargin item. The low-margin item should be produced if it can be sold for more than its: Correct Answer Variable costs Your Answer Variable costs Select The Blank Question Contribution represents pool of resources available for meeting all costs other than ________. Correct Answer Variable costs Your Answer Variable costs Select The Blank Question Goods returned to the suppliers from whom it was ________d is recorded in thePurchasereturn register. Correct Answer Purchase Your Answer Purchase Multiple Choice Multiple Answer Question From the available information calculate sales value variance and budgeted sales quantity of X.Actual sales of X -500 units; budgeted price per unit -Rs.12/-; actual price per unit-Rs.15/- and sales volume variance -Rs.1,200/- (Favourable). Correct Answer Budgeted sales 400 units , Sales value variance -Rs.2,700/- , The sales value variance is favourable Your Answer The sales value variance is adverse True/False Question Depreciation, interest and property tax continue even when the operations are discontinued. Correct Answer True Your Answer True Select The Blank Question The balance of the suspense account will ________ after all the errors are Correct Answer become zero Your Answer become zero Multiple Choice Multiple Answer 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 True/False Question It is said that the income statement represents wealth increase /decrease for the organisation. Correct Answer True Your Answer False Select The Blank Question The difference between sales and prime cost is known as ________. Correct Answer Gross Profit Your Answer Gross Profit

Multiple Choice Multiple Answer Question In which of the following situations, the flexible budget should be preferred? Correct Answer Sales are too difficult to predict , Supply level of input cannot be predicted , Varying levels of production activity Your Answer Sales are too difficult to predict , Supply level of input cannot be predicted , Varying levels of production activity Multiple Choice Single Answer Question Debtors as on 31st March, 2004 stood as Rs.75,400/-. Out of this amount, Rs.15,884/- is receivable from ABC & Co. Also, Rs.21,555/- included in the creditors, indicates amount due to ABC & Co. Total creditors as on 31st March, 2004 = Rs.88,466/-. Find the amount of debtors and creditors that should be disclosed in the balance sheet as on 31st March, 2004. Correct Answer Debtors Rs.59,516/-; Creditors Rs.66,911/Your Answer Debtors Rs.53,845/-; Creditors Rs.72,582/Match The Following Question Correct Answer Your Answer Sunk Cost Historical Cost Historical Cost Cost Centre Facilitate the fixation of responsibility Facilitate the fixation of responsibility Cost Control Process of controlling costs of operations Process of controlling costs of operations Differential Cost Increase or Decrease in cost Increase or Decrease in cost Select The Blank Question Cost volume profit analysis focuses attention on the ________ effect of a particular course of action. Correct Answer short run Your Answer short and long run Multiple Choice Multiple Answer Question The balance as per bank book as on 30th June, 2004 is Rs.10,298/- while the balance as per pass book as on the same date is Rs.10,123.60. Select the transactions representing the reasons for this difference. Correct Answer Interest credited by bank, not entered in the bank book, Rs.125.60 , Cheques dishonoured not entered in the bank book Rs.200/- , Debit side of the cash book is overcast by Rs.100/Your Answer Interest credited by bank, not entered in the bank book, Rs.125.60 Multiple Choice Single Answer Question Uniform costing system is useful in the following areas Correct Answer Classification of cost accounts Your Answer Preparing financial statements True/False Question Revenue expenditure indicates the amount of funds spent during a certain period with the intention to receive the returns in future. Correct Answer False Your Answer True 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 True True/False Question Cheque received from a client on 28th September, 2004 must be entered in the bank book only after it is credited in the pass book. Correct Answer False Your Answer False 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 industrys 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 compare efficiency of each unit against industrys overall performance , To compile reliable cost data for inter-firm comparison of costs 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/Your Answer The purhases will increase by Rs.6,450/- , The closing stock will increase by Rs.6,450/- , The gross profit will increase by Rs.6,450/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 Your Answer Carriage A/c Multiple Choice Multiple Answer Question Different types of tenders are : Correct Answer Singly tender , Open tender , Global tender Your Answer Multiple tender , Open tender , Global tender Multiple Choice Single Answer 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/-

Multiple Choice Single Answer Question Basic objective of Uniform Costing is . . . Correct Answer comparison Your Answer To control cost Multiple Choice Multiple Answer Question Select the entries which need to be rectified Correct Answer Purchase A/c Dr. to Damodars A/c (Being furniture purchased from Damodar) , Gopals A/c .. Dr. to cash A/c (Being entry for payment of railway freight for goods purchased) , Cash A/c Dr. to Sureshs A/c (Being cash received from Suresh for goods sold to him for) Your Answer Gopals A/c .. Dr. to cash A/c (Being entry for payment of railway freight for goods purchased) Multiple Choice Single Answer Question A new computer worth Rs.35,000 was purchased on 18th June, 2003. The company has 10 such computers costing Rs.20,000/- each. The depreciation is charged @ 18% p.a. Find the depreciation on computers to be charged for the year. Correct Answer Rs.40,953.70 Your Answer Rs.36,000/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 The management of Horngreen Ltd. is deciding whether to continue working at loss or to temporarily shut down the factory. State the qualitative aspects that must be considered before arriving at a decision. Correct Answer Loss of trained personnel , Loss of regular customers , Expenditure required to restart the factory Your Answer Expenditure required to restart the factory Multiple Choice Single Answer Question The purchase budget for October is Rs.12,500/- and November is Rs.15,000/-. If the materials are purchased for cash the supplier is offering a rebate of 5%. If the materials are purchased on credit of 30 days, no rebate is offered. The company purchase Correct Answer October- NIL, November- Rs.26,750/Your Answer October- Rs.14,250/-, November- Rs.11,875/True/False Question Maintenance Department is a service cost centre. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question Ram and Laxman are partners of Kush & Bros. As on 1st April, 2003 Rams capital is Rs.50,000/- and Laxmans capital is Rs.80,000/-. If interest on capital is to be provided @ 10% p.a., what will be amount of capital of each of the partners as on 31st March, 2004, assuming there were no additions during this period? Also, state the treatment of this item in the Profit and loss account. Correct Answer Rams capital Rs.55,000/- , Laxmans capital Rs.88,000/- , Interest on capital should be debited to the Profit and loss account Your Answer Laxmans capital Rs.88,000/- , Interest on capital should be debited to the Profit and loss account Multiple Choice Single Answer Question Rs.2,650/- were paid to ABC Ltd. for maintenance of machine; which account should be debited for this transaction? Correct Answer Maintenance of machine account Your Answer ABC Ltd.s Account Match The Following Question Correct Answer Your Answer Advantageously applicable in similar industries Scope of uniform costing Fields covered by uniform costing Spirit of mutual trust Requisite for uniform costing Disadvantage of uniform costing Avoids cut throat competition Advantage of uniform costing Requisite for uniform costing Treatment given to research and development costs Fields covered by uniform costing Advantage of uniform costing Select The Blank Question Under the AB________ analysis, nuts and bolts used as material will be classified as category C. Correct Answer C Your Answer C 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 True and fair 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 Lack of experienced and efficient personnel , High labour turnover , No idle time 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

Multiple Choice Multiple Answer Question From the following, select intangible assets: Correct Answer Goodwill , Patents , Trade Marks Your Answer Goodwill , Patents , Trade Marks True/False Question According to Reducing Balance Method, the depreciation is provided at a predetermined percentage on the balance of cost of asset after deduction of the depreciation previously charged. Correct Answer True Your Answer False Select The Blank Question Average stock = ________ + (Order size / 2) Correct Answer Safety stock Your Answer Reorder level True/False Question High time wages means necessarily high cost of production. Correct Answer False Your Answer True 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 Marginal costing is also known as ________. Correct Answer Variable costing Your Answer Indirect costing Multiple Choice Single Answer 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/Multiple Choice Single Answer Question For a bought out material item the following are the relevant data : Ordering cost Rs.512/- per order; holding cost is 40%; cost per item Rs.100/- and annual demand 1,000 units. The Purchase manager places 5 orders of equal quantity in one year, in order to avail the discount of 5% on the cost of the item. Work out the total cost to the organisation due to his ordering policy for this item. Correct Answer Rs.101,360/Your Answer Rs.101,360/True/False Question Due to compensating errors the arithmetical accuracy of the trial balance is affected. Correct Answer False Your Answer False Multiple Choice Single Answer Question From the given information compute the total cost variance. Material cost variance -Rs.4,400/- (Favourable); labour cost variance -Rs.450/- (Adverse); fixed overhead cost variance -Rs.22,000/- (Adverse); variable overhead cost variance -Rs.6,000/- (adverse). Correct Answer Rs.24,050/- (Adverse) Your Answer Rs.32,850/- (Favourable) Multiple Choice Single Answer Question Advance tax account should appear in which of the final statement of accounts. Correct Answer Asset side of the balance sheet Your Answer Debit side of the profit and loss account Match The Following Question Correct Answer Your Answer Operating income Cash Sales Cash Sales Non-Operating income Issue of shares Issue of shares Plan of investment in fixed assets Capital Expenditure Budget Cash Budget Plan for surplus/shortage of cash Cash Budget Capital Expenditure Budget Select The Blank Question Furniture account will always have a ________ balance. Correct Answer Debit Your Answer Inflated Select The Blank Question Payment by ________ method lowers the cost of production through their impact on fixed costs. Correct Answer Results Your Answer Cash 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 , To portray the financial status 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 Absorption costing is more suitable for decision making than marginal costing Correct Answer False Your Answer True Select The Blank Question A low margin of safety indicates ________ fixed overheads. Correct Answer higher Your Answer higher Multiple Choice Single Answer Question Which of the following operations would normally be carried out first when preparing a master budget? Correct Answer Determining the budget period Your Answer Identifying the principal budget factor True/False Question Period cost is the cost assigned to the products. Correct Answer False Your Answer True Select The Blank Question Profit = Contribution per unit X ________. Correct Answer Margin of safety (units) Your Answer Sales (units) Multiple Choice Multiple Answer Question Which of the following aspects are mainly responsible for difficulty in application of Uniform costing system. Correct Answer Capital investment , Plant size , Location Your Answer Capital investment , Plant size , Loans taken 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 ABC Ltd. produces 10,000 units at 100% capacity utilization and its cost structure is as follows : Fixed cost Rs.50,000/-; variable costs Rs.30,000/- and semi-variable costs Rs.40,000/- (40% var Correct Answer Rs.13.85 Your Answer Rs.11.85 Select The Blank Question Loss of uninsured goods by fire was debited incorrectly to United India Assurance Companys account instead of debiting it to ________ account. Correct Answer Goods lost by fire Your Answer Goods lost by fire Multiple Choice Multiple Answer Question 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 Helpful in estimating the future along with past period , Useful in furnishing the necessary information to the management , A legal requirement. Multiple Choice Multiple Answer Question The disadvantages of supplementary overhead rates are: Correct Answer It can be determined only after the end of the accounting period , Defeats the basic concept of normal cost , Involves lot of clerical activity Your Answer Defeats the basic concept of normal cost , Involves lot of clerical activity , It can be determined only in the beginning of the accounting period 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 One of the main objection to the contribution approach of costing is that it ignores fixed cost. Correct Answer True Your Answer False 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 , Tendency of withholding information Select The Blank Question Uniform costing is not a separate method of ________.

Correct Answer cost accounting Your Answer costing 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/Your Answer Rs.251,000/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 Multiple Choice Multiple Answer Question For the month of November, a firm has budgeted sales of 20,000 units of X at a price of Rs.10/- and sale of 30,000 untis of Y at a price of Rs.6/- per unit. Actual sale during the month was 35,000 units of X at Rs.9/- per unit and 25,000 units of Y at Rs.8/- per unit. Calculate sales volume variance, sales mix variance and sales quantity variance. Correct Answer Sales volume variance -Rs.120,000/- (Favourable) , Sales mix variance -Rs.44,000/- (Favourable) , Sales Quantity variance-Rs.76,000/- (Favourable) Your Answer Sales volume variance -Rs.120,000/- (Favourable) , Sales mix variance -Rs.44,000/- (Favourable) , Sales Quantity variance-Rs.76,000/- (Favourable) True/False Question The purpose of the profit and loss account is to bring togethre information which relates to gross profit and the expenses for running the business. Correct Answer True Your Answer True Multiple Choice Single Answer Question A firm has purchased a plant to manufacture a new product, the cost data for which is given below : Estimated annual sales 24,000 units. Estimated costs : Materials Rs.4/- per unit; labour Re.0.60 per unit; overheads Rs.24,000/- per year; administrative expenses Rs.28,800/- per year and selling expenses are 15% of sales; Calculate the selling price per unit if profit per unit is Rs.1.02. Correct Answer Rs.9.20/Your Answer Rs.7.74/Multiple Choice Single Answer Question A company wishes to earn a 15% profit margin on selling price when quoting for a job. Which of the following is the profit margin of cost which will achieve the required profit margin ? Correct Answer 0.1765 Purchased goods by paying Rs.35,000/-: In this case, the cash account should be debited. Correct Answer True Your Answer False 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.1,100/- (Favourable) Select The Blank Question The process of recording the business transactions in a defined set of records is referred to as ________. Correct Answer Balance sheet Your Answer Balance sheet True/False Question In the ledger account only credit entries relating to a particular account are posted. Correct Answer False Your Answer False True/False Question Error of commission refer to a situation where a transaction is not recorded in the books of account. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question The selection of the supplier may depend upon the following aspects: Correct Answer Geographical location of the supplier , Price quoted by the supplier , Goodwill of the supplier Your Answer Geographical location of the supplier , Price quoted by the supplier , Goodwill of the supplier Multiple Choice Single Answer Question Which system involves adoption of same costing principles, practices and procedures by the individual firms of an industry ? Correct Answer Uniform costing Your Answer Uniform costing True/False Question Predetermined rate of absorption of overheads helps in quick preparation of cost estimates and quoting prices. Correct Answer True Your Answer False

True/False Question Idle capacity and idle time mean one and the same thing. Correct Answer False Your Answer False 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/Your Answer The gross profit will increase by Rs.6,450/Select The Blank Question Payment by ________ method lowers the cost of production through their impact on fixed costs. Correct Answer Results Your Answer Time Multiple Choice Single Answer Question The overheads of a machine shop X should be apportioned using which of the following basis? Correct Answer Machine hours Your Answer Direct labour cost Multiple Choice Multiple Answer Question Features of convention of conservation are . . . Correct Answer Anticipates all future losses and expenses , Ignores all future incomes and profits, unless they are actually realised , Applicable to valuation of current assets Your Answer Anticipates all future losses and expenses , Applicable to valuation of current assets , Applicable to valuation of non-current asset Multiple Choice Multiple Answer Question Merits of break even point analysis are as follows: Correct Answer Useful diagnostic tool. , Used for analysing the risk implication of alternative actions. , Used to graphically represent complicated data. Your Answer Useful diagnostic tool. , Used for analysing the risk implication of alternative actions. , Useful in the long run. True/False Question Narration must be mentioned in the ledger. Correct Answer False Your Answer True True/False Question The actual hours taken by the labour are compared with the standard hours allowed for output to find out the labour yield variance. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question The features of multiplicity of key factors are as follows : Correct Answer More than one key factors , Refers to a complex situation , Can be resolved by using linear programming technique Your Answer More than one key factors , Refers to a complex situation , Can be resolved by using linear programming technique Multiple Choice Single Answer Question Included in the trial balance is the sales promotion suspense account with a debit balance of Rs.6,300/-. It is given that this balance should be written off. Calculate its impact on profit of the company. Correct Answer The net profit will decrease by Rs.6,300/Your Answer The gross profit will decrease by Rs.6,300/Multiple Choice Multiple Answer Question Items credited to Profit & Loss Account are Correct Answer Gross profit , Commission received , Interested received Your Answer Gross profit , Commission received , Interested received 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 Your Answer Units produced , Production cost , Material cost, selling cost and overheads 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 , Maintaining secrecy of the data collected Select The Blank Question Goods returned to the suppliers from whom it was ________d is recorded in thePurchasereturn register. Correct Answer Purchase Your Answer Purchase Select The Blank Question Profit volume ratio is also known as ________. Correct Answer Contribution to sales ratio Your Answer Sales to contribution ratio

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 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 Select The Blank Question Marginal costing is also known as ________. Correct Answer Variable costing Your Answer Variable costing Multiple Choice Multiple Answer Question Select the examples of functional budgets: Correct Answer Sales budget , Production budget , Research and development budget Your Answer Sales budget , Production budget , Research and development budget Multiple Choice Single Answer Question A firm has purchased a plant to manufacture a new product, the cost data for which is given below : Estimated annual sales 24,000 units. Estimated costs : Materials Rs.4/- per unit; labour Re.0.60 per unit; overheads Rs.24,000/- per year; administrative expenses Rs.28,800/- per year and selling expenses are 15% of sales; Calculate the selling price per unit if profit per unit is Rs.1.02. Correct Answer Rs.9.20/Your Answer Rs.7.74/Multiple Choice Single Answer Question A worker 12 hours on a scheme of payment by results. His day rate is Rs.150/- an hour, the material cost of the product is Rs.600/- and the overheads are recovered at 15% of the total direct wages. Calculate the factory cost of the product under the piece rate work plan. Correct Answer Rs.2,670/Your Answer Rs.2,850/Match The Following Question Correct Answer Your Answer Change in profit/ Change in activity level Profit volume ratio Profit volume ratio Change in total cost/ Change in activity level Variable cost per unit Total contribution Total sales X Profit volume ratio Total contribution Variable cost per unit Selling price ( Actual sales Break even sales) Margin of safety Margin of safety Select The Blank Question Preparation of direct material ________ budget is the responsibility of the Purchase manager. Correct Answer Purchase Your Answer Purchase 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 False Select The Blank Question ________ system of wage payment is a combination of Halsey system and Gantt system. Correct Answer Diemer Your Answer Barth premium 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 The credit side of the sales book was overcast by Rs.2,000/-. As a result of this rectification, what of the given impacts is likely to happen? Correct Answer The liability side of the balance sheet will increase by Rs.2,000/Your Answer The liability side of the balance sheet will increase by Rs.2,000/Select The Blank Question The method of overhead apportionment which considers both the material cost as well as the labour cost, is known as ________ method. Correct Answer Prime cost percentage rate Your Answer Prime cost percentage rate 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 shop-floor workers Match The Following Question Correct Answer Your Answer

Normal Standards Anticipated to be achieved in future Once established can never be altered Basic Standards Established for a longer period of time Anticipated to be achieved in the budget period Current Standards Established for a shorter period of time Anticipated to be unachievable in future Expected Standards Anticipated to be achieved in the budget period Established for a shorter period of time 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 Multiple Answer 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 Multiple Choice Single Answer Question If a predetermined overhead rate is not employed an the volume of production is increased over the level planned, the cost per unit would be expected to : Correct Answer Decrease for fixed costs and remain unchanged for variable costs Your Answer Remain unchanged for fixed costs and increase for variable costs Multiple Choice Single Answer Question If the overhead expenditure to be absorbed is the foremans salary, the most appropriate basis for absorption would be : Correct Answer Direct labour hours Your Answer Weight of material 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 Job costing 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 Current liabilities True/False Question The bin card and stores ledger, being independent records, comparison of these two records should be avoided. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question Accounting is the art where transactions are Correct Answer Summarized , Classified , Recorded Multiple Choice Single Answer Question Goods kept in the godown were destroyed by fire on 18th June, 2004. The cost of such goods was Rs.18,950/-. The goods were not insured. Find the amount which should be debited to the profitability statement. Rs.18,950/Rs.18,950/-

Correct Answer Your Answer

Multiple Choice Single Answer Question The cost behaviour patterns for a company is as follows : Activity level: 500 units, the total cost is Rs.2,500/-; Activity level : 700 units, the total cost is Rs.3,100/-; Activity level: 900 units, the total cost is Rs.4,600/- If fixed cost remains unchanged throughout all activity levels, which of the following statements is true in relation to the cost behaviour? Variable cost per unit is increases above 700 units. Total average cost per unit is constant for all activity levels.

