management accounting 15

8/12/2019 Management Accounting 15

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LIST OF ATTEMPTED QUESTIONS AND ANSWERS MA1Multiple Choice Single AnswerQuestion KDL Ltd. charges depreciation @ 20% on written down alue !ethod. "he net #oo$ alue o

its !achiner& on 1st 'anuar&( 200) was *s.12+(000,-. hat will #e the net #oo$ alue o its !achiner& on&ear end( i.e.)1st Dece!#er( 200)( assu!ing there were no additions or disposals during the &ear/Correct Answer *s.100(000,-our Answer *s.100(000,-

"rue,alseQuestion Mali$ started #usiness #& contri#uting cash *s.+0(000,- and his personal car worth

*s.2+(000,- thus his capital account should #e credited with *s.3+(000,-.Correct Answer "rueour Answer "rue

Multiple Choice Multiple AnswerQuestion Select the non-!onetar& incentiesCorrect Answer 4ealth and saet& serices ( Canteen acilit& ( Loans at reduced rate o interestour Answer 4ealth and saet& serices ( Loans at reduced rate o interest

Select "he 5lan$Question "he s&ste! which proides an opportunit& to the s!all units to ta$e adantage o the

research wor$ ta$en #& the large scale units o the sa!e industr& is $nown as 66666666 s&ste!.Correct Answer 7nior! costingour Answer 7nior! costing

Multiple Choice Single AnswerQuestion As cost centers acilitate the control unction( in !an& cases( the& are ter!ed as . . .Correct Answer *esponsi#ilit& centersour Answer *esponsi#ilit& centers

Multiple Choice Single AnswerQuestion Lata and Tara are partners of Latara & Co As on !"st Mar#$% ''( Lata)s annua*

dra+in,s +ere as Rs-%'''./ and Tara)s annua* dra+in,s a0ounted to Rs"1%'''./ If interest ondra+in,s is #$ar,ed 2 "-3 pa% +$at is t$e a0ount of in#o0e for Latara & Co4Correct Answer *s.8(9+0,-our Answer *s.8(9+0,-

Multiple Choice Single AnswerQuestion :; < Co. has ta$en a loan o *s.100(000,- @ 1+% p.a.on 1st =cto#er( 200). >nterest is to

#e paid on hal &earl& #asis. hat treat!ent should #e gien in the #oo$s o accounts o :; < Co. as on)1st March( 2009/Correct Answer >nterest account should #e de#ited with *s.3(+20.++ and outstanding interest account

should #e credited with *s.3(+20.++our Answer >nterest account should #e de#ited with *s.3(+20.++ and outstanding interest account

should #e credited with *s.3(+20.++

"rue,alseQuestion 5alance sheet indicates the inancial status o the #usiness at gien period.Correct Answer "rueour Answer alse

Multiple Choice Single AnswerQuestion La#our turnoer rate is #est deined as ?Correct Answer "he nu!#er o leaers replaced diided #& the aerage o e!plo&ees on the pa&rollour Answer "he nu!#er o leaers replaced diided #& the aerage o e!plo&ees on the pa&roll


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Multiple Choice Single AnswerQuestion hich s&ste! proides an opportunit& to co!panies to adopt the one #est !ethod o cost

accounting s&ste! $nown to the industr& /Correct Answer 7nior! costingour Answer 7nior! costing

Multiple Choice Multiple AnswerQuestion T$e 5e6 fa#tor deter0ines t$e 7Correct Answer Leel o actiit& ( Capacit& utiliation ( Leel o salesour Answer Leel o actiit& ( Capacit& utiliation ( Leel o sales

Select "he 5lan$Question > the ordering cost 66666666s( then the econo!ic order uantit& will >ncrease.Correct Answer >ncreaseour Answer Decrease

Select "he 5lan$Question "he dierence #etween sales and cost o sales is ter!ed as 66666666.Correct Answer Bet roit

our Answer Contri#ution Margin

Select "he 5lan$Question "he !ethod which deals with ownership rights #eing gien to wor$ers is $nown as 66666666

!ethod o re!uneration.Correct Answer Co-partnershipour Answer Co-partnership

Match "he ollowingQuestion Correct Answer our Answer

5oo$-Keeping 5oo$s o Accounts inancial status

inancial state!ent roita#ilit& state!ent < 5alance-sheet roita#ilit& state!ent < 5alance-sheet

Accounting rocess o anal&ing < interpretation rocess o anal&ing < interpretation

roita#ilit& state!ent >ndicates the a!ount o proit earned >ndicates the a!ount o proit earned

5alance-sheet inancial status 5oo$s o Accounts

"rue,alseQuestion 7nior! costing s&ste! is a pre-reuisite to an inter-ir! co!parison o ir!s #elonging to the

dierent industries.Correct Answer alse

our Answer alse

Multiple Choice Multiple AnswerQuestion 7nior! Costing Methods !a& #e adantageousl& applied to . . .Correct Answer Single organiation haing nu!#er o #ranches. ( Bu!#er o co!panies in sa!e

industr& ( Si!ilar >ndustries such as cotton( ute etc.our Answer Single organiation haing nu!#er o #ranches. ( Bu!#er o co!panies in sa!e

industr& ( Si!ilar >ndustries such as cotton( ute etc.

"rue,alse


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Question Accounting reers to the process o anal&ing < interpreting the inor!ation alread& recordedin the #oo$s o accounts.Correct Answer "rueour Answer alse

"rue,alseQuestion roita#ilit& state!ent indicates the a!ount o assets < lia#ilities.Correct Answer alseour Answer alse

"rue,alseQuestion Accounting is an art o recording( classi&ing < su!!ariing in a signiicant !anner.Correct Answer "rueour Answer "rue

Multiple Choice Single AnswerQuestion An order or goods worth *s.1E(000,- was placed on 2+th March( 2009. "he goods were

receied on 1st April( 2009. Calculate the i!pact o this transaction on the inal state!ents o accounts orthe &ear ended )1st March( 2009.Correct Answer "he net proit will not #e aected

our Answer "he net proit will not #e aected

"rue,alseQuestion 5alance sheet indicates the eFpenditure < inco!e ro! the #usiness.Correct Answer alseour Answer alse

"rue,alseQuestion >nteri! diidend paid #& the co!pan& should #e de#ited to the proit and loss appropriation

account.Correct Answer "rueour Answer "rue

Select "he 5lan$Question "he short run inancial plan which acts as a guide to achiee the predeined targets is $nown

as 66666666.Correct Answer 5udgetour Answer 5udget

"rue,alseQuestion "he process o accounting split into three stea!s i.e. inancial( cost( !anage!ent

accounting.Correct Answer "rueour Answer "rue

Match "he ollowing

Question Correct Answer our Answer

*eal A,C De#it what co!es in( Credit what goes out De#it the receier( Credit the gier

"rade Discount Bot accounted or in the #oo$s o Accounts Bot accounted or in the #oo$s o Accounts

Cash Discount Accounted or in the #oo$s o Accounts Accounted or in the #oo$s o Accounts

*s.1 ersonal A,C De#it the receier( Credit the gier De#it what co!es in( Credit what goes out


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Select "he 5lan$Question >ndirect Cost is ter!ed as 66666666.Correct Answer =erheadour Answer =erhead

"rue,alseQuestion A #usiness is an actiit& carried out with the intention o earning the proit.Correct Answer "rueour Answer "rue

Multiple Choice Multiple AnswerQuestion "he o#ecties o cost accounting are ?Correct Answer Cost control ( Ascertain !ent o cost o each product ( Assist in !anagerial decision-

