SCDL - Management Accounting

Management Accoutning

Question Paper – 1

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Multiple Choice Multiple Answer Question Uniform Costing Methods may be advantageously applied to . . .

Correct Answer

Similar Industries such as cotton, jute etc. , Single organization having number of branches. , Number of companies in same industry

Your Answer Similar Industries such as cotton, jute etc. , Single organization having number of branches. , Number of companies in same industry

Multiple Choice Multiple Answer Question Subsidiary books include:

Correct Answer

Cash Book , Purchase Register , Sales Register

Your Answer Purchase Register , Sales Register

Select The Blank Question The sales forecast (quantity) should be compared with the

________ to find out whether it is possible for the firm to handle this level of sales.

Correct Answer

Production capacity

Your Answer Production capacity

True/False Question A business is an activity carried out with the intention of earning

the profit. Correct Answer

True

Your Answer True

Multiple Choice Single Answer Question Which of the following operations would normally be carried out

first when preparing a master budget? Correct Answer

Determining the budget period

Your Answer Preparing a forecast profit and loss account

True/False Question If the storage cost of inventory increases, then the economic

order quantity also increases. Correct Answer

False

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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

Multiple Choice Multiple Answer Question Features of convention of conservation are . . .

Correct Answer

Anticipates all future losses and expenses , Ignores all future incomes and profits, unless they are actually realised , Applicable to valuation of current assets

Your Answer Anticipates all future losses and expenses , Ignores all future incomes and profits, unless they are actually realised , Applicable to valuation of current assets

Multiple Choice Multiple Answer Question Features of Taylor's differential piece rate system are as

follows : Correct Answer

Minima clerical work is involved in calculating the wages , Helps in building up an efficient labour force , Strong incentive to efficient and ambitious workers.

Your Answer Minima clerical work is involved in calculating the wages , Helps in building up an efficient labour force , Strong incentive to efficient and ambitious workers.

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

significant manner. Correct Answer

True

Your Answer True

True/False Question GAIL having monopoly in the CNG (Compressed Natural Gas)

market can implement the Uniform costing system. Correct Answer

False

Your Answer False

Select The Blank Question Accounts representing expenses will have ________balance.

Correct Answer

Debit

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Your Answer Debit

True/False Question Balance sheet indicates the financial status of the business at

given period. Correct Answer

True

Your Answer True

Select The Blank Question In case of defective material being returned by the stores

department to the vendor, such material should be valued at the________.

Correct Answer

Purchase price

Your Answer Purchase price

Multiple Choice Multiple Answer Question Different types of tenders are :

Correct Answer

Singly tender , Open tender , Global tender

Your Answer Singly tender , Open tender , Global tender

True/False Question Profitability statement indicates the amount of assets & `.

Correct Answer

False

Your Answer False

Multiple Choice Multiple Answer Question Select the items which may be classified as selling and

distribution overheads. Correct Answer

Delivery van expenses , Rent of finished goods warehouse , Sales research expenses

Your Answer Delivery van expenses , Rent of finished goods warehouse , Sales research expenses

True/False Question Balance sheet indicates the expenditure & income from the

business. Correct Answer

False

Your Answer False

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True/False Question GAIL having monopoly in the CNG (Compressed Natural Gas)

market can implement the Uniform costing system. Correct Answer

False

Your Answer False

Select The Blank Question Under the Merrick's differential piece rate system of wage

payment if the efficiency level of a worker is below 83%, then he is paid wages at ________ piece rate.

Correct Answer

Normal

Your Answer Normal

Match The FollowingQuestion Correct Answer Your Answer

Ledger Maintain all types of accounts

Maintain all types of accounts

Audit Reviewing internal control system

Reviewing internal control system

Accounting Process of analyzing & interpretation

Process of analyzing & interpretation

Journal Book of original entry Book of original entry

Multiple Choice Multiple Answer Question Management Accounting is…

Correct Answer

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

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

Select The Blank Question A complete list of all material required, with quantities, for a

particular job is given in the ________. Correct Answer

Bill of material

Your Answer Bill of material

Select The Blank Question The various contents of a uniform cost manual are organisation,

cost accounting system and ________. Correct Answer

presentation of information

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Your Answer presentation of information

Select The Blank Question Normally, the planning for dividend payments and interest

payments is based on the ________ budget. Correct Answer

Cash

Your Answer Purchase

Multiple Choice Multiple Answer Question The data for two materials P and Q is given below : Material P :

opening stock Rs.80,000/-; closing stock Rs.40,000/- and purchases Rs.500,000/-. Material Q : opening stock Rs.170,000/-; closing stock Rs.60,000/- and purchases Rs.750,000/-. Identify which of the given statements relevant to the data given are correct.

