603a - Cost and Management Accounting

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Dr.G.R.Damodaran College of Science(Autonomous, affiliated to the Bharathiar University, recognized by the UGC)Re-

accredited at the 'A' Grade Level by the NAAC and ISO 9001:2008 Certified

CRISL rated 'A' (TN) for MBA and MIB Programmes

III BCOM (CA) [2013-2016]

Semester VI

Core:COST AND MANAGEMENT ACCOUNTING – 603A

Multiple Choice Questions.

1. Basic objectives of cost accounting is__________.

A. tax compliance.

B. financial audit.

C. cost ascertainment.

D. profit analysis.

ANSWER: C

2. Direct cost incurred can be identified with ________.

A. each department.

B. each unit of output.

C. each month.

D. each executive.

ANSWER: B

3. Overhead cost is the total of ____________.

A. all indirect costs.

B. all direct costs.C. indirect and direct costs.

D. all specific costs.

ANSWER: A

4. Cost classification can be done in __________.

A. two ways.

B. three ways.

C. four ways.

D. several ways.

ANSWER: D

5. Costing refers to the techniques and processes of __________ .

A. ascertainment of costs.

B. allocation of costs.

C. apportion of costs.

D. distribution of costs.

ANSWER: A

6. Cost accounting was developed because of the ________.

A. limitations of the financial accounting.

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B. limitations of the management accounting.

C. limitations of the human resource accounting.

D. limitations of the double entry accounting.

ANSWER: A

7. Classification of cost is useful _______.

A. to find gross profit.

B. to find net profit.

C. to identify costs.D. to identify efficiency.

ANSWER: C

8. Elements of costs are _______.

A. three types.

B. four types.

C. five types.

D. seven types.

ANSWER: A

9. Direct expenses are also called ________ .A. major expenses.

B. chargeable expenses.

C. overhead expenses.

D. sundry expenses.

ANSWER: B

10. Indirect material used in production is classified as _______.

A. office overhead.

B. selling overhead.

C. distribution overhead.

D. production overhead.

ANSWER: D

11. Warehouse rent is a part of _________.

A. prime cost.

B. factory cost.

C. distribution cost.

D. production cost.

ANSWER: C

12. Indirect material scrap is adjusted along with ________.

A. prime cost.

B. factory cost.

C. labour cost.

D. cost of goods sold.

ANSWER: B

13. Cost of sales plus profit is __________.

A. selling price.

B. value of finished product.

C. value of goods produced.


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D. value of stocks.

ANSWER: A

14. Audit fess is a part of__________.

A. works on cost.



D. administration overhead.

ANSWER: D

15. Depreciation of plant and machinery is a part of ___________.

A. factory overhead.




ANSWER: A

16. Audit fess is a part of__________.

A. works on cost.

B. selling overhead.C. distribution overhead.


ANSWER: D

17. One of the most important tools in cost planning is____________.

A. direct cost.

B. budget.

C. cost sheet.

D. marginal costing.

ANSWER: C

18. The purpose of financial accounting is to provide information for _____________.

A. fixing prices.

B. controlling cost.

C. locating factors leading to wastages and losses.

D. assessing the profitability and financial position of the firm.

ANSWER: D

19. Cost unit of a sugar industry can be___________.

A. per litre.

B. per tonne.

C. per acre.

D. per metre.

ANSWER: B

20. The most important element of cost in manufacturing industries is________.

A. material.

B. labour.

C. direct costs.

D. indirect costs.

ANSWER: C


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21. According to which method of pricing issues is close to current economic values?

A. Last In First Out.

B. First In First Out.

C. Highest In First Out.

D. weighted average price.

ANSWER: B

22. Continuous stock taking is a part of_____________.A. annual stock taking.

B. VED analysis.

C. ABC analysis.

D. perpetual inventory.

ANSWER: D

23. Which of the following methods of stock control aims at concentrating efforts on selected items of

material?

A. Perpetual inventory system.

B. Material turnover ratio.

C. ABC analysis.D. Level setting.

ANSWER: C

24. In which of the following methods issues of materials are priced at a predetermined rate?

A. Standard price method.

B. Inflated price method.

C. Replacement price method.

D. Specific price method.

ANSWER: A

25. Material control involves _________.

A. consumption of material

B. Issue of material

C. Purchase of material

D. Purchase, storage and issue of materials

ANSWER: D

26. Material requisition is meant for _____________.

A. Supply of material from stores

B. Purchase of material

C. Sale of material

D. stock of material

ANSWER: A

27. Stock control through stocks and EOQ is called __________.

A. Perpetual inventory system

B. Demand and supply method

C. control by importance and exception

D. all the above

ANSWER: B


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inventory value. find out EOQ.