!a$ingour Answer Cost control ( Ascertain !ent o cost o each product ( Assist in !anagerial decision-

!a$ing

Multiple Choice Single AnswerQuestion "he inance !anager is responsi#le or which o the ollowing #udget/

Correct Answer Cash #udgetour Answer Cash #udget

Select "he 5lan$Question >nterest on 66666666 is credited to Capital account.Correct Answer Capitalour Answer Capital

Select "he 5lan$Question 7nder the aerage cost !ethod o aluing !aterial issues( new issue price is deter!ined

ater 66666666 issue.Correct Answer Gachour Answer "he neFt

"rue,alseQuestion "he eect o price reduction is alwa&s reduction in the !argin o saet& and also reduction in

the #rea$ een point.Correct Answer alseour Answer alse

"rue,alseQuestion rice #ased on 7nior! Costing !a& #e ta$en to #e relia#le and representatie o the whole

industr&.Correct Answer "rueour Answer alse

Multiple Choice Multiple AnswerQuestion hich o the ollowing is li$el& to #e a contri#utor& actor to the incidence o eFcesseFpenditure on !aterial cost/Correct Answer "he leel o control o the used o !aterial in the production c&cle ( "he incorrect

choice o purchase order uantit& ( ailure to control the issue o !aterials ro! storesour Answer "he leel o control o the used o !aterial in the production c&cle ( An increase in the

!aFi!u! !aterial inentor& leel ( ailure to control the issue o !aterials ro! stores

Question If t$e tota* 0anufa#turin, o8er$ead of a ti*es produ#in, fa#tor6 a0ounted to Rs"-*a5$s and t$e o8er$ead rate +as Rs-./ per s9ft% t$en t$e produ#tion for t$e period #an :e stated


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as ;;;;;;;; s9ft ti*esCorrect Answer )00000our Answer )00000

Question A##ountin, is t$e art +$ere transa#tions are HCorrect Answer Su!!aried ( Classiied ( *ecordedour Answer Classiied ( *ecorded ( rocessed

"rue,alseQuestion > eFcess o cash is esti!ated in the cash #udget( it !a& #e possi#le to utilise it to gie #onus

to the e!plo&ees.Correct Answer alseour Answer alse

"rue,alseQuestion A fincrease the sales olu!e ( *educe cost o sales ( >ncrease the selling eorts

Question T$ese are t$e pre8enti8e #osts of *a:our turno8erCorrect Answer Cost o !aintaining good relations with the wor$ers ( Cost o !edical serices ( Cost o

welare acilities

our Answer Cost o !aintaining good relations with the wor$ers ( Cost o !edical serices ( Cost owelare acilities

Question Se*e#t t$e ite0s +$i#$ 0a6 :e #*assified as ad0inistration o8er$eadsCorrect Answer Depreciation on oice urniture ( DirectorIs re!uneration ( "elephone eFpensesour Answer DirectorIs re!uneration ( "elephone eFpenses

Question An6 a0ount of profit earned in t$e past +$i#$ is not distri:uted to t$e o+ner% :e*on,sto t$e #reditorsCorrect Answer alse


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our Answer "rue

Question Mana,e0ent a##ountin, is #on#erned +it$ t$e fo**o+in, a#ti8ities 7Correct Answer Decision !a$ing ( Saeguarding assets ( lanning and controlling actiitiesour Answer Decision !a$ing ( lanning and controlling actiities

LIST OF ATTEMPTED QUESTIONS AND ANSWERS MA

Question Under ti0e rate s6ste0 a +or5er is paid on t$e :asis of produ#tion a#$ie8ed :6 $i0in a ,i8en ti0eCorrect Answer alseour Answer alse

Question =ud,eted profit and *oss a##ount and :ud,eted :a*an#e s$eet are a*so 5no+n as;;;;;;;;

Correct Answer Master #udgetour Answer Master #udget

Mat#$ T$e Fo**o+in,


Drawings roprietorIs account roprietorIs account

Deerred reenue eFpenditure *eal account *eal account

Deerred reenue eFpenditure written o Bo!inal account Bo!inal account

Loan ersonal account ersonal account

Question ;;;;;;;; A##ountin, is t$e pro#ess of ana*6sis and interpretation of finan#ia* data#o**e#ted +it$ $e*p of finan#ia* a##ountin, & #ost a##ountin,Correct Answer Manage!entour Answer Manage!ent

Question Mana,e0ent A##ountin, is t$e pro#ess of ana*6sis and interpretation of finan#ia* data#o**e#ted +it$ $e*p of finan#ia* a##ountin, and #ost a##ountin,Correct Answer "rueour Answer "rue

Question A ,rindin, 0a#$ine is an e


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referred to as ;;;;;;;;Correct Answer 5alance sheetour Answer "rial 5alance

Question P&L state0ent +$i#$ is a period state0ent & re*ates to a #ertain period te**s a:outresu*ts of operationsCorrect Answer "rueour Answer "rue

Mat#$ T$e Fo**o+in,Question Correct Answer our Answer

Lia#ilities All the a!ount owed #& the #usiness All the a!ount owed #& the #usiness

Drawing ithdrawn or personal use ithdrawn or personal use

'ournal 5oo$ o original entr& 5oo$ o original entr&

Ledger Maintain all t&pes o Accounts Maintain all t&pes o Accounts

Assets All the properties owned #& the #usiness All the properties owned #& the #usiness

Question >ud,e t$e ,i8en state0ent a##ordin, to t$e ,i8en #riteria ?oods :ein, rea* a##ount%+$en ,oods are *ost :6 fire% t$e ,oods a##ount s$ou*d :e de:ited :e#ause t$e ,oods are not,oin, out of t$e fa#tor6Correct Answer "he state!ent is correct #ut the reason is incorrectour Answer "he state!ent and the reason #oth are incorrect

Question A ;;;;;;;; in8entor6 turno8er period indi#ates effi#ient uti*isation of 0ateria*Correct Answer Lowour Answer 4igh

Question Finan#ia* a##ountin, 0a6 dea* +it$ t$e as#ertain0ent of #ost & #a*#u*ation of

profita:i*it6 of t$e indi8idua* produ#tCorrect Answer alseour Answer alse

Question Mana,e0ent A##ountin, ai0s at ena:*in, t$e 0ana,e0ent to ta5e t$e de#isionsa:out t$e future It 0a6 #onsider future data as +e** as non/finan#ia* fa#torsCorrect Answer "rueour Answer alse

Question Finan#ia* A##ountin, pri0ari*6 prote#ts t$e interests of t$e outsiders dea*in, +it$or,ani@ation in 8arious #apa#itiesCorre#t Ans+er Trueour Answer alse

Question Pur#$ased '' s$ares of =$arat For,e Ltd for Rs1-'./ per s$are% +$i#$ a##ounts$ou*d :e de:ited4Correct Answer >nest!ent account - *s.130(000,-our Answer >nest!ent account - *s.130(000,-

Question Contents of Unifor0 Cost Manua* areCorrect Answer =rganiation ( Cost Accounting s&ste! ( resentation o inor!ationour Answer =rganiation ( Cost Accounting s&ste! ( resentation o inor!ation


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Question T$e data for t+o 0ateria*s P and Q is ,i8en :e*o+ 7 Materia* P 7 openin, sto#5Rs1'%'''./ #*osin, sto#5 Rs('%'''./ and pur#$ases Rs-''%'''./ Materia* Q 7 openin, sto#5Rs"B'%'''./ #*osin, sto#5 Rs'%'''./ and pur#$ases RsB-'%'''./ Identif6 +$i#$ of t$e ,i8enstate0ents re*e8ant to t$e data ,i8en are #orre#tCorrect Answer >nentor& turnoer period or !aterial is 90.+ da&s ( Material is aster !oing