Correct Answer

Consumption of material Q is Rs.860,000/- , Inventory turnover period for material P is 40.5 days , Material P is faster moving material

Your Answer Material Q is faster moving material , Consumption of material Q is Rs.860,000/-

Multiple Choice Single Answer Question Which system can assist in fixing a common selling price for the

industry as a whole on the basis of cost of production of all units belonging to that industry ?

Correct Answer

Uniform costing

Your Answer Uniform costing


Expected Standards Anticipated to be achieved in the budget period

Anticipated to be achieved in the budget period

Normal Standards Anticipated to be achieved in future

Anticipated to be achieved in future

Basic Standards Established for a longer period of time

Established for a longer period of time

Current Standards Established for a shorter period of time

Established for a shorter period of time

True/False Question Uniform costing system is defined as a system using common

concepts and standard accounting practices by different entities in different industry to facilitate inter-firm comparison.

Correct Answer

True

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Your Answer False

Multiple Choice Multiple Answer Question Material Yield variance -Rs.1,000/- (Adverse); material mix

variance -Rs.250/- (Favourable) and material price variance - Rs.350/- (Favourable). Find material cost variance and material usage variance.

Correct Answer

Material cost variance -Rs.400/- (Adverse) , Material usage variance -Rs.750/- , Material usage variance is adverse

Your Answer Material cost variance -Rs.400/- (Adverse) , Material usage variance is adverse

Select The Blank Question ________ system of wage payment is a combination of Halsey

system and Gantt system. Correct Answer

Diemer

Your Answer Diemer

Multiple Choice Single Answer Question A cheque of Rs.400/- received and deposited into bank on 26th

September, was credited in the pass book but was omitted to be entered in the bank book: this error will result in :

Correct Answer

Difference in the balance as per bank book and as per pass book

Your Answer Difference in the trial balance

Multiple Choice Single Answer Question Presentation of information to enable managerial decision

making' is one of the objects of which of the following Correct Answer

Cost Accounting

Your Answer Management Accounting

Multiple Choice Single Answer Question A good purchase system, for materials, prevents production

hold-ups due to: Correct Answer

Lack of material

Your Answer Excess receipt of material

True/False Question A cash payment of Rs.1,000/- for traveling expenses has been

entered in the books but not debited to traveling A/c. The trial balance will NOT agree.

Correct Answer

True

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Your Answer True

Select The Blank Question Education facility to workers and their children, pension,

superannuation fund are examples of ________ incentives. Correct Answer

Non-monetary

Your Answer Non-monetary

Multiple Choice Single Answer Question The reporting method used in the costing system should be

based on the principle of Correct Answer

Management by exception

Your Answer Management by exception

Select The Blank Question Fixed overhead volume variance = Expenditure variance +

Capacity variance + ________ variance Correct Answer

Calendar

Your Answer Calendar

True/False Question Credit balances in all the Personal & Real accounts appear on

asset side. Correct Answer

False

Your Answer False

Multiple Choice Single Answer Question The reporting method used in the costing system should be

based on the principle of Correct Answer

Management by exception

Your Answer Management by exception

Multiple Choice Single Answer Question Which system provides an opportunity to companies to adopt

the one best method of cost accounting system known to the industry ?

Correct Answer

Uniform costing

Your Answer Uniform costing

Multiple Choice Single Answer

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Question A worker 12 hours on a scheme of payment by results. His day rate is Rs.150/- an hour, the material cost of the product is Rs.600/- and the overheads are recovered at 15% of the total direct wages. Calculate the factory cost of the product under the piece rate work plan.

