management accounting

Match The Following

Question Correct Answer Your Answer

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

Book-Keeping Books of Accounts Books of Accounts

Financial statement Profitability statement & Balance-sheet Profitability statement &

Balance-sheet

Multiple Choice Single Answer

Question Salary paid to employee amounted Rs. 10,000, transferred toTrading A/C is an

example of_______

Correct Answer Error of Commission

Your Answer Error of Commission


Question Labour cost indicates that labour cost which cannot be identified with the

individual cost centre and is incurred for thoseemployees who are not engaged in the

manufacturing process but only assist i

Correct Answer Remuneration

Your Answer Indirect

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

Select The Blank

Question Over absorption of overheads may take place due to the reasons like ________

overheads being less than the ________ overheads

Correct Answer actual

Your Answer estimated

Correct Answer estimated

Your Answer actual

True/False

Question Income received in advance transfer to current liabilities

Correct Answer True

Your Answer True

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Select The Blank

Question Bank reconciliation statement is the statement prepared to explain the ________ as

to why the bank balance as per ________ and bank balance as per bank book does not match

Correct Answer reasons

Your Answer reasons

Correct Answer pass book

Your Answer pass book

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

True/False

Question A business is an activity carried out with the intention of earning the profit.

Correct Answer True

Your Answer True


Question If wages for the month of January, February and March are Rs.4,000, Rs.4,400 and

Rs.4,600 respectively and if delay in payment of wages is ½ month , payment of wages for

the month of February is

Correct Answer 4,200

Your Answer 4,000

Select The Blank

Question Management Accounting has a very ________ scope and it requires ________

organizational structure

Correct Answer wide

Your Answer wide

Correct Answer elaborate

Your Answer elaborate

True/False

Question Accounting is an art of recording, classifying & summarizing in a significant

manner.

Correct Answer True

Your Answer True


Question For a unit, if opening stock of raw material is 10,000 units, closing stock of raw

material is 5,000 units and consumption is 3,20,000 units, what will be the quantum of raw

material to be purchased

Correct Answer 3,15,000

Your Answer 3,15,000

Multiple Choice Multiple Answer

Question Important advantages of Uniform Costing can be said to be

Correct Answer It is a useful tool for management control , It avoids cut throat competition ,

Weaker units can take advantage of settled systems of better managed units

Your Answer It is a useful tool for management control , It avoids cut throat competition ,

Weaker units can take advantage of settled systems of better managed units


Question P/L A/C debit side includes

Correct Answer salary , discount allowed , postage & telegram

Your Answer postage & telegram , salary , discount allowed


Question Actual costs may be affected due to inefficient functioning such as

Correct Answer Abnormal expenses , In efficient use of labour , In efficient use of material

Your Answer Abnormal expenses , In efficient use of labour , In efficient use of material


Question Calculate Labour Efficiency Variance, If actual rate per hour is Rs.3.50/- , Standard

rate is Rs.3/- per unit and standard hours are 15,000 and Actual hours are 13, 500.

Correct Answer Rs.4500/- ( Favorable )

Your Answer Rs.4500/- ( Favorable )


Question Sales quantity may be forecasted after taking into consideration various factors

such as

Correct Answer Analysis of past trends , Market research , Reports by salesmen

Your Answer Analysis of past trends , Market research , Reports by salesmen

True/False

Question For taking make or buy decision marginal costing technique provide useful

assistance.

Correct Answer True

Your Answer True

True/False

Question Profitability statement indicates the amount of assets & liabilities.


Your Answer False


Question It is an appropriate basis of apportionment of depreciation expenditure

Correct Answer value of assets

Your Answer value of assets

True/False

Question The variable costs are controllable at the lower level.

Correct Answer True

Your Answer True

True/False

Question Balance sheet indicates the expenditure & income from the business.