!aterial ( Consu!ption o !aterial Q is *s.E80(000,-our Answer >nentor& turnoer period or !aterial is 90.+ da&s ( Material Q is aster !oing

!aterial ( Consu!ption o !aterial Q is *s.E80(000,-

Question Cost A##ountin, is #on#erned +it$ #a*#u*ation of t$e profita:i*it6 and state of affairsof t$e or,ani@ation as a +$o*eCorrect Answer alseour Answer "rue

Question O8er$ead a:sorption rate +i** :e different at different #apa#it6 *e8e*sCorrect Answer "rueour Answer "rue

Question A##ountin, is t$e art +$ere transa#tions are HCorrect Answer Su!!aried ( Classiied ( *ecorded

our Answer Su!!aried ( Classiied ( *ecorded

Question Features of a #ost s$eet are as fo**o+sCorrect Answer >ndicates the total cost o production during a gien period ( >ndicates the unit cost o

production during a gien period ( 4elps the !anage!ent in iFing the selling price to #e uoted or theour Answer >ndicates the total cost o production during a gien period ( 4elps the !anage!ent in

iFing the selling price to #e uoted or the ( 4elps the !anage!ent in ta$ing I!a$eI or I#u&I decision orthe

Question Essentia*s for effe#ti8e i0p*e0entation of :ud,etar6 #ontro* s6ste0 areCorrect Answer Co!!it!ent o top !anage!ent ( Clearl& deined o#ecties ( Continous #udget

educationour Answer Co!!it!ent o top !anage!ent ( Clearl& deined o#ecties ( Continous #udget

education

Question Under Differentia* Ti0e Rate 0et$od pa60ent is 0ade at Rs "(' per $our +$en t$e*e8e* of effi#ien#6 is :et+een;;;;;;;;Correct Answer J0% to 100%our Answer J0% to 100%

Question T$e a*ternati8e #ourses of a#tion for an inte,rated te


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sa0e ratio as :ud,etedCorre#t Ans+er Fa*seour Answer "rue

Question T$e se*e#tion of ;;;;;;;; 0a6 depend upon t$e 8arious fa#tors *i5e #$ara#teristi#sof t$e :usiness or,anisation% ta< #onsiderations% statutor6 re9uire0ents et#Correct Answer Accounting periodour Answer Accounting period

Question Ca*#u*ate t$e 0a#$ine $our rate T$e a0ount of o8er$ead pertainin, to >une% ''( to:e apportioned is Rs"B'%'"'./ T$e 0a#$ine #annot +or5 +it$out an operator Durin, t$e 0ont$>une% ''( t$e 0a#$ine operator $as :een paid for -%B' $oursCorrect Answer *s.2J.JEour Answer *s.)0,-

Question Unifor0 Costin, si0p*ifies t$e +or5 of +a,e :oards of finor!ation

Question T$e pro#ess of attri:utin, proportions of ite0s of #osts a0on,st #onst #entres is#a**ed ;;;;;;;;Correct Answer Cost apportion!entour Answer Cost allocation

Question " Finan#ia* state0ents are :asi#a**6 in t+o for0s ie profita:i*it6 state0ent and:a*an#e s$eetCorrect Answer "rue

our Answer "rue

Question T$e 8arian#e +$i#$ 0easures t$e de8iation of t$e rate a#tua**6 paid to *a:our as fro0t$e standard $our*6 rate is 5no+n as7Correct Answer La#our rate arianceour Answer La#our rate ariance

Question Ad8an#e re#ei8ed fro0 #usto0ers is ;;;;;;;; for t$e or,anisationCorrect Answer A lia#ilit&our Answer A lia#ilit&


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Question Finan#ia* A##ountin, dis#*oses t$e finan#ia* perfor0an#e & finan#ia* state0ents of

t$e :usiness as a +$o*e.Correct Answer "rueour Answer "rue

Question If Rs"-%'''./ $as :een paid to ar,i* Re*ief Fund as t$e o+ner)s persona*#ontri:ution% ;;;;;;;; a##ount s$ou*d :e de:ited in t$e :oo5s of a##ounts of t$e :usinessCorrect Answer Drawingsour Answer Capital

Question Furniture a##ount +i** a*+a6s $a8e a ;;;;;;;; :a*an#eCorrect Answer De#itour Answer De#it

Question Produ#t #osts under dire#t #ostin, in#*ude7Correct Answer ri!e cost and aria#le actor& oerheadsour Answer ri!e cost onl&

Question Unifor0 #ostin, 0a6 *ead to 0onopo*isti# #onditions +it$in t$e industr6% pri#es 0a6

:e raised and #usto0ers 0a6 sufferCorrect Answer "rueour Answer alse

Question T$e su0 of indire#t 0ateria* #ost% indire#t *a:our #ost and indire#t e &ou are reuired to enorce unior! costing s&ste! in &our industr&( how would &ou proceed

/Correct Answer Collecting data ro! all units o &our industr& ( Gnsuring that the data collected is

co!plete and correct ( Maintaining secrec& o the data collectedour Answer Collecting data ro! all units o &our industr& ( Gnsuring that the data collected is co!plete


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and correct ( Allowing ree access to all the units to the collected data

Multiple Choice Single AnswerQuestion "he #an$ #oo$ shows an oerdrat o *s.113,- as on )1st Dece!#er( 200). >t is ound that the

pass #oo$ is de#ited with *s.11,- representing a dishonoured cheue( originall& receied ro! Mr.A. "heact o dishonour was not recorded in the #an$ #oo$. ind the #alance as per pass #oo$.Correct Answer *s.12E,- oerdratour Answer *s.108,- credit

Multiple Choice Multiple AnswerQuestion >denti& the steps inoled in the process o decision !a$ing ?Correct Answer Deter!ination o the pro#le! ( Ascertain!ent o alternatie courses o action (

Screening each alternatie so as to select the #est oneour Answer Deter!ination o the solution ( Ascertain!ent o alternatie courses o action ( Screening

each alternatie so as to select the #est one

Multiple Choice Multiple AnswerQuestion >denti& the iFed eFpenses ro! the ollowing.Correct Answer *ent and taFes o the actor& ( ages paid to indirect wor$ers li$e cleaners(

helpers(etc. ( Salar& paid to actor& superisor

our Answer *ent and taFes o the actor& ( ages paid to indirect wor$ers li$e cleaners( helpers(etc. (Salar& paid to actor& superisor

"rue,alseQuestion 5udgetar& control is one o the techniues o !anage!ent accounting.Correct Answer "rueour Answer "rue

"rue,alseQuestion Manage!ent Accounting is a deeloped stage o Cost AccountingCorrect Answer "rueour Answer alse

"rue,alseQuestion >n the ledger account onl& credit entries relating to a particular account are posted.Correct Answer alseour Answer alse

Multiple Choice Multiple AnswerQuestion eatures o Sun$ cost are . . .Correct Answer >ndicates historical cost ( Bot releant in decision !a$ing process ( >ncurred in pastour Answer >ndicates historical cost ( Bot releant in decision !a$ing process ( >ncurred in past


lo#al "ender An& supplier ro! the glo#al !ar$et can ill the tender An& supplier ro! the glo#al !ar$etcan ill the tender

Single "ender "ender ro! onl& one supplier "ender ro! onl& one supplier

Li!ited "ender "enders ro! relia#le #ut ew suppliers "enders ro! relia#le #ut ew suppliers

=pen "ender An& supplier ro! the local !ar$et can ill the tender An& supplier ro! the local !ar$et canill the tender


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"rue,alseQuestion iFed oerhead ariances !a& #e calculated either on the #asis o units o output or on the

#asis o standard hours.Correct Answer "rueour Answer "rue

Multiple Choice Multiple AnswerQuestion eatures o "a&lorIs dierential piece rate s&ste! are as ollows ?Correct Answer Mini!a clerical wor$ is inoled in calculating the wages ( 4elps in #uilding up an

eicient la#our orce ( Strong incentie to eicient and a!#itious wor$ers.our Answer Mini!a clerical wor$ is inoled in calculating the wages ( 4elps in #uilding up an eicient

la#our orce ( Strong incentie to eicient and a!#itious wor$ers.