Correct Answer

Rs.2,670/-

Your Answer Rs.2,670/-

Multiple Choice Single Answer Question M/s Vivek Enterprises has paid rent relating to the residence of

Mr. Vivek, proprietor of Vivek Enterprises. This payment should be treated as

Correct Answer

Drawings

Your Answer Drawings

True/False Question The purchase budget is a forecast of the value of fixed assets

requiring replacements in the budget period. Correct Answer

False

Your Answer False

True/False Question Danger level for inventory of materials means the safety stock of

inventory. Correct Answer

False

Your Answer False

True/False Question Depreciation under Reducing Balance Method is calculated as

(Number of units * Rate of depreciation per unit) Correct Answer

False

Your Answer True

Multiple Choice Multiple Answer Question The factors which influence the selection of the method for

absorption of overheads are: Correct Answer

Type of industry , Nature of products , Manufacturing process

Your Answer Type of industry , Nature of products , Manufacturing process

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Select The Blank Question The ________ is of immense help in guiding the companies

to operate their accounts on uniform basis. Correct Answer

uniform cost manual

Your Answer accounting manual

Multiple Choice Single Answer Question Annual maintenance of Rs.28,000/- was paid on 15th June,

2003 for a period of one year therefrom. Find the amount of prepaid maitenance expenditure for the year ended 31st March.

Correct Answer

Rs.5,833/-


True/False Question Accounting is an art of recording, classifying & summarizing

in a significant manner. Correct Answer

True

Your Answer True

Multiple Choice Multiple Answer Question Material Yield variance -Rs.1,000/- (Adverse); material mix

variance -Rs.250/- (Favourable) and material price variance - Rs.350/- (Favourable). Find material cost variance and material usage variance.

Correct Answer

Material cost variance -Rs.400/- (Adverse) , Material usage variance -Rs.750/- , Material usage variance is adverse

Your Answer Material cost variance -Rs.400/- (Adverse) , Material usage variance -Rs.750/- , Material usage variance is adverse

Select The Blank Question Furniture account will always have a ________ balance.

Correct Answer

Debit

Your Answer Credit

Multiple Choice Single Answer

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Question Consideration to the fact that the repairs and maintenance cost is less in the initial years of life of the asset and hence needs to be counterbalanced by higher amount of depreciation in the

Correct Answer

Written down value method

Your Answer Written down value method

True/False Question Uniform costing may lead to monopolistic conditions within

the industry, prices may be raised and customers may suffer. Correct Answer

True

Your Answer True

Multiple Choice Single Answer Question A good purchase system, for materials, prevents production

hold-ups due to: Correct Answer

Lack of material

Your Answer Lack of material

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 Only a, b, c.

Multiple Choice Single Answer Question Production costs of a factory for the year 2003-04 are as

follows: direct labour cost Rs.100,000/-; direct material cost Rs.150,000/-; production overheads (fixed) Rs.50,000/- and production overheads (variable) Rs.80,000/-. The production manager projec

Correct Answer

Rs.426,800/-



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Balance-sheet Financial status Profitability statement & Balance-sheet

Book-Keeping Books of Accounts Books of Accounts

Financial statement Profitability statement & Balance-sheet

Indicates the amount of profit earned


Financial status

Profitability statement Indicates the amount of profit earned


True/False Question Penalty paid for delay in payment to creditors represents

uncontrollable cost. Correct Answer

False

Your Answer True

Multiple Choice Multiple Answer Question While preparing sales budget the following factors must be

considered : Correct Answer

The number and types of products sold by the organisation , Whether the organisation's market share is increasing or decreasing? , Details of seasonal fluctuations in sales

Your Answer The number and types of products sold by the organisation , Details of seasonal fluctuations in sales

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 Classified according to their nature. , It deals with both i.e. past & present.

Multiple Choice Multiple Answer Question The main objectives of determining overhead rates are :

Correct Answer

Helps in immediate compilation of costs , Helps application of overhead on an equitable basis , Assits in calculating unit cost before starting production

Your Answer Helps in immediate compilation of costs , Assits in calculating unit cost before starting production

Multiple Choice Multiple Answer Question In practical circumstances, control ledgers may be

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maintained for the following categories: Correct Answer

Sundry debtors , Sundry creditors , Advance to Staff

Your Answer Sundry creditors , Advance to Staff



True

Your Answer True

True/False Question Profitability statement indicates the amount of assets &

liabilities. Correct Answer

False

Your Answer False

Multiple Choice Multiple Answer Question Select the accounts to be disclosed on the assets side of the

Balance sheet. Correct Answer

Furniture , Loan to Bank of U.S.A. , Land & building

Your Answer Furniture , Land & building

Select The Blank Question The stores department is a ________ department.