Correct Answer Your Answer

True/False Question Correct Answer Your Answer Bank reconciliation statement must be prepared before the preparation of profit and loss account and balance sheet. True False

True/False Question Correct Answer Your Answer Lack of efficient control on various aspects related to raw-material increases the material cost component of the finished product. True False

Multiple Choice Multiple Answer Question Correct Answer Your Answer Items credited to Trading Account are :Sales , Goods lost by fire , Closing stock Sales , Goods lost by fire , Closing stock

Select The Blank Question Correct Answer Your Answer If the firm is operating with zero margin of safety, decline of even a single unit in sales will result in ________. Loss Net profit

Select The Blank Question Correct Answer Your Answer Purchase day book for the month of April was under cast by Rs.1000/- ________ account should be credited. Suspense Purchase

Multiple Choice Single Answer Question The profit volume ratio of X Ltd. is 50% and the margin of safety to sales ratio is 40%. You are required to calculate the net profit if sale volume is Rs.100,000/Rs.20,000/Rs.10,000/-

Correct Answer Your Answer

Select The Blank Question Correct Answer Your Answer The process of attributing proportions of items of costs amongst cost centres is called ________. Cost apportionment Absorption of indirect costs

Multiple Choice Single Answer Question Purchases included an amount of Rs. 25,450/representing purchase of computer. The rate of depreciation is 10% for computers. Calculate the net effect of this transaction on the profitability statement. Net profit will increase by Rs.22,905/Net profit will decrease by Rs.22,905/-

Correct Answer Your Answer

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

Select The Blank Question Correct Answer Your Answer 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. Lesser than Equal to

Multiple Choice Single Answer Question What is the balance of the cash account after considering the relevant transactions from the following set : 4th July, 2004-Sold goods to Deshmukh & Co. for Rs.2,500/-; 5th July, 2004Received Rs.5,000/- for rent of June, 04; 7th July, 2004-Paid salaries by cheque for Rs.8,000/-; 15th July, 2004-Received commission, in cash, from XYZ Ltd., Rs.3,000/-; 21st July, 2004-Paid salaries by cash Rs.2,500/-; 22nd July, 2004-Deposited cash into Bank of India Rs.3,000/-; 25th July, 2004Purchased furniture from Shantilal for Rs.10,000/-. Shantilal has given a credit period of 45 days; 26th July, 2004-Paid cash for purchase of machine from Elpro Ltd. For Rs.30,000/-; 28th July, 2004-Paid ready cash for advertisement inserted in newspaper, Rs.200/-; 28th July, 2004-Withdrawn cash from Bank of India Rs.50,000/-.

Correct Answer Your Answer

Rs.22,300 (debit) Rs.33,200 (debit)

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. The gross profit will increase by Rs.6,450/The gross profit will not be affected

Correct Answer Your Answer

Multiple Choice Multiple Answer Question Correct Answer Your Answer Inventory holding cost comprises of :Cost of insurance , Rent of store house , Salary of store keeper Cost of insurance , Cost of material

Select The Blank Question Correct Answer Your Answer The handloom industry will have ________ fixed cost and high variable cost. Low Low

Select The Blank Question Correct Answer Your Answer Collection charges of Rs.4/- on a cheque received from Calcutta should be ________ in the bank book. Credited Added

Multiple Choice Single Answer Question A producer of tin boxes purchased 5,000 kg of tin sheet for Rs.50,000/- for producing large size tin boxes. 1,600 large boxes, each weighing 2 kg were manufactured. In addition to the above 400 large boxes were damaged in the course of manufacture. Rectification of these boxes amounted to Rs.1,000/-. 700 kg of off cuts were used for producing small tin boxes. Market value of these off cuts is Rs.5/- per kg. 250 kgs of off cuts were sold @ Rs.3/- per kg. Other costs Rs.9,400/- were apportioned in the ratio of weight of output. Calculate cost of each large sized tin box assuming that there are no opening and closing stocks.

Correct Answer Your Answer

Rs.27.38 Rs.27.38

Match The Following

Question Correct Your Answer Answer Ledger Maintain Maintain all types all types of of accounts accounts Audit Reviewing Process of internal analyzing & control interpretation system Accounting Process of Process of analyzing & estimating interpretation profits Journal Book of Book of original original entry entry
Multiple Choice Multiple Answer Question Correct Answer Your Answer Piece rate systems are very useful in the following circumstances:Units of output are measurable , Job is standardized , The flow of work is regular Work delays are frequent , Job is standardized , The flow of work is regular

True/False Question Correct Answer Your Answer Time-keeping facilitates the preparation of payroll. True True

Multiple Choice Multiple Answer Question Correct Answer Your Answer From the following select the examples of errors of commission :Sales recorded in the sales register as Rs.2,020/instead of Rs.2,200/- , Received cash from Sham, credited to Rams account , Paid transport charges, credited to transport charges account Sales recorded in the sales register as Rs.2,020/instead of Rs.2,200/- , Received cash from Sham, credited to Rams account , Paid transport charges, credited to transport charges account

True/False Question Correct Answer Your Answer Overhead absorption is an exercise by which overhead is properly spread over production for the period. True False

Select The Blank Question Correct Answer Your Answer The final result disclosed by trading account is the ________ profit earned by the organization. Gross Gross

True/False Question Correct Answer Your Answer The bin card and stores ledger, being independent records, comparison of these two records should be avoided. False True

Select The Blank Question Correct Answer Your Answer Goods returned by Pawan worth Rs.1,000/- is debited to Pawans Account. In order to rectify the mistake, ________ account should be debited. Suspense Suspense

Select The Blank Question Correct Answer Your Answer Financial Accounting considers those transactions which can be expressed in terms of ________. Money Money

Multiple Choice Single Answer Question A producer has the option to procure a particular material from two sources: Source A assures that the defectives will not exceed 2% of the supplied quantity. Source B does not give any assurance, but on the basis of past experience of supplies from this source, it is observed that defective percentage is 2.8%. The material is supplied in lots of 1,000 units by both sources. Source B supplies the lot at a price, which is lower by Rs.100/- as compared to Source A. The defective material units can be rectified at a cost

Correct Answer Your Answer

of Rs.5/- per unit. Which of the two sources is more economical? Source B is more economical Source B is more economical

Select The Blank Question Correct Answer Your Answer Under Bedaux Point system the standard time is divided into standard minutes and each standard minute identified as ________. Bedaux point or B Bedaux point or B

Multiple Choice Single Answer Question A company had incurred fixed expenses of Rs.225,000/- with sales of Rs.750,000/- and earned a profit of Rs.150,000/- during the first month. In the second month, it suffered a loss of Rs.75,000/-. You are required to calculate the margin of safety for the first month. Rs.300,000/Rs.300,000/-

Correct Answer Your Answer

Multiple Choice Single Answer Question Correct Answer Your Answer An important feature of cost accounting is : Focuses attention on the profitability of each product and service. Focuses attention on the profitability of each product and service.

Select The Blank Question Correct Answer Your Answer Generally all the liabilities will have ________ balance. Credit Credit

Multiple Choice Single Answer Question Correct Answer Your Answer Balance sheet is statement of :All Assets and Properties All Assets and Properties

Match The Following

Question Correct Your Answer Answer Daily Time Time Time spent by spent by sheets worker worker on on job is job is recorded recorded Time Recording Recording Keeping of workers of workers Department time time Time Jobwise Jobwise booking booking booking department of time. of time. Time Ticket Ticket Recording number number Clock & clock & clock Method card card allotted allotted to to worker worker
True/False Question Correct Answer Your Answer High time wages means necessarily high cost of production. False False

True/False Question Correct Answer Your Answer The effect of price reduction is always reduction in the margin of safety and also reduction in the break even point. False False

Multiple Choice Single Answer Question Correct Answer Your Answer Product costs under direct costing include:Prime cost and variable factory overheads Prime cost, variable and fixed factory overheads

True/False Question While passing the journal entry, it is of utmost importance to ensure that the total of amount

Correct Answer Your Answer

debited is equal to the total of the amount credited. True True

Multiple Choice Single Answer Question Correct Answer Your Answer Which document is a part of the perpetual inventory system? Bin card Material requisition note

Multiple Choice Multiple Answer Question Correct Answer Your Answer Which of the formulae can be used to calculate profit volume ratio :Change in contribution / Change in sales , 1 (Change in variable cost / Change in sales) , (Fixed cost + Profit) / Sales Change in contribution / Change in sales

Multiple Choice Multiple Answer Question Correct Answer Your Answer Features of Sunk cost are :Indicates historical cost , Not relevant in decision making process , Incurred in past Indicates historical cost , Not relevant in decision making process , Incurred in past

True/False Question Correct Answer Your Answer The phrase By Balance c/d. written on the credit side of the rent account, indicates credit balance for this account. False True

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. Debtors A/c .Dr. Rs.200/- to bad debts recovered A/c Rs.200/- , Rs.6,000/- to Raos A/c Rs.6,000/- , Rs.250/- to General Expenses A/c Rs.250/Debtors A/c .Dr. Rs.200/- to bad debts recovered A/c Rs.200/- , Rs.250/- to General

Correct Answer Your Answer

Expenses A/c Rs.250/-

Multiple Choice Multiple Answer Question Correct Answer Your Answer A materials requisition form normally contains the following aspects:Quantity requisitioned , Per unit material cost , Job number Quantity requisitioned , Per unit material cost , Job number

True/False Question Correct Answer Your Answer Predetermined rate of absorption of overheads helps in quick preparation of cost estimates and quoting prices. True False

Multiple Choice Multiple Answer Question Correct Answer Your Answer Select the steps to be followed while preparing bank reconciliation statement :Compare the transactions in the bank book and the pass book , Check the totals and the balancing of both the books , Confirm that the opening balances of both the books are tallying Compare the transactions in the bank book and the pass book , Confirm that the opening balances of both the books are tallying , Confirm that the closing balances of both the books are tallying

Multiple Choice Multiple Answer Question Correct Answer Your Answer Select the advantages of standard cost system :Provides reliable basis for budgeting , Facilitates delegation of authority , Promotes economy and efficiency Provides reliable basis for budgeting , Facilitates delegation of authority , Promotes economy and efficiency

Multiple Choice Multiple Answer Question The objects of cost accountancy are :Correct To ascertain cost and profitability , Cost Control Answer , Presentation of Information Your To ascertain cost and profitability , Cost Control Answer , Presentation of Information Multiple Choice Multiple Answer Question Management accounting is concerned with the following activities :Correct Decision making , Safeguarding assets ,

Answer Planning and controlling activities Your Decision making , Planning and controlling Answer activities Multiple Choice Multiple Answer Question Features of material usage variance are :Correct Measures the difference between the quantity of Answer materials actually used and that should have been used. , Considers standard price X actual quantity , Considers standard price X standard quantity Your Measures the difference between the quantity of Answer materials actually used and that should have been used. , Considers standard price X actual quantity , Considers standard price X standard quantity True/False Question Under the accelerating premium system incentive increases at a fast rate with the decrease in output. Correct False Answer Your False Answer True/False Question If the physical stock is less than the stock as per the stores ledger, such shortage should be treated as an issue of material. Correct True Answer Your False Answer Multiple Choice Single Answer Question An analysis of the time card of a worker on a machine shows that of the total 48 hours, he worked 45 hours (including 4 hours overtime) on production and that 3 hours was idle due to machine break-down. The rate of the worker is rupees ten per hour : but overtime is paid at 50 per cent extra. You are required to calculate the earnings of the worker. Correct Rs.500/Answer Your Rs.500/Answer True/False Question Predetermined rate of absorption of overheads helps in quick preparation of cost estimates and

quoting prices. Correct True Answer Your True Answer 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 Over-absorbed Answer Your Under-absorbed Answer Select The Blank Question A worker is paid a monthly salary of Rs.500/along with a bonus of 50 paise per unit completed, this type of labour cost may be classified as ________ cost. Correct Semi-variable Answer Your Semi-variable Answer Select The Blank Question Goods purchased from A for Rs.2,020/- were passed through the sales book. The rectification of this error will result in ________. Correct Decrease in gross profit by Rs.2,020/Answer Your Increase in gross profit by Rs.2,020/Answer True/False Question High time wages means necessarily high cost of production. Correct False Answer Your False Answer Multiple Choice Multiple Answer Question The management of Dick Ltd. is deciding whether to buy component Y from the supplier, since the purchase cost is less than the manufacturing cost. State the non-financial aspects that must be considered before arriving at a decision :Correct Reliability regarding quality of the material Answer supplied by the supplier , Alternative use of

labour of engaged in manufacturing component Y , Regularity of material supplies from the supplier Your Reliability regarding quality of the material Answer supplied by the supplier , Alternative use of labour of engaged in manufacturing component Y , Regularity of material supplies from the supplier 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 Long term liabilities Answer Your Long term liabilities Answer Select The Blank Question Interest receivable is a________ for the organization. Correct Current asset Answer Your Current asset Answer True/False Question Period cost is the cost assigned to the products. Correct False Answer Your True Answer Multiple Choice Single Answer Question A new computer worth Rs.35,000 was purchased on 18th June, 2003. The company has 10 such computers costing Rs.20,000/- each. The depreciation is charged @ 18% p.a. Find the depreciation on computers to be charged for the year. Correct Rs.40,953.70 Answer Your Rs.40,953.70 Answer Multiple Choice Single Answer Question The direct material usage budget and direct material purchase budget differ because of which of the following? Correct A planned change in the level of material stock Answer Your The level of efficiency of men or machines

Answer True/False Question New companies can adopt Uniform costing system as a ready-made system. Correct True Answer Your True Answer Multiple Choice Multiple Answer Question Pre-requisites of Uniform Costing are :Correct Spirit of mutual trust , Free Exchange of ideas , Answer No rivalry Your Free Exchange of ideas , No rivalry , Spirit of Answer mutual trust Multiple Choice Multiple Answer Question The principal functions of the cost accounting department are :Correct Classifying labour cost according to jobs, Answer processes, etc. , Preparation of different reports based on direct, indirect labour cost, etc. , To focus on areas where labour cost may be reduced. Your Classifying labour cost according to jobs, Answer processes, etc. , Preparation of different reports based on direct, indirect labour cost, etc. , To focus on areas where labour cost may be reduced. Multiple Choice Multiple Answer Question In which of the following situations, the flexible budget should be preferred? Correct Sales are too difficult to predict , Supply level of Answer input cannot be predicted , Varying levels of production activity Your Sales are too difficult to predict , Supply level of Answer input cannot be predicted , Varying levels of production activity Multiple Choice Single Answer Question Select the information to be considered before installing a costing system :Correct Labour intensity of the product Answer Your Number of workers required Answer 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 Rs.200,000/Answer Your Rs.231,000/Answer Multiple Choice Single Answer Question As on 31st March, 2004, it was decided to write off Rs.800/- of debtors as bad debts. Also, provision for bad and doubtful debts is to be made @ 5% and for discount on debtors @ 4%. Find the net amount of debtors to be disclosed in the balance sheet, if the total debtors before the aforesaid adjustments is Rs.98,623/-. Correct Rs.89,214.58 Answer Your Rs.88,285.26 Answer Select The Blank Question Payment by ________ method lowers the cost of production through their impact on fixed costs. Correct Results Answer Your Time Answer Multiple Choice Multiple Answer Question Which of the following aspects are mainly responsible for difficulty in application of Uniform costing system? Correct Capital investment , Plant size , Location Answer Your Capital investment , Plant size , Location Answer Select The Blank Question The most appropriate method for apportionment of overheads of the purchasing and stores department is percentage on ________. Correct Direct Material Answer Your Direct Material Answer Multiple Choice Single Answer Question Judge the given statement according to the given criteria :- Provision for doubtful debts account

and provision for discount on debtors account mean same account can be maintained under two account-heads, since both are related to debtors and indicate a loss to the organization. Correct The statement is incorrect but the reason is Answer correct Your The statement and the reason both are incorrect Answer Multiple Choice Multiple Answer Question Following errors affect the trial balance :Correct Wrong totaling of subsidiary books , Posting on Answer the wrong side of an account , Omission of posting an account in the ledger Your Wrong totaling of subsidiary books , Posting on Answer the wrong side of an account , Omission of posting an account in the ledger Select The Blank Question If the owner brings in personal calculator for office use, ________ account should be credited. Correct Capital Answer Your Cash Answer Multiple Choice Multiple Answer Question From the following select the examples of errors of commission :Correct Sales recorded in the sales register as Rs.2,020/Answer instead of Rs.2,200/- , Received cash from Sham, credited to Rams account , Paid transport charges, credited to transport charges account Your Sales recorded in the sales register as Rs.2,020/Answer instead of Rs.2,200/- , Received cash from Sham, credited to Rams account , Paid transport charges, credited to transport charges account Select The Blank Question A ________ can be defined as a part of the organization for which separate budget can be prepared and implemented. Correct Budget centre Answer Your Budget centre Answer Multiple Choice Single Answer Question Net sales Rs,7,50,000/-, opening stock

Rs.1,14,375/-, purchases Rs.483,375/- and closing stock Rs.1,47,750/-. Calculate the Gross Profit. Correct Rs.3,00,000/Answer Your Rs.3,00,000/Answer True/False Question Profitability statement is a period statement & provides information about the results of operations. Correct True Answer Your True Answer Select The Blank Question The method of overhead apportionment which considers both the material cost as well as the labour cost, is known as ________ method. Correct Prime cost percentage rate Answer Your Prime cost percentage rate Answer Multiple Choice Single Answer Question Net profit for the year before charging commission to the manager, is Rs.111,775/-. The manager of the company is entitled to commission @ 8% on net profits after charging commission. Find the amount of commission due to the manager. Correct Rs.8,279.63 Answer Your Rs.8,942/Answer Multiple Choice Single Answer Question A manufacturer is producing alloy for which standard mix is 25% copper and 75% iron. Standard price for copper is Rs.80/- per kg. and for iron Rs.20/- per kg. 20% of input is standard loss. Actual output is 8,000 kg. of alloy using 2,000 kg of copper at Rs.90/- per kg. and 9,000 kg of iron at Rs.15/- per kg. Calculate the standard cost of copper. Correct Rs.200,000/Answer Your Rs.150,000/Answer

True/False Question Cheque received from a client on 28th September, 2004 must be entered in the bank book only after it is credited in the pass book. Correct False Answer Your False Answer Multiple Choice Multiple Answer Question The various areas in which uniform costing can be adopted are :Correct Valuation of inventories , Charging of Answer depreciation , Apportionment of overheads Your Valuation of inventories , Charging of Answer depreciation , Apportionment of overheads 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 directors remuneration worked out to be Rs.95,784/-. Find the net profit for the year 2004. Correct Rs.75,981/Answer Your Rs.75,981/Answer True/False Question The purpose of the profit and loss account is to bring together information which relates to gross profit and the expenses for running the business. Correct True Answer Your True Answer Match The Following Question Correct Your Answer Answer Ledger Maintain Maintain all types all types of of accounts accounts Audit Reviewing Reviewing internal internal control control system system Accounting Process of Process of analyzing & analyzing & interpretation interpretation

Journal Book of Book of original original entry entry Match The Following Question Correct Your Answer Answer Daily Time Time Time spent by spent by sheets worker worker on job is on job is recorded recorded Time Recording Recording Keeping of workers of workers Department time time Time Jobwise Jobwise booking booking booking department of time. of time. Time Ticket Ticket Recording number number Clock & clock & clock Method card card allotted allotted to to worker worker Multiple Choice Multiple Answer Question Items credited to Profit & Loss Account are :Correct Gross profit , Commission received , Interested Answer received Your Gross profit , Commission received , Interested Answer received True/False Question For a manufacturing company, dividend received is a non-operating income. Correct True Answer Your False Answer Select The Blank Question A standard that is never altered, after being established, is known as ________ standard. Correct Ideal Answer Your Basic Answer Multiple Choice Single Answer Question Rs.2,650/- were paid to ABC Ltd. for maintenance of machine; which account should

be debited for this transaction? Correct Maintenance of machine account Answer

Multiple Choice Multiple Answer Question Correct Answer Cost Accounting ______________.

Concerned with specific activities. , Classified according to their nature. , It deals with both i.e. past & present. Your Answer Concerned with specific activities. , Classified according to their nature. , It covers whole business

Multiple Choice Multiple Answer Question Correct Answer Management Accounting __________________.

Designed particularly for internal use only. , Looks forward in estimating the future along with past period. , This furnishes the necessary information to management. Your Answer Designed particularly for internal use only. , Looks forward in estimating the future along with past period. , This furnishes the necessary information to management. , Only a, b, c.