Your Answer False

Match The Following


Journal Book of original entry Book of original entry

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

Liabilities All the amount owed by the business All the amount owed by the business

Drawing Withdrawn for personal use Withdrawn for personal use

Select The Blank

Question A budget manual is a document setting out the ________ of the persons and

________ required for the budget control.

Correct Answer Responsibilities

Your Answer Responsibilities

Correct Answer Forms and procedures

Your Answer Forms and procedures

True/False

Question Credit balances in all the Personal & Real accounts appear on asset side.



Your Answer True

True/False

Question The process of accounting split into three steams i.e. financial, cost, management

accounting.

Correct Answer True

Your Answer True


Question Omission of posting an amount in the ledger

Correct Answer Error of Omission

Your Answer Error of Omission

True/False

Question Non-operating / financial expenses are added while calculating net profit.


Your Answer True

True/False

Question Balance sheet indicates the financial status of the business at given period.

Correct Answer True

Your Answer True


Question A Budget Manual may contain the following particulars

Correct Answer Duties and responsibilities of various executives , Functions and duties of

Budget Officer , Scope of the Budget and area to be covered

Your Answer Duties and responsibilities of various executives , Functions and duties of

Budget Officer , Scope of the Budget and area to be covered

Select The Blank

Question Semi ________ overheads are neither ________ nor variable in nature.

Correct Answer fixed

Your Answer variable

Correct Answer variable

Your Answer fixed

True/False

Question Due to errors of principle the arithmetical accuracy of the trial balance does not

get affected.

Correct Answer True

Your Answer True


Question Direct Cost includes

Correct Answer Direct material , Direct labour , Direct expenses

Your Answer Direct material , Direct labour , Direct expenses

Select The Blank

Question Financial Accounting protects the interest of outsiders . it considers ________

transaction and it is a ________ requirement

Correct Answer historical

Your Answer historical

Correct Answer legal

Your Answer legal

True/False

Question Bin Card is having all the information of item received and issued.


Your Answer True

Select The Blank

Question Budgetary Control is useful for ________-and ________-as a powerful tool in the

hands of management

Correct Answer Cost control

Your Answer Cost control

Correct Answer Maximization of profits

Your Answer Maximization of profits

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


Question The material Requisition note contains

Correct Answer Number and date , Department demanding the material , Signature of the

authority approving the demand

Your Answer Number and date , Department demanding the material , Signature of the

authority approving the demand


Question Following error affect the trial balance

Correct Answer Wrong totaling of subsidiary books , Posting on the wrong side of an account

, Omission of posting an account in the ledger

Your Answer Wrong totaling of subsidiary books , Posting on the wrong side of an account ,

Omission of posting an account in the ledger

Select The Blank

Question Fixed overheads normally arise as a result of policy and are largely ________ in

nature at the ________ level of the management

Correct Answer uncontrollable

Your Answer controllable

Correct Answer lower

Your Answer top

True/False

Question Budget is prepared for a fixed period of time.

Correct Answer True

Your Answer True


Question Sold Goods of Amitabh worth Rs. 15,000 against 15% Trade discount. The Goods

worth appear on account ___________

Correct Answer 12750

Your Answer 12750


Question This is not the non monetary incentive.

Correct Answer Co-partnership

Your Answer Co-partnership


Question P/L A/C debit side includes

Correct Answer salary , discount allowed , postage & telegram

Your Answer salary , discount allowed , postage & telegram

Select The Blank

Question Along with financial accounting, ________ and ________ are the other streams of

accounting

Correct Answer Cost Accounting

Your Answer Cost Accounting

Correct Answer Management Accounting

Your Answer Management Accounting

True/False

Question A very wide scope of Management Accounting is the limitation by itself.

Correct Answer True

Your Answer True

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Labels: Management Accounting

Wednesday, March 12, 2008Management Accounting - 2

True/False

Question

Credit balances in all the Personal & Real accounts appear on asset side.

Correct Answer

False

Your Answer

False


Question

Contents of Uniform Cost Manual are

Correct Answer

Organization , Cost Accounting system , Presentation of information

Your Answer

Organization , Cost Accounting system , Presentation of information


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. , Number of companies in same industry ,

Similar Industries such as cotton, jute etc.