A. Rs.1200

B. Rs.2300

C. Rs.3,200

D. Rs.3,600

ANSWER: C

36. Calculate Reorder level, Maximum usage 420 units per day,minimum usage 240 units per day normal

consumption 300 units per day , reorder period 10-15 daysA. 6300 units

B. 4800 units

C. 6800 units

D. 4200 units

ANSWER: A

37. calculate inventory turnover ratio from the following : opening stock Rs.80,000, closing stock

Rs.60,000 material purchased Rs.2,60,000

A. 2times

B. 4 times

C. 6 timesD. 8 times

ANSWER: A

38. calculate Maximum stock level Reorder level 4000 kgs, reorder quantity 2,500 kgs, minimum reorder

period 6 weeks, minimum consumption per week 300 kgs.

A. 2400 kgs

B. 3600 kgs

C. 4200 kgs

D. 4700 kgs

ANSWER: D

39. find out the value of material issued under FIFO. opening stock:400 units @Rs.10 per unit, purchase:

500 units @ Rs.11 per unit, Issue 600 units

A. closing stock 300 units Rs.3,300

B. Closing stock 300 units Rs.3,330

C. closing stock 300 units Rs.3,600

D. closing stock 300 units Rs.4,200

ANSWER: A

40. material is issued by storekeeper against ___________ requisitions

A. issue

B. material

C. purchase

D. good received

ANSWER: B

41. weighted average is computed by dividing total purchase cost of material in stock with total ________

in stock.

A. stock

B. quality

C. quantity


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D. better

ANSWER: C

42. Scrap is ____________.

A. surplus material

B. abnormal loss of material

C. wastage of material

D. residue of raw material

ANSWER: D

43. Average price methods are more suitable when __________.

A. material prices are rising

B. material prices are falling

C. material prices are fluctuating

D. material prices are constant

ANSWER: C

44. LIFO method of pricing of material issues is more suitable when ____________.

A. material prices are rising

B. material prices are fallingC. material prices are fluctuating

D. material prices are constant

ANSWER: A

45. Given data Annual usage 20000 units, buying cost per order Rs.10, cost per unit Rs.100 & cost of

carrying inventory 10 % of cost. Find out EOQ.

A. 2000 units

B. 1200 units

C. 600 units

D. 200 units

ANSWER: D

46. Find out the Reorder level form the following : Maximum consumption of material 300 units, lead time

2 - 4 weeks.

A. 800 units

B. 1200 units

C. 1800 units

D. 2400 units

ANSWER: B

47. ____________ note is prepared after receiving and inspecting materials.

A. Purchase

B. Goods sold

C. Goods received

D. Goods order

ANSWER: C

48. In base stock method of pricing the material issues, the term base stock represents the ________.

A. quantity of stock

B. stock in balance.

C. minimum stock.


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D. maximum stock.

ANSWER: C

49. The term management accountancy was first used in________________.

A. 1950.

B. 1939.

C. 1910.

D. 1947.

ANSWER: B

50. Management accounting is also known as______________.

A. price level accounting.

B. historical cost accounting.

C. financial accounting.

D. decision accounting.

ANSWER: D

51. The prime function of management accounting is to________________.

A. assist tax authorities.

B. assist the management in performing its functions effectively.C. interpret the financial data.

D. record business transactions.

ANSWER: B

52. Management accounting provides valuable services to management in performing_________.

A. coordinating functions.

B. controlling functions.

C. planning functions.

D. all managerial functions.

ANSWER: D

53. Management accounting is an offshoot of_________.

A. financial accounting.

B. cost accounting.

C. cost accounting and inflation accounting.

D. cost accounting and financial accounting.

ANSWER: D

54. Management accounting analyses accounting data with the help of__________.

A. auditors.

B. statutory forms.

C. tools and techniques.

D. formula.

ANSWER: C

55. Management accounting is suitable for____________.

A. large industries and trading concerns.

B. co-operative societies.

C. small businesses.

D. non-profit organizations.

ANSWER: A


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56. The ratios which reveal the final result of the managerial policies and performance is_____.