Multiple Choice Multiple Answer Question Accounting is the art of ______________,____________ and ____________ in a significant manner and in terms of money transactions and events which are of a financial character and interpreting the res Summarizing , Classifying , Recording

Correct Answer Your Answer Summarizing , Classifying , Recording

Multiple Choice Multiple Answer Question The process of accounting has three streams of accounting ,and -. Correct Financial Accounting , Cost Accounting , Answer Management Accounting Your Answer Financial Accounting , Cost Accounting , Management Accounting

Match The Following

Question Correct Your Answer Answer Personal Debit the Debit the A/C receiver, receiver, Credit Credit the the giver giver Real A/C Debit Debit what what

comes in,comes in, Credit Credit what what goes out goes out Nominal Debit all Debit all A/C the the expenses, expenses, Credit all Credit all the the incomes incomes Tangible Building, Building, assets Machinery Machinery In Patents, Patents, tangible Trade Trade assets marks marks
True/False Question Credit note is an intimation send to person dealing with the business that his account being debited for the purpose indicated therein. False

Correct Answer Your Answer True

True/False Question Amount invested in purchasing Fixed Asset is a revenue expenditure. False

Correct Answer Your Answer False

True/False Question As per double entry system o accounting , total of all debits should be equal to all credits. True

Correct Answer Your Answer True

Multiple Choice Multiple Answer Question Convention of Consistency Materiality ________________ Correct The accounting policies & procedures should Answer follow consistently on period to period , It facilitates the comparison of financial statements on period to period , If any change the fact should be disclosed with its effects on profitability Your Answer The accounting policies & procedures should follow consistently on period to period , It facilitates the comparison of financial statements on period to period , If any change the fact should

be disclosed with its effects on profitability

Multiple Choice Multiple Answer Question Cash andare the two systems of accounting. Mercantile

Correct Answer Your Answer Mercantile

Multiple Choice Single Answer Question The opening balance of cash account is Rs. 25,000, cash received from debtors Rs. 30,000, sold goods amounted to Rs. 50,000, paid to creditors Rs. 20,000, purchase furniture Rs. 5000. What is the clos 80,000

Correct Answer Your Answer 80,000

Multiple Choice Single Answer Question Bank Reconciliation statement is required in case of Correct difference between the bank balance as per the Answer bank book and as per pass book Your Answer difference between the bank balance as per the bank book and as per pass book

Match The Following

Question Correct Your Answer Answer Error of Trial Wrong Principle Balance Posting does not get affected Error of The The Omission transaction transaction is totally is totally omitted omitted Error of Wrong Wrong commission Posting classification Compensating Wrong Trial Error classification Balance does not get affected Difference Transferred Transferred in trial to suspense to suspense balance account account

Multiple Choice Multiple Answer Question Direct Cost includes

Correct Direct material , Direct labour , Direct expenses Answer Your Answer Direct material , Direct labour , Direct expenses

Multiple Choice Single Answer Question Labour cost indicates that labour cost which cannot be identified with the individual cost centre and is incurred for those employees who are not engaged in the manufacturing process but only assist i Remuneration

Correct Answer Your Answer Indirect

Multiple Choice Multiple Answer Question The Prime Cost includes the aggregate of

Correct Direct Material Cost , Direct Labour Cost , Direct Answer Expenses Your Answer Direct Material Cost , Direct Labour Cost , Direct Expenses

Multiple Choice Multiple Answer Question From the following particulars what must appear in purchase requisition Correct Material to be purchased should be cleanly Answer specified , Material should purchase whenever the market for the same is favorable , Purchase requisition should state the quantity of material required. Your Answer Material to be purchased should be cleanly specified , Purchase requisition should state the quantity of material required.

Multiple Choice Multiple Answer Question Following points are taking into consideration for evaluation of receipts Correct The Price , The trade discount is to be deducted , Answer Other amounts such as sales tax, excise duty, octroi duty Your Answer The Price , The trade discount is to be deducted , Other amounts such as sales tax, excise duty, octroi duty

Multiple Choice Multiple Answer Question While fixing the maximum level following factors are considered

Correct Maximum usage , Storage facilities , Availability of Answer funds Your Answer Maximum usage , Rate of consumption

True/False Question Fixed cost tends to vary with time rather than with level of activity. True

Correct Answer Your Answer True

True/False Question To take make or buy decision under the marginal costing , if purchase price of the product is less than its variable cost it is advisable to go for manufacturing proposition. False

Correct Answer Your Answer False

Multiple Choice Single Answer Question Find out the break even point and profit if sales are Rs. 50,00,000 and P/V Ratio is 50% and margin of safety is 40% Rs.30,00,000 and Rs.10,00,000

Correct Answer Your Answer Rs.30,00,000 and Rs.10,00,000

True/False Question For better control, variances of a period may be compare with the previous period. True

Correct Answer Your Answer True

True/False Question Expected standards are more realistic and useful for cost control. True

Correct Answer Your Answer True

True/False Question The difference between standard cost and actual cost is termed as Variance.

Correct True Answer Your Answer True

Multiple Choice Multiple Answer Question For reporting of variance, following propositions should be considered Correct Responsibility of each individual should be defined Answer , Reporting should be simple, clear and quick , Analysis of variance should be accurate. Your Answer Responsibility of each individual should be defined , Reporting should be simple, clear and quick , Analysis of variance should be accurate.

Multiple Choice Multiple Answer Question Basic three steps in Standard Costing are

Correct Setting standards , Comparing actuals with Answer standards , Measurement of variance Your Answer Setting standards , Comparing actuals with standards , Measurement of variance

Multiple Choice Single Answer Question Find out Labour Efficiency Variance, if Standard Rate is Rs.1.50/- per hour, Standard hours are 12,000 and Actual hours are 12,600. Rs.900/- ( Adverse )

Correct Answer Your Answer Rs.900/- ( Adverse )

Multiple Choice Single Answer Question Standard costs are the targets to be attained by the actual performance. Minimum

Correct Answer Your Answer Minimum

Multiple Choice Single Answer Question Standard Costs are used as tool for

Correct Cost Control Answer Your Answer Cost Control

Select The Blank Question Accounting to the matching principles of accounting, the ________ incurred during an accounting period are required to be match with

________ during that period Correct cost Answer Your Answer cost Correct revenues Answer Your Answer revenues

Select The Blank Question Along with financial accounting, ________ and ________ are the other streams of accounting Cost Accounting

Correct Answer Your Answer Management Accounting Correct Management Accounting Answer Your Answer Cost Accounting

Select The Blank Question If the revenue expenditure is treated as ________ expenditure , it will not affect the agreement of ________ balance capital

Correct Answer Your Answer capital Correct trial Answer Your Answer trial

Select The Blank Question While selecting source of supply ________ epartment may call for the ________ from the prospective suppliers purchase

Correct Answer Your Answer purchase

Correct quotation Answer Your Answer quotation

Select The Blank Question After material is received from the supplier, quantity actually received is compared with quantity ________-and ________-if any, are taken up with the supplier ordered

Correct Answer

Your Answer ordered Correct variation Answer Your Answer variation

Select The Blank Question Under the daily ________ sheets method, each worker is provided with a daily time sheet on which time ________ by him on various jobs is expected to be mentioned time

Correct Answer Your Answer work

Correct spent Answer Your Answer spent

Select The Blank Question 4.Under the differential time rate method the wages are paid at Rs. 1.50 per hour between ________ efficiency and Rs.1.25 per hour between ________ efficiency 101% to 125 %

Correct Answer Your Answer 90-100

Correct 80% to90% Answer Your Answer 101% to 125 %

Select The Blank Question Under Gannt Task bonus system where the output is ________ payment is made as per minimum time rate, output is ________ payment is made as per time wages plus some increase in wage rates below standard

Correct Answer Your Answer below standard Correct at standard Answer Your Answer at standard

Select The Blank Question Correct Answer ________ and ________ are examples of element wise classification ofoverhead costs Idirect material

Your Answer Idirect material Correct indirect labour Answer Your Answer selling overheads

Select The Blank Question Fixed cost is the cost that tend to remain ________ irrespective of ________ constant

Correct Answer Your Answer constant

Correct level of activity Answer Your Answer level of activity

Select The Blank Question The process of Allocation & apportionment can followed to decide the ________ of overheads to each budget center Allocation & apportionment

Correct Answer Your Answer Distribution Correct Loading Answer Your Answer

Multiple Choice Multiple Answer Question Essentials for effective implementation of budgetary control system are Correct Commitment of top management , Answer Clearly defined objectives , Continous budget education Your Commitment of top management , Answer Clearly defined objectives , Continous budget education Multiple Choice Multiple Answer Question Features of convention of consistency are . . . Correct The accounting policies and Answer procedures should be followed consistently , Facilitates the comparison of financial statements , It facilitates comparison of financial statements on period-to-period basis Your The accounting policies and Answer procedures should be followed consistently , It facilitates comparison of financial statements on period-to-

period basis True/False Question The bin card and stores ledger, being independent records, comparison of these two records should be avoided. Correct False Answer Your False Answer Match The Following Question Correct Your Answer Answer Dividend Profit and Profit paid loss and loss appropriation account account Freight Manufacturing Manufacturing inwards account account Sales Trading Capital account account Freight Profit Trading outwards and loss account account Select The Blank Question Large angle of incidence indicates ________ amount of profits. Correct higher Answer Your same Answer True/False Question Error of commission refer to a situation where a transaction is not recorded in the books of account. Correct False Answer Your True Answer Multiple Choice Single Answer Question Relevant costs in decision making are : Correct Those costs which will arise as a result Answer of the proposed action Your Those costs which will arise as a result Answer of the proposed action Select The Blank Question ________is the summary of all the

Correct Answer Your Answer

balances in all the accounts listed in ledger account of an organization at any given point of time. Trial Balance Trial Balance

Multiple Choice Multiple Answer Question Overhead capacity variance is the outcome of: Correct Shortage of labour , Enforced idle Answer time, e.g.power breakdowns , Customer demand being more or less than anticipated Your Shortage of labour , Enforced idle Answer time, e.g.power breakdowns , Customer demand being more or less than anticipated True/False Question Factory overheads consist of all overhead costs incurred from the stage of procurement of material till the production of finished goods. Correct True Answer Your True Answer True/False Question Bank reconciliation statement must be prepared before the preparation of profit and loss account and balance sheet. Correct True Answer Your True Answer Multiple Choice Single Answer Question Included in the trial balance is the sales promotion suspense account with a debit balance of Rs.6,300/-. It is given that this balance should be written off. Calculate its impact on profit of the company. Correct The net profit will decrease by Answer Rs.6,300/Your The gross profit will increase by Answer Rs.6,300/-

Select The Blank Question In calculation of total sales margin variance, the ________cost of sales is deducted from the actual sales revenue. Correct Standard Answer Your Actual Answer Match The Following Question Correct Your Answer Answer Increase in Increase Increase contribution in in profit will lead to profits volume ratio Increase Increase Decrease in in fixed in break contribution cost will even lead to point Decrease Increase Increase in in profit in variable volume profits cost will ratio lead to Decrease Decrease in Increase in selling contribution in break price will even lead to point Multiple Choice Multiple Answer Question Marginal costing technique is useful in taking decisions relating to which of the following courses of action? Correct Decision to drop a product line , Answer Decision to accept a special offer at price lower than the normal selling price , Decision regarding temporary shut-downs Your Decision to drop a product line , Answer Decision to accept a special offer at price lower than the normal selling price , Decision to accept a special offer at price higher than the normal selling price , Decision regarding temporary shut-downs Multiple Choice Single Answer Question Basic objective of Uniform Costing is . .. Correct comparison Answer

Your Answer

To control cost

Select The Blank Question Re-order level should be higher than ________ but lesser than maximum stock level. Correct Minimum level Answer Your Minimum level Answer True/False Question The variable costs are controllable at the lower lever. Correct True Answer Your False Answer Select The Blank Question Economical use of labour, materials and facilities can achieved with the help of ________. Correct Budgetary control Answer Your Budgetary control Answer Select The Blank Question Goods returned by Pawan worth Rs.1,000/- is debited to Pawans Account. In order to rectify the mistake, which account should be debited ? ________ Correct Suspense account Answer Your Personal account Answer True/False Question The purchase account should be debited when an order is placed with the supplier of material. Correct False Answer Your False Answer True/False Question Accounting refers to the process of analyzing & interpreting the

Correct Answer Your Answer

information already recorded in the books of accounts. True True

Select The Blank Question Interest receivable is a________ for the organisation. Correct Current sset Answer Your Long term asset Answer 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 The net profit will not be affected Answer Your The net profit will decrease by Answer Rs.18,000/Multiple Choice Single Answer Question Amit sold Goods to Atul for Rs. 50,000/- on cash & Rs. 50,000/- on credit basis. Amit allowed 10% discount for on the spot transaction. What is the amount that should be debited to the cash account? Correct Rs.45,000/Answer Your Rs.50,000/Answer Multiple Choice Single Answer Question Interest on bank loan, was paid till the quarter ending 30th September, 2003, Rs.36,000/-. Find the amount to be debited to the profit and loss account for the year ending on 31st March, 2004, assuming the loan is not yet repaid as on this date. Correct Rs.72,000/Answer Your Rs.36,000/Answer Multiple Choice Single Answer Question The features of the Halsey Plan are:

Correct Answer Your Answer

The benefit of time saved is divided equally between the employer and employee The benefit of time saved is divided equally between the employer and employee

True/False Question The sum of indirect material cost, indirect labour cost and indirect expenses is termed as factory cost. Correct False Answer Your True Answer Multiple Choice Single Answer Question Determine re-order level from the following : Maximum daily consumption 200 units; maximum delivery period 12 days; average daily consumption 150 units and average delivery period 8 days. Correct 2,400 units Answer Your 2,400 units Answer Select The Blank Question An error of partial omission can be rectified by either debiting or crediting the ________ account, as the case maybe. Correct suspense Answer Your adjusted profit and loss Answer Multiple Choice Multiple Answer Question Select the examples of functional budgets: Correct Sales budget , Production budget , Answer Research and development budget Your Sales budget , Production budget , Answer Research and development budget Multiple Choice Single Answer Question With the help of the given information, find actual fixed overheads for actual output. Fixed overheads volume variance -Rs.75,000/- (Favourable); fixed overheads efficiency variance

Correct Answer Your Answer

-Rs.95,000/- (Favourable); fixed overheads calendar variance Rs.20,000/- (Adverse); fixed voerheads expenditure variance Rs.100,000/(Adverse) and standard fixed overheads for actual output -Rs.575,000/-. Rs.600,000/Rs.525,000/-

Select The Blank Question Furniture account will always have a ________ balance. Correct Debit Answer Your Credit Answer Select The Blank Question If the ordering cost ________s, then the economic order quantity will Increase. Correct Increase Answer Your Increase Answer Multiple Choice Multiple Answer Question Which of the following information is included in the goods received note? Correct Date of receipt of material , Quantity Answer received , Description of goods Your Date of receipt of material , Quantity Answer received , Price of goods , Description of goods Multiple Choice Multiple Answer Question Select the non-monetary incentives Correct Health and safety services , Canteen Answer facility , Loans at reduced rate of interest Your Health and safety services , Canteen Answer facility True/False Question A business is an activity carried out with the intention of earning the profit. Correct True Answer Your True

Answer True/False Question Linking overhead to a cost unit is known as overhead absorption. Correct True Answer Your True Answer Multiple Choice Multiple Answer Question The operating profit as per cost statement may differ from the profit as per Profit and Loss Account due to existence of Correct Depreciation on plant and machinery , Answer Interest on loans taken from other , Interest on loans granted to others Your Depreciation on plant and machinery , Answer Interest on loans taken from other Multiple Choice Multiple Answer Question The main advantages of profit sharing are : Correct Employees try to increase Answer productivity , Incentives are shared by all the employees , Augments emplyees efficiency Your Employees try to increase Answer productivity , Incentives are shared by all the employees 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 Labour cost variance -Rs.700/Answer (Favourable) , Labour yield variance -Rs.1,260/- , Labour yield variance is favourable Your Labour cost variance -Rs.700/Answer (Favourable) , Labour yield variance -Rs.1,260/True/False Question The best way to reduce labour cost is to recruit cheap labour. Correct False Answer

Your Answer

False

True/False Question Balance sheet indicates the financial status of the business at given period. Correct True Answer Your True Answer Multiple Choice Multiple Answer Question Select the items which may be classified as selling and distribution overheads. Correct Delivery van expenses , Rent of Answer finished goods warehouse , Sales research expenses Your Delivery van expenses , Rent of Answer finished goods warehouse , Sales research expenses Select The Blank Question In India the gas industry and electricity industry, and ________ industry are examples of industries using the uniform costing system. Correct fertilizer Answer Your fertilizer Answer Multiple Choice Single Answer Question The process of recording the costs in a formal and systematic manner with the intention of preparing statistical data there from a ascertain the cost, is known as . . . Correct Cost accounting Answer Your Cost accounting Answer Multiple Choice Single Answer Question Fixed deposit bearing interest @ 5.50%, for Rs.10,000/- was kept with Bank of India on 1st June, 2003, for a period of one year. The type of the fixed deposit is cumulative, i.e. interest shall be received only on maturity. What treatment should be given in the books of accounts on 31st March,

Correct Answer Your Answer

2004, the year ending date? An entry for Rs.458.34, debiting interest accrued but not due account should be passed An entry for Rs.458.34, crediting interest accrued but not due account should be passed
A business is an activity carried out with the intention of earning the profit. True True Balance sheet indicates the financial status of the business at given period. True True Accounting refers to the process of analyzing & interpreting the information already recorded in the books of accounts. True False Accounting is an art of recording, classifying & summarizing in a significant manner. True True Financial accounting may deal with the ascertainment of cost & calculation of profitability of the individual product. False False The reports generated by financial accounting are meant for the use by management for effective decisions. True

True/False Question Correct Answer Your Answer True/False Question Correct Answer Your Answer True/False Question Correct Answer Your Answer True/False Question Correct Answer Your Answer True/False Question Correct Answer Your Answer True/False Question Correct Answer

Furniture account will always have a ________ balance. Correct Answer Debit Your Answer Nil Multiple Choice Multiple Answer Question Accounting is the art where transactions are Correct Answer Summarized , Classified , Recorded Your Answer Summarized , Classified , Recorded True/False Question

The phrase By Balance c/d. written on the credit side of the rent account, indicates credit balance for this account. Correct Answer False Your Answer False 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 Accounting refers to the process of analyzing & interpreting the information already recorded in the books of accounts. Correct Answer True Your Answer True 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 True/False Question Standard costs are used for external reporting. Correct Answer False Your Answer False True/False Question It is said that the income statement represents wealth increase /decrease for the organisation. Correct Answer True Your Answer False Multiple Choice Single Answer Question Mr. Oak, materials manager, spends 40% time in the factory and the remaining in office. If his annual salary is Rs.500,000/-, what amount should be charged as office overheads ? Correct Answer Rs.300,000/Your Answer Rs.200,000/Multiple Choice Multiple Answer Question The factors to be considered while preparing the direct materials budget are : Correct Answer Adequacy of material storing space , Availability of funds , Material in stores but reserved for specific purposes Your Answer Adequacy of material storing space , Availability of funds , Material in stores but reserved for specific purposes Multiple Choice Multiple Answer Question In which of the following situations, the flexible budget should be preferred? Correct Answer Sales are too difficult to predict , Supply level of input cannot be predicted , Varying levels of production activity Your Answer Sales are too difficult to predict , Supply level of input cannot be predicted , Varying levels of production activity Multiple Choice Multiple Answer Question Techniques of management accounting include: Correct Answer Marginal costing , Budgetary control , Standard costing

Your Answer Marginal costing , Cost control , Budgetary control , Standard costing Match The Following Question Correct Answer Your Answer Profit and loss account Commission received Dividend paid Manufacturing account Work in Progress Land & Building Balance Sheet Land & Building Closing stock of finished goods Trading account Closing stock of finished goods Work in Progress 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 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 , Increase the sales volume , Increase the selling efforts Multiple Choice Multiple Answer Question From the following, select intangible assets: Correct Answer Goodwill , Patents , Trade Marks Your Answer Patents , Trade Marks , Investments True/False Question Bank reconciliation statement must be prepared before the preparation of profit and loss account and balance sheet. Correct Answer True Your Answer False Multiple Choice Single Answer Question Find the budget which is inadequate as a cost control technique : Correct Answer Fixed budget Your Answer Fixed budget True/False Question Predetermined rate of absorption of overheads helps in quick preparation of cost estimates and quoting prices. Correct Answer True Your Answer True Multiple Choice Single Answer Question Net sales Rs,7,50,000/-, opening stock Rs.1,14,375/-, purchases Rs.483,375/- and closing stock Rs.1,47,750/-. Calculate the Gross Profit. Correct Answer Rs.3,00,000/Your Answer Rs.3,00,000/-