Correct Answer

Service

Your Answer Valuable


Liabilities All the amount owed by the business

All the amount owed by the business

Drawing Withdrawn for personal use

Withdrawn for personal use


Ledger Maintain all types of Accounts

Maintain all types of Accounts

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Assets All the properties owned by the business

All the properties owned by the business



False

Your Answer False

Multiple Choice Multiple Answer Question Uniform Costing Methods may be advantageously applied to

. . . Correct Answer

Single organization having number of branches. , Number of companies in same industry , Similar Industries such as cotton, jute etc.

Your Answer Single organization having number of branches. , Similar Industries such as cotton, jute etc.

Select The Blank Question The lowest profit volume ratio can be ________%.

Correct Answer

0

Your Answer 0.1

Multiple Choice Single Answer Question Salary given in trial balance Rs. 5000/-, and Rs. 2,000/- is yet

to be paid . The outstanding salary account will be disclosed in the …

Correct Answer

Balance Sheet - liability side

Your Answer Trading Account - debit side

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

Multiple Choice Multiple Answer Question Accounting is the art where transactions are …

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Correct Answer

Summarized , Classified , Recorded

Your Answer Summarized , Classified , Recorded

Select The Blank Question A ________ note is prepared when excess material is

returned to stores. Correct Answer

Material returned

Your Answer Material returned

True/False Question According to the standard costing principles, only adverse

variance must be further investigated. Correct Answer

False

Your Answer True

True/False Question An item of cost that is direct for one business organisation

may be indirect for another business organisation. Correct Answer

True

Your Answer True

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 Since the pass book and the bank book record the ________

transactions, the bank balance as per these books should be equal.

Correct Answer

Same

Your Answer Same

Multiple Choice Multiple Answer

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Question The various areas in which uniform costing can be adopted are . .

Correct Answer

Valuation of inventories , Charging of depreciation , Apportionment of overheads

Your Answer Valuation of inventories , Charging of depreciation

True/False Question A business is an activity carried out with the intention of

earning the profit. Correct Answer

True

Your Answer True

Multiple Choice Single Answer Question With a 10% increase in the selling price and 10% decrease in

the physical sales volume, the profit volume ratio will: Correct Answer

Increase

Your Answer Increase

Multiple Choice Multiple Answer Question Management Accounting is…

Correct Answer

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

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

True/False Question Price based on Uniform Costing may be taken to be reliable

and representative of the whole industry. Correct Answer

True

Your Answer True

Select The Blank Question A written order sent to inform the purchasing department of

a need for materials is called a ________. Correct Answer

Purchase requisition note

Your Answer Purchase requisition note

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False

Your Answer False

True/False Question A cash payment of Rs.1,000/- for traveling expenses has

been entered in the books but not debited to traveling A/c. The trial balance will NOT agree.

Correct Answer

True

Your Answer True

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

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 An error of partial omission can be rectified by either

debiting or crediting the ________ account, as the case maybe.

Correct Answer

suspense

Your Answer profit and loss

Multiple Choice Multiple Answer Question Which of the following transactions should be excluded

while preparing a cost sheet ? Correct Interest on loan , Bad debts , Expenses on criminal law suit

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Answer Your Answer Sale of scrap material , Interest on loan

Multiple Choice Single Answer Question Over which of the following costs is the management likely

to have least control? Correct Answer

Buildings insurance cost

Your Answer Wages cost

Multiple Choice Single Answer Question Insurance premium of Rs.18,000/- was paid on 15th January,

2004. The policy period is one year from the date of payment of insurance. On 31st March, 2004 what amount should be debited to the Profit and Loss account as expenditure on account of insurance premium?

Correct Answer

Rs.3,750/-


True/False Question Maintenance Department is a service cost centre.

Correct Answer

True

Your Answer True

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Select The Blank Question The column which refers to the page number of the ledger is

known as ________. Correct Answer

Ledger folio

Your Answer Ledger folio

Multiple Choice Multiple Answer Question Financial Accounting is …

Correct Answer

Designed to supply information to internal/ external users , Referred as 'Historical' form of accounting , Concerned with financial factors

Your Answer Referred as 'Historical' form of accounting , Concerned with financial factors

True/False Question Profitability statement indicates the amount of assets &

liabilities. Correct Answer

False

Your Answer False

Select The Blank Question The method of overhead apportionment which considers both

the material cost as well as the labour cost, is known as ________ method.