"rue,alseQuestion inancial Accounting discloses the inancial peror!ance < inancial status o the #usiness

as a wholeCorrect Answer "rueour Answer "rue

Select "he 5lan$Question Loss is eual to iFed cost !inus 66666666Correct Answer Contri#utionour Answer Contri#ution

Multiple Choice Multiple AnswerQuestion Direct Cost includesCorrect Answer Direct !aterial ( Direct la#our ( Direct eFpensesour Answer Direct !aterial ( Direct la#our ( Direct eFpenses

Select "he 5lan$Question "he docu!ent which la&s down the cost accounting plans and procedures to #e ollowed #&

the constituent units is $nown as 66666666.

Correct Answer unior! cost !anualour Answer unior! cost !anual

"rue,alseQuestion Cost Accounting is a legal reuire!ent.Correct Answer alseour Answer alse

Select "he 5lan$Question "he principle o 66666666 is ollowed while preparing the inancial state!ents.Correct Answer oing concernour Answer oing concern

"rue,alseQuestion Cash account can hae a credit #alance.Correct Answer alseour Answer "rue

Multiple Choice Multiple AnswerQuestion >denti& the causes due to which the cost o la#our !a& #e high?Correct Answer GFcess staing ( Lac$ o eFperienced and eicient personnel ( 4igh la#our turnoerour Answer GFcess staing ( Lac$ o eFperienced and eicient personnel ( 4igh la#our turnoer


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Select "he 5lan$Question Cop& o a ir!Is account in the #an$Is ledger is $nown as 66666666.Correct Answer 5an$ state!entour Answer 5an$ #oo$

"rue,alseQuestion eriod cost is the cost assigned to the products.Correct Answer alseour Answer alse

Multiple Choice Single AnswerQuestion >nterest on drawings o partners should #e credited to which account/Correct Answer roit and loss accountour Answer roit and loss account

Multiple Choice Multiple AnswerQuestion La#our turnoer !eans ?Correct Answer >nluF and eFit o e!plo&ees ( Quantitatie !easure!ent o insta#ilit& o wor$ing orce (

*ate o change in the aerage wor$ing orceour Answer >nluF and eFit o e!plo&ees ( Quantitatie !easure!ent o insta#ilit& o wor$ing orce (

*ate o change in the aerage wor$ing orce

"rue,alseQuestion 5oo$ $eeping is clerical while accounting is !anagerialCorrect Answer "rueour Answer "rue

"rue,alseQuestion inancial State!ents which are generated as a result o the !anage!ent accounting report interest on capital is to #e proided @ 10% p.a.( whatshould #e the treat!ent o this interest in the proita#ilit& state!ent( assu!ing there were no additions tocapital during this period/Correct Answer roit and loss account should #e de#ited with *s.1(E88.83our Answer roit and loss account should #e de#ited with *s.1(E88.83

"rue,alseQuestion A>L haing !onopol& in the CB Co!pressed Batural as !ar$et can i!ple!ent the

7nior! costing s&ste!.Correct Answer alse

our Answer "rue

"rue,alseQuestion 5an$ reconciliation state!ent can #e prepared on wee$l& #asis.Correct Answer "rueour Answer "rue

Select "he 5lan$Question "he 66666666 ledger carries the indiidual accounts( whereas the general ledger records the

consolidated eect o the indiidual transactions.Correct Answer Controlour Answer Control

Select "he 5lan$Question >n calculation o total sales !argin ariance( the 66666666cost o sales is deducted ro! theactual sales reenue.Correct Answer Standardour Answer Actual

"rue,alseQuestion 1 Cost Accounting and Manage!ent Accounting are si!ilar to each other in !an& respects.Correct Answer "rueour Answer "rue


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"rue,alseQuestion "he reports generated #& inancial accounting are !eant or the use #& !anage!ent or

eectie decisions.Correct Answer "rueour Answer alse

Multiple Choice Multiple AnswerQuestion ollowing errors aect the trial #alanceCorrect Answer rong totaling o su#sidiar& #oo$s ( osting on the wrong side o an account (

=!ission o posting an account in the ledgerour Answer rong totaling o su#sidiar& #oo$s ( osting on the wrong side o an account ( =!ission

o posting an account in the ledger

Select "he 5lan$Question "o$en or disc !ethod is a related to the s&ste! o 66666666.Correct Answer "i!e-$eepingour Answer "i!e-$eeping

"rue,alse

Question Cost Accounting !a& #e considered to #e a part o !anage!ent Accounting.Correct Answer "rueour Answer "rue

Select "he 5lan$Question "he 66666666 ariance is the dierence #etween the actual aria#le oerhead incurred and

the standard aria#le oerhead charged to production.Correct Answer "otal aria#le oerheadour Answer "otal aria#le oerhead

"rue,alseQuestion It is said t$at 0ar,ina* #osts are used pri0ari*6 in ,uidin, de#isions t$at are 6et to :e

0ade

Correct Answer "rueour Answer "rue

"rue,alseQuestion 7nior! Costing si!pliies the wor$ o wage #oards o iFing !ini!u! wages and air wages.Correct Answer "rueour Answer "rue

"rue,alseQuestion Manage!ent Accounting is not at all a legal reuire!entCorrect Answer "rueour Answer "rue

LIST OF ATTEMPTED QUESTIONS AND ANSWERS MA"Select "he 5lan$Question "he ariance which !easures the proit conseuences o selling dierent products in

proportions other than the standard( is $nown as 66666666 ariance.Correct Answer Sales !argin !iFour Answer Sales uantit&



16/30

Bon-=perating inco!e >ssue o shares >ssue o shares

lan o inest!ent in iFed assets Capital GFpenditure 5udget Capital GFpenditure 5udget

lan or surplus,shortage o cash Cash 5udget Cash Sales

=perating inco!e Cash Sales Cash Sales

Multiple Choice Multiple AnswerQuestion >denti& the aria#le eFpenses.Correct Answer *epairs o plant when it is underta$en #& an outside agenc& ( Carriage inward #& hired

carriers ( ages paid to casual wor$ersour Answer *epairs o plant when it is underta$en #& an outside agenc& ( Carriage inward #& hired

carriers ( ages paid to casual wor$ers

"rue,alseQuestion >t is said that !arginal costs are used pri!aril& in guiding decisions that are &et to #e !ade.Correct Answer "rue

our Answer "rue

Select "he 5lan$Question "he #udget that represents the unds inest!ent or eFpansion( diersiication( etc. is $nown

as 66666666.Correct Answer Capital eFpenditure #udgetour Answer Capital eFpenditure #udget

Multiple Choice Single AnswerQuestion 5asic o#ectie o 7nior! Costing is . . .Correct Answer co!parisonour Answer co!parison

Multiple Choice Single AnswerQuestion hich o the ollowing cost is also ter!ed as ri!e Cost /Correct Answer Direct costour Answer Direct cost

Multiple Choice Multiple AnswerQuestion inancial Accounting is HCorrect Answer Designed to suppl& inor!ation to internal, eFternal users ( *eerred as I4istoricalI or!

o accounting ( Concerned with inancial actorsour Answer Designed to suppl& inor!ation to internal, eFternal users ( *eerred as I4istoricalI or! o

accounting ( Concerned with inancial actors

Select "he 5lan$

Question "he !ethod o re!uneration under which the wor$ers are gien in share in proits o theorganiation( at a speciied percentage( along-with their wages( is $nown as 66666666 !ethod.Correct Answer roit-sharingour Answer Co-partnership

Multiple Choice Multiple AnswerQuestion 7nior! Costing Methods !a& #e adantageousl& applied to . . .Correct Answer Single organiation haing nu!#er o #ranches. ( Bu!#er o co!panies in sa!e

industr& ( Si!ilar >ndustries such as cotton( ute etc.our Answer Single organiation haing nu!#er o #ranches. ( Bu!#er o co!panies in sa!e


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industr& ( Si!ilar >ndustries such as cotton( ute etc.