Select The Blank Question ________ is an example of intangible asset. Correct Answer Goodwill Your Answer Land True/False Question Accounting is an art of recording, classifying & summarizing in a significant manner. Correct Answer True Your Answer True True/False Question Goods sent to the customers on approval basis should be treated as sales. 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 , Incurred in past , Relevant in decision making process True/False Question Profitability statement indicates the amount of assets & liabilities. Correct Answer False Your Answer True 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 Identify the steps involved in selecting the optimum product mix, when the limiting factor is number of labour hours and sales demand. Correct Answer For each product find the contribution per unit and per labour hour , Award ranks to each of the products based on contribution per limiting factor , Priority is given to fulfill the market demand of the product which gives maximum contribution per labour hour. Your Answer For each product find the contribution per unit and per labour hour , Award ranks to each of the products based on contribution per limiting factor , Priority is given to fulfill the market demand of the product which gives maximum contribution per labour hour. Multiple Choice Multiple Answer Question Techniques of management accounting include: Correct Answer Marginal costing , Budgetary control , Standard costing Your Answer Marginal costing , Cost control , Budgetary control True/False Question The ideal budget period for a company engaged in generation and distribution of electricity is one year. 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 True/False Question According to Reducing Balance Method, the depreciation is provided at a predetermined percentage on the balance of cost of asset after deduction of the depreciation previously charged. Correct Answer True Your Answer True 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 Multiple Answer 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 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.29,200/Select The Blank Question A forecast is mere estimate of what is likely to happen, but ________ is the action plan to be followed. Correct Answer Budget Your Answer Budget True/False Question A very wide scope of Management Accounting is the limitation by itself. Correct Answer True Your Answer True Select The Blank Question The combination in which different products are sold by a company is known as ________. Correct Answer Sales mix Your Answer Sales mix Multiple Choice Single Answer Question The reporting method used in the costing system should be based on the principle of Correct Answer Management by exception Your Answer Management by objectives True/False Question Balance sheet indicates the financial status of the business at given period. Correct Answer True Your Answer True

Multiple Choice Single Answer Question The wages paid to maintenance department workers who do repair work principally for production departments but also on the vehicles in the distribuiton department shoud be charged as: Correct Answer Service costs Your Answer Service costs Multiple Choice Single Answer Question M/s Vivek Enterprises has paid rent relating to the residence of Mr. Vivek, proprietor of Vivek Enterprises. This payment should be treated as Correct Answer Drawings Your Answer Capital Select The Blank Question Measurement of ________ gives an idea of the degree of mobility of labour. Correct Answer Labour turnover Your Answer Labour turnover Multiple Choice Single Answer Question Net profit for the year before charging commission to the manager, is Rs.111,775/-. The manager of the company is entitled to commission @ 8% on net profits after charging commission. Find the amount of commission due to the manager. Correct Answer Rs.8,279.63 Your Answer Rs.8,942/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 Control on purchase of material is exercised by the storekeeper. Correct Answer False Your Answer True Multiple Choice Single Answer Question A company wishes to earn a 15% profit margin on selling price when quoting for a job. Which of the following is the profit margin of cost which will achieve the required profit margin ? Correct Answer 0.1765 Your Answer 0.15 Select The Blank Question Economical use of labour, materials and facilities can achieved with the help of ________. Correct Answer Budgetary control Credit balances in all the Personal & Real accounts appear on asset side. Correct Answer

False Your Answer False 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 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 1) Financial statements are basically in two forms i.e. profitability statement and balance sheet. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question The process of accounting has three streams of accounting ,and -. Correct Answer Financial Accounting , Cost Accounting , Management Accounting Your Answer Financial Accounting , Cost Accounting , Management Accounting True/False Question Long term loan borrowed from financial institution comes under the heading of long term liabilities. Correct Answer True Your Answer True Match The Following Question Correct Answer Your Answer Book-Keeping Books of Accounts Books of Accounts 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 Financial status Multiple Choice Single Answer Question Judge the statement according to the criteria given : The accounting period for XYZ Ltd. ends on 31st December, 2003. It is noted that office rent for the month of December, 2003 is paid on 15th January, 2004. According to concept of matching expenses with the revenues, this expenditure should be recorded in the books of accounts in January, Correct Answer The statement and its reason are both incorrect Your Answer The statement is correct but its reason is incorrect 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 Single Answer Question The installation and operation of ___________ accounting requires a very elaborate organizational structure and large number of rules & regulations Correct Answer Management Your Answer Management 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 Trading Match The Following Question Correct Answer Your Answer Sunk Cost Historical Cost Historical Cost Cost Centre Facilitate the fixation of responsibility Facilitate the fixation of responsibility Cost Control Process of controlling costs of operations Process of controlling costs of operations Differential Cost Increase or Decrease in cost Increase or Decrease in cost Multiple Choice Multiple Answer Question Which of the following transactions should be excluded while preparing a cost sheet ? Correct Answer Interest on loan , Bad debts , Expenses on criminal law suit Your Answer Sale of scrap material , Interest on loan , Bad debts True/False Question In a Balance-Sheet right hand side is referred as assets side and left hand side is referred as liabilities. Correct Answer True Your Answer True True/False Question Credit note is an intimation send to person dealing with the business that his account being debited for the purpose indicated therein. Correct Answer False Your Answer False True/False Question Primary distribution is effected on the basis of service rendered to the service departments by the production departments. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question

Marginal costing is found to be unsuccessful in the following situations :Correct Answer Impossible to distinguish costs into fixed and variable component. , With respect to capital intensive industries where fixed costs are very large and hence cannot be ignored , With respect to service industries where employee costs are very large and almost fixed in nature Your Answer Impossible to distinguish costs into fixed and variable component. , With respect to capital intensive industries where fixed costs are very large and hence cannot be ignored , With respect to service industries where employee costs are very large and almost fixed in nature True/False Question Debit Note is an intimation sent to person dealing with the business that his account is being credited for the purpose indicated therein. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question Labour efficiency variance arises due to: Correct Answer Inefficient supervisor , Poor working conditions , Use of sub-standard quality of material Your Answer Inefficient supervisor , Poor working conditions , Use of sub-standard quality of material True/False Question Financial Accounting discloses the financial performance & financial statements of the business as a whole. Correct Answer True Your Answer True True/False Question Balance sheet indicates the expenditure & income from the business. Correct Answer False Your Answer True Select The Blank Question The indirect material cost, indirect labour cost and indirect expenses cost, collectively are termed as ________. Correct Answer Overhead Your Answer Overhead 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 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 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

P&L statement which is a period statement & relates to a certain period tells about results of operations. Correct Answer True Your Answer False Select The Blank Question Depreciation charged on office furniture on straight line basis is an example of ________. Correct Answer Administration overheads Your Answer Administration overheads True/False 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 Select The Blank Question Information as to the cost and profit / loss associated with the firms operations is provided to the ________ by Management accounting. Correct Answer Management Your Answer Management True/False Question Danger level for inventory of materials means the safety stock of inventory. Correct Answer False Your Answer True 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 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 Select The Blank Question ________ Accounting assists the management in establishing the plans to attain the economic objectives and take proper decisions for the attainment of its objectives. Correct Answer Management Your Answer Management 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 An increase in the maximum material inventory level , The incorrect choice of purchase order quantity , Failure to control the issue of materials from stores Multiple Choice Multiple Answer Question Management accounting is concerned with the following activities : Correct Answer Decision making , Safeguarding assets , Planning and controlling activities

Your Answer Decision making , Safeguarding assets , Planning and controlling activities Multiple Choice Multiple Answer Question Features of double entry accounting system are . . . Correct Answer Every business transaction has two elements , When business receives something, it has to pay something , Every debit has a corresponding credit Your Answer Every business transaction has two elements , When business receives something, it has to pay something , Every debit has a corresponding credit Select The Blank 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% True/False Question Maintenance Department is a service cost centre. 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 The difference between sales and cost of sales is termed as ________. Correct Answer Net Profit Your Answer Net Profit Select The Blank Question The final result disclosed by trading account is the ________profit earned by the organization. Correct Answer Gross Your Answer Gross Multiple Choice Multiple Answer Question Select the accounts to be disclosed on the liability side of the Balance sheet. Correct Answer Loan , Outstanding expenses , Creditors Your Answer Loan , Outstanding expenses , Creditors True/False Question Penalty paid for delay in payment to creditors represents uncontrollable cost. Correct Answer False Your Answer False Multiple Choice Single Answer Question Which document facilitates estimating material cost of a particular job, before completion of that job? Correct Answer Bill of material Your Answer Material requisition note 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 Your Answer The net profit will not be affected Multiple Choice Single Answer Question It is said that adoption of uniform costing creates customer confidence because . . . Correct Answer Prices are reliable Your Answer Prices are reliable 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 Match The Following Question Correct Answer Your Answer 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 Financial status Book-Keeping Books of Accounts Books of Accounts Financial statement Profitability statement & Balance-sheet Profitability statement & Balance-sheet Multiple Choice Single Answer Question Salary paid to employee amounted Rs. 10,000, transferred to Trading A/C is an example of_______ Correct Answer Error of Commission Your Answer Error of Commission Multiple Choice Single Answer Question Labour cost indicates that labour cost which cannot be identified with the individual cost centre and is incurred for those employees who are not engaged in the manufacturing process but only assist i Correct Answer Remuneration Your Answer Indirect True/False Question To take make or buy decision under the marginal costing , if purchase price of the product is less than its variable cost it is advisable to go for manufacturing proposition. Correct Answer False Your Answer False Select The Blank Question Over absorption of overheads may take place due to the reasons like ________ overheads being less than the ________ overheads Correct Answer actual Your Answer estimated Correct Answer estimated Your Answer actual True/False Question Income received in advance transfer to current liabilities Correct Answer True Your Answer True Select The Blank Question Bank reconciliation statement is the statement prepared to explain the ________ as to why the bank balance as per ________ and bank balance as per bank book does not match Correct Answer reasons Your Answer reasons Correct Answer pass book Your Answer pass book Select The Blank Question Fixed cost is the cost that tend to remain ________ irrespective of ________ Correct Answer constant Your Answer constant Correct Answer level of activity Your Answer level of activity 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 If wages for the month of January, February and March are Rs.4,000, Rs.4,400 and Rs.4,600 respectively and if delay in payment of wages is month , payment of wages for the month of February is

Correct Answer 4,200 Your Answer 4,000 Select The Blank Question Management Accounting has a very ________ scope and it requires ________ organizational structure Correct Answer wide Your Answer wide Correct Answer elaborate Your Answer elaborate 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 For a unit, if opening stock of raw material is 10,000 units, closing stock of raw material is 5,000 units and consumption is 3,20,000 units, what will be the quantum of raw material to be purchased Correct Answer 3,15,000 Your Answer 3,15,000 Multiple Choice Multiple Answer Question Important advantages of Uniform Costing can be said to be Correct Answer It is a useful tool for management control , It avoids cut throat competition , Weaker units can take advantage of settled systems of better managed units Your Answer It is a useful tool for management control , It avoids cut throat competition , Weaker units can take advantage of settled systems of better managed units Multiple Choice Multiple Answer Question P/L A/C debit side includes Correct Answer salary , discount allowed , postage & telegram Your Answer postage & telegram , salary , discount allowed Multiple Choice Multiple Answer Question Actual costs may be affected due to inefficient functioning such as Correct Answer Abnormal expenses , In efficient use of labour , In efficient use of material Your Answer Abnormal expenses , In efficient use of labour , In efficient use of material Multiple Choice Single Answer Question Calculate Labour Efficiency Variance, If actual rate per hour is Rs.3.50/- , Standard rate is Rs.3/- per unit and standard hours are 15,000 and Actual hours are 13, 500. Correct Answer Rs.4500/- ( Favorable ) Your Answer Rs.4500/- ( Favorable ) Multiple Choice Multiple Answer Question Sales quantity may be forecasted after taking into consideration various factors such as Correct Answer Analysis of past trends , Market research , Reports by salesmen Your Answer Analysis of past trends , Market research , Reports by salesmen True/False Question For taking make or buy decision marginal costing technique provide useful assistance. Correct Answer True Your Answer True True/False Question Profitability statement indicates the amount of assets & liabilities. Correct Answer False Your Answer False Multiple Choice Single Answer Question It is an appropriate basis of apportionment of depreciation expenditure Correct Answer value of assets Your Answer value of assets True/False Question The variable costs are controllable at the lower level. Correct Answer True Your Answer True True/False Question Balance sheet indicates the expenditure & income from the business. Correct Answer False Your Answer False Match The Following Question Correct Answer Your Answer 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 Liabilities All the amount owed by the business All the amount owed by the business Drawing Withdrawn for personal use Withdrawn for personal use Select The Blank Question A budget manual is a document setting out the ________ of the persons and ________ required for the budget control.

Correct Answer Responsibilities Your Answer Responsibilities Correct Answer Forms and procedures Your Answer Forms and procedures True/False Question Credit balances in all the Personal & Real accounts appear on asset side. Correct Answer False 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 Multiple Choice Single Answer Question Omission of posting an amount in the ledger Correct Answer Error of Omission Your Answer Error of Omission True/False Question Non-operating / financial expenses are added while calculating net profit. Correct Answer False Your Answer True 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 A Budget Manual may contain the following particulars Correct Answer Duties and responsibilities of various executives , Functions and duties of Budget Officer , Scope of the Budget and area to be covered Your Answer Duties and responsibilities of various executives , Functions and duties of Budget Officer , Scope of the Budget and area to be covered Select The Blank Question Semi ________ overheads are neither ________ nor variable in nature. Correct Answer fixed Your Answer variable Correct Answer variable Your Answer fixed True/False Question Due to errors of principle the arithmetical accuracy of the trial balance does not get affected. Correct Answer True Your Answer True 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 Financial Accounting protects the interest of outsiders . it considers ________ transaction and it is a ________ requirement Correct Answer historical Your Answer historical Correct Answer legal Your Answer legal True/False Question Bin Card is having all the information of item received and issued. Correct Answer False Your Answer True Select The Blank Question Budgetary Control is useful for ________-and ________-as a powerful tool in the hands of management Correct Answer Cost control Your Answer Cost control Correct Answer Maximization of profits Your Answer Maximization of profits 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 Multiple Answer Question The material Requisition note contains Correct Answer Number and date , Department demanding the material , Signature of the authority approving the demand Your Answer Number and date , Department demanding the material , Signature of the authority approving the demand

Multiple Choice Multiple Answer Question Following error 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 Fixed overheads normally arise as a result of policy and are largely ________ in nature at the ________ level of the management Correct Answer uncontrollable Your Answer controllable Correct Answer lower Your Answer top True/False Question Budget is prepared for a fixed period of time. Correct Answer True Your Answer True Multiple Choice Single Answer Question Sold Goods of Amitabh worth Rs. 15,000 against 15% Trade discount. The Goods worth appear on account ___________ Correct Answer 12750 Your Answer 12750 Multiple Choice Single Answer Question This is not the non monetary incentive. Correct Answer Co-partnership Your Answer Co-partnership Multiple Choice Multiple Answer Question P/L A/C debit side includes Correct Answer salary , discount allowed , postage & telegram Your Answer salary , discount allowed , postage & telegram Select The Blank Question Along with financial accounting, ________ and ________ are the other streams of accounting Correct Answer Cost Accounting Your Answer Cost Accounting Correct Answer Management Accounting Your Answer Management Accounting True/False Question A very wide scope of Management Accounting is the limitation by itself. Correct Answer True 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 Financial Accounting discloses the financial performance & financial statements of the business as a whole. Correct Answer True Your Answer True 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 P&L statement which is a period statement & relates to a certain period tells about results of operations. Correct Answer True Your Answer True 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 Financial accounting may deal with the ascertainment of cost & calculation of profitability of the individual product. Correct Answer False Your Answer False 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 Match The Following Question Correct Answer Your Answer Financial Accounting Systematic recording of business transactions Systematic recording of business transactions Cost Accounting Ascertainment of cost Ascertainment of cost Management Accounting Analyzing & interpretation of financial data Analyzing & interpretation of financial data Accounting Art of interpreting & classifying business transaction Art of interpreting & classifying business transaction Book Keeping Recording of business transactions Recording of business transactions Match The Following Question Correct Answer Your Answer Bills Payable Amount payable to supplier Amount payable to supplier Bills Receivable Amount received from the customer Amount received from the customer 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 Bad debts Amount not received from customer Amount not received from customer True/False Question Amount invested in purchasing Fixed Asset is a revenue expenditure. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question Going Concern Concept __________________ Correct Answer Indefinite longer period , Not likely to close down in shorter period , This affects the values of asset and liabilities Your Answer Indefinite longer period , Not likely to close down in shorter period , This affects the values of asset and liabilities Multiple Choice Multiple Answer Question Cost of asset is 1,20,000, estimated scrap value 20,000, cost of assets subjected to depreciation 2,00,000, rate of depreciation is 10%. Calculate depreciation for 3 yrs as per the reducing balance m Correct Answer 20,000,18,000,16,200 Your Answer 20,000,18,000,16,200 Multiple Choice Multiple Answer Question Profit & Loss A/C credit side has Correct Answer Gross profit , Commission received , Interested received Your Answer Gross profit , Commission received , Interested received Multiple Choice Single Answer Question Juhi started business with Rs borrowed capital of Rs. 1,00,000 with 10% interest per year. What is the total amount of the capital Correct Answer 1,10,000 Your Answer 90,000 True/False Question Cheques issued but not yet presented the balance as per the bank pass book will be higher. Correct Answer True Your Answer False Multiple Choice Single Answer Question This cost indicates historical cost which is incurred in past. Correct Answer Sunk cost Your Answer Sunk cost Multiple Choice Single Answer Question Labour cost is the cost of __________ paid to employees of the organization. Correct Answer Remuneration Your Answer Remuneration Multiple Choice Single Answer Question Company having opening stock of Rs. 1,80,000 purchase Rs. 8,00,000. Freight Inward Rs, 35000 & closing stock Rs. 2,00,000, having direct wages Rs. 2,35,000. What will be prime cost. Correct Answer 10,50,000 Your Answer 10,50,000 Multiple Choice Multiple Answer Question For the proper interpretation and presentation of cost the overhead further classified as Correct Answer Factory overheads , Office and administration overheads , Selling & distribution overhead Your Answer Factory overheads , Office and administration overheads , Selling & distribution overhead True/False Question Valuation of returns indicates the material returned by store department to production department Correct Answer False Your Answer False True/False Question The wage payment system should take into consideration the external obligations such as the Minimum wages Act and the agreement entered into by the organization with the workers.

Correct Answer True Your Answer True True/False Question A good wage payment system will punish the workers for the matters beyond the control of the workers. Correct Answer False Your Answer False Multiple Choice Multiple Answer Question These are the features of fixed overheads Correct Answer total cost remains the same , per unit cost may vary , not dependent on volume of output Your Answer total cost remains the same , per unit cost may vary , not dependent on volume of output True/False Question Under marginal costing technique only fixed costs are considered as relevant for decision making. Correct Answer False Your Answer False True/False Question Product mix refers to the proportion in which various products of a company can be sold. Correct Answer True Your Answer True Multiple Choice Single Answer Question The cost that varies in direct proportion with the level of activity is called Correct Answer variable cost Your Answer variable cost Multiple Choice Multiple Answer Question Basic assumptions made by marginal costing are Correct Answer per unit selling price remains constant at all the levels of activities. , whatever is produced by the organisation is sold off. , per unit variable cost remain constant. Your Answer per unit selling price remains constant at all the levels of activities. , whatever is produced by the organisation is sold off. , per unit variable cost remain constant. Multiple Choice Single Answer Question Calculate Volume Variance, If budgeted production is 20,000 units, actual production is 22,000 units and Standard rate per unit is Rs.1.5/-. Correct Answer Rs.3,000/- ( Favorable ) Your Answer Rs.3,000/- ( Favorable ) Multiple Choice Single Answer Question Calculate Sales Price Variance, If actual price is Rs.5.40/- per unit, Standard price is Rs.5/- per unit and actual sales volume is 500 units. Correct Answer Rs.200/- ( Favorable ) Your Answer Rs.200/- ( Favorable ) Multiple Choice Single Answer Question Standard Costs are used as tool for Correct Answer Cost Control Your Answer Price fixation Multiple Choice Single Answer Question Standard Costing specifically relates to the function of Correct Answer Production Your Answer Production True/False Question Uniform Costing disturbs the healthy competition in the industry Correct Answer False Your Answer True Multiple Choice Multiple Answer Question Uniform Costing Methods may be advantageously applied Correct Answer In single organization having number of branches. , Number of companies in same industry. , Similar Industries such as cotton, jute etc. Your Answer In single organization having number of branches. , Number of companies in same industry. , Similar Industries such as cotton, jute etc. Multiple Choice Multiple Answer Question The following factors affects the budgeted advertisement cost Correct Answer Percentage of profits , Availability of funds , Competitors policy Your Answer Percentage of profits , Availability of funds , Competitors policy Multiple Choice Multiple Answer Question In Cash budget , Operating cash outflow includes Correct Answer Payment to Creditors , Cash purchases of raw material , Wages/salaries Your Answer Payment to Creditors , Cash purchases of raw material , Wages/salaries Multiple Choice Multiple Answer Question Characteristics of budget can be said to be Correct Answer It may be prepared in terms of quantity or money or both , It is prepared for a fixed period of time , It spells out objectives to be attained Your Answer It may be prepared in terms of quantity or money or both , It is prepared for a fixed period of time , It spells out objectives to be attained

