Post on 26-Oct-2014
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LIST OF ATTEMPTED QUESTIONS AND ANSWERS
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 Features of convention of consistency are . . .
Correct Answer
The accounting policies and procedures should be followed consistently , Facilitates the comparison of financial statements , It facilitates comparison of financial statements on period-to-period basis
Your Answer The accounting policies and 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 Answer
False
Your Answer False
Match The FollowingQuestion Correct Answer Your Answer
Dividend paid Profit and loss appropriation account
Profit and loss account
Freight inwards Manufacturing account Manufacturing account
Sales Trading account Capital account
Freight outwards Profit and loss account Trading account
Select The Blank Question Large angle of incidence indicates ________ amount of profits.
Correct Answer
higher
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 Answer
False
Your Answer True
Multiple Choice Single Answer Question Relevant costs in decision making are :
Correct Answer
Those costs which will arise as a result of the proposed action
Your Answer Those costs which will arise as a result 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 Answer
Trial Balance
Your Answer Trial Balance
Multiple Choice Multiple Answer Question Overhead capacity variance is the outcome of:
Correct Answer
Shortage of labour , Enforced idle time, e.g.power breakdowns , Customer demand being more or less than anticipated
Your Answer Shortage of labour , Enforced idle 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 Answer
True
Your Answer True
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 True
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 increase by 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 Answer
Standard
Your Answer Actual
Match The FollowingQuestion Correct Answer Your Answer
Increase in contribution will lead to
Increase in profits Increase in profit volume ratio
Increase in fixed cost will lead to
Increase in break even point
Decrease in contribution
Decrease in variable cost will lead to
Increase in profit volume ratio
Increase in profits
Decrease in selling price will lead to
Decrease in contribution Increase in break even point
Multiple Choice Multiple Answer Question Marginal costing technique is useful in taking decisions relating
to which of the following courses of action? Correct Answer
Decision to drop a product line , Decision to accept a special offer at price lower than the normal selling price , Decision regarding temporary shut-downs
Your Answer Decision to drop a product line , 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 Answer
comparison
Your Answer To control cost
Select The Blank Question Re-order level should be higher than ________ but lesser than
maximum stock level. Correct Answer
Minimum level
Your Answer Minimum level
True/False Question The variable costs are controllable at the lower lever.
Correct Answer
True
Your Answer False
Select The Blank Question Economical use of labour, materials and facilities can achieved
with the help of ________. Correct Answer
Budgetary control
Your Answer Budgetary control
Select The Blank Question Goods returned by Pawan worth Rs.1,000/- is debited to
Pawan's Account. In order to rectify the mistake, which account should be debited ? ________
Correct Answer
Suspense account
Your Answer Personal account
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
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 Interest receivable is a________ for the organisation.
Correct Answer
Current sset
Your Answer Long term asset
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 Answer The net profit will decrease by 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 Answer
Rs.45,000/-
Your Answer 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 Answer
Rs.72,000/-
Your Answer Rs.36,000/-
Multiple Choice Single Answer Question The features of the Halsey Plan are:
Correct Answer
The benefit of time saved is divided equally between the employer and employee
Your Answer 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 Answer
False
Your Answer True
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 Answer
2,400 units
Your Answer 2,400 units
Select The Blank Question An error of partial omission can be rectified by either debiting or
crediting the ________ account, as the case maybe. Correct Answer
suspense
Your Answer adjusted profit and loss
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 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 Answer
Rs.600,000/-
Your Answer Rs.525,000/-
Select The Blank Question Furniture account will always have a ________ balance.
Correct Answer
Debit
Your Answer Credit
Select The Blank Question If the ordering cost ________s, then the economic order
quantity will Increase. Correct Answer
Increase
Your Answer Increase
Multiple Choice Multiple Answer Question Which of the following information is included in the goods
received note? Correct Answer
Date of receipt of material , Quantity received , Description of goods
Your Answer Date of receipt of material , Quantity received , Price of goods , Description of goods
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 A business is an activity carried out with the intention of earning
the profit. Correct Answer
True
Your Answer True
True/False Question Linking overhead to a cost unit is known as overhead
absorption. Correct Answer
True
Your Answer True
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 Answer
Depreciation on plant and machinery , Interest on loans taken from other , Interest on loans granted to others
Your Answer Depreciation on plant and machinery , Interest on loans taken from other
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
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 Answer
Labour cost variance -Rs.700/- (Favourable) , Labour yield variance -Rs.1,260/- , Labour yield variance is favourable
Your Answer Labour cost variance -Rs.700/- (Favourable) , Labour yield variance -Rs.1,260/-
True/False Question The best way to reduce labour cost is to recruit cheap labour.