True/False

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Question

1) Financial statements are basically in two forms i.e. profitability statement and balance

sheet.

Correct Answer

True

Your Answer

True


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

True/False

Question

Long term loan borrowed from financial institution comes under the heading of long term

liabilities.

Correct Answer

True

Your Answer

True

Match The Following

Question

Correct Answer

Your Answer

Book-Keeping

Books of Accounts

Books of Accounts

Financial statement

Profitability statement & Balance-sheet


Accounting

Process of analyzing & interpretation


Profitability statement

Indicates the amount of profit earned


Balance-sheet

Financial status

Financial status


Question

Judge the statement according to the criteria given : ' The accounting period for XYZ Ltd.

ends on 31st December, 2003. It is noted that office rent for the month of December, 2003

is paid on 15th January, 2004. "According to concept of matching expenses with the

revenues, this expenditure should be recorded in the books of accounts in January,

Correct Answer

The statement and its reason are both incorrect

Your Answer

The statement is correct but its reason is incorrect


Question

Features of money measurement concept are . . .

Correct Answer

Only those transactions and facts are included expressed in terms of money are considered ,

Imposes severe restrictions on the kind of information available from financial statements ,

Works as a major drawback of financial accounting

Your Answer

Only those transactions and facts are included expressed in terms of money are considered ,

Imposes severe restrictions on the kind of information available from financial statements ,

Works as a major drawback of financial accounting


Question

The installation and operation of ___________ accounting requires a very elaborate

organizational structure and large number of rules & regulations

Correct Answer

Management

Your Answer

Management

Select The Blank

Question

________account can be defined as the record of all the transactions pertaining to a person,

asset, liability income or expenditure which have taken place in a specified period.

Correct Answer

Ledger

Your Answer

Trading

Match The Following

Question

Correct Answer

Your Answer

Sunk Cost

Historical Cost

Historical Cost

Cost Centre

Facilitate the fixation of responsibility

Facilitate the fixation of responsibility

Cost Control

Process of controlling costs of operations

Process of controlling costs of operations

Differential Cost

Increase or Decrease in cost

Increase or Decrease in cost


Question

Which of the following transactions should be excluded while preparing a cost sheet ?

Correct Answer

Interest on loan , Bad debts , Expenses on criminal law suit

Your Answer

Sale of scrap material , Interest on loan , Bad debts

True/False

Question

In a Balance-Sheet right hand side is referred as assets side and left hand side is referred as

liabilities.

Correct Answer

True

Your Answer

True

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

False

True/False

Question

Primary distribution is effected on the basis of service rendered to the service departments

by the production departments.

Correct Answer

False

Your Answer

True


Question

Marginal costing is found to be unsuccessful in the following situations :-

Correct Answer

Impossible to distinguish costs into fixed and variable component. , With respect to capital

intensive industries where fixed costs are very large and hence cannot be ignored , With

respect to service industries where employee costs are very large and almost fixed in nature

Your Answer

Impossible to distinguish costs into fixed and variable component. , With respect to capital

intensive industries where fixed costs are very large and hence cannot be ignored , With

respect to service industries where employee costs are very large and almost fixed in nature

True/False

Question

Debit Note is an intimation sent to person dealing with the business that his account is being

credited for the purpose indicated therein.

Correct Answer

False

Your Answer

True


Question

Labour efficiency variance arises due to:

Correct Answer

Inefficient supervisor , Poor working conditions , Use of sub-standard quality of material

Your Answer

Inefficient supervisor , Poor working conditions , Use of sub-standard quality of material

True/False

Question

Financial Accounting discloses the financial performance & financial statements of the

business as a whole.

Correct Answer

True

Your Answer

True

True/False

Question

Balance sheet indicates the expenditure & income from the business.

Correct Answer

False

Your Answer

True

Select The Blank

Question

The indirect material cost, indirect labour cost and indirect expenses cost, collectively are

termed as ________.