Select The Blank Question Like initial formation expenses, ________ and R & D are the examples of Deferred Revenue Expenditure Correct Answer Initial Advertisement Your Answer Purchase of an asset Correct Answer R & D Your Answer Select The Blank Question If ________ is not provided, the asset may appear in the Balance Sheet at an ________ amount Correct Answer depreciation Your Answer depreciation Correct Answer overstated Your Answer overstated Select The Blank Question If ________ books are the books which record the transactions in the chronological order, ________ is the book where transactions of a similar nature are pooled together Correct Answer subsidiary Your Answer jornal Correct Answer ledger Your Answer ledger Select The Blank Question While selecting source of supply ________ epartment may call for the ________ from the prospective suppliers Correct Answer purchase Your Answer purchase Correct Answer quotation Your Answer quotation Select The Blank Question Preventive costs of labour turnover refers to all the costs which may be incurred by the organisation to keep workers happy and ________ them from ________ the job Correct Answer discourage Your Answer discourage Correct Answer leaving Your Answer leaving Select The Blank Question 4.Under the differential time rate method the wages are paid at Rs. 1.50 per hour between ________ efficiency and Rs.1.25 per hour between ________ efficiency Correct Answer 101% to 125 % Your Answer 101% to 125 % Correct Answer 80% to90% Your Answer 80% to90% Select The Blank Question Expenditure like general lighting are apportioned considering ________ as a base and expenditure like depreciation are apportioned considering ________ as a base. Correct Answer number of light points Your Answer number of light points Correct Answer value of assets Your Answer value of assets Select The Blank Question ________ and ________ are examples of element wise classification ofoverhead costs Correct Answer Idirect material Your Answer Idirect material Correct Answer indirect labour Your Answer indirect labour Select The Blank Question Break even point is a situation of no ________ no ________ Correct Answer profit Your Answer profit Correct Answer loss Your Answer loss Select The Blank Question A key factor is defined as the factor which, at a particular point of time or over a period will ________ the volume of ________ Correct Answer limit Your Answer limit Correct Answer output Choice Multiple Answer Question The selection of the supplier may depend upon the following aspects: Correct Answer Geographical location of the supplier , Price quoted by the supplier , Goodwill of the supplier

Your Answer Geographical location of the supplier , Price quoted by the supplier , Goodwill of the supplier Multiple Choice Single Answer Question Net book value of loose tools as on 1st April, 2003 was Rs.45,000/-. As on 31st March, 2004 the management felt that the real worth of these loose tools is only Rs.30,000/-. What can be done to achieve the desired reduction in the net book value of loose tools? Correct Answer By providing depreciation to the extent of Rs.15,000/Your Answer By providing depreciation to the extent of Rs.15,000/True/False Question Overhead absorption rate will be different at different capacity levels. 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 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 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 Select The Blank Question Information as to the cost and profit / loss associated with the firms operations is provided to the ________ by Management accounting. Correct Answer Management Your Answer Management Select The Blank Question Factory cost of a product is Rs.335,000/-, if the selling overheads are charged @25% of factory cost, then the amount of selling overheads should be Rs.________/Correct Answer 83750 Your Answer 83750 Select The Blank Question Uniform costing is not a separate method of ________. Correct Answer cost accounting Your Answer cost accounting Multiple Choice Multiple Answer 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

Multiple Choice Single Answer Question The following figures relate to a company manufacturing a varied range of products : Year 2003 Total sales Rs.22,23,000/- and total cost Rs.19,83,600/-. Year 2004 : Total sales Rs.24,51,000/- and Total cost Rs.21,43,200/-. Assuming stability in prices, calculate the profit volume ratio Correct Answer 0.3 Your Answer 0.3 Multiple Choice Single Answer Question The cost of idle time incurred by employees that is considered normal for the production process should be charged to : Correct Answer Factory overheads Your Answer Direct labour Select The Blank Question Creche expenses may be appropriately approtioned on the basis of ________. Correct Answer Number of female workers Your Answer Number of female workers Multiple Choice Single Answer Question Opening stock of Rs.1,80,000/-, purchases Rs.8,00,000/-, freight inward Rs.35,000/-, closing stock Rs.2,00,000/-, direct wages Rs.2,35,000/-. Calculate the prime cost. Correct Answer Rs.10,50,000/Your Answer Rs.10,70,000/Multiple Choice Multiple Answer Question Limitations of Management Accounting includesCorrect Answer Its wide scope , Possibility of intuitive decision , Requires elaborate organizational structure Your Answer Its wide scope , Possibility of intuitive decision , Requires elaborate organizational structure Select The Blank Question Indirect Cost is termed as ________. Correct Answer Overhead Your Answer Overhead Multiple Choice Multiple Answer Question Features of Financial Accounting includes Correct Answer It is a legal requirement , It protects the interest of outsiders , It considers historical transactions Your Answer It is a legal requirement , It protects the interest of outsiders , It considers historical transactions Multiple Choice Multiple Answer Question Identify the budgets for which the production manager sould be held responsible : Correct Answer Production budget , Production overheads budget , Plant utilisation budget Your Answer Production budget , Production overheads budget , Plant utilisation budget Multiple Choice Single Answer Question A group of 10 men and 20 women workers were expected to produce 400 units of a product in an 8 hour day. The standard hourly rate was fixed at Rs.25/- and Rs.15/-, respectively.Actually, a group of 15 men and 10 women workers was deployed and paid for 8 hours a day at an hourly rate of Rs.22/- and Rs.18/-, respectively. Two hours were wasted for the entire group due to power failure and only 300 units were produced. Calculate labour rate variance. Correct Answer Rs.120/- (Favourable) Your Answer Rs.150/- (Favourable)

Multiple Choice Multiple Answer Question Techniques of management accounting include: Correct Answer Marginal costing , Budgetary control , Standard costing Your Answer Cost control , Budgetary control , Standard costing True/False Question A grinding machine is an example of impersonal cost centre Correct Answer True Your Answer True True/False Question Profitability statement indicates the amount of assets & liabilities. Correct Answer False Your Answer False Multiple Choice Single Answer Question Uniform costing system is useful in the following areas Correct Answer Classification of cost accounts Your Answer Preparing financial statements Multiple Choice Multiple Answer Question The features of multiplicity of key factors are as follows : Correct Answer More than one key factors , Refers to a complex situation , Can be resolved by using linear programming technique Your Answer More than one key factors , Refers to a complex situation , Can be resolved by using linear programming technique 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 Multiple Choice Multiple Answer Question A materials requisition form normally contains the following aspects: Correct Answer Quantity requisitioned , Per unit material cost , Job number Your Answer Quantity requisitioned , Job number 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 Your Answer Units produced , Production cost , Material cost, labour cost and overheads Multiple Choice Single Answer Question Panna Ltd. temporarily has excess production capacity. The idle plant facilties can be used to manufacture a low-margin item. The low-margin item should be produced if it can be sold for more than its: Correct Answer Variable costs

Your Answer Variable costs 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 , Increase the sales volume , Reduce cost of sales True/False Question Receipts and payments method of cash budget is useful for preparing long term estimates. Correct Answer False Your Answer False Multiple Choice Multiple Answer Question Select the advantages of standard cost system. Correct Answer Provides reliable basis for budgeting , Facilitates delegation of authority , Promotes economy and efficiency Your Answer Provides reliable basis for budgeting , Facilitates delegation of authority True/False 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 False Select The Blank Question In case of seasonal industry, the budget period may be taken as ________. Correct Answer One season Your Answer One season True/False Question Lack of efficient control on various aspects related to raw-material increases the material cost component of the finished product. Correct Answer True Your Answer True True/False Question Due to compensating errors the arithmetical accuracy of the trial balance is affected. Correct Answer False Your Answer False Multiple Choice Single Answer Question Material price variance for a job is Rs.800/- (Favourable). Actual quantity of material used is 100 kg whereasthe standard quantity of material is 120% of actual quantity. Actual price paid for the material is 80% of the standard price. Calculate material cost variance. Correct Answer Rs.1,600/- (Favourable) Your Answer Rs.800/- (Favourable) Select The Blank Question The process of recording the business transactions in a defined set of records is referred to as ________. Correct Answer Balance sheet Your Answer Profit and Loss Account

Match The Following Question Correct Answer Your Answer Daily Time sheets Time spent by worker on job is recorded Time spent by worker on job is recorded Time Keeping Department Recording of workers time Recording of workers time Time booking department Jobwise booking of time. Jobwise booking of time. Time Recording Clock Method Ticket number & clock card allotted to worker Ticket number & clock card allotted to worker True/False Question Purchased goods by paying Rs.35,000/-: In this case, the cash account should be debited. Correct Answer True Your Answer True Select The Blank Question If the customer is not likely to pay the amount receivable from him, this amount should to be treated as ________. Correct Answer Bad debts Your Answer Bad debts True/False Question Accounting is an art of recording, classifying & summarizing in a significant manner. Correct Answer True Your Answer True Match The Following Question Correct Answer Your Answer Book-Keeping Books of Accounts Books of Accounts 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 Financial status True/False Question The problem of multiple key factors can be solved with the help of techniques like linear programming, operations research, etc. Correct Answer True Your Answer True Select The Blank Question The ________ books are preferred when the volume of transactions is very large. Correct Answer Subsidiary Your Answer Journal

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 True/False Question All costs are controllable. Correct Answer False IST OF ATTEMPTED QUESTIONS AND ANSWERS Select The Blank Question Furniture account will always have a ________ balance. Correct Answer Debit Your Answer Nil Multiple Choice Multiple Answer Question Accounting is the art where transactions are Correct Answer Summarized , Classified , Recorded Your Answer Summarized , Classified , Recorded True/False Question The phrase By Balance c/d. written on the credit side of the rent account, indicates credit balance for this account. Correct Answer False Your Answer False 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 Accounting refers to the process of analyzing & interpreting the information already recorded in the books of accounts. Correct Answer True Your Answer True 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 True/False Question Standard costs are used for external reporting. Correct Answer False Your Answer False True/False Question It is said that the income statement represents wealth increase /decrease for the organisation. Correct Answer True Your Answer False Multiple Choice Single Answer Question Mr. Oak, materials manager, spends 40% time in the factory and the remaining in office. If his annual salary is Rs.500,000/-, what amount should be charged as office overheads ? Correct Answer Rs.300,000/Your Answer Rs.200,000/Multiple Choice Multiple Answer Question The factors to be considered while preparing the direct materials budget are : Correct Answer Adequacy of material storing space , Availability of funds , Material in stores but reserved for specific purposes Your Answer Adequacy of material storing space , Availability of funds , Material in stores but reserved for specific purposes Multiple Choice Multiple Answer Question In which of the following situations, the flexible budget should be preferred? Correct Answer Sales are too difficult to predict , Supply level of input cannot be predicted , Varying levels of production activity Your Answer Sales are too difficult to predict , Supply level of input cannot be predicted , Varying levels of production activity Multiple Choice Multiple Answer Question Techniques of management accounting include: Correct Answer Marginal costing , Budgetary control , Standard costing Your Answer Marginal costing , Cost control , Budgetary control , Standard costing Match The Following Question Correct Answer Your Answer Profit and loss account Commission received Dividend paid Manufacturing account Work in Progress Land & Building

Balance Sheet Land & Building Closing stock of finished goods Trading account Closing stock of finished goods Work in Progress 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 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 , Increase the sales volume , Increase the selling efforts Multiple Choice Multiple Answer Question From the following, select intangible assets: Correct Answer Goodwill , Patents , Trade Marks Your Answer Patents , Trade Marks , Investments True/False Question Bank reconciliation statement must be prepared before the preparation of profit and loss account and balance sheet. Correct Answer True Your Answer False Multiple Choice Single Answer Question Find the budget which is inadequate as a cost control technique : Correct Answer Fixed budget Your Answer Fixed budget True/False Question Predetermined rate of absorption of overheads helps in quick preparation of cost estimates and quoting prices. Correct Answer True Your Answer True Multiple Choice Single Answer Question Net sales Rs,7,50,000/-, opening stock Rs.1,14,375/-, purchases Rs.483,375/- and closing stock Rs.1,47,750/-. Calculate the Gross Profit. Correct Answer Rs.3,00,000/Your Answer Rs.3,00,000/Select The Blank Question ________ is an example of intangible asset. Correct Answer Goodwill Your Answer Land True/False Question Accounting is an art of recording, classifying & summarizing in a significant manner. Correct Answer True Your Answer True True/False Question Goods sent to the customers on approval basis should be treated as sales. 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 , Incurred in past , Relevant in decision making process True/False Question Profitability statement indicates the amount of assets & liabilities. Correct Answer False Your Answer True 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 Identify the steps involved in selecting the optimum product mix, when the limiting factor is number of labour hours and sales demand. Correct Answer For each product find the contribution per unit and per labour hour , Award ranks to each of the products based on contribution per limiting factor , Priority is given to fulfill the market demand of the product which gives maximum contribution per labour hour. Your Answer For each product find the contribution per unit and per labour hour , Award ranks to each of the products based on contribution per limiting factor , Priority is given to fulfill the market demand of the product which gives maximum contribution per labour hour. Multiple Choice Multiple Answer Question Techniques of management accounting include: Correct Answer Marginal costing , Budgetary control , Standard costing Your Answer Marginal costing , Cost control , Budgetary control

True/False Question The ideal budget period for a company engaged in generation and distribution of electricity is one year. 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 True/False Question According to Reducing Balance Method, the depreciation is provided at a predetermined percentage on the balance of cost of asset after deduction of the depreciation previously charged. Correct Answer True Your Answer True 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 Multiple Answer 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 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.29,200/Select The Blank Question A forecast is mere estimate of what is likely to happen, but ________ is the action plan to be followed. Correct Answer Budget Your Answer Budget True/False Question A very wide scope of Management Accounting is the limitation by itself. Correct Answer True Your Answer True Select The Blank Question The combination in which different products are sold by a company is known as ________. Correct Answer Sales mix Your Answer Sales mix Multiple Choice Single Answer Question The reporting method used in the costing system should be based on the principle of Correct Answer Management by exception Your Answer Management by objectives True/False Question Balance sheet indicates the financial status of the business at given period. Correct Answer True Your Answer True Multiple Choice Single Answer Question The wages paid to maintenance department workers who do repair work principally for production departments but also on the vehicles in the distribuiton department shoud be charged as: Correct Answer Service costs Your Answer Service costs Multiple Choice Single Answer Question M/s Vivek Enterprises has paid rent relating to the residence of Mr. Vivek, proprietor of Vivek Enterprises. This payment should be treated as Correct Answer Drawings Your Answer Capital Select The Blank Question Measurement of ________ gives an idea of the degree of mobility of labour. Correct Answer Labour turnover Your Answer Labour turnover Multiple Choice Single Answer Question Net profit for the year before charging commission to the manager, is Rs.111,775/-. The manager of the company is entitled to commission @ 8% on net profits after charging commission. Find the amount of commission due to the manager. Correct Answer Rs.8,279.63 Your Answer Rs.8,942/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 Control on purchase of material is exercised by the storekeeper. Correct Answer False Your Answer True Multiple Choice Single Answer Question A company wishes to earn a 15% profit margin on selling price when quoting for a job. Which of the following is the profit margin of cost which will achieve the required profit margin ? Correct Answer 0.1765 Your Answer 0.15 Select The Blank Question Economical use of labour, materials and facilities can achieved with the help of ________. Correct Answer Budgetary control Credit balances in all the Personal & Real accounts appear on asset side. Correct Answer False Your Answer False 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 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 1) Financial statements are basically in two forms i.e. profitability statement and balance sheet. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question The process of accounting has three streams of accounting ,and -. Correct Answer Financial Accounting , Cost Accounting , Management Accounting Your Answer Financial Accounting , Cost Accounting , Management Accounting True/False Question Long term loan borrowed from financial institution comes under the heading of long term liabilities. Correct Answer True Your Answer True Match The Following Question Correct Answer Your Answer Book-Keeping Books of Accounts Books of Accounts 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 Financial status Multiple Choice Single Answer Question Judge the statement according to the criteria given : The accounting period for XYZ Ltd. ends on 31st December, 2003. It is noted that office rent for the month of December, 2003 is paid on 15th January, 2004. According to concept of matching expenses with the revenues, this expenditure should be recorded in the books of accounts in January, Correct Answer The statement and its reason are both incorrect Your Answer The statement is correct but its reason is incorrect 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 Single Answer Question The installation and operation of ___________ accounting requires a very elaborate organizational structure and large number of rules & regulations Correct Answer Management Your Answer Management 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 Trading Match The Following Question Correct Answer Your Answer

Sunk Cost Historical Cost Historical Cost Cost Centre Facilitate the fixation of responsibility Facilitate the fixation of responsibility Cost Control Process of controlling costs of operations Process of controlling costs of operations Differential Cost Increase or Decrease in cost Increase or Decrease in cost Multiple Choice Multiple Answer Question Which of the following transactions should be excluded while preparing a cost sheet ? Correct Answer Interest on loan , Bad debts , Expenses on criminal law suit Your Answer Sale of scrap material , Interest on loan , Bad debts True/False Question In a Balance-Sheet right hand side is referred as assets side and left hand side is referred as liabilities. Correct Answer True Your Answer True True/False Question Credit note is an intimation send to person dealing with the business that his account being debited for the purpose indicated therein. Correct Answer False Your Answer False True/False Question Primary distribution is effected on the basis of service rendered to the service departments by the production departments. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question Marginal costing is found to be unsuccessful in the following situations :Correct Answer Impossible to distinguish costs into fixed and variable component. , With respect to capital intensive industries where fixed costs are very large and hence cannot be ignored , With respect to service industries where employee costs are very large and almost fixed in nature Your Answer Impossible to distinguish costs into fixed and variable component. , With respect to capital intensive industries where fixed costs are very large and hence cannot be ignored , With respect to service industries where employee costs are very large and almost fixed in nature True/False Question Debit Note is an intimation sent to person dealing with the business that his account is being credited for the purpose indicated therein. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question Labour efficiency variance arises due to: Correct Answer Inefficient supervisor , Poor working conditions , Use of sub-standard quality of material Your Answer Inefficient supervisor , Poor working conditions , Use of sub-standard quality of material True/False Question Financial Accounting discloses the financial performance & financial statements of the business as a whole. Correct Answer True Your Answer True True/False Question Balance sheet indicates the expenditure & income from the business. Correct Answer False Your Answer True Select The Blank Question The indirect material cost, indirect labour cost and indirect expenses cost, collectively are termed as ________. Correct Answer Overhead Your Answer Overhead 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 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 , Interfunctional relationships of these managers 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 P&L statement which is a period statement & relates to a certain period tells about results of operations. Correct Answer True Your Answer False

Select The Blank Question Depreciation charged on office furniture on straight line basis is an example of ________. Correct Answer Administration overheads Your Answer Administration overheads True/False 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 Select The Blank Question Information as to the cost and profit / loss associated with the firms operations is provided to the ________ by Management accounting. Correct Answer Management Your Answer Management True/False Question Danger level for inventory of materials means the safety stock of inventory. Correct Answer False Your Answer True 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 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 Select The Blank Question ________ Accounting assists the management in establishing the plans to attain the economic objectives and take proper decisions for the attainment of its objectives. Correct Answer Management Your Answer Management 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 An increase in the maximum material inventory level , The incorrect choice of purchase order quantity , Failure to control the issue of materials from stores Multiple Choice Multiple Answer Question Management accounting is concerned with the following activities : Correct Answer Decision making , Safeguarding assets , Planning and controlling activities Your Answer Decision making , Safeguarding assets , Planning and controlling activities Multiple Choice Multiple Answer Question Features of double entry accounting system are . . . Correct Answer Every business transaction has two elements , When business receives something, it has to pay something , Every debit has a corresponding credit Your Answer Every business transaction has two elements , When business receives something, it has to pay something , Every debit has a corresponding credit Select The Blank 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% True/False Question Maintenance Department is a service cost centre. 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 The difference between sales and cost of sales is termed as ________. Correct Answer Net Profit Your Answer Net Profit Select The Blank Question The final result disclosed by trading account is the ________profit earned by the organization. Correct Answer Gross Your Answer Gross