Correct Answer

Prime cost percentage rate

Your Answer Supplementary rate

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

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access to all the units to the collected data

Multiple Choice Multiple Answer Question The data for two materials P and Q is given below : Material

P : opening stock Rs.80,000/-; closing stock Rs.40,000/- and purchases Rs.500,000/-. Material Q : opening stock Rs.170,000/-; closing stock Rs.60,000/- and purchases Rs.750,000/-. Identify which of the given statements relevant to the data given are correct.

Correct Answer

Inventory turnover period for material P is 40.5 days , Material P is faster moving material , Consumption of material Q is Rs.860,000/-

Your Answer Inventory turnover period for material P is 40.5 days , Material P is faster moving material , Consumption of material Q is Rs.860,000/-

Multiple Choice Single Answer Question A new computer worth Rs.35,000 was purchased on 18th

June, 2003. The company has 10 such computers costing Rs.20,000/- each. The depreciation is charged @ 18% p.a. Find the depreciation on computers to be charged for the year.

Correct Answer

Rs.40,953.70


Multiple Choice Single Answer Question Journal is popularly known as 'Book of . . .

Correct Answer

Original Entry

Your Answer Original Entry

Multiple Choice Single Answer Question Out of debtors totaling to Rs.58,750/-, Rs.5,000/- were

expected to be bad. What should be the amount of debtors that must be disclosed in the balance sheet?

Correct Answer

Rs.53,750/-


True/False Question A business is an activity carried out with the intention of

earning the profit.

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Correct Answer

True

Your Answer True

Select The Blank Question Copy of a firm's account in the bank's ledger is known as

________. Correct Answer

Bank statement

Your Answer Bank book

Multiple Choice Single Answer Question The direct material useage budget and direct material

purchase budget differ because of which of the following: Correct Answer

A planned change in the level of material stock

Your Answer A planned change in the level of material stock

True/False Question In marginal costing, decisions are guided by profit rather

than contribution margin. Correct Answer

False

Your Answer False

Select The Blank Question An amount of Rs.200/- is received from P and is credited to

Q. The rectification entry would affect ________ Correct Answer

P's A/c and Q's A/c

Your Answer P's A/c

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 , Facilitates the comparison of financial statements , It facilitates comparison of financial statements on period-to-period basis

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Select The Blank Question The variance which measures the profit consequences of

selling different products in proportions other than the standard, is known as ________ variance.

Correct Answer

Sales margin mix

Your Answer Sales margin mix

Multiple Choice Single Answer Question Basic objective of Uniform Costing is . . .

Correct Answer

comparison

Your Answer To control cost



False

Your Answer True

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

Select The Blank Question The principle of ________ is followed while preparing the

financial statements. Correct Answer

Going concern

Your Answer Closing concern

Multiple Choice Single Answer Question Firm X manufactures surgical goods. Its normal production

is 2,600 units per month at a total cost of Rs.32,000/-. At full capacity it can manufacture 3,400 units per month at a total cost of Rs.38,000/-. Calculate total fixed cost.

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Correct Answer

Rs.12,500/-


Multiple Choice Multiple Answer Question Ram and Laxman are partners of Kush & Bros. As on 1st

April, 2003 Ram's capital is Rs.50,000/- and Laxman's capital is Rs.80,000/-. If interest on capital is to be provided @ 10% p.a., what will be amount of capital of each of the partners as on 31st March, 2004, assuming there were no additions during this period? Also, state the treatment of this item in the Profit and loss account.

Correct Answer

Ram's capital Rs.55,000/- , Laxman's capital Rs.88,000/- , Interest on capital should be debited to the Profit and loss account

Your Answer Ram's capital Rs.55,000/- , Laxman's capital Rs.88,000/- , Interest on capital should be credited to the Profit and loss account

Multiple Choice Single Answer Question A factory has 8 hours a day and the standard daily wage is

Rs.80/-. Standard output per hour is 5 units. During a day worker P produced 30 units, Q produced 36 units and S produced 42 units. Calculate wages payable to P,Q and S under Merrick Multiple Piece Rate System.

Correct Answer

P - Rs.60/-; Q - Rs.79.20; S - Rs.100.80

Your Answer P - Rs.60/-; Q - Rs.72/-; S - Rs.84/-

True/False Question Accounting refers to the process of analyzing & interpreting

the information already recorded in the books of accounts. Correct Answer

True

Your Answer True

Multiple Choice Single Answer Question Commission payable to General Manager is 10 % of the net

profits. If the net profit before charging commission is Rs.29,200/-, then what will be the amount of his net profit after commission?