Multiple Choice Single AnswerQuestion Select the cost that indicates increased or decreased total cost due to the increased or

decreased olu!e o operations.Correct Answer Dierential costour Answer Dierential cost

Multiple Choice Multiple AnswerQuestion > the sales orecast is less than the past sales #ut the top !anage!ent insists upon a certain

a!ount o additional proits( then ollowing steps can #e ta$en to achiee the target proitCorrect Answer >ncrease the selling price ( *educe cost o sales ( >ncrease the selling eortsour Answer >ncrease the selling price ( *educe cost o sales ( >ncrease the selling eorts

Multiple Choice Multiple AnswerQuestion "he disadantages o ti!e rate s&ste! are ?Correct Answer >gnores the eicienc& o wor$ers ( 4igher la#our cost ( Lac$ o !otiation to increase

productiit&our Answer >gnores the eicienc& o wor$ers ( 4igher la#our cost ( Lac$ o !otiation to increase

productiit&

Select "he 5lan$Question An adust!ent relating to outstanding eFpenses will 66666666 the net proit.Correct Answer Decreaseour Answer Decrease

Multiple Choice Multiple AnswerQuestion Select the appropriate rectiication entries or the ollowing transactions i *s.200,- receied

in respect o a #ad de#t preiousl& written o was credited to De#tors account. ii aid *s.8(000,- to aMr. *ao( cler$( as salar& in lieu o notice. "his a!ount was de#ited to his personal account iii >nterest @+% p.a. on a loan o *s.+(000,- was de#ited to general eFpenses account.Correct Answer De#tors A,c ..........Dr. *s.200,- to #ad de#ts recoered A,c *s.200,- ( *s.8(000,- to

*aoIs A,c *s.8(000,- ( *s.2+0,- to eneral GFpenses A,c *s.2+0,-

our Answer De#tors A,c ..........Dr. *s.200,- to #ad de#ts recoered A,c *s.200,- ( *s.8(000,- to *aoIsA,c *s.8(000,- ( *s.2+0,- to eneral GFpenses A,c *s.2+0,-

"rue,alseQuestion A #usiness is an actiit& carried out with the intention o earning the proit.Correct Answer "rueour Answer "rue

Multiple Choice Single AnswerQuestion Quanti& the increase in proit on account o ollowing errors ? a *epairs o urniture

a!ounting to *s.2(000,- were de#ited to urniture account. urniture is depreciated @10% p.a. #>nterest receied on #an$ deposits was credited to diidend receied account( *s.1(++0,- c A teleisionpurchased or the !anaging directorIs oice or *s.9+(000,- was de#ited to >nterior decoration eFpenses.

Correct Answer *s.9)(200,-our Answer *s.99(3+0,-

Select "he 5lan$Question "he anal&sis which is also reerred as Iwhat iI anal&sis is $nown as66666666.Correct Answer Cost olu!e proit anal&sisour Answer roit ariance anal&sis

"rue,alse


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Select "he 5lan$Question >n >ndia the gas industr& and electricit& industr&( and 66666666 industr& are eFa!ples o

industries using the unior! costing s&ste!.Correct Answer ertilierour Answer auto!o#ile

Select "he 5lan$Question >nco!e "aF Act( recognise onl& one !ethod o depreciation na!el& 66666666.Correct Answer ritten down alue !ethodour Answer ritten down alue !ethod

Multiple Choice Multiple AnswerQuestion Marginal costing techniue is useul in ta$ing decisions relating to which o the ollowing

courses o action/Correct Answer Decision to drop a product line ( Decision to accept a special oer at price lower than

the nor!al selling price ( Decision regarding te!porar& shut-downsour Answer Decision to drop a product line ( Decision to accept a special oer at price lower than the

nor!al selling price ( Decision regarding te!porar& shut-downs

Multiple Choice Multiple AnswerQuestion "he arious areas in which unior! costing can #e adopted are . .Correct Answer Naluation o inentories ( Charging o depreciation ( Apportion!ent o oerheadsour Answer Naluation o inentories ( Charging o depreciation ( Apportion!ent o oerheads

Multiple Choice Single AnswerQuestion lood occurred on 1Eth March( 2009 and goods worth *s.2E(000,- were destro&ed. "he

insurance co!pan& accepted on 2Eth March( 2009 the clai! or *s.10(000,- onl&. "he clai! a!ount wasreceied on 2nd April( 2009. ind the i!pact o this transaction on net proit or the &ear ending )1st

March( 2009.Correct Answer "he net proit will decrease #& *s.1E(000,-our Answer "he net proit will increase #& *s.10(000,-

"rue,alseQuestion hile preparing the la#our cost #udget( actors such as oerti!e wor$ing or night shit

wor$ing !a& #e ignored.Correct Answer alseour Answer alse

Multiple Choice Single AnswerQuestion 7nearned co!!ission o *s.+(000,- needs to #e recorded in the #oo$s o accounts. ind its

correct i!pact.Correct Answer "he asset side o the #alance sheet will increase #& *s.+(000,-our Answer "he asset side o the #alance sheet will increase #& *s.+(000,-

Multiple Choice Multiple AnswerQuestion GFa!ples o indirect !aterial areCorrect Answer Consu!a#le stores ( lue used in #oo$ #inding ( Bails used in pac$ing #oFesour Answer Consu!a#le stores ( lue used in #oo$ #inding ( Bails used in pac$ing #oFes

"rue,alse


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Question > eFcess o cash is esti!ated in the cash #udget( it !a& #e possi#le to utilise it to gie #onusto the e!plo&ees.Correct Answer alseour Answer alse

Select "he 5lan$Question A person in charge o a 66666666 !a& #e held responsi#le or its proper unctioning and cost

control.Correct Answer Cost centreour Answer Cost centre

"rue,alseQuestion >t is er& eas& to !easure the portion o increased sales which is due to eFpenditure incurred

or adertise!ent o the productCorrect Answer alseour Answer "rue

Multiple Choice Multiple AnswerQuestion Select the ite!s which !a& #e classiied as ad!inistration oerheads.Correct Answer Depreciation on oice urniture ( DirectorIs re!uneration ( "elephone eFpenses

our Answer Depreciation on oice urniture ( DirectorIs re!uneration ( "elephone eFpenses

Multiple Choice Single AnswerQuestion hich o the ollowing is a correct deinition o the $e& actor/Correct Answer "he actor which li!its the actiites o the underta$ingour Answer "he actor which the top !anage!ent eel is i!portant

Select "he 5lan$Question "he arinace that atte!pts to ascertain the eect o change in sales olu!e on the dierence