Multiple Choice Multiple Answer Question Select the accounts to be disclosed on the liability side of the Balance sheet. Correct Answer Loan , Outstanding expenses , Creditors Your Answer Loan , Outstanding expenses , Creditors True/False Question Penalty paid for delay in payment to creditors represents uncontrollable cost. Correct Answer False Your Answer False Multiple Choice Single Answer Question Which document facilitates estimating material cost of a particular job, before completion of that job? Correct Answer Bill of material Your Answer Material requisition note 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 Your Answer The net profit will not be affected Multiple Choice Single Answer Question It is said that adoption of uniform costing creates customer confidence because . . . Correct Answer Prices are reliable Your Answer Prices are reliable 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 Purchased goods by paying Rs.35,000/-: In this case, the cash account should be debited. Correct Answer True Your Answer False True/False Question The rates at which the depreciation is to be calculated are specified in the Income Tax Act 1961 and The Companies Act, 1956. Correct Answer True Your Answer True Select The Blank Question The various contents of a uniform cost manual are organisation, cost accounting system and ________. Correct Answer presentation of information Your Answer organisation structure 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 Multiple Choice Multiple Answer Question Select the examples of functional budgets: Correct Answer Sales budget , Production budget , Research and development budget Your Answer Sales budget , Production budget , Capital expenditure budget Multiple Choice Single Answer Question A businesss telephone bill should nromally be classified into which one of the following categories? Correct Answer Semi-variable cost Your Answer Variable cost Match The Following Question Correct Answer Your Answer Closed the account with State Bank of India Henceforth, there shall be no difference in overdraft balances Henceforth, there shall be no difference in overdraft balances Debit side of bank book is overcast Overdraft as per bank book < Overdraft as per pass book Overdraft as per bank book = Balanceas per pass book Interest on debentures directly credited by bank Overdraft as per bank book > Overdraft as per pass book Overdraft as per bank book = Overdraft as per pass book Received sanction for a loan of Rs.10 lakhs Overdraft as per bank book = Overdraft as per pass book Overdraft as per bank book < Overdraft as per pass book 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 Your Answer Re.0.68 Select The Blank Question The process of finding the reasons for the difference in the balance as per bank book and pass book is known as ________. Correct Answer Reconciliation Your Answer Reconciliation

Multiple Choice Multiple Answer Question State the features of these transactions : (i) Commission paid Rs.250/- was posted twice to Commission account (ii) Rs.5,000/- representing goods sold to A, was posted to the credit to commission received account (iii) Sold machine for Rs.8000/-, was credited to Sales account. Correct Answer The debit side of the trial balance will be in excess by Rs.250/- , Involves an error of principle , Involves an error of commission Your Answer The debit side of the trial balance will be in excess by Rs.250/- , Involves an error of principle , Involves an error of commission 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 Multiple Choice Single Answer Question Balance sheet is statement of Correct Answer All Assets and Properties Your Answer All Assets and Properties Select The Blank Question The closing stocks should ________ the cost of the goods which sent on approval basis. Correct Answer Be increased by Your Answer Not get affected by True/False Question Under the Rowan plan bonus is a fixed percentage. Correct Answer False Your Answer True True/False Question Idle time variance is always favourable. Correct Answer False Your Answer False 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 Your Answer Delivery van expenses , Rent of finished goods warehouse , Rent of raw material godown Select The Blank Question Information as to the cost and profit / loss associated with the firms operations is provided to the ________ by Management accounting. Correct Answer Management Your Answer Cost Multiple Choice Single Answer Question Compute actual total cost based on the data given below: Total standard cost (standard material cost + standard labour cost) -Rs.19,633.33; labour rate variance-Rs.900/- (adverse); material price variance -Rs.90/- (Favourable); material yield variance -Rs.700/- (Favourable); labour yield variance -Rs.333.33 (Favourable). Correct Answer Rs.19,410/Your Answer Rs.17,610/Multiple Choice Single Answer Question The standard production for a particular work order is 20 units per day and piece rate wages is 60 paise per unit. Cost of material is 30 paise per unit. It is proposed to charge factory overheads equal to 100% of labour cost. Indicate the factory overhead per unit. Correct Answer Rs.1.50/Your Answer Rs.1.30/Multiple Choice Multiple Answer Question The suspense account has a debit balance of Rs.40,000/-. Select the transactions which are capable of nullifying this balance. Correct Answer Conveyance expenses of Rs.25,000/- were posted on the wrong side of the account. , Purchased computer worth Rs.28,000/- was recorded in the ledger as , The total of the purchase book was cast short by Rs.44,000/Your Answer Free samples worth Rs.40,000/- distributed during the year were credited to sales account , Conveyance expenses of Rs.25,000/- were posted on the wrong side of the account. , Purchased computer worth Rs.28,000/- was recorded in the ledger as Multiple Choice Single Answer Question Panna Ltd. temporarily has excess production capacity. The idle plant facilties can be used to manufacture a lowmargin item. The low-margin item should be produced if it can be sold for more than its: Correct Answer Variable costs Your Answer Variable costs Select The Blank Question Contribution represents pool of resources available for meeting all costs other than ________. Correct Answer Variable costs Your Answer Variable costs Select The Blank Question Goods returned to the suppliers from whom it was ________d is recorded in thePurchasereturn register.

Correct Answer Purchase Your Answer Purchase Multiple Choice Multiple Answer Question From the available information calculate sales value variance and budgeted sales quantity of X.Actual sales of X -500 units; budgeted price per unit -Rs.12/-; actual price per unit-Rs.15/- and sales volume variance -Rs.1,200/- (Favourable). Correct Answer Budgeted sales 400 units , Sales value variance -Rs.2,700/- , The sales value variance is favourable Your Answer The sales value variance is adverse True/False Question Depreciation, interest and property tax continue even when the operations are discontinued. Correct Answer True Your Answer True Select The Blank Question The balance of the suspense account will ________ after all the errors are Correct Answer become zero Your Answer become zero Multiple Choice Multiple Answer 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 True/False Question It is said that the income statement represents wealth increase /decrease for the organisation. Correct Answer True Your Answer False Select The Blank Question The difference between sales and prime cost is known as ________. Correct Answer Gross Profit Your Answer Gross Profit Multiple Choice Multiple Answer Question In which of the following situations, the flexible budget should be preferred? Correct Answer Sales are too difficult to predict , Supply level of input cannot be predicted , Varying levels of production activity Your Answer Sales are too difficult to predict , Supply level of input cannot be predicted , Varying levels of production activity Multiple Choice Single Answer Question Debtors as on 31st March, 2004 stood as Rs.75,400/-. Out of this amount, Rs.15,884/- is receivable from ABC & Co. Also, Rs.21,555/- included in the creditors, indicates amount due to ABC & Co. Total creditors as on 31st March, 2004 = Rs.88,466/-. Find the amount of debtors and creditors that should be disclosed in the balance sheet as on 31st March, 2004. Correct Answer Debtors Rs.59,516/-; Creditors Rs.66,911/Your Answer Debtors Rs.53,845/-; Creditors Rs.72,582/Match The Following Question Correct Answer Your Answer Sunk Cost Historical Cost Historical Cost Cost Centre Facilitate the fixation of responsibility Facilitate the fixation of responsibility Cost Control Process of controlling costs of operations Process of controlling costs of operations Differential Cost Increase or Decrease in cost Increase or Decrease in cost Select The Blank Question Cost volume profit analysis focuses attention on the ________ effect of a particular course of action. Correct Answer short run Your Answer short and long run Multiple Choice Multiple Answer Question The balance as per bank book as on 30th June, 2004 is Rs.10,298/- while the balance as per pass book as on the same date is Rs.10,123.60. Select the transactions representing the reasons for this difference. Correct Answer Interest credited by bank, not entered in the bank book, Rs.125.60 , Cheques dishonoured not entered in the bank book Rs.200/- , Debit side of the cash book is overcast by Rs.100/Your Answer Interest credited by bank, not entered in the bank book, Rs.125.60 Multiple Choice Single Answer Question Uniform costing system is useful in the following areas Correct Answer Classification of cost accounts Your Answer Preparing financial statements True/False Question Revenue expenditure indicates the amount of funds spent during a certain period with the intention to receive the returns in future. Correct Answer False Your Answer True 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 True True/False Question Cheque received from a client on 28th September, 2004 must be entered in the bank book only after it is credited in the pass book.

Correct Answer False Your Answer False 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 industrys 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 compare efficiency of each unit against industrys overall performance , To compile reliable cost data for inter-firm comparison of costs 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/Your Answer The purhases will increase by Rs.6,450/- , The closing stock will increase by Rs.6,450/- , The gross profit will increase by Rs.6,450/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 Your Answer Carriage A/c Multiple Choice Multiple Answer Question Different types of tenders are : Correct Answer Singly tender , Open tender , Global tender Your Answer Multiple tender , Open tender , Global tender Multiple Choice Single Answer 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/Multiple Choice Single Answer Question Basic objective of Uniform Costing is . . . Correct Answer comparison Your Answer To control cost Multiple Choice Multiple Answer Question Select the entries which need to be rectified Correct Answer Purchase A/c Dr. to Damodars A/c (Being furniture purchased from Damodar) , Gopals A/c .. Dr. to cash A/c (Being entry for payment of railway freight for goods purchased) , Cash A/c Dr. to Sureshs A/c (Being cash received from Suresh for goods sold to him for) Your Answer Gopals A/c .. Dr. to cash A/c (Being entry for payment of railway freight for goods purchased) Multiple Choice Single Answer Question A new computer worth Rs.35,000 was purchased on 18th June, 2003. The company has 10 such computers costing Rs.20,000/- each. The depreciation is charged @ 18% p.a. Find the depreciation on computers to be charged for the year. Correct Answer Rs.40,953.70 Your Answer Rs.36,000/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 The management of Horngreen Ltd. is deciding whether to continue working at loss or to temporarily shut down the factory. State the qualitative aspects that must be considered before arriving at a decision. Correct Answer Loss of trained personnel , Loss of regular customers , Expenditure required to restart the factory Your Answer Expenditure required to restart the factory Multiple Choice Single Answer Question The purchase budget for October is Rs.12,500/- and November is Rs.15,000/-. If the materials are purchased for cash the supplier is offering a rebate of 5%. If the materials are purchased on credit of 30 days, no rebate is offered. The company purchase Correct Answer October- NIL, November- Rs.26,750/Your Answer October- Rs.14,250/-, November- Rs.11,875/True/False Question Maintenance Department is a service cost centre. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question Ram and Laxman are partners of Kush & Bros. As on 1st April, 2003 Rams capital is Rs.50,000/- and Laxmans capital is Rs.80,000/-. If interest on capital is to be provided @ 10% p.a., what will be amount of capital of each of the partners as on 31st March, 2004, assuming there were no additions during this period? Also, state the treatment of this item in the Profit and loss account. Correct Answer Rams capital Rs.55,000/- , Laxmans capital Rs.88,000/- , Interest on capital should be debited to the Profit and loss account Your Answer Laxmans capital Rs.88,000/- , Interest on capital should be debited to the Profit and loss account Multiple Choice Single Answer Question Rs.2,650/- were paid to ABC Ltd. for maintenance of machine; which account should be debited for this transaction?

Correct Answer Maintenance of machine account Your Answer ABC Ltd.s Account Match The Following Question Correct Answer Your Answer Advantageously applicable in similar industries Scope of uniform costing Fields covered by uniform costing Spirit of mutual trust Requisite for uniform costing Disadvantage of uniform costing Avoids cut throat competition Advantage of uniform costing Requisite for uniform costing Treatment given to research and development costs Fields covered by uniform costing Advantage of uniform costing Select The Blank Question Under the AB________ analysis, nuts and bolts used as material will be classified as category C. Correct Answer C Your Answer C 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 True and fair 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 Lack of experienced and efficient personnel , High labour turnover , No idle time 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 Multiple Choice Multiple Answer Question From the following, select intangible assets: Correct Answer Goodwill , Patents , Trade Marks Your Answer Goodwill , Patents , Trade Marks True/False Question According to Reducing Balance Method, the depreciation is provided at a predetermined percentage on the balance of cost of asset after deduction of the depreciation previously charged. Correct Answer True Your Answer False Select The Blank Question Average stock = ________ + (Order size / 2) Correct Answer Safety stock Your Answer Reorder level True/False Question High time wages means necessarily high cost of production. Correct Answer False Your Answer True 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 Marginal costing is also known as ________. Correct Answer Variable costing Your Answer Indirect costing Multiple Choice Single Answer 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/Multiple Choice Single Answer Question For a bought out material item the following are the relevant data : Ordering cost Rs.512/- per order; holding cost is 40%; cost per item Rs.100/- and annual demand 1,000 units. The Purchase manager places 5 orders of equal quantity in one year, in order to avail the discount of 5% on the cost of the item. Work out the total cost to the organisation due to his ordering policy for this item. Correct Answer Rs.101,360/Your Answer Rs.101,360/True/False Question Due to compensating errors the arithmetical accuracy of the trial balance is affected. Correct Answer False Your Answer False Multiple Choice Single Answer Question From the given information compute the total cost variance. Material cost variance -Rs.4,400/- (Favourable); labour cost variance -Rs.450/- (Adverse); fixed overhead cost variance -Rs.22,000/- (Adverse); variable overhead cost variance

-Rs.6,000/- (adverse). Correct Answer Rs.24,050/- (Adverse) Your Answer Rs.32,850/- (Favourable) Multiple Choice Single Answer Question Advance tax account should appear in which of the final statement of accounts. Correct Answer Asset side of the balance sheet Your Answer Debit side of the profit and loss account Match The Following Question Correct Answer Your Answer Operating income Cash Sales Cash Sales Non-Operating income Issue of shares Issue of shares Plan of investment in fixed assets Capital Expenditure Budget Cash Budget Plan for surplus/shortage of cash Cash Budget Capital Expenditure Budget Select The Blank Question Furniture account will always have a ________ balance. Correct Answer Debit Your Answer Inflated Select The Blank Question Payment by ________ method lowers the cost of production through their impact on fixed costs. Correct Answer Results Your Answer Cash 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 , To portray the financial status 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 Absorption costing is more suitable for decision making than marginal costing Correct Answer False Your Answer True Select The Blank Question A low margin of safety indicates ________ fixed overheads. Correct Answer higher Your Answer higher Multiple Choice Single Answer Question Which of the following operations would normally be carried out first when preparing a master budget? Correct Answer Determining the budget period Your Answer Identifying the principal budget factor True/False Question Period cost is the cost assigned to the products. Correct Answer False Your Answer True Select The Blank Question Profit = Contribution per unit X ________. Correct Answer Margin of safety (units) Your Answer Sales (units) Multiple Choice Multiple Answer Question Which of the following aspects are mainly responsible for difficulty in application of Uniform costing system. Correct Answer Capital investment , Plant size , Location Your Answer Capital investment , Plant size , Loans taken 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 ABC Ltd. produces 10,000 units at 100% capacity utilization and its cost structure is as follows : Fixed cost Rs.50,000/-; variable costs Rs.30,000/- and semi-variable costs Rs.40,000/- (40% var Correct Answer Rs.13.85 Your Answer Rs.11.85 Select The Blank Question Loss of uninsured goods by fire was debited incorrectly to United India Assurance Companys account instead of debiting it to ________ account. Correct Answer Goods lost by fire Your Answer Goods lost by fire

Multiple Choice Multiple Answer Question 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 Helpful in estimating the future along with past period , Useful in furnishing the necessary information to the management , A legal requirement. Multiple Choice Multiple Answer Question The disadvantages of supplementary overhead rates are: Correct Answer It can be determined only after the end of the accounting period , Defeats the basic concept of normal cost , Involves lot of clerical activity Your Answer Defeats the basic concept of normal cost , Involves lot of clerical activity , It can be determined only in the beginning of the accounting period 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 One of the main objection to the contribution approach of costing is that it ignores fixed cost. Correct Answer True Your Answer False 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 , Tendency of withholding information Select The Blank Question Uniform costing is not a separate method of ________. Correct Answer cost accounting Your Answer costing 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/Your Answer Rs.251,000/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 Multiple Choice Multiple Answer Question For the month of November, a firm has budgeted sales of 20,000 units of X at a price of Rs.10/- and sale of 30,000 untis of Y at a price of Rs.6/- per unit. Actual sale during the month was 35,000 units of X at Rs.9/- per unit and 25,000 units of Y at Rs.8/- per unit. Calculate sales volume variance, sales mix variance and sales quantity variance. Correct Answer Sales volume variance -Rs.120,000/- (Favourable) , Sales mix variance -Rs.44,000/- (Favourable) , Sales Quantity variance-Rs.76,000/- (Favourable) Your Answer Sales volume variance -Rs.120,000/- (Favourable) , Sales mix variance -Rs.44,000/- (Favourable) , Sales Quantity variance-Rs.76,000/- (Favourable) True/False Question The purpose of the profit and loss account is to bring togethre information which relates to gross profit and the expenses for running the business. Correct Answer True Your Answer True Multiple Choice Single Answer Question A firm has purchased a plant to manufacture a new product, the cost data for which is given below : Estimated annual sales 24,000 units. Estimated costs : Materials Rs.4/- per unit; labour Re.0.60 per unit; overheads Rs.24,000/- per year; administrative expenses Rs.28,800/- per year and selling expenses are 15% of sales; Calculate the selling price per unit if profit per unit is Rs.1.02. Correct Answer Rs.9.20/Your Answer Rs.7.74/Multiple Choice Single Answer Question A company wishes to earn a 15% profit margin on selling price when quoting for a job. Which of the following is the profit margin of cost which will achieve the required profit margin ? Correct Answer 0.1765 Purchased goods by paying Rs.35,000/-: In this case, the cash account should be debited. Correct Answer True Your Answer False 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.1,100/- (Favourable)

Select The Blank Question The process of recording the business transactions in a defined set of records is referred to as ________. Correct Answer Balance sheet Your Answer Balance sheet True/False Question In the ledger account only credit entries relating to a particular account are posted. Correct Answer False Your Answer False True/False Question Error of commission refer to a situation where a transaction is not recorded in the books of account. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question The selection of the supplier may depend upon the following aspects: Correct Answer Geographical location of the supplier , Price quoted by the supplier , Goodwill of the supplier Your Answer Geographical location of the supplier , Price quoted by the supplier , Goodwill of the supplier Multiple Choice Single Answer Question Which system involves adoption of same costing principles, practices and procedures by the individual firms of an industry ? Correct Answer Uniform costing Your Answer Uniform costing True/False Question Predetermined rate of absorption of overheads helps in quick preparation of cost estimates and quoting prices. Correct Answer True Your Answer False True/False Question Idle capacity and idle time mean one and the same thing. Correct Answer False Your Answer False 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/Your Answer The gross profit will increase by Rs.6,450/Select The Blank Question Payment by ________ method lowers the cost of production through their impact on fixed costs. Correct Answer Results Your Answer Time Multiple Choice Single Answer Question The overheads of a machine shop X should be apportioned using which of the following basis? Correct Answer Machine hours Your Answer Direct labour cost Multiple Choice Multiple Answer Question Features of convention of conservation are . . . Correct Answer Anticipates all future losses and expenses , Ignores all future incomes and profits, unless they are actually realised , Applicable to valuation of current assets Your Answer Anticipates all future losses and expenses , Applicable to valuation of current assets , Applicable to valuation of non-current asset Multiple Choice Multiple Answer Question Merits of break even point analysis are as follows: Correct Answer Useful diagnostic tool. , Used for analysing the risk implication of alternative actions. , Used to graphically represent complicated data. Your Answer Useful diagnostic tool. , Used for analysing the risk implication of alternative actions. , Useful in the long run. True/False Question Narration must be mentioned in the ledger. Correct Answer False Your Answer True True/False Question The actual hours taken by the labour are compared with the standard hours allowed for output to find out the labour yield variance. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question The features of multiplicity of key factors are as follows : Correct Answer More than one key factors , Refers to a complex situation , Can be resolved by using linear programming technique Your Answer More than one key factors , Refers to a complex situation , Can be resolved by using linear programming technique Multiple Choice Single Answer Question Included in the trial balance is the sales promotion suspense account with a debit balance of Rs.6,300/-. It is given

that this balance should be written off. Calculate its impact on profit of the company. Correct Answer The net profit will decrease by Rs.6,300/Your Answer The gross profit will decrease by Rs.6,300/Multiple Choice Multiple Answer Question Items credited to Profit & Loss Account are Correct Answer Gross profit , Commission received , Interested received Your Answer Gross profit , Commission received , Interested received 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 Your Answer Units produced , Production cost , Material cost, selling cost and overheads 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 , Maintaining secrecy of the data collected Select The Blank Question Goods returned to the suppliers from whom it was ________d is recorded in thePurchasereturn register. Correct Answer Purchase Your Answer Purchase Select The Blank Question Profit volume ratio is also known as ________. Correct Answer Contribution to sales ratio Your Answer Sales to contribution ratio 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 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 Select The Blank Question Marginal costing is also known as ________. Correct Answer Variable costing Your Answer Variable costing Multiple Choice Multiple Answer Question Select the examples of functional budgets: Correct Answer Sales budget , Production budget , Research and development budget Your Answer Sales budget , Production budget , Research and development budget Multiple Choice Single Answer Question A firm has purchased a plant to manufacture a new product, the cost data for which is given below : Estimated annual sales 24,000 units. Estimated costs : Materials Rs.4/- per unit; labour Re.0.60 per unit; overheads Rs.24,000/- per year; administrative expenses Rs.28,800/- per year and selling expenses are 15% of sales; Calculate the selling price per unit if profit per unit is Rs.1.02. Correct Answer Rs.9.20/Your Answer Rs.7.74/Multiple Choice Single Answer Question A worker 12 hours on a scheme of payment by results. His day rate is Rs.150/- an hour, the material cost of the product is Rs.600/- and the overheads are recovered at 15% of the total direct wages. Calculate the factory cost of the product under the piece rate work plan. Correct Answer Rs.2,670/Your Answer Rs.2,850/Match The Following Question Correct Answer Your Answer Change in profit/ Change in activity level Profit volume ratio Profit volume ratio Change in total cost/ Change in activity level Variable cost per unit Total contribution Total sales X Profit volume ratio Total contribution Variable cost per unit Selling price ( Actual sales Break even sales) Margin of safety Margin of safety Select The Blank Question Preparation of direct material ________ budget is the responsibility of the Purchase manager. Correct Answer Purchase Your Answer Purchase 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 False

Select The Blank Question ________ system of wage payment is a combination of Halsey system and Gantt system. Correct Answer Diemer Your Answer Barth premium 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 The credit side of the sales book was overcast by Rs.2,000/-. As a result of this rectification, what of the given impacts is likely to happen? Correct Answer The liability side of the balance sheet will increase by Rs.2,000/Your Answer The liability side of the balance sheet will increase by Rs.2,000/Select The Blank Question The method of overhead apportionment which considers both the material cost as well as the labour cost, is known as ________ method. Correct Answer Prime cost percentage rate Your Answer Prime cost percentage rate 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 shop-floor workers Match The Following Question Correct Answer Your Answer Normal Standards Anticipated to be achieved in future Once established can never be altered Basic Standards Established for a longer period of time Anticipated to be achieved in the budget period Current Standards Established for a shorter period of time Anticipated to be unachievable in future Expected Standards Anticipated to be achieved in the budget period Established for a shorter period of time 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 Multiple Answer 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 Multiple Choice Single Answer Question If a predetermined overhead rate is not employed an the volume of production is increased over the level planned, the cost per unit would be expected to : Correct Answer Decrease for fixed costs and remain unchanged for variable costs Your Answer Remain unchanged for fixed costs and increase for variable costs Multiple Choice Single Answer Question If the overhead expenditure to be absorbed is the foremans salary, the most appropriate basis for absorption would be : Correct Answer Direct labour hours Your Answer Weight of material 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 Job costing 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 Current liabilities True/False Question The bin card and stores ledger, being independent records, comparison of these two records should be avoided. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question Accounting is the art where transactions are Correct Answer Summarized , Classified , Recorded Multiple Choice Single Answer Question Goods kept in the godown were destroyed by fire on 18th June, 2004. The cost of such goods was

Correct Answer Your Answer

Rs.18,950/-. The goods were not insured. Find the amount which should be debited to the profitability statement. Rs.18,950/Rs.18,950/-

Multiple Choice Single Answer Question The cost behaviour patterns for a company is as follows : Activity level: 500 units, the total cost is Rs.2,500/-; Activity level : 700 units, the total cost is Rs.3,100/-; Activity level: 900 units, the total cost is Rs.4,600/- If fixed cost remains unchanged throughout all activity levels, which of the following statements is true in relation to the cost behaviour? Variable cost per unit is increases above 700 units. Total average cost per unit is constant for all activity levels.