A. turnover ratios.

B. profitability ratios.

C. short term solvency ratio.

D. long term solvency ratio.

ANSWER: B

57. Return on investment is a_________.A. turnover ratios.

B. short term solvency ratio.

C. profitability ratios.

D. long term solvency ratio.

ANSWER: C

58. Net profit ratio is a ___________.

A. turnover ratio.

B. long term solvency ratio.

C. short term solvency ratio.

D. profitability ratio.ANSWER: D

59. Management accounting is suitable for____________.

A. large industries and trading concerns.

B. co-operative societies.

C. small businesses.

D. non-profit organizations.

ANSWER: A

60. Management accounting provides valuable services to management in performing_________.

A. coordinating functions

B. controlling functions.

C. planning functions.

D. all managerial functions.

ANSWER: D

61. Management accounting and cost accounting functions are___________.

A. neutral in effect.

B. complementary in nature

C. contradictory in nature.

D. does not relate to each other.

ANSWER: B

62. Management accounting use______________.

A. quantitative data only.

B. qualitative data only.

C. descriptive data only.

D. both qualitative and quantitative data.

ANSWER: D

63. In making managerial decisions, relevant information is_________.


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A. future cost that differ between alternatives.

B. future costs that do not differ between alternatives.

C. past costs that differ between alternatives.

D. past costs that do not differ between alternative

ANSWER: A

64. The role of historical data from the accounting system in making managerial decisions is____________.

A. to assist in making productions that inputs to a decision model.

B. to serve directly as inputs in decision models.C. to assist in making predictions about other information needed for making decisions.

D. to assist in making productions that inputs to a management.

ANSWER: A

65. Preliminary expenses is an example of________.

A. fixed assets.

B. current assets.

C. fictitious assets.

D. current liabilities.

ANSWER: C

66. The ratio which shows the proportion of profits retained in the business out of the current years profits

is__________ .

A. retained earnings ratio.

B. pay out ratio.

C. earnings per share.

D. price earnings ratio.

ANSWER: A

67. The ratio which indicates earnings per share reflected by the market price is_______.

A. retained earnings ratio.

B. pay out ratio.

C. earnings per share.

D. price earnings ratio.

ANSWER: D

68. The ratio establishes the relationship between profit before interest and tax and fixed interest charges

is__________.

A. fixed dividend cover ratio

B. debt service coverage ratio.

C. interest cover ratio.

D. dividend yield ratio.

ANSWER: C

69. The ratio shows the preference dividend as a proportion of profit available for shareholders is

___________.

A. interest cover ratio.

B. fixed dividend cover ratio.

C. debt service coverage ratio.


ANSWER: B


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70. The dividend is related to the market value of shares in____________.

A. interest cover ratio.

B. fixed dividend cover ratio.

C. debt service coverage ratio.


ANSWER: D

71. Turnover ratio is also known as ______________.

A. activity ratios.B. solvency ratios.

C. liquidity ratios.

D. profitability ratios.

ANSWER: A

72. Inventory or stock turnover ratio is also called_______________.

A. stock velocity ratio.

B. debtors velocity ratio.

C. creditors velocity ratio.

D. working capital turnover ratio.

ANSWER: A

73. Which ratio is calculated to ascertain the efficiency of inventory management in terms of capital

investment?

A. working capital turnover ratio.

B. creditors velocity ratio.

C. stock velocity ratio.

D. debtors velocity ratio.

ANSWER: C

74. The ratio which measures the relationship between the cost of goods sold and the amount of average

inventory is____________ .

A. debtors velocity ratio.

B. stock turnover ratio.



ANSWER: B

75. Sales - Gross Profit = _______________________.

A. net profit.

B. cost of production.

C. administrative expenses.


ANSWER: D

76. Opening stock + purchases + direct expenses - closing stock = ____________ .

A. net profit.

B. cost of production.

C. administrative expenses.


ANSWER: D


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77. Which ratio measures the number of times the receivables are rotated in a year in terms of sales?

A. stock turnover ratio.

B. debtors turnover ratio.



ANSWER: B

78. Debtors turnover ratio is also called___________________.

A. stock turnover ratio.B. debtors velocity ratio.


D. working capital turnover ratio

ANSWER: B

79. Creditors turnover ratio is also called ________________.


B. debtors velocity ratio.

C. accounts payables ratio.


ANSWER: C

80. The indicates the number of times the payables rotate in a year is _________.


B. stock turnover ratio.



ANSWER: C

81. Current assets - current liabilities = ___________ .

A. fixed capital.

B. working capital.

C. opening capital.

D. closing capital.

ANSWER: B

82. The ratio of current assets to current liabilities is called___________.

A. liquid ratio.

B. acid test ratio.

C. current ratio.

D. cash position ratio.

ANSWER: C

83. Internationally accepted current ratio is ______________.

A. 1:1.

B. 2:1.

C. 3:1.

D. 4:1.

ANSWER: B

84. Liquid ratio is also called_____________.

A. super quick ratio.


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B. current ratio.