Correct Answer

Rs.26,545.45

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Your Answer Rs.26,788.99

Select The Blank Question The most appropriate method for apportionment of

overheads of the purchasing and stores department is percentage on ________.

Correct Answer

Direct Material

Your Answer Labour hours

Multiple Choice Multiple Answer Question The various areas in which uniform costing can be adopted

are . . Correct Answer

Valuation of inventories , Charging of depreciation , Apportionment of overheads

Your Answer Valuation of inventories , Charging of depreciation , Apportionment of overheads

Select The Blank Question If the firm is operating with zero margin of safety, decline of

even a single unit in sales will result in ________. Correct Answer

Loss

Your Answer Loss

Select The Blank Question Dividend received on amount invested in shares is an

example of ________. Correct Answer

non-operating income

Your Answer non-operating income



False

Your Answer False

True/False Question Routing the purchase requisition through the purchase

department entails unnecessary delay in receiving the required materials.

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Correct Answer

False

Your Answer True

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 Trading account

True/False Question The rates at which the depreciation is to be calculated are

specified in the Income Tax Act 1961 and The Companies Act, 1956.

Correct Answer

True

Your Answer True

True/False Question The effect of price reduction is always reduction in the

margin of safety and also reduction in the break even point. Correct Answer

False

Your Answer True

Multiple Choice Single Answer Question The opening balance of cash account is Rs. 25,000/-, cash

received from debtors Rs. 30,000/-, sold goods on cash basis amounting to Rs. 50,000/-, paid to creditors Rs. 20,000/-, purchase furniture Rs. 5000/-. What is the closing balance of the cash account?

Correct Answer

Rs. 80,000

Your Answer Rs. 80,000

Multiple Choice Multiple Answer Question The main objectives of determining overhead rates are :

Correct Answer

Helps in immediate compilation of costs , Helps application of overhead on an equitable basis , Assits in calculating unit cost before starting production

Your Answer Helps in immediate compilation of costs , Helps application

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of overhead on an equitable basis , Assits in calculating unit cost before starting production

Multiple Choice Multiple Answer Question Identify the fixed expenses from the following.

Correct Answer

Rent and taxes of the factory , Wages paid to indirect workers like cleaners, helpers,etc. , Salary paid to factory supervisor

Your Answer Rent and taxes of the factory , Salary paid to factory supervisor

Multiple Choice Single Answer Question Labour turnover rate is best defined as :

Correct Answer

The number of leavers replaced divided by the average of employees on the payroll

Your Answer The number of employees successfully completing the required job training program

Multiple Choice Multiple Answer Question Direct Cost includes

Correct Answer

Direct material , Direct labour , Direct expenses

Your Answer Direct material , Direct labour , Direct expenses



True

Your Answer True

Multiple Choice Multiple Answer Question Select the various methods adopted for treatment of under or

over absorbed overheads Correct Answer

Use of supplementary rates , Carrying over the amount to remaining period , Writing off to the Costing Profit and Loss Account

Your Answer Use of supplementary rates , Carrying over the amount to remaining period , Writing off to the Costing Profit and Loss Account

True/False Question Accounting is an art of recording, classifying & summarizing

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in a significant manner. Correct Answer

True

Your Answer True

True/False Question The variable costs are controllable at the lower lever.

Correct Answer

True

Your Answer True


Balance-sheet Financial status Financial status

Book-Keeping Books of Accounts Books of Accounts

Financial statement Profitability statement & Balance-sheet

Profitability statement & Balance-sheet



Profitability statement Indicates the amount of profit earned

Indicates the amount of profit earned

Multiple Choice Single Answer Question Which of the following is usually prepared daily by

employees for each job worked on? Correct Answer

Job card

Your Answer Job card

True/False Question The actual loss incurred by a company, due to fire, is the

extent of difference between the cost of goods destroyed and the amount of claim settled by the insurance company.

Correct Answer

True

Your Answer True


Liabilities All the amount owed by All the amount owed by

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the business the businessDrawing Withdrawn for personal

useWithdrawn for personal use


Ledger Maintain all types of Accounts

Maintain all types of Accounts

Assets All the properties owned by the business

All the properties owned by the business

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SCDL - Management Accounting

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