MANAGEMENT ACCOUNTING

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LIST OF ATTEMPTED QUESTIONS AND ANSWERS 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

True/False Question Fixed overhead variances may be calculated either on the basis of units of output or on the basis of standard hours. Correct Answer True Your Answer True

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 presentation of information

True/False Question The labour cost which can be identified with the individual cost centre is known as the Direct Labour Cost. Correct Answer True Your Answer True

Match The FollowingQuestion 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 Single Answer Question Flood occurred on 18th March, 2004 and goods worth Rs.28,000/- were destroyed. The insurance company accepted on 28th March, 2004 the claim for Rs.10,000/- only. The claim amount was received on 2nd April, 2004. Find the impact of this transaction on net profit for the year ending 31st March, 2004. Correct Answer The net profit will decrease by Rs.18,000/- Your Answer The net profit will decrease by Rs.18,000/-

MANAGEMENT ACCOUNTING

GET SUBMIT SCDL ASSIGNMENT ON YOUR BEHALF AND ANY INFORMATION CALL ME ON 09873779091 True/False Question Profitability statement indicates the amount of assets & liabilities. Correct Answer False Your Answer False

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

Select The Blank Question Income Tax Act, recognise only one method of depreciation namely ________. Correct Answer Written down value method Your Answer Written down value method

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

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 Total sales margin

Match The FollowingQuestion Correct Answer Your Answer

Emerson's efficiency bonus system Actual hours X Hourly rate + Bonus percentage (Actual hours X Hourly rate) Actual hours X Hourly rate + Bonus percentage (Actual hours X Hourly rate)

Piece rate system Output X Wage rate per unit Output X Wage rate per unit

Barth Premium system Hourly Rate X (square root of Standard Hours X Actual Hours)Hourly Rate X (square root of Standard Hours X Actual Hours)

Time rate system Attendance time X Hourly wage rateAttendance time X Hourly wage rate

Select The Blank Question For successful implementation of uniform costing system, it is very essential to devise ________, containing recommended cost accounting plan and procedures.

MANAGEMENT ACCOUNTING

GET SUBMIT SCDL ASSIGNMENT ON YOUR BEHALF AND ANY INFORMATION CALL ME ON 09873779091 Correct Answer cost manual Your Answer cost manual

Multiple Choice Multiple Answer Question The objectives of cost accounting are : Correct Answer Cost control , Ascertain ment of cost of each product , Assist in managerial decision-making Your Answer Cost control , Ascertain ment of cost of each product , Assist in managerial decision-making

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

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.24,050/- (Adverse)

True/False Question The process of accounting split into three steams i.e. financial, cost, management accounting. Correct Answer True Your Answer True

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

True/False Question Marginal costing rewards sales whereas absorption costing rewards production. Correct Answer True Your Answer True

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

True/False Question A business is an activity carried out with the intention of earning the profit. Correct Answer True Your Answer True

MANAGEMENT ACCOUNTING

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Multiple Choice Multiple Answer Question The advantages of Halsey plan are : Correct Answer Bonus goes on increasing with increase in time saved. , Provides more incentive to speed up production , Guaranteed time rate payment is made Your Answer Bonus goes on increasing with increase in time saved. , Provides more incentive to speed up production , Guaranteed time rate payment is made

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 Trading account is an important account which will be used to analyse how successful and how efficiently the firm runs its business. Correct Answer True Your Answer True

True/False Question The sum of indirect material cost, indirect labour cost and indirect expenses is termed as Overheads. 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

Multiple Choice Multiple Answer Question Direct Cost includes Correct Answer Direct material , Direct labour , Direct expenses Your Answer Direct material , Direct labour , Direct expenses

True/False Question Accounting is an art of recording, classifying & summarizing in a significant manner. 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

Select The Blank Question Advance received from customers is ________ for the organisation.

MANAGEMENT ACCOUNTING

GET SUBMIT SCDL ASSIGNMENT ON YOUR BEHALF AND ANY INFORMATION CALL ME ON 09873779091 Correct Answer A liability Your Answer A liability

True/False Question Balance sheet indicates the expenditure & income from the business. Correct Answer False Your Answer False

True/False Question Sales estimate given in the sales budget is a mere guess. Correct Answer False Your Answer False

Select The Blank Question ________ is any documentary evidence to justify that a particular transaction has taken place. Correct Answer Voucher Your Answer Voucher

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 sales-office workers

Select The Blank Question In India, where public undertakings operate along with the private sector undertakings, ________ enables a comparative assessment to be made of the two sectors. Correct Answer uniform costing Your Answer uniform costing

Multiple Choice Single Answer Question Find the budget which is inadequate as a cost control technique : Correct Answer Fixed budget Your Answer Fixed budget

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 Designed particularly for internal use , Helpful in estimating the future along with past period , Useful in furnishing the necessary information to the management

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

True/False

MANAGEMENT ACCOUNTING

GET SUBMIT SCDL ASSIGNMENT ON YOUR BEHALF AND ANY INFORMATION CALL ME ON 09873779091 Question Balance sheet indicates the financial status of the business at given period. Correct Answer True Your Answer True

Multiple Choice Single Answer Question If the proprietor has taken away goods worth Rs.5,500/- for personal use, find its impact on the proprietor's account in the organisatin. Correct Answer The capital will decrease by Rs.5,500/- Your Answer The capital will decrease by Rs.5,500/-

True/False Question The process of recording attendance time of the workers is known as time booking. Correct Answer False Your Answer False

Multiple Choice Multiple Answer Question Marginal costing is useful in the following areas : Correct Answer Plant shut down decisions , Make or buy decisions , Profit planning Your Answer Make or buy decisions , Profit planning , Apportionment of overheads

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

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 Multiple Answer Question In practical circumstances, control ledgers may be maintained for the following categories: Correct Answer Sundry debtors , Sundry creditors , Advance to Staff Your Answer Sundry debtors , Sundry creditors , Advance to Staff

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

MANAGEMENT ACCOUNTING

GET SUBMIT SCDL ASSIGNMENT ON YOUR BEHALF AND ANY INFORMATION CALL ME ON 09873779091 Question All cash sales are recorded in the sales register. Correct Answer False Your Answer False