C. cash position ratio.

D. acid test ratio.

ANSWER: B

85. Current assets - ( stock + prepaid expenses) = __________.

A. current assets.

B. fixed assets.

C. liquid assets.D. fictitious assets.

ANSWER: C

86. An ideal liquid ratio is _____________.

A. 1 : 1.

B. 0.75 : 1.

C. 0.50 : 1.

D. 0.25 : 1.

ANSWER: A

87. An ideal cash position ratio is ________.A. 0.25 : 1.

B. 0.50 : 1.

C. 0.75 : 1.

D. 1 : 1.

ANSWER: C

88. The ratio establishes the relationship between fixed assets and long-terms funds is ____________.

A. current ratio.

B. fixed assets ratio.

C. fixed assets turnover ratio.

D. debt equity ratio.

ANSWER: B

89. The ratio compares the shareholders funds and total tangible assets is_________.

A. capital gearing ratio.

B. fixed assets turnover ratio.

C. proprietary ratio.


ANSWER: C

90. The ratio expresses the relationship between the proprietors funds and the total tangible assets

is__________.





ANSWER: C

91. The ratio establishes relationship between fixed interest and dividend bearing funds and equity

shareholders funds is______________.



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ANSWER: A

92. Capital gearing ratio is also known as____________.

A. fixed assets turnover ratio.

B. proprietary ratio.

C. debt equity ratio.D. leverage ratio.

ANSWER: D

93. A low capital gearing ratio indicates_________.

A. under capitalization.

B. over capitalization .

C. borrowed capital.

D. long term funds.

ANSWER: B

94. A high capital gearing ratio indicates _____________.A. over capitalization .

B. borrowed capital.

C. long term funds.

D. under capitalization.

ANSWER: D

95. Shareholders funds + Long-term loans = _______.

A. current assets.

B. current liabilities.

C. fixed assets.

D. capital employed.

ANSWER: D

96. Low turnover of stock ratio indicates_________.

A. solvency position.

B. monopoly situation.

C. overinvestment in inventory.

D. liquidity position.

ANSWER: C

97. Net capital employed is equal to_________.

A. total assets minus total liabilities.

B. fixed assets plus net-working capital.

C. total assets minus long-term liabilities.

D. total assets.

ANSWER: B

98. Return on investments is a ________.

A. profit and loss account ratio.

B. balance sheet ratio.

C. combined ratio.


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D. turnover ratio.

ANSWER: C

99. Ratio of net profit before interest and tax to sales is___________.

A. solvency ratio.

B. capital gearing.

C. turnover ratio.

D. operating profit ratio.

ANSWER: D

100. Production cost under marginal costing includes _____________.

A. prime cost only .

B. prime cost and fixed overhead .

C. prime cost and variable overhead.

D. prime cost, variable overhead and fixed overhead.

ANSWER: C

101. One of the primary differences between marginal costing and absorption costing regarding the

treatment of __________.