Correct Answer Your Answer

True/False Question Correct Answer Your Answer Bank reconciliation statement must be prepared before the preparation of profit and loss account and balance sheet. True False

True/False Question Correct Answer Your Answer Lack of efficient control on various aspects related to raw-material increases the material cost component of the finished product. True False

Multiple Choice Multiple Answer Question Correct Answer Your Answer Items credited to Trading Account are :Sales , Goods lost by fire , Closing stock Sales , Goods lost by fire , Closing stock

Select The Blank Question Correct Answer Your Answer If the firm is operating with zero margin of safety, decline of even a single unit in sales will result in ________. Loss Net profit

Select The Blank Question Correct Answer Your Answer Purchase day book for the month of April was under cast by Rs.1000/- ________ account should be credited. Suspense Purchase

Multiple Choice Single Answer Question The profit volume ratio of X Ltd. is 50% and the margin of safety to sales ratio is 40%. You are required to calculate the net profit if sale volume is Rs.100,000/Rs.20,000/Rs.10,000/-

Correct Answer Your Answer

Select The Blank Question Correct Answer Your Answer The process of attributing proportions of items of costs amongst cost centres is called ________. Cost apportionment Absorption of indirect costs

Multiple Choice Single Answer Question Purchases included an amount of Rs. 25,450/representing purchase of computer. The rate of depreciation is 10% for computers. Calculate the net effect of this transaction on the profitability statement. Net profit will increase by Rs.22,905/Net profit will decrease by Rs.22,905/-

Correct Answer Your Answer

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

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 Your Answer

Lesser than Equal to

Multiple Choice Single Answer Question What is the balance of the cash account after considering the relevant transactions from the following set : 4th July, 2004-Sold goods to Deshmukh & Co. for Rs.2,500/-; 5th July, 2004Received Rs.5,000/- for rent of June, 04; 7th July, 2004-Paid salaries by cheque for Rs.8,000/-; 15th July, 2004-Received commission, in cash, from XYZ Ltd., Rs.3,000/-; 21st July, 2004-Paid salaries by cash Rs.2,500/-; 22nd July, 2004-Deposited cash into Bank of India Rs.3,000/-; 25th July, 2004Purchased furniture from Shantilal for Rs.10,000/-. Shantilal has given a credit period of 45 days; 26th July, 2004-Paid cash for purchase of machine from Elpro Ltd. For Rs.30,000/-; 28th July, 2004-Paid ready cash for advertisement inserted in newspaper, Rs.200/-; 28th July, 2004-Withdrawn cash from Bank of India Rs.50,000/-. Rs.22,300 (debit) Rs.33,200 (debit)

Correct Answer Your Answer

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. The gross profit will increase by Rs.6,450/The gross profit will not be affected

Correct Answer Your Answer

Multiple Choice Multiple Answer Question Correct Answer Your Answer Inventory holding cost comprises of :Cost of insurance , Rent of store house , Salary of store keeper Cost of insurance , Cost of material

Select The Blank Question Correct Answer Your Answer The handloom industry will have ________ fixed cost and high variable cost. Low Low

Select The Blank Question Correct Answer Your Answer Collection charges of Rs.4/- on a cheque received from Calcutta should be ________ in the bank book. Credited Added

Multiple Choice Single Answer Question A producer of tin boxes purchased 5,000 kg of tin sheet for Rs.50,000/- for producing large size tin boxes. 1,600 large boxes, each weighing 2 kg were manufactured. In addition to the above 400 large boxes were damaged in the course of manufacture. Rectification of these boxes amounted to Rs.1,000/-. 700 kg of off cuts were used for producing small tin boxes. Market value of these off cuts is Rs.5/- per kg. 250 kgs of off cuts were sold @ Rs.3/- per kg. Other costs Rs.9,400/- were apportioned in the ratio of weight of output. Calculate cost of each large sized tin box assuming that there are no opening and closing stocks. Rs.27.38 Rs.27.38

Correct Answer Your Answer

Match The Following

Question Correct Your Answer Answer Ledger Maintain Maintain all types all types of of accounts accounts Audit Reviewing Process of internal analyzing & control interpretation system Accounting Process of Process of analyzing & estimating interpretation profits Journal Book of Book of original original entry entry
Multiple Choice Multiple Answer Question Correct Answer Your Answer Piece rate systems are very useful in the following circumstances:Units of output are measurable , Job is standardized , The flow of work is regular Work delays are frequent , Job is standardized , The flow of work is regular

True/False Question Correct Answer Your Answer Time-keeping facilitates the preparation of payroll. True True

Multiple Choice Multiple Answer Question Correct Answer Your Answer From the following select the examples of errors of commission :Sales recorded in the sales register as Rs.2,020/instead of Rs.2,200/- , Received cash from Sham, credited to Rams account , Paid transport charges, credited to transport charges account Sales recorded in the sales register as Rs.2,020/instead of Rs.2,200/- , Received cash from Sham, credited to Rams account , Paid transport charges, credited to transport charges account

True/False Question Correct Answer Your Answer Overhead absorption is an exercise by which overhead is properly spread over production for the period. True False

Select The Blank Question Correct Answer Your Answer The final result disclosed by trading account is the ________ profit earned by the organization. Gross Gross

True/False Question Correct Answer Your Answer The bin card and stores ledger, being independent records, comparison of these two records should be avoided. False True

Select The Blank Question Correct Answer Your Answer Goods returned by Pawan worth Rs.1,000/- is debited to Pawans Account. In order to rectify the mistake, ________ account should be debited. Suspense Suspense

Select The Blank Question Correct Answer Your Answer Financial Accounting considers those transactions which can be expressed in terms of ________. Money Money

Multiple Choice Single Answer Question A producer has the option to procure a particular material from two sources: Source A assures that the defectives will not exceed 2% of the supplied quantity. Source B does not give any assurance, but on the basis of past experience of supplies from this source, it is observed that defective percentage is 2.8%. The material is supplied in lots of 1,000 units by both sources. Source B supplies the lot at a price, which is lower by Rs.100/- as compared to Source A. The defective material units can be rectified at a cost of Rs.5/- per unit. Which of the two sources is more economical? Source B is more economical Source B is more economical

Correct Answer Your Answer

Select The Blank Question Correct Answer Your Answer Under Bedaux Point system the standard time is divided into standard minutes and each standard minute identified as ________. Bedaux point or B Bedaux point or B

Multiple Choice Single Answer Question A company had incurred fixed expenses of Rs.225,000/- with sales of Rs.750,000/- and earned a profit of Rs.150,000/- during the first month. In the second month, it suffered a loss of Rs.75,000/-. You are required to calculate the margin of safety for the first month. Rs.300,000/Rs.300,000/-

Correct Answer Your Answer

Multiple Choice Single Answer Question Correct Answer Your Answer An important feature of cost accounting is : Focuses attention on the profitability of each product and service. Focuses attention on the profitability of each product and service.

Select The Blank Question Correct Answer Your Answer Generally all the liabilities will have ________ balance. Credit Credit

Multiple Choice Single Answer Question Correct Answer Your Answer Balance sheet is statement of :All Assets and Properties All Assets and Properties

Match The Following

Question Correct Your Answer Answer Daily Time Time Time spent by spent by sheets worker worker on on job is job is recorded recorded Time Recording Recording Keeping of workers of workers Department time time Time Jobwise Jobwise booking booking booking department of time. of time. Time Ticket Ticket Recording number number Clock & clock & clock Method card card allotted allotted to to worker worker
True/False Question Correct Answer Your Answer High time wages means necessarily high cost of production. False False

True/False

Question Correct Answer Your Answer

The effect of price reduction is always reduction in the margin of safety and also reduction in the break even point. False False

Multiple Choice Single Answer Question Correct Answer Your Answer Product costs under direct costing include:Prime cost and variable factory overheads Prime cost, variable and fixed factory overheads

True/False Question Correct Answer Your Answer While passing the journal entry, it is of utmost importance to ensure that the total of amount debited is equal to the total of the amount credited. True True

Multiple Choice Single Answer Question Correct Answer Your Answer Which document is a part of the perpetual inventory system? Bin card Material requisition note

Multiple Choice Multiple Answer Question Correct Answer Your Answer Which of the formulae can be used to calculate profit volume ratio :Change in contribution / Change in sales , 1 (Change in variable cost / Change in sales) , (Fixed cost + Profit) / Sales Change in contribution / Change in sales

Multiple Choice Multiple Answer Question Correct Answer Your Answer Features of Sunk cost are :Indicates historical cost , Not relevant in decision making process , Incurred in past Indicates historical cost , Not relevant in decision making process , Incurred in past

True/False

Question Correct Answer Your Answer

The phrase By Balance c/d. written on the credit side of the rent account, indicates credit balance for this account. False True

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. Debtors A/c .Dr. Rs.200/- to bad debts recovered A/c Rs.200/- , Rs.6,000/- to Raos A/c Rs.6,000/- , Rs.250/- to General Expenses A/c Rs.250/Debtors A/c .Dr. Rs.200/- to bad debts recovered A/c Rs.200/- , Rs.250/- to General Expenses A/c Rs.250/-

Correct Answer Your Answer

Multiple Choice Multiple Answer Question Correct Answer Your Answer A materials requisition form normally contains the following aspects:Quantity requisitioned , Per unit material cost , Job number Quantity requisitioned , Per unit material cost , Job number

True/False Question Correct Answer Your Answer Predetermined rate of absorption of overheads helps in quick preparation of cost estimates and quoting prices. True False

Multiple Choice Multiple Answer Question Correct Answer Your Answer Select the steps to be followed while preparing bank reconciliation statement :Compare the transactions in the bank book and the pass book , Check the totals and the balancing of both the books , Confirm that the opening balances of both the books are tallying Compare the transactions in the bank book and the pass book , Confirm that the opening balances of both the books are tallying , Confirm that the closing balances of both the books are tallying

Multiple Choice Multiple Answer

Question Correct Answer Your Answer

Select the advantages of standard cost system :Provides reliable basis for budgeting , Facilitates delegation of authority , Promotes economy and efficiency Provides reliable basis for budgeting , Facilitates delegation of authority , Promotes economy and efficiency

Multiple Choice Multiple Answer Question The objects of cost accountancy are :Correct To ascertain cost and profitability , Cost Control Answer , Presentation of Information Your To ascertain cost and profitability , Cost Control Answer , Presentation of Information Multiple Choice Multiple Answer Question Management accounting is concerned with the following activities :Correct Decision making , Safeguarding assets , Answer Planning and controlling activities Your Decision making , Planning and controlling Answer activities Multiple Choice Multiple Answer Question Features of material usage variance are :Correct Measures the difference between the quantity of Answer materials actually used and that should have been used. , Considers standard price X actual quantity , Considers standard price X standard quantity Your Measures the difference between the quantity of Answer materials actually used and that should have been used. , Considers standard price X actual quantity , Considers standard price X standard quantity True/False Question Under the accelerating premium system incentive increases at a fast rate with the decrease in output. Correct False Answer Your False Answer True/False Question If the physical stock is less than the stock as per the stores ledger, such shortage should be treated as an issue of material. Correct True Answer

Your False Answer Multiple Choice Single Answer Question An analysis of the time card of a worker on a machine shows that of the total 48 hours, he worked 45 hours (including 4 hours overtime) on production and that 3 hours was idle due to machine break-down. The rate of the worker is rupees ten per hour : but overtime is paid at 50 per cent extra. You are required to calculate the earnings of the worker. Correct Rs.500/Answer Your Rs.500/Answer True/False Question Predetermined rate of absorption of overheads helps in quick preparation of cost estimates and quoting prices. Correct True Answer Your True Answer 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 Over-absorbed Answer Your Under-absorbed Answer Select The Blank Question A worker is paid a monthly salary of Rs.500/along with a bonus of 50 paise per unit completed, this type of labour cost may be classified as ________ cost. Correct Semi-variable Answer Your Semi-variable Answer Select The Blank Question Goods purchased from A for Rs.2,020/- were passed through the sales book. The rectification of this error will result in ________. Correct Decrease in gross profit by Rs.2,020/Answer

Your Increase in gross profit by Rs.2,020/Answer True/False Question High time wages means necessarily high cost of production. Correct False Answer Your False Answer Multiple Choice Multiple Answer Question The management of Dick Ltd. is deciding whether to buy component Y from the supplier, since the purchase cost is less than the manufacturing cost. State the non-financial aspects that must be considered before arriving at a decision :Correct Reliability regarding quality of the material Answer supplied by the supplier , Alternative use of labour of engaged in manufacturing component Y , Regularity of material supplies from the supplier Your Reliability regarding quality of the material Answer supplied by the supplier , Alternative use of labour of engaged in manufacturing component Y , Regularity of material supplies from the supplier 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 Long term liabilities Answer Your Long term liabilities Answer Select The Blank Question Interest receivable is a________ for the organization. Correct Current asset Answer Your Current asset Answer True/False Question Period cost is the cost assigned to the products. Correct False Answer Your True Answer

Multiple Choice Single Answer Question A new computer worth Rs.35,000 was purchased on 18th June, 2003. The company has 10 such computers costing Rs.20,000/- each. The depreciation is charged @ 18% p.a. Find the depreciation on computers to be charged for the year. Correct Rs.40,953.70 Answer Your Rs.40,953.70 Answer Multiple Choice Single Answer Question The direct material usage budget and direct material purchase budget differ because of which of the following? Correct A planned change in the level of material stock Answer Your The level of efficiency of men or machines Answer True/False Question New companies can adopt Uniform costing system as a ready-made system. Correct True Answer Your True Answer Multiple Choice Multiple Answer Question Pre-requisites of Uniform Costing are :Correct Spirit of mutual trust , Free Exchange of ideas , Answer No rivalry Your Free Exchange of ideas , No rivalry , Spirit of Answer mutual trust Multiple Choice Multiple Answer Question The principal functions of the cost accounting department are :Correct Classifying labour cost according to jobs, Answer processes, etc. , Preparation of different reports based on direct, indirect labour cost, etc. , To focus on areas where labour cost may be reduced. Your Classifying labour cost according to jobs, Answer processes, etc. , Preparation of different reports based on direct, indirect labour cost, etc. , To focus on areas where labour cost may be reduced. Multiple Choice Multiple Answer

Question In which of the following situations, the flexible budget should be preferred? Correct Sales are too difficult to predict , Supply level of Answer input cannot be predicted , Varying levels of production activity Your Sales are too difficult to predict , Supply level of Answer input cannot be predicted , Varying levels of production activity Multiple Choice Single Answer Question Select the information to be considered before installing a costing system :Correct Labour intensity of the product Answer Your Number of workers required Answer 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 Rs.200,000/Answer Your Rs.231,000/Answer Multiple Choice Single Answer Question As on 31st March, 2004, it was decided to write off Rs.800/- of debtors as bad debts. Also, provision for bad and doubtful debts is to be made @ 5% and for discount on debtors @ 4%. Find the net amount of debtors to be disclosed in the balance sheet, if the total debtors before the aforesaid adjustments is Rs.98,623/-. Correct Rs.89,214.58 Answer Your Rs.88,285.26 Answer Select The Blank Question Payment by ________ method lowers the cost of production through their impact on fixed costs. Correct Results Answer Your Time Answer Multiple Choice Multiple Answer

Question Which of the following aspects are mainly responsible for difficulty in application of Uniform costing system? Correct Capital investment , Plant size , Location Answer Your Capital investment , Plant size , Location Answer Select The Blank Question The most appropriate method for apportionment of overheads of the purchasing and stores department is percentage on ________. Correct Direct Material Answer Your Direct Material Answer Multiple Choice Single Answer Question Judge the given statement according to the given criteria :- Provision for doubtful debts account and provision for discount on debtors account mean same account can be maintained under two account-heads, since both are related to debtors and indicate a loss to the organization. Correct The statement is incorrect but the reason is Answer correct Your The statement and the reason both are incorrect Answer Multiple Choice Multiple Answer Question Following errors affect the trial balance :Correct Wrong totaling of subsidiary books , Posting on Answer the wrong side of an account , Omission of posting an account in the ledger Your Wrong totaling of subsidiary books , Posting on Answer the wrong side of an account , Omission of posting an account in the ledger Select The Blank Question If the owner brings in personal calculator for office use, ________ account should be credited. Correct Capital Answer Your Cash Answer Multiple Choice Multiple Answer Question From the following select the examples of errors of commission :Correct Sales recorded in the sales register as Rs.2,020/Answer instead of Rs.2,200/- , Received cash from

Sham, credited to Rams account , Paid transport charges, credited to transport charges account Your Sales recorded in the sales register as Rs.2,020/Answer instead of Rs.2,200/- , Received cash from Sham, credited to Rams account , Paid transport charges, credited to transport charges account Select The Blank Question A ________ can be defined as a part of the organization for which separate budget can be prepared and implemented. Correct Budget centre Answer Your Budget centre Answer Multiple Choice Single Answer Question Net sales Rs,7,50,000/-, opening stock Rs.1,14,375/-, purchases Rs.483,375/- and closing stock Rs.1,47,750/-. Calculate the Gross Profit. Correct Rs.3,00,000/Answer Your Rs.3,00,000/Answer True/False Question Profitability statement is a period statement & provides information about the results of operations. Correct True Answer Your True Answer Select The Blank Question The method of overhead apportionment which considers both the material cost as well as the labour cost, is known as ________ method. Correct Prime cost percentage rate Answer Your Prime cost percentage rate Answer Multiple Choice Single Answer Question Net profit for the year before charging commission to the manager, is Rs.111,775/-. The manager of the company is entitled to commission @ 8% on net profits after charging commission. Find the amount of commission

due to the manager. Correct Rs.8,279.63 Answer Your Rs.8,942/Answer Multiple Choice Single Answer Question A manufacturer is producing alloy for which standard mix is 25% copper and 75% iron. Standard price for copper is Rs.80/- per kg. and for iron Rs.20/- per kg. 20% of input is standard loss. Actual output is 8,000 kg. of alloy using 2,000 kg of copper at Rs.90/- per kg. and 9,000 kg of iron at Rs.15/- per kg. Calculate the standard cost of copper. Correct Rs.200,000/Answer Your Rs.150,000/Answer True/False Question Cheque received from a client on 28th September, 2004 must be entered in the bank book only after it is credited in the pass book. Correct False Answer Your False Answer Multiple Choice Multiple Answer Question The various areas in which uniform costing can be adopted are :Correct Valuation of inventories , Charging of Answer depreciation , Apportionment of overheads Your Valuation of inventories , Charging of Answer depreciation , Apportionment of overheads 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 directors remuneration worked out to be Rs.95,784/-. Find the net profit for the year 2004. Correct Rs.75,981/Answer Your Rs.75,981/Answer True/False Question The purpose of the profit and loss account is to bring together information which relates to gross

profit and the expenses for running the business. Correct True Answer Your True Answer Match The Following Question Correct Your Answer Answer Ledger Maintain Maintain all types all types of of accounts accounts Audit Reviewing Reviewing internal internal control control system system Accounting Process of Process of analyzing & analyzing & interpretation interpretation Journal Book of Book of original original entry entry Match The Following Question Correct Your Answer Answer Daily Time Time Time spent by spent by sheets worker worker on job is on job is recorded recorded Time Recording Recording Keeping of workers of workers Department time time Time Jobwise Jobwise booking booking booking department of time. of time. Time Ticket Ticket Recording number number Clock & clock & clock Method card card allotted allotted to to worker worker Multiple Choice Multiple Answer Question Items credited to Profit & Loss Account are :Correct Gross profit , Commission received , Interested Answer received Your Gross profit , Commission received , Interested Answer received

True/False Question For a manufacturing company, dividend received is a non-operating income. Correct True Answer Your False Answer Select The Blank Question A standard that is never altered, after being established, is known as ________ standard. Correct Ideal Answer Your Basic Answer Multiple Choice Single Answer Question Rs.2,650/- were paid to ABC Ltd. for maintenance of machine; which account should be debited for this transaction? Correct Maintenance of machine account Answer
Multiple Choice Multiple Answer Question Correct Answer Cost Accounting ______________.