Correct Answer
False
Your Answer False
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 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 , 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 Answer
fertilizer
Your Answer fertilizer
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 Answer
Cost accounting
Your Answer Cost accounting
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
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 Balance sheet indicates the financial status of the business at
given period. 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 False
True/False Question Accounting is an art of recording, classifying & summarizing in
a significant manner. Correct Answer
True
Your Answer True
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 The reports generated by financial accounting are meant for
the use by management for effective decisions. Correct Answer
True
Your Answer True
Multiple Choice Multiple Answer Question Cost Accounting ______________.
Correct Answer
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 Management Accounting __________________.
Correct Answer
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
Correct Answer
Summarizing , Classifying , Recording
Your Answer Summarizing , Classifying , Recording
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
Match The FollowingQuestion Correct Answer Your Answer
Personal A/C Debit the receiver, Credit the giver
Debit the receiver, Credit the giver
Real A/C Debit what comes in, Credit what goes out
Debit what comes in, Credit what goes out
Nominal A/C Debit all the expenses, Credit all the incomes
Debit all the expenses, Credit all the incomes
Tangible assets Building, Machinery Building, Machinery
In tangible assets Patents, Trade marks Patents, Trade 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.
Correct Answer
False
Your Answer True
True/False Question Amount invested in purchasing Fixed Asset is a revenue
expenditure. Correct Answer
False
Your Answer False
True/False Question As per double entry system o accounting , total of all debits
should be equal to all credits. Correct Answer
True
Your Answer True
Multiple Choice Multiple Answer Question Convention of Consistency Materiality ________________
Correct 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
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 and---------------are the two systems of accounting.
Correct Answer
Mercantile
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
Correct Answer
80,000
Your Answer 80,000
Multiple Choice Single Answer Question Bank Reconciliation statement is required in case of
Correct Answer
difference between the bank balance as per the 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 FollowingQuestion Correct Answer Your Answer
Error of Principle Trial Balance does not get affected
Wrong Posting
Error of Omission The transaction is totally omitted
The transaction is totally omitted
Error of commission Wrong Posting Wrong classification
Compensating Error Wrong classification Trial Balance does not get affected
Difference in trial balance Transferred to suspense account
Transferred to suspense account
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 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
Multiple Choice Multiple Answer Question The Prime Cost includes the aggregate of
Correct Answer
Direct Material Cost , Direct Labour Cost , Direct 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 Answer
Material to be purchased should be cleanly 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 Answer
The Price , The trade discount is to be deducted , 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 Answer
Maximum usage , Storage facilities , Availability of funds
Your Answer Maximum usage , Rate of consumption
True/False Question Fixed cost tends to vary with time rather than with level of
activity. Correct Answer
True
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.
Correct Answer
False
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% Correct Answer
Rs.30,00,000 and Rs.10,00,000
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. Correct Answer
True
Your Answer True
True/False Question Expected standards are more realistic and useful for cost
control. Correct Answer
True
Your Answer True
True/False Question The difference between standard cost and actual cost is
termed as Variance. Correct Answer
True
Your Answer True
Multiple Choice Multiple Answer Question For reporting of variance, following propositions should be
considered Correct Answer
Responsibility of each individual should be defined , 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 Answer
Setting standards , Comparing actuals with 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.
Correct Answer
Rs.900/- ( Adverse )
Your Answer Rs.900/- ( Adverse )
Multiple Choice Single Answer Question Standard costs are the targets to be attained by the actual
performance. Correct Answer
Minimum
Your Answer Minimum
Multiple Choice Single Answer Question Standard Costs are used as tool for
Correct Answer
Cost Control
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 Answer
cost
Your Answer cost
Correct Answer
revenues
Your Answer revenues
Select The Blank Question Along with financial accounting, ________ and ________ are
the other streams of accounting Correct Cost Accounting
Answer Your Answer Management Accounting
Correct Answer
Management Accounting
Your Answer Cost Accounting
Select The Blank Question If the revenue expenditure is treated as ________
expenditure , it will not affect the agreement of ________ balance
Correct Answer
capital
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 Correct Answer
purchase
Your Answer purchase
Correct Answer
quotation
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
Correct Answer
ordered
Your Answer ordered
Correct Answer
variation
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 Correct Answer
time
Your Answer work
Correct Answer
spent
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
Correct Answer
101% to 125 %
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
Correct Answer
below standard
Your Answer below standard
Correct Answer
at standard
Your Answer at standard
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 selling overheads
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
Select The Blank Question The process of Allocation & apportionment can followed to
decide the ________ of overheads to each budget center Correct Answer
Allocation & apportionment
Your Answer Distribution
Correct Answer
Loading
Your Answer
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 FollowingQuestion 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 FollowingQuestion 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