A. prime cost .B. fixed overheads.

C. variable overheads .

D. direct materials.

ANSWER: B

102. Absorption costing differs from marginal costing is the____________.

A. fact that standard costs can be used with absorption costing but not with marginal costing .

B. amount of costs assigned to individual units of products .

C. kind of activities for which each can be used .

D. amount of fixed costs that will be incurred.

ANSWER: B

103. Contribution margin is also known as __________.

A. marginal income .

B. gross profit.

C. net profit.

D. net loss.

ANSWER: A

104. Period costs are__________.

A. overhead costs .

B. prime cost.

C. variable cost.

D. fixed costs.

ANSWER: D

105. Contribution margin is equal to___________.

A. fixed cost - loss .

B. profit + variable cost.

C. sales - fixed cost- profit .

D. sales - profit.


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ANSWER: A

106. P/V Ratio is an indicator of _______________.

A. the rate at which goods are sold .

B. the volume of sales .

C. the volume of profit.

D. the rate of profit.

ANSWER: D

107. Margin of Safety is the difference between___________.

A. planned sales and planned profit .

B. actual sales and break-even sales.

C. planned sales and actual sales .

D. planned sales and planned expenses.

ANSWER: B

108. An increase in variable costs______________.

A. increases p/v ratio .

B. increases the profit.

C. reduces contribution .D. increase margin of safety.

ANSWER: C

109. An increase in selling price____________.

A. increases the break-even point.

B. decreases the break-even point.

C. does not affect the break-even point.

D. optimize the break even point.

ANSWER: B

110. A large Margin of Safety indicates____________.

A. over production.

B. over capitalization .

C. the soundness of the business.

D. under capitalization.

ANSWER: C

111. Angle of incidence is______________.

A. the angle between the sales line and the total cost line.

B. the angle between the sales line and the y-axis.

C. the angle between the sales line and the x-axis.

D. the angle between the sales line and the total profit line

ANSWER: A

112. CVP analysis is most important for the determination of_______.

A. relationship between revenues and costs at various levels of operations .

B. sales revenue necessary to equal fixed costs .

C. variable revenues necessary to equal fixed costs .

D. volume of operations necessary to Break-even.

ANSWER: B


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113. The conventional Break-even analysis does not assume that_________.

A. selling price per unit will remain fixed .

B. total fixed costs remain the same.

C. variable cost per unit will vary .

D. productivity per worker will remain unchanged.

ANSWER: B

114. 1f` fixed costs decrease while variable cost per unit remains constant, the new B.E.P in relation to the

old B.E.P will be___________.A. lower .

B. unchanged .

C. indeterminate.

D. higher.

ANSWER: D

115. If fixed costs decrease while the variable cost per unit remains constant, the new contribution margin

in relation to the old contribution margin will be___________.

A. lower .

B. unchanged .

C. higher.D. indeterminate.

ANSWER: B

116. Selling price per unit Rs. 10; Variable cost Rs. 8 per unit; Fixed cost Rs. 20,000; Break-even

production in units___________.

A. 16,300.

B. 2,000.

C. 2,500.

D. 10,000

ANSWER: D

117. Sales Rs. 25,000; Variable cost Rs. 8,000; Fixed cost Rs. 5,000; Break-even sales in

value_____________.

A. Rs. 7,936.

B. Rs. 7,353.

C. Rs. 8,333.

D. Rs. 9,090.

ANSWER: B

118. Fixed cost Rs. 80,000; Variable cost Rs. 2 per unit; Selling price_Rs. 10 per unit; turnover required for

a profit target of Rs. 60,000.

A. Rs. 1,75,000.

B. Rs. 1,17,400.

C. Rs. 1.57,000.

D. Rs. 1,86,667.

ANSWER: A

119. Sales Rs. 25,000; Variable cost Rs. 15,000; Fixed cost Rs .4,000; P/V Ratio is_____.

A. . 80% .

B. 15% .

C. 40% .


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D. 30%.

ANSWER: C

120. Sales Rs. 50,000; Variable cost Rs. 30,000; Net profit Rs. 6,000; fixed cost is_____.

A. Rs. 10,000.

B. Rs. l4,000 .

C. Rs. 12,000.

D. Rs. 8,000.

ANSWER: B

121. Actual sales Rs .4,00,000; Break-even sales Rs. 2,50,000; Margin of Safety in percentage

is__________.

A. 33.33%.

B. 66.67% .

C. 37.5% .

D. 76.33%.

ANSWER: C

122. P/V Ratio 50%; Variable cost of the product Rs. 25; Selling price is ________.

A. Rs. 50 .B. Rs. 40.

C. Rs. 30 .

D. Rs. 55.

ANSWER: A

123. Fixed cost Rs. 2,00,000; Sales Rs. 8,00,000; P/V Ratio 30%; the amount of' profit is _____________.

A. Rs. 50,000.

B. Rs. 40,000 .

C. Rs. 35,000 .

D. Rs. 45,000 .

ANSWER: B

124. P/V Ratio is 25% and Margin of Safety is Rs; 3,00,000, the amount of profit is__________.

A. Rs. 1,00,000.

B. Rs. 80,000.

C. Rs. 75,000.

D. Rs. 60,000.

ANSWER: C

125. Total sales Rs. 20,00,000; Fixed expenses Rs. 4,00,000; P/V Ratio 40%; Break-even capacity in

percentage is__________.

A. 40% .

B. 60% .

C. 50% .

D. 45%.

ANSWER: C

126. Break - even point occurs at 40% of` total capacity, margin of safety will be______.

A. 40% .

B. 60% .

C. 80% .


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D. 85% .