#etween actual and #udgeted contri#ution is $nown as 66666666 ariance.Correct Answer Sales !argin olu!eour Answer "otal sales !argin

"rue,alseQuestion "he role o the #udget co!!ittee !a& #e ta$en as an adisor& role to the Chie GFecutie.Correct Answer "rueour Answer "rue

Select "he 5lan$Question Depreciation is caused #& use actor( o#solescence and 66666666.Correct Answer "i!e actorour Answer "i!e actor

Multiple Choice Single AnswerQuestion A #usinessIs telephone #ill should nro!all& #e classiied into which one o the ollowing

categories/

Correct Answer Se!i-aria#le costour Answer Se!i-aria#le cost

Select "he 5lan$Question > the ordering cost 66666666s( then the econo!ic order uantit& will >ncrease.Correct Answer >ncreaseour Answer >ncrease

"rue,alseQuestion Depreciation under *educing 5alance Method is calculated as Bu!#er o units O *ate o


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depreciation per unitCorrect Answer alseour Answer alse

Multiple Choice Multiple AnswerQuestion La#our eicienc& ariance *s.1(000,- aoura#le la#our !iF ariance *s.280,- aderse

and la#our rate ariance *s.)00,- aderse. Co!pute la#our cost ariance and la#our &ield ariance.Correct Answer La#our cost ariance -*s.300,- aoura#le ( La#our &ield ariance -*s.1(280,- (

La#our &ield ariance is aoura#leour Answer La#our cost ariance -*s.300,- aoura#le ( La#our &ield ariance -*s.1(280,- ( La#our

&ield ariance is aoura#le

Multiple Choice Single AnswerQuestion hich s&ste! can assist in iFing a co!!on selling price or the industr& as a whole on the

#asis o cost o production o all units #elonging to that industr& /Correct Answer 7nior! costingour Answer 7nior! costing

"rue,alseQuestion All cash sales are recorded in the sales register.

Correct Answer alseour Answer "rue


"ransport acilities to e!plo&ees reentie cost o la#our turnoer reentie cost o la#our turnoer

*elationship #etween superisor and wor$er Aoida#le cause o la#our turnoer Aoida#le cause ola#our turnoer

Dis!issal o e!plo&ee 7naoida#le cause o la#our turnoer 7naoida#le cause o la#our turnoer

>ncreased spoilage and deecties *eplace!ent cost o la#our turnoer *eplace!ent cost o la#ourturnoer

"rue,alseQuestion roita#ilit& state!ent indicates the a!ount o assets < lia#ilities.Correct Answer alseour Answer alse

LIST OF ATTEMPTED QUESTIONS AND ANSWERS MA"rue,alseQuestion 5alance sheet indicates the eFpenditure < inco!e ro! the #usiness.

Correct Answer alseour Answer "rue

"rue,alseQuestion 7nior! costing !a& lead to !onopolistic conditions within the industr&( prices !a& #e raised

and custo!ers !a& suer.Correct Answer "rueour Answer "rue

"rue,alse


21/30

Question >ndirect !aterial cost is an integral part o inished goods.Correct Answer alseour Answer alse

Multiple Choice Multiple AnswerQuestion Select the arious !ethods adopted or treat!ent o under or oer a#sor#ed oerheadsCorrect Answer 7se o supple!entar& rates ( Carr&ing oer the a!ount to re!aining period ( riting o

to the Costing roit and Loss Accountour Answer 7se o supple!entar& rates ( Carr&ing oer the a!ount to re!aining period ( riting o to

the Costing roit and Loss Account

"rue,alseQuestion enerall& spea$ing inco!e represents wealth increase and #usiness success higher the

inco!e( lower will #e the success o a #usiness.Correct Answer alseour Answer alse

Multiple Choice Single AnswerQuestion >t is diicult to appl& 7nior! costing s&ste! or an industr& which has la#our intensie

co!panies as well as capital intensie co!panies( #ecause ?

Correct Answer "he cost structure is dierentour Answer "he cost structure is dierent

"rue,alse

Multiple Choice Single AnswerQuestion Standard ti!e reuired or a o# is 10 hours( i.e.10 : 80 P 800 I5sI. "he wor$er has actuall&

co!pleted the o# in 8 hours( i.e.8 : 80 P )80 I5sI. "i!e wage rate is *s.20,- per hour. 5onus is shared#etween the wor$er and the ore!an in the ratio o )?1. Calculate total earning o the wor$er as per5edeauF oint S&ste!.Correct Answer *s.1E0,-our Answer *s.180,-

Multiple Choice Multiple AnswerQuestion "he o#ecties o 7nior! costing s&ste! are as ollows ?Correct Answer "o iF a co!!on selling price or the industr& as a whole ( "o co!pare eicienc& o

each unit against industr&Is oerall peror!ance ( "o co!pile relia#le cost data or inter-ir! co!parison ocostsour Answer "o iF a co!!on selling price or the industr& as a whole ( "o co!pile relia#le cost data or

inter-ir! co!parison o costs ( "o iF a co!!on selling price so as to !aFi!ie proits o each unit

Select "he 5lan$Question Co!putation o gross wages( deductions and net wages pa&a#le is the unction o the

66666666 depart!ent.Correct Answer ersonnelour Answer Cost accounting

Multiple Choice Multiple AnswerQuestion eatures o purchase reuisition slip are ?Correct Answer *aised when the stoc$ o a raw !aterial has allen to the re-order leel. ( >ndicates the

t&pe( uantit& and ualit& o !aterial reuired ( "he inor!ation a#out the price o !aterial is eFcludedour Answer *aised when the stoc$ o a raw !aterial has allen to the re-order leel. ( >ndicates the

t&pe( uantit& and ualit& o !aterial reuired ( "he inor!ation a#out the price o !aterial is eFcluded


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Bor!al Standards Anticipated to #e achieed in uture Gsta#lished or a longer period o ti!e

5asic Standards Gsta#lished or a longer period o ti!e =nce esta#lished can neer #e altered

Current Standards Gsta#lished or a shorter period o ti!e Gsta#lished or a shorter period o ti!e

GFpected Standards Anticipated to #e achieed in the #udget period Anticipated to #e achieed in uture

"rue,alseQuestion "rading account is an i!portant account which will #e used to anal&se how successul and

how eicientl& the ir! runs its #usiness.Correct Answer "rueour Answer "rue

Select "he 5lan$Question Loans which are #orrowed ro! inancial institutions are to #e paid o in E &ears( should #e

disclosed as 66666666 in the #alance sheet.Correct Answer Long ter! lia#ilitiesour Answer Long ter! lia#ilities

Multiple Choice Single AnswerQuestion "he gross proit or the &ear 2009 is *s.1E9()28,-. "he depreciation on urniture or the &ear

is *s.29(+81,- diidend receied a!ounted to *s.12(000,- and the directorIs re!uneration wor$ed out to#e *s.J+(3E9,-. ind the net proit or the &ear 2009.

Correct Answer *s.3+(JE1,-our Answer *s.3+(JE1,-

Multiple Choice Multiple AnswerQuestion "he co!ponents o the selling and distri#ution cost #udget are ?Correct Answer Distri#ution eFpenses ( u#licit& eFpenditure ( Salar& o sales-oice wor$ersour Answer Distri#ution eFpenses ( u#licit& eFpenditure ( Salar& o sales-oice wor$ers

Multiple Choice Single AnswerQuestion "he present unit cost data or a product is as ollows? selling price *s.1+,-( aria#le costs

*s.E,-. > selling prices are reduced #& 10% and aria#le costs are increased #& 12.+%. hich o theollowing is the a!ended contri#ution to sales ratio/Correct Answer 0.)))

our Answer 0.+

Multiple Choice Multiple AnswerQuestion Select the correct state!ents. *a!Is accountHH.Dr. *s.10(000 "o 5an$ account *s.10(000Correct Answer *a! is a creditor ( *s.10(000,- has #een paid to *a! ( "he pa&!ent is !ade #&

cheueour Answer *a! is an e!plo&ee ( *s.10(000,- has #een paid to *a! ( "he pa&!ent is !ade #&

cheue

Select "he 5lan$


23/30

Question enerall&( all real accounts will hae a 66666666 #alanceCorrect Answer De#itour Answer De#it

Select "he 5lan$Question A written order sent to inor! the purchasing depart!ent o a need or !aterials is called a

66666666.Correct Answer urchase reuisition noteour Answer urchase reuisition note

Multiple Choice Single AnswerQuestion "he oerheads apportioned to three production depart!ents A( 5 and C and two serice

depart!ents and Q are *s.3+(000,- *s.100(000,- *s.E0(000,- *s.80(000,- and *s.90(000,-respectiel&. =erheads o depart!ent are shared #& A( 5( C and Q in the ratio o 9 ? ) ? 2 ? 1 and thato depart!ent Q are shared #& A( 5( C and in the ratio o ) ? ) ? 2 ? 2. Ascertain the total oerheads oeach production depart!ent.Correct Answer A -*s.118(E)8,- 5 -*s.1)9(EEJ,- and C -*s.10)(28+,-our Answer A -*s.118(E)8,- 5 -*s.198(E)3,- and C -*s.138(E)E,-

Match "he ollowing


urchase #udget orecast o uantit& and alue o !aterials orecast o uantit& and alue o !aterials

5udget co!!ittee Anal&ses the peror!ance o dierent #udget centres Anal&ses the peror!ance odierent #udget centres

Cash #udget Assists in predicting shortage o cash Assists in predicting shortage o cash

5udget =#ectie is peror!ance ealuation =#ectie is peror!ance ealuation

Multiple Choice Multiple Answer

Question Contents o 7nior! Cost Manual areCorrect Answer =rganiation ( Cost Accounting s&ste! ( resentation o inor!ationour Answer =rganiation ( Cost Accounting s&ste! ( resentation o inor!ation

Multiple Choice Single AnswerQuestion *e-order uantit& !a& #e !easured as ?Correct Answer MaFi!u! stoc$ leel - re-order leel !ini!u! usage : !ini!u! re-order periodour Answer *e-order leel !ini!u! stoc$ - !aFi!u! usage : !aFi!u! re-order period

Select "he 5lan$Question "he selection o 66666666 !a& depend upon the arious actors li$e characteristics o the

#usiness organisation( taF considerations( statutor& reuire!ents etc.Correct Answer Accounting period

our Answer Accounting period

Select "he 5lan$Question > the total a!ount on the 66666666 side o co!!ission account is !ore than the total o its

credit side( the co!!ission account is said to hae a De#it #alance.Correct Answer De#itour Answer De#it

Multiple Choice Multiple AnswerQuestion "hese are the replace!ent costs o la#our turnoer.


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Correct Answer >neicienc& o new wor$ers ( Cost o selection and place!ent ( >ncreased spoilage anddeectiesour Answer >neicienc& o new wor$ers ( Cost o selection and place!ent ( >ncreased spoilage and

deecties

"rue,alseQuestion "he la#our cost which can #e identiied with the indiidual cost centre is $nown as the Direct

La#our Cost.Correct Answer "rueour Answer "rue

Select "he 5lan$Question Adance receied ro! custo!ers is 66666666 or the organisation.Correct Answer A lia#ilit&our Answer A lia#ilit&

"rue,alseQuestion Naria#le cost roit P SalesCorrect Answer alse

our Answer alse

Select "he 5lan$Question "he 66666666 adust!ent is necessar& to relect the cost or the use o iFed asset during the

&ear.Correct Answer Depreciationour Answer Depreciation

Multiple Choice Multiple AnswerQuestion "he !ain adantages o proit sharing are ?Correct Answer G!plo&ees tr& to increase productiit& ( >ncenties are shared #& all the e!plo&ees (

Aug!ents e!pl&eesI eicienc&our Answer G!plo&ees tr& to increase productiit& ( >ncenties are shared #& all the e!plo&ees (

Aug!ents e!pl&eesI eicienc&

"rue,alseQuestion Cash account can hae a credit #alance.Correct Answer alseour Answer alse

Select "he 5lan$Question An error o partial o!ission can #e rectiied #& either de#iting or crediting the 66666666

account( as the case !ae.Correct Answer suspenseour Answer proit and loss

Multiple Choice Multiple AnswerQuestion "he o#ects o cost accountanc& are . .Correct Answer "o ascertain cost and proita#ilit& ( Cost Control ( resentation o >nor!ationour Answer "o ascertain cost and proita#ilit& ( Cost Control ( resentation o >nor!ation

Multiple Choice Single AnswerQuestion "he cost that indicates historical cost( which is incurred in past( is $nown asCorrect Answer Sun$ costour Answer Sun$ cost


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Multiple Choice Single AnswerQuestion "he integrated or! o all unctional #udgets is $nown as ?Correct Answer Master #udgetour Answer Master #udget

Select "he 5lan$Question "he inal result disclosed #& trading account is the 66666666proit earned #& the

organiation.Correct Answer rossour Answer ross

LIST OF ATTEMPTED QUESTIONS AND ANSWERS 50a"Select "he 5lan$Question Bu!#er o da&s inentor& is held can #e calculated #& diiding nu!#er o da&s in a &ear #&

66666666.Correct Answer >nentor& turnoer ratioour Answer >nentor& turnoer ratio

"rue,alseQuestion 5udgetar& control is one o the techniues o !anage!ent accounting.Correct Answer "rueour Answer "rue

"rue,alseQuestion All personal eFpenses o the owner should #e de#ited to the organisationIs proit and loss

account.Correct Answer alseour Answer alse


"otal cost Cost o inished goods Cost o inished goods

Bon operating inco!e roit on sale o inest!ent roit on sale o inest!ent

Selling and distri#ution oerheads Adertise!ent eFpenses Adertise!ent eFpenses

actor& oerheads *epair or actor& #uilding *epair or actor& #uilding

"rue,alseQuestion "he a!ount o proit which is retained #& the organisation is transerred to I*eseres and

SurplusI in the #alance sheet.Correct Answer "rue

our Answer "rue

Select "he 5lan$Question urchase o national saing certiicates #& the co!pan& ro! its proits( should #e de#ited to

66666666 account.Correct Answer >nest!entsour Answer >nest!ents

"rue,alseQuestion ield ariance eual to ero indicates that the standard &ield and actual &ield are the sa!e.