Concerned with specific activities. , Classified according to their nature. , It deals with both i.e. past & present. Your Answer Concerned with specific activities. , Classified according to their nature. , It covers whole business

Multiple Choice Multiple Answer Question Correct Answer Management Accounting __________________.

Designed particularly for internal use only. , Looks forward in estimating the future along with past period. , This furnishes the necessary information to management. Your Answer Designed particularly for internal use only. , Looks forward in estimating the future along with past period. , This furnishes the necessary information to management. , Only a, b, c.

Multiple Choice Multiple Answer Question Accounting is the art of ______________,____________ and ____________ in a significant manner and in terms of money transactions and events which are of a financial character and interpreting the res Summarizing , Classifying , Recording

Correct Answer Your Answer Summarizing , Classifying , Recording

Multiple Choice Multiple Answer Question The process of accounting has three streams of accounting ,and -. Correct Financial Accounting , Cost Accounting , Answer Management Accounting Your Answer Financial Accounting , Cost Accounting , Management Accounting

Match The Following

Question Correct Your Answer Answer Personal Debit the Debit the A/C receiver, receiver, Credit Credit the the giver giver Real A/C Debit Debit what what comes in,comes in, Credit Credit what what goes out goes out Nominal Debit all Debit all A/C the the expenses, expenses, Credit all Credit all the the incomes incomes Tangible Building, Building, assets Machinery Machinery In Patents, Patents, tangible Trade Trade assets marks marks
True/False Question Credit note is an intimation send to person dealing with the business that his account being debited for the purpose indicated therein. False

Correct Answer Your Answer True

True/False Question Amount invested in purchasing Fixed Asset is a revenue expenditure. False

Correct Answer Your Answer False

True/False Question As per double entry system o accounting , total of all debits should be equal to all credits. True

Correct Answer Your Answer True

Multiple Choice Multiple Answer Question Convention of Consistency Materiality ________________ Correct The accounting policies & procedures should Answer follow consistently on period to period , It facilitates the comparison of financial statements on period to period , If any change the fact should be disclosed with its effects on profitability Your Answer The accounting policies & procedures should follow consistently on period to period , It facilitates the comparison of financial statements on period to period , If any change the fact should be disclosed with its effects on profitability

Multiple Choice Multiple Answer Question Cash andare the two systems of accounting. Mercantile

Correct Answer Your Answer Mercantile

Multiple Choice Single Answer Question The opening balance of cash account is Rs. 25,000, cash received from debtors Rs. 30,000, sold goods amounted to Rs. 50,000, paid to creditors Rs. 20,000, purchase furniture Rs. 5000. What is the clos 80,000

Correct Answer Your Answer 80,000

Multiple Choice Single Answer Question Bank Reconciliation statement is required in case of Correct difference between the bank balance as per the Answer bank book and as per pass book Your Answer difference between the bank balance as per the bank book and as per pass book

Match The Following

Question Correct Your Answer Answer Error of Trial Wrong Principle Balance Posting does not get affected Error of The The Omission transaction transaction is totally is totally omitted omitted Error of Wrong Wrong commission Posting classification Compensating Wrong Trial Error classification Balance does not get affected Difference Transferred Transferred in trial to suspense to suspense balance account account
Multiple Choice Multiple Answer Question Direct Cost includes

Correct Direct material , Direct labour , Direct expenses Answer Your Answer Direct material , Direct labour , Direct expenses

Multiple Choice Single Answer Question Labour cost indicates that labour cost which cannot be identified with the individual cost centre and is incurred for those employees who are not engaged in the manufacturing process but only assist i Remuneration

Correct Answer Your Answer Indirect

Multiple Choice Multiple Answer Question The Prime Cost includes the aggregate of

Correct Direct Material Cost , Direct Labour Cost , Direct Answer Expenses Your Answer Direct Material Cost , Direct Labour Cost , Direct Expenses

Multiple Choice Multiple Answer

Question

From the following particulars what must appear in purchase requisition Correct Material to be purchased should be cleanly Answer specified , Material should purchase whenever the market for the same is favorable , Purchase requisition should state the quantity of material required. Your Answer Material to be purchased should be cleanly specified , Purchase requisition should state the quantity of material required.

Multiple Choice Multiple Answer Question Following points are taking into consideration for evaluation of receipts Correct The Price , The trade discount is to be deducted , Answer Other amounts such as sales tax, excise duty, octroi duty Your Answer The Price , The trade discount is to be deducted , Other amounts such as sales tax, excise duty, octroi duty

Multiple Choice Multiple Answer Question While fixing the maximum level following factors are considered Correct Maximum usage , Storage facilities , Availability of Answer funds Your Answer Maximum usage , Rate of consumption

True/False Question Fixed cost tends to vary with time rather than with level of activity. True

Correct Answer Your Answer True

True/False Question To take make or buy decision under the marginal costing , if purchase price of the product is less than its variable cost it is advisable to go for manufacturing proposition. False

Correct Answer Your Answer False

Multiple Choice Single Answer Question Find out the break even point and profit if sales are Rs. 50,00,000 and P/V Ratio is 50% and margin of safety is 40% Rs.30,00,000 and Rs.10,00,000

Correct Answer Your Answer Rs.30,00,000 and Rs.10,00,000

True/False Question For better control, variances of a period may be compare with the previous period. True

Correct Answer Your Answer True

True/False Question Expected standards are more realistic and useful for cost control. True

Correct Answer Your Answer True

True/False Question The difference between standard cost and actual cost is termed as Variance. True

Correct Answer Your Answer True

Multiple Choice Multiple Answer Question For reporting of variance, following propositions should be considered Correct Responsibility of each individual should be defined Answer , Reporting should be simple, clear and quick , Analysis of variance should be accurate. Your Answer Responsibility of each individual should be defined , Reporting should be simple, clear and quick , Analysis of variance should be accurate.

Multiple Choice Multiple Answer Question Basic three steps in Standard Costing are

Correct Setting standards , Comparing actuals with Answer standards , Measurement of variance Your Answer Setting standards , Comparing actuals with standards , Measurement of variance

Multiple Choice Single Answer Question Find out Labour Efficiency Variance, if Standard Rate is Rs.1.50/- per hour, Standard hours are 12,000 and Actual hours are 12,600. Rs.900/- ( Adverse )

Correct Answer Your Answer Rs.900/- ( Adverse )

Multiple Choice Single Answer Question Standard costs are the targets to be attained by the actual performance. Minimum

Correct Answer Your Answer Minimum

Multiple Choice Single Answer Question Standard Costs are used as tool for

Correct Cost Control Answer Your Answer Cost Control

Select The Blank Question Accounting to the matching principles of accounting, the ________ incurred during an accounting period are required to be match with ________ during that period cost

Correct Answer Your Answer cost

Correct revenues Answer Your Answer revenues

Select The Blank Question Along with financial accounting, ________ and ________ are the other streams of accounting Cost Accounting

Correct Answer Your Answer Management Accounting Correct Management Accounting Answer Your Answer Cost Accounting

Select The Blank Question If the revenue expenditure is treated as ________ expenditure , it will not affect the agreement of ________ balance capital

Correct Answer Your Answer capital Correct Answer trial

Your Answer trial

Select The Blank Question While selecting source of supply ________ epartment may call for the ________ from the prospective suppliers purchase

Correct Answer Your Answer purchase

Correct quotation Answer Your Answer quotation

Select The Blank Question After material is received from the supplier, quantity actually received is compared with quantity ________-and ________-if any, are taken up with the supplier ordered

Correct Answer Your Answer ordered

Correct variation Answer Your Answer variation

Select The Blank Question Under the daily ________ sheets method, each worker is provided with a daily time sheet on which time ________ by him on various jobs is expected to be mentioned time

Correct Answer Your Answer work

Correct spent Answer Your Answer spent

Select The Blank Question 4.Under the differential time rate method the wages are paid at Rs. 1.50 per hour between ________ efficiency and Rs.1.25 per hour between ________ efficiency 101% to 125 %

Correct Answer Your Answer 90-100 Correct Answer

80% to90%

Your Answer 101% to 125 %

Select The Blank Question Under Gannt Task bonus system where the output is ________ payment is made as per minimum time rate, output is ________ payment is made as per time wages plus some increase in wage rates below standard

Correct Answer Your Answer below standard Correct at standard Answer Your Answer at standard

Select The Blank Question ________ and ________ are examples of element wise classification ofoverhead costs Idirect material

Correct Answer Your Answer Idirect material

Correct indirect labour Answer Your Answer selling overheads

Select The Blank Question Fixed cost is the cost that tend to remain ________ irrespective of ________ constant

Correct Answer Your Answer constant

Correct level of activity Answer Your Answer level of activity

Select The Blank Question The process of Allocation & apportionment can followed to decide the ________ of overheads to each budget center Allocation & apportionment

Correct Answer Your Answer Distribution Correct Loading Answer Your Answer

Multiple Choice Multiple Answer

Question Essentials for effective implementation of budgetary control system are Correct Commitment of top management , Answer Clearly defined objectives , Continous budget education Your Commitment of top management , Answer Clearly defined objectives , Continous budget education Multiple Choice Multiple Answer Question Features of convention of consistency are . . . Correct The accounting policies and Answer procedures should be followed consistently , Facilitates the comparison of financial statements , It facilitates comparison of financial statements on period-to-period basis Your The accounting policies and Answer procedures should be followed consistently , It facilitates comparison of financial statements on period-toperiod basis True/False Question The bin card and stores ledger, being independent records, comparison of these two records should be avoided. Correct False Answer Your False Answer Match The Following Question Correct Your Answer Answer Dividend Profit and Profit paid loss and loss appropriation account account Freight Manufacturing Manufacturing inwards account account Sales Trading Capital account account Freight Profit Trading outwards and loss account account Select The Blank Question Large angle of incidence indicates ________ amount of profits. Correct higher

Answer Your Answer

same

True/False Question Error of commission refer to a situation where a transaction is not recorded in the books of account. Correct False Answer Your True Answer Multiple Choice Single Answer Question Relevant costs in decision making are : Correct Those costs which will arise as a result Answer of the proposed action Your Those costs which will arise as a result Answer of the proposed action Select The Blank Question ________is the summary of all the balances in all the accounts listed in ledger account of an organization at any given point of time. Correct Trial Balance Answer Your Trial Balance Answer Multiple Choice Multiple Answer Question Overhead capacity variance is the outcome of: Correct Shortage of labour , Enforced idle Answer time, e.g.power breakdowns , Customer demand being more or less than anticipated Your Shortage of labour , Enforced idle Answer time, e.g.power breakdowns , Customer demand being more or less than anticipated True/False Question Factory overheads consist of all overhead costs incurred from the stage of procurement of material till the production of finished goods. Correct True Answer Your True Answer

True/False Question Bank reconciliation statement must be prepared before the preparation of profit and loss account and balance sheet. Correct True Answer Your True Answer Multiple Choice Single Answer Question Included in the trial balance is the sales promotion suspense account with a debit balance of Rs.6,300/-. It is given that this balance should be written off. Calculate its impact on profit of the company. Correct The net profit will decrease by Answer Rs.6,300/Your The gross profit will increase by Answer Rs.6,300/Select The Blank Question In calculation of total sales margin variance, the ________cost of sales is deducted from the actual sales revenue. Correct Standard Answer Your Actual Answer Match The Following Question Correct Your Answer Answer Increase in Increase Increase contribution in in profit will lead to profits volume ratio Increase Increase Decrease in in fixed in break contribution cost will even lead to point Decrease Increase Increase in in profit in variable volume profits cost will ratio lead to Decrease Decrease in Increase in selling contribution in break price will even lead to point

Multiple Choice Multiple Answer Question Marginal costing technique is useful in taking decisions relating to which of the following courses of action? Correct Decision to drop a product line , Answer Decision to accept a special offer at price lower than the normal selling price , Decision regarding temporary shut-downs Your Decision to drop a product line , Answer Decision to accept a special offer at price lower than the normal selling price , Decision to accept a special offer at price higher than the normal selling price , Decision regarding temporary shut-downs Multiple Choice Single Answer Question Basic objective of Uniform Costing is . .. Correct comparison Answer Your To control cost Answer Select The Blank Question Re-order level should be higher than ________ but lesser than maximum stock level. Correct Minimum level Answer Your Minimum level Answer True/False Question The variable costs are controllable at the lower lever. Correct True Answer Your False Answer Select The Blank Question Economical use of labour, materials and facilities can achieved with the help of ________. Correct Budgetary control Answer Your Budgetary control Answer Select The Blank

Question Goods returned by Pawan worth Rs.1,000/- is debited to Pawans Account. In order to rectify the mistake, which account should be debited ? ________ Correct Suspense account Answer Your Personal account Answer True/False Question The purchase account should be debited when an order is placed with the supplier of material. Correct False Answer Your False Answer True/False Question Accounting refers to the process of analyzing & interpreting the information already recorded in the books of accounts. Correct True Answer Your True Answer Select The Blank Question Interest receivable is a________ for the organisation. Correct Current sset Answer Your Long term asset Answer 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 The net profit will not be affected Answer Your The net profit will decrease by Answer Rs.18,000/Multiple Choice Single Answer Question Amit sold Goods to Atul for Rs. 50,000/- on cash & Rs. 50,000/- on credit basis. Amit allowed 10% discount for on the spot transaction.

Correct Answer Your Answer

What is the amount that should be debited to the cash account? Rs.45,000/Rs.50,000/-

Multiple Choice Single Answer Question Interest on bank loan, was paid till the quarter ending 30th September, 2003, Rs.36,000/-. Find the amount to be debited to the profit and loss account for the year ending on 31st March, 2004, assuming the loan is not yet repaid as on this date. Correct Rs.72,000/Answer Your Rs.36,000/Answer Multiple Choice Single Answer Question The features of the Halsey Plan are: Correct The benefit of time saved is divided Answer equally between the employer and employee Your The benefit of time saved is divided Answer equally between the employer and employee True/False Question The sum of indirect material cost, indirect labour cost and indirect expenses is termed as factory cost. Correct False Answer Your True Answer Multiple Choice Single Answer Question Determine re-order level from the following : Maximum daily consumption 200 units; maximum delivery period 12 days; average daily consumption 150 units and average delivery period 8 days. Correct 2,400 units Answer Your 2,400 units Answer Select The Blank Question An error of partial omission can be

Correct Answer Your Answer

rectified by either debiting or crediting the ________ account, as the case maybe. suspense adjusted profit and loss

Multiple Choice Multiple Answer Question Select the examples of functional budgets: Correct Sales budget , Production budget , Answer Research and development budget Your Sales budget , Production budget , Answer Research and development budget Multiple Choice Single Answer Question With the help of the given information, find actual fixed overheads for actual output. Fixed overheads volume variance -Rs.75,000/- (Favourable); fixed overheads efficiency variance -Rs.95,000/- (Favourable); fixed overheads calendar variance Rs.20,000/- (Adverse); fixed voerheads expenditure variance Rs.100,000/(Adverse) and standard fixed overheads for actual output -Rs.575,000/-. Correct Rs.600,000/Answer Your Rs.525,000/Answer Select The Blank Question Furniture account will always have a ________ balance. Correct Debit Answer Your Credit Answer Select The Blank Question If the ordering cost ________s, then the economic order quantity will Increase. Correct Increase Answer Your Increase Answer Multiple Choice Multiple Answer

Question Which of the following information is included in the goods received note? Correct Date of receipt of material , Quantity Answer received , Description of goods Your Date of receipt of material , Quantity Answer received , Price of goods , Description of goods Multiple Choice Multiple Answer Question Select the non-monetary incentives Correct Health and safety services , Canteen Answer facility , Loans at reduced rate of interest Your Health and safety services , Canteen Answer facility True/False Question A business is an activity carried out with the intention of earning the profit. Correct True Answer Your True Answer True/False Question Linking overhead to a cost unit is known as overhead absorption. Correct True Answer Your True Answer Multiple Choice Multiple Answer Question The operating profit as per cost statement may differ from the profit as per Profit and Loss Account due to existence of Correct Depreciation on plant and machinery , Answer Interest on loans taken from other , Interest on loans granted to others Your Depreciation on plant and machinery , Answer Interest on loans taken from other Multiple Choice Multiple Answer Question The main advantages of profit sharing are : Correct Employees try to increase Answer productivity , Incentives are shared by all the employees , Augments emplyees efficiency Your Employees try to increase Answer productivity , Incentives are shared by

all the employees 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 Labour cost variance -Rs.700/Answer (Favourable) , Labour yield variance -Rs.1,260/- , Labour yield variance is favourable Your Labour cost variance -Rs.700/Answer (Favourable) , Labour yield variance -Rs.1,260/True/False Question The best way to reduce labour cost is to recruit cheap labour. Correct False Answer Your False Answer True/False Question Balance sheet indicates the financial status of the business at given period. Correct True Answer Your True Answer Multiple Choice Multiple Answer Question Select the items which may be classified as selling and distribution overheads. Correct Delivery van expenses , Rent of Answer finished goods warehouse , Sales research expenses Your Delivery van expenses , Rent of Answer finished goods warehouse , Sales research expenses Select The Blank Question In India the gas industry and electricity industry, and ________ industry are examples of industries using the uniform costing system. Correct fertilizer Answer Your fertilizer

Answer Multiple Choice Single Answer Question The process of recording the costs in a formal and systematic manner with the intention of preparing statistical data there from a ascertain the cost, is known as . . . Correct Cost accounting Answer Your Cost accounting Answer Multiple Choice Single Answer Question Fixed deposit bearing interest @ 5.50%, for Rs.10,000/- was kept with Bank of India on 1st June, 2003, for a period of one year. The type of the fixed deposit is cumulative, i.e. interest shall be received only on maturity. What treatment should be given in the books of accounts on 31st March, 2004, the year ending date? Correct An entry for Rs.458.34, debiting Answer interest accrued but not due account should be passed Your An entry for Rs.458.34, crediting Answer interest accrued but not due account should be passed
True/False Question Correct Answer Your Answer True/False Question Correct Answer Your Answer True/False Question Correct Answer Your Answer True/False Question Correct Answer Your Answer True/False A business is an activity carried out with the intention of earning the profit. True True Balance sheet indicates the financial status of the business at given period. True True Accounting refers to the process of analyzing & interpreting the information already recorded in the books of accounts. True False Accounting is an art of recording, classifying & summarizing in a significant manner. True True

Question Correct Answer Your Answer True/False Question Correct Answer

Financial accounting may deal with the ascertainment of cost & calculation of profitability of the individual product. False False The reports generated by financial accounting are meant for the use by management for effective decisions. True