ANSWER: B

127. Total sales- total variable cost______.

A. fixed cost.

B. semi-variable cost.

C. break-even point.

D. contribution.

ANSWER: D

128. Selling price- marginal cost = ________.

A. fixed cost.

B. contribution.

C. semi-variable cost.

D. break-even point.

ANSWER: B

129. A high P /V ratio indicates___________.

A. high profitability.

B. low profitability.C. high loss.

D. break even.

ANSWER: A

130. Break even point is also called _____________.

A. profit zone.

B. loss zone.

C. no profit, no loss point.

D. profit and loss zone.

ANSWER: C

131. Sales budget is a _________.

A. Functional budget.

B. Expenditure budget.

C. Master budget .

D. Flexible budget.

ANSWER: A

132. The budget which usually takes the form of budgeted profit and loss account and balance sheet is

known as ___________.

A. Flexible budget .

B. Master budget.

C. Cash budget .

D. Purchase budget.

ANSWER: B

133. Which of the following is usually a long-term budget?.

A. Fixed budget.

B. Cash budget.

C. Sales budget.

D. Capital expenditure budget.


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ANSWER: D

134. The fixed-variable cost classification has `a special significance in the preparation of________.

A. Capital budget.

B. Cash budget.

C. Master budget .

D. Flexible budget .

ANSWER: D

135. Operation budgets normally cover a period of _____.

A. one to ten years.

B. one to two years.

C. one to five years.

D. one year or less.

ANSWER: D

136. The entire process of preparing the budgets is known as___________.

A. Planning.

B. Organizing.

C. Budgeting.D. Controlling.

ANSWER: C

137. Budgetary control starts with ________________.

A. Planning.

B. Budgeting.

C. Controlling

D. Organizing.

ANSWER: B

138. Budget designed to remain constant irrespective of the level of activity attained is

called______________.

A. Fixed budget.

B. Flexible budget.

C. Sales budget.

D. Production budget.

ANSWER: A

139. Material consumption budget is prepared on the basis of ______________.

A. Flexible budget.

B. Fixed budget.

C. Sales budget.

D. Production budget.

ANSWER: D

140. Material budget consists of two parts, one is the consumption budget and another Is_____________.

A. Material purchase budget.

B. Material production budget.

C. Material sales budget.

D. Material budget.

ANSWER: A


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141. Materials purchase budget is prepared on the basis of __________.

A. Material sales budget.

B. Material consumption budget.

C. Material production budget.

D. Material budget.

ANSWER: B

142. Labour budget is a part of ____________.A. Fixed budget.

B. Sales budget.

C. Production budget.

D. Flexible budget.

ANSWER: C

143. The budget prepared to estimate the expenditure to be incurred for planning, organizing, direction and

control function of the management is___________.

A. Production overhead budget.

B. Administration overhead budget.

C. Selling and distribution overhead budget.D. Master budget.

ANSWER: B

144. The budget prepared to estimate the research and development expenditure to be incurred during a

specific period is___________.

A. Production overhead budget.

B. Administration overhead budget.

C. Selling and distribution overhead budget.

D. Research and development budget.

ANSWER: D

145. A flexible budget is prepared for a _____________.

A. One level of activity.

B. Range of activity.

C. Two level of activity.

D. Three level of activity.

ANSWER: B

146. The budget starts without any base is _______________.

A. Master budget.

B. Flexible budget.

C. Zero base budgeting.

D. Fixed budget.

ANSWER: C

147. Expected sales + desired closing stock- estimated opening stock =____________.

A. Expected production.

B. Expected sales.

C. Expected purchase.

D. Expected loss.

ANSWER: A


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22/22

148. Material consumed is Rs. 5,00,000 Opening stock of raw material is Rs. 50,000 and Closing stock of

raw material is Rs. 25,000. What is the cost of raw material purchased?

A. Rs. 4,50,000.

B. Rs. 4,75,000.

C. Rs. 5,25,000.

D. Rs. 5, 50,000.

ANSWER: B

149. The budget said as resource planning and redeployment process is _______.

A. Master budget.

B. Flexible budget.

C. Fixed budget.

D. Zero base budgeting.

ANSWER: D

150. If selling price is Rs. 25,000 and profit is Rs. 5,000 then what is the percentage of profit on cast?

A. 20%.

B. 33.33%.

C. 25%.D. 35%.

ANSWER: C

Staff Name

Saranya S .


Date post:	07-Jul-2018
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603a - Cost and Management Accounting

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