26/30

Correct Answer "rueour Answer "rue

"rue,alseQuestion 5oo$ $eeping is clerical while accounting is !anagerialCorrect Answer "rueour Answer "rue


Adantageousl& applica#le in si!ilar industries Scope o unior! costing Scope o unior! costing

Spirit o !utual trust *euisite or unior! costing *euisite or unior! costing

Aoids cut throat co!petition Adantage o unior! costing Adantage o unior! costing

"reat!ent gien to research and deelop!ent costs ields coered #& unior! costing ields coered #&unior! costing

Multiple Choice Single AnswerQuestion Calculate inentor& holding period. Saet& stoc$ - 2+0 units !aFi!u! stoc$ - 8(+00 units re-

order uantit& - )(E00 units and !aterial issued during 200) is 29(000 units.Correct Answer 88.J da&sour Answer 83 da&s

"rue,alseQuestion Material !iF and !aterial &ield ariance can #e calculated een when onl& one raw !aterial

is used or production.Correct Answer alseour Answer alse

Select "he 5lan$Question A 66666666 inentor& turnoer period indicates eicient utilisation o !aterial.Correct Answer Lowour Answer Low

Multiple Choice Single AnswerQuestion KDL Ltd. charges depreciation @ 20% on written down alue !ethod. "he net #oo$ alue o

its !achiner& on 1st 'anuar&( 200) was *s.12+(000,-. hat will #e the net #oo$ alue o its !achiner& on&ear end( i.e.)1st Dece!#er( 200)( assu!ing there were no additions or disposals during the &ear/Correct Answer *s.100(000,-our Answer *s.100(000,-

Multiple Choice Single Answer

Question A lathe !achine was purhcased on )1st March( 2009 or *s.8+(000,-( howeer it wasinstalled onl& on +th April( 2009. "he depreciation is charged @ 1+% p.a.. ind the a!ount odepreciation charge or the said lathe !achine or the &ear ended )1st March( 2009.Correct Answer Bilour Answer Bil

Multiple Choice Single AnswerQuestion A actor& has E hours a da& and the standard dail& wage is *s.E0,-. Standard output per hour

is + units. During a da& wor$er produced )0 units( Q produced )8 units and S produced 92 units.Calculate wages pa&a#le to (Q and S under Merric$ Multiple iece *ate S&ste!.


27/30


28/30

Correct Answer Designed particularl& or internal use ( 4elpul in esti!ating the uture along with pastperiod ( 7seul in urnishing the necessar& inor!ation to the !anage!entour Answer Designed particularl& or internal use ( 4elpul in esti!ating the uture along with past

period ( 7seul in urnishing the necessar& inor!ation to the !anage!ent

Select "he 5lan$Question arehousing cost is an ite! o 66666666Correct Answer Distri#ution oerheadsour Answer =ice oerheads

Select "he 5lan$Question "he lowest proit olu!e ratio can #e 66666666%.Correct Answer 0our Answer 0.1

"rue,alseQuestion Cost Accounting is a legal reuire!ent.Correct Answer alseour Answer alse

"rue,alseQuestion Manage!ent Accounting is a deeloped stage o Cost AccountingCorrect Answer "rueour Answer "rue

"rue,alseQuestion "rading account is used to anal&se how successull& and how eicientl& the ir! runs(

particularl& with regards to the !aintenance o the gross proit !argin.Correct Answer "rueour Answer "rue

Multiple Choice Single AnswerQuestion Calculate the earnings o wor$ers Monica and Sonica under "a&lorIs dierential piece rate

s&ste!. 4ours in a da& PE nor!al rate per unit P *s.12,- standard ti!e per unit P )0 seconds ratedierential ? E0% o piece rate #elow standard( 120% o piece rate at or a#oe standard. Monica producesJ00 units per da& and Sonica produces 1(100 units per da&.Correct Answer Monica -*s.32,- Sonica - *s.1)2,-our Answer Monica -*s.110,- Sonica - *s.J0,-

"rue,alseQuestion Standard costing is alwa&s acco!panied #& a s&ste! o #udgeting #ut #udgetar& control !a&

#e operated in #usiness where standard costing is i!practica#le.Correct Answer "rueour Answer "rue


Question "he actors that inluence deter!ination o #udget period are ?Correct Answer "&pe o #udget( i. Sales or capital eFpenditure #udget ( eneral econo!ic conditions( "rade c&cle o #usinessour Answer "&pe o #udget( i. Sales or capital eFpenditure #udget ( eneral econo!ic conditions (

"rade c&cle o #usiness

Multiple Choice Multiple AnswerQuestion >nentor& holding cost co!prises o ?Correct Answer Cost o insurance ( *ent o store house ( Salar& o store $eeperour Answer *ent o store house ( Cost o !aterial ( Salar& o store $eeper


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Multiple Choice Multiple AnswerQuestion 7nior! costing s&ste! can #e successull& i!ple!ented in an& industr& onl& when ?Correct Answer >nor!ation is reel& supplied #& all the units ( ell organised sector is read& to share

the technological i!proe!ents ( >nor!ation urnished #& the units is co!plete and correctour Answer >nor!ation is reel& supplied #& all the units ( ell organised sector is read& to share the

technological i!proe!ents ( >nor!ation urnished #& the units is co!plete and correct

"rue,alseQuestion >n !arginal costing( under and oer a#sorption o iFed oerheads is #ound to arise.Correct Answer alseour Answer "rue

Multiple Choice Multiple AnswerQuestion iece rate s&ste!s are er& useul in the ollowing circu!stances?Correct Answer 7nits o output are !easura#le ( 'o# is standardised ( "he low o wor$ is regularour Answer 7nits o output are !easura#le ( or$ dela&s are reuent ( 'o# is standardised

Multiple Choice Single AnswerQuestion 'udge the ollowing narratie according to the criteria gien ? "here are !an& organiations

whose sales luctuate with luctuations in the weather( i. ice-crea!( sweaters( etc.Correct Answer "he state!ent and the reason are #oth incorrectour Answer "he state!ent and the reason are #oth correct

"rue,alseQuestion Bew co!panies can adopt 7nior! costing s&ste! as a read&-!ade s&ste!.Correct Answer "rueour Answer alse

Select "he 5lan$Question An a!ount o *s.200,- is receied ro! and is credited to Q. "he rectiication entr& would

aect 66666666Correct Answer Is A,c and QIs A,c

our Answer Is A,c and QIs A,c

Multiple Choice Single AnswerQuestion "rade Discount reers to the discount . . .Correct Answer receied on purchasesour Answer receied on purchases

"rue,alseQuestion Cost Accounting !a& #e considered to #e a part o !anage!ent Accounting.Correct Answer "rueour Answer "rue


Question "he arious areas in which unior! costing can #e adopted are . .Correct Answer Naluation o inentories ( Charging o depreciation ( Apportion!ent o oerheadsour Answer Naluation o inentories ( Charging o depreciation ( Apportion!ent o oerheads

Select "he 5lan$Question >n >ndia( where pu#lic underta$ings operate along with the priate sector underta$ings(

66666666 ena#les a co!paratie assess!ent to #e !ade o the two sectors.Correct Answer unior! costingour Answer unior! costing


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Multiple Choice Single AnswerQuestion A ir! has !onthl& iFed cost co!!it!ent o *s.200(000,-. >t is producing onl& one product

which is sold at a price o *s.E0,- per unit. er unit aria#le cost is *s.+0,-. Calculate annual #rea$ eenpoint.Correct Answer E0(000 unitsour Answer 89(000 units

"rue,alseQuestion 1 Cost Accounting and Manage!ent Accounting are si!ilar to each other in !an& respects.Correct Answer "rueour Answer "rue

Multiple Choice Single AnswerQuestion Cool-wind Ltd.( !anuactures ans( which at sold at *s.900 pre piece. "he cost o sales is

co!posed o 90% o direct !aterial( )0% wages and )0% oerheads. An increase in !aterial price #&2+% and in wage rate #& 10% is eFpected in the orthco!ing &ear as a result o which the proit atcurrent selling price !a& dwindle #& )J% o present gross proit. ith the a#oe inor!ation( &ou arereuired to deter!ine the uture selling price( i the present rate o gross proit is to #e !aintained.Correct Answer *s.9+2,-our Answer *s.9+2,-

"rue,alseQuestion Credit #alance in interest account indicates inco!e or the organisation.Correct Answer "rueour Answer "rue

management accounting 15

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