Correct Answer

Overhead

Your Answer

Overhead

Select The Blank

Question

A person in charge of a ________ may be held responsible for its proper functioning and cost

control.

Correct Answer

Cost centre

Your Answer

Cost centre


Question

The organization chart shows the following aspects :

Correct Answer

Functional responsibility of different functional managers , Delegation of authority to various

managers , Inter-functional relationships of these managers

Your Answer

Functional responsibility of different functional managers , Delegation of authority to various

managers , Inter-functional relationships of these managers

True/False

Question

Uniform costing system is a pre-requisite to an inter-firm comparison of firms belonging to

the different industries.

Correct Answer

False

Your Answer

False

True/False

Question

P&L statement which is a period statement & relates to a certain period tells about results of

operations.

Correct Answer

True

Your Answer

False

Select The Blank

Question

Depreciation charged on office furniture on straight line basis is an example of ________.

Correct Answer

Administration overheads

Your Answer

Administration overheads

True/False

Question

Under time rate system a worker is paid on the basis of production achieved by him in a

given time.

Correct Answer

False

Your Answer

False

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

True/False

Question

Danger level for inventory of materials means the safety stock of inventory.

Correct Answer

False

Your Answer

True

True/False

Question

The role of the budget committee may be taken as an advisory role to the Chief Executive.

Correct Answer

True

Your Answer

True


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 ,

Augments emplyees' efficiency

Select The Blank

Question

________ Accounting assists the management in establishing the plans to attain the economic

objectives and take proper decisions for the attainment of its objectives.

Correct Answer

Management

Your Answer

Management


Question

Which of the following is likely to be a contributory factor to the incidence of excess

expenditure on material cost?

Correct Answer

The level of control of the used of material in the production cycle , The incorrect choice of

purchase order quantity , Failure to control the issue of materials from stores

Your Answer

An increase in the maximum material inventory level , The incorrect choice of purchase

order quantity , Failure to control the issue of materials from stores


Question

Management accounting is concerned with the following activities :

Correct Answer

Decision making , Safeguarding assets , Planning and controlling activities

Your Answer



Question

Features of double entry accounting system are . . .

Correct Answer

Every business transaction has two elements , When business receives something, it has to

pay something , Every debit has a corresponding credit

Your Answer

Every business transaction has two elements , When business receives something, it has to

pay something , Every debit has a corresponding credit

Select The Blank

Question

Under Differential Time Rate method payment is made at Rs. 1.40 per hour when the level

of efficiency is between________.

Correct Answer

90% to 100%

Your Answer

90% to 100%

True/False

Question

Maintenance Department is a service cost centre.

Correct Answer

True

Your Answer

True

True/False

Question

The process of accounting split into three steams i.e. financial, cost, management

accounting.

Correct Answer

True

Your Answer

True

Select The Blank

Question

The difference between sales and cost of sales is termed as ________.

Correct Answer

Net Profit

Your Answer

Net Profit

Select The Blank

Question

The final result disclosed by trading account is the ________profit earned by the organization.

Correct Answer

Gross

Your Answer

Gross


Question

Select the accounts to be disclosed on the liability side of the Balance sheet.

Correct Answer

Loan , Outstanding expenses , Creditors

Your Answer

Loan , Outstanding expenses , Creditors

True/False

Question

Penalty paid for delay in payment to creditors represents uncontrollable cost.

Correct Answer

False

Your Answer

False


Question

Which document facilitates estimating material cost of a particular job, before completion of

that job?

Correct Answer

Bill of material

Your Answer

Material requisition note


Question

Purchases returns of Rs.18,000/- were wrongly transferred to the sales returns account.

Calculate its impact on net profit.

Correct Answer

The net profit will not be affected

Your Answer



Question

It is said that adoption of uniform costing creates customer confidence because . . .

Correct Answer

Prices are reliable

Your Answer

Prices are reliable


Question

An order for goods worth Rs.18,000/- was placed on 25th March, 2004. The goods were

received on 1st April, 2004. Calculate the impact of this transaction on the final statements

of accounts for the year ended 31st March, 2004.

Correct Answer


Your Answer



Labels: Management Accounting

Management Accounting - 1

Select The Blank

Question

Furniture account will always have a ________ balance.

Correct Answer

Debit

Your Answer

Nil


Question

Accounting is the art where transactions are …

Correct Answer

Summarized , Classified , Recorded

Your Answer

Summarized , Classified , Recorded

True/False

Question

The phrase 'By Balance c/d.' written on the credit side of the rent account, indicates credit

balance for this account.

Correct Answer

False

Your Answer

False

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


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

The selection of ________ may depend upon the various factors like characteristics of the

business organisation, tax considerations, statutory requirements etc.

Correct Answer

Accounting period

Your Answer

Accounting period

True/False

Question

Standard costs are used for external reporting.

Correct Answer

False

Your Answer

False

True/False

Question

It is said that the income statement represents wealth increase /decrease for the

organisation.

Correct Answer

True

Your Answer

False


Question

Mr. Oak, materials manager, spends 40% time in the factory and the remaining in office. If

his annual salary is Rs.500,000/-, what amount should be charged as office overheads ?

Correct Answer

Rs.300,000/-

Your Answer

Rs.200,000/-


Question

The factors to be considered while preparing the direct materials budget are :

Correct Answer

Adequacy of material storing space , Availability of funds , Material in stores but reserved for

specific purposes

Your Answer

Adequacy of material storing space , Availability of funds , Material in stores but reserved for

specific purposes


Question

In which of the following situations, the flexible budget should be preferred?

Correct Answer

Sales are too difficult to predict , Supply level of input cannot be predicted , Varying levels of

production activity

Your Answer

Sales are too difficult to predict , Supply level of input cannot be predicted , Varying levels of

production activity


Question

Techniques of management accounting include:

Correct Answer

Marginal costing , Budgetary control , Standard costing

Your Answer

Marginal costing , Cost control , Budgetary control , Standard costing

Match The Following

Question

Correct Answer

Your Answer

Profit and loss account

Commission received

Dividend paid

Manufacturing account

Work in Progress

Land & Building

Balance Sheet

Land & Building

Closing stock of finished goods

Trading account

Closing stock of finished goods

Work in Progress

True/False

Question

While preparing the labour cost budget, factors such as overtime working or night shift

working may be ignored.

Correct Answer

False

Your Answer

False


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 , Increase the selling efforts


Question

From the following, select intangible assets:

Correct Answer

Goodwill , Patents , Trade Marks

Your Answer

Patents , Trade Marks , Investments

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

False


Question

Find the budget which is inadequate as a cost control technique :

Correct Answer

Fixed budget

Your Answer

Fixed budget

True/False

Question

Predetermined rate of absorption of overheads helps in quick preparation of cost estimates

and quoting prices.

Correct Answer

True

Your Answer

True


Question

Net sales Rs,7,50,000/-, opening stock Rs.1,14,375/-, purchases Rs.483,375/- and closing

stock Rs.1,47,750/-. Calculate the Gross Profit.

Correct Answer

Rs.3,00,000/-

Your Answer

Rs.3,00,000/-

Select The Blank

Question

________ is an example of intangible asset.

Correct Answer

Goodwill

Your Answer

Land

True/False

Question

Accounting is an art of recording, classifying & summarizing in a significant manner.

Correct Answer

True

Your Answer

True

True/False

Question

Goods sent to the customers on approval basis should be treated as sales.

Correct Answer

False

Your Answer

False


Question

Features of Sunk cost are . . .

Correct Answer

Indicates historical cost , Not relevant in decision making process , Incurred in past

Your Answer

Indicates historical cost , Incurred in past , Relevant in decision making process

True/False

Question

Profitability statement indicates the amount of assets & liabilities.

Correct Answer

False

Your Answer

True

True/False

Question

A business is an activity carried out with the intention of earning the profit.

Correct Answer

True

Your Answer

True


Question

Identify the steps involved in selecting the optimum product mix, when the limiting factor is

number of labour hours and sales demand.

Correct Answer

For each product find the contribution per unit and per labour hour , Award ranks to each of

the products based on contribution per limiting factor , Priority is given to fulfill the market

demand of the product which gives maximum contribution per labour hour.

Your Answer

For each product find the contribution per unit and per labour hour , Award ranks to each of

the products based on contribution per limiting factor , Priority is given to fulfill the market

demand of the product which gives maximum contribution per labour hour.


Question


Correct Answer


Your Answer

Marginal costing , Cost control , Budgetary control

True/False

Question

The ideal budget period for a company engaged in generation and distribution of electricity

is one year.

Correct Answer

False

Your Answer

False

Select The Blank

Question

The ________ adjustment is necessary to relfect the cost for the use of fixed asset during the

year.

Correct Answer

Depreciation

Your Answer

Depreciation

True/False

Question

According to Reducing Balance Method, the depreciation is provided at a predetermined

percentage on the balance of cost of asset after deduction of the depreciation previously

charged.

Correct Answer

True

Your Answer

True

Select The Blank

Question

Crane expenses should be apportioned on the basis of ________.

Correct Answer

Number of hours crane worked in the department

Your Answer

Number of hours crane worked in the department


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


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

Your Answer

Rs.29,200/-

Select The Blank

Question

A forecast is mere estimate of what is likely to happen, but ________ is the action plan to be

followed.

Correct Answer

Budget

Your Answer

Budget

True/False

Question

A very wide scope of Management Accounting is the limitation by itself.

Correct Answer

True

Your Answer

True

Select The Blank

Question

The combination in which different products are sold by a company is known as ________.

Correct Answer

Sales mix

Your Answer

Sales mix


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 objectives

True/False

Question

Balance sheet indicates the financial status of the business at given period.

Correct Answer

True

Your Answer

True


Question

The wages paid to maintenance department workers who do repair work principally for

production departments but also on the vehicles in the distribuiton department shoud be

charged as:

Correct Answer

Service costs

Your Answer

Service costs


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

Capital

Select The Blank

Question

Measurement of ________ gives an idea of the degree of mobility of labour.

Correct Answer

Labour turnover

Your Answer

Labour turnover


Question

Net profit for the year before charging commission to the manager, is Rs.111,775/-. The

manager of the company is entitled to commission @ 8% on net profits after charging

commission. Find the amount of commission due to the manager.

Correct Answer

Rs.8,279.63

Your Answer

Rs.8,942/-

Match The Following

Question

Correct Answer

Your Answer

Total cost

Cost of finished goods

Cost of finished goods

Non operating income

Profit on sale of investment

Profit on sale of investment

Selling and distribution overheads

Advertisement expenses

Advertisement expenses

Factory overheads

Repair for factory building

Repair for factory building

True/False

Question

Control on purchase of material is exercised by the storekeeper.

Correct Answer

False

Your Answer

True


Question

A company wishes to earn a 15% profit margin on selling price when quoting for a job.

Which of the following is the profit margin of cost which will achieve the required profit

margin ?

Correct Answer

0.1765

Your Answer

0.15

Select The Blank

Question

Economical use of labour, materials and facilities can achieved with the help of ________.

Correct Answer

Budgetary control

Your Answer

Cost control

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Select The Blank

Question Furniture account will always have a ________ balance.

Correct Answer Debit

Your Answer Nil


Question Accounting is the art where transactions are …

Correct Answer Summarized , Classified , Recorded

Your Answer Summarized , Classified , Recorded

True/False

Question The phrase 'By Balance c/d.' written on the credit side of the rent account,

indicates credit balance for this account.


Your Answer False

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

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 The selection of ________ may depend upon the various factors like characteristics

of the business organisation, tax considerations, statutory requirements etc.

Correct Answer Accounting period

Your Answer Accounting period

True/False

Question Standard costs are used for external reporting.


Your Answer False

True/False

Question It is said that the income statement represents wealth increase /decrease for the

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organisation.

Correct Answer True

Your Answer False


Question Mr. Oak, materials manager, spends 40% time in the factory and the remaining in

office. If his annual salary is Rs.500,000/-, what amount should be charged as office

overheads ?

Correct Answer Rs.300,000/-

Your Answer Rs.200,000/-


Question The factors to be considered while preparing the direct materials budget are :

Correct Answer Adequacy of material storing space , Availability of funds , Material in stores

but reserved for specific purposes

Your Answer Adequacy of material storing space , Availability of funds , Material in stores

but reserved for specific purposes


Question In which of the following situations, the flexible budget should be preferred?

Correct Answer Sales are too difficult to predict , Supply level of inputcannot be predicted ,

Varying levels of production activity

Your Answer Sales are too difficult to predict , Supply level of input cannot be predicted ,



Question Techniques of management accounting include:

Correct Answer Marginal costing , Budgetary control , Standard costing

Your Answer Marginal costing , Cost control , Budgetary control , Standard costing

Match The Following


Profit and loss account Commission received Dividend paid

Manufacturing account Work in Progress Land & Building


Balance Sheet Land & Building Closing stock of finished goods

Trading account Closing stock of finished goods Work in Progress

True/False

Question While preparing the labour cost budget, factors such as overtime working or night

shift working may be ignored.


Your Answer False


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 , Increase the selling

efforts


Question From the following, select intangible assets:

Correct Answer Goodwill , Patents , Trade Marks

Your Answer Patents , Trade Marks , Investments

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 False


Question Find the budget which is inadequate as a cost control technique :

Correct Answer Fixed budget

Your Answer Fixed budget


True/False

Question Predetermined rate of absorption of overheads helps in quick preparation of cost

estimates and quoting prices.

Correct Answer True

Your Answer True


Question Net sales Rs,7,50,000/-, opening stock Rs.1,14,375/-, purchases Rs.483,375/- and

closing stock Rs.1,47,750/-. Calculate theGross Profit .

Correct Answer Rs.3,00,000/-

Your Answer Rs.3,00,000/-

Select The Blank

Question ________ is an example of intangible asset.

Correct Answer Goodwill

Your Answer Land

True/False

Question Accounting is an art of recording, classifying & summarizing in a significant

manner.

Correct Answer True

Your Answer True

True/False

Question Goods sent to the customers on approval basis should be treated as sales.


Your Answer False


Question Features of Sunk cost are . . .

Correct Answer Indicates historical cost , Not relevant in decision making process , Incurred

in past

Your Answer Indicates historical cost , Incurred in past , Relevant in decision making

process



True/False

Question Profitability statement indicates the amount of assets & liabilities.


Your Answer True

True/False

Question A business is an activity carried out with the intention of earning the profit.

Correct Answer True

Your Answer True


Question Identify the steps involved in selecting the optimum product mix, when the limiting

factor is number of labour hours and sales demand.

Correct Answer For each product find the contribution per unit and per labour hour , Award

ranks to each of the products based on contribution per limiting factor , Priority is given to

fulfill the market demand of the product which gives maximum contribution per labour

hour.

Your Answer For each product find the contribution per unit and per labour hour , Award

ranks to each of the products based on contribution per limiting factor , Priority is given to

fulfill the market demand of the product which gives maximum contribution per labour

hour.


Question Techniques of management accounting include:

Correct Answer Marginal costing , Budgetary control , Standard costing

Your Answer Marginal costing , Cost control , Budgetary control

True/False

Question The ideal budget period for a company engaged in generation and distribution of

electricity is one year.


Your Answer False

Select The Blank

Question The ________ adjustment is necessary to relfect the cost for the use of fixed asset

during the year.

Correct Answer Depreciation

Your Answer Depreciation

True/False

Question According to Reducing Balance Method, the depreciation is provided at a

predetermined percentage on the balance of cost of asset after deduction of the

depreciation previously charged.

Correct Answer True

Your Answer True

Select The Blank

Question Crane expenses should be apportioned on the basis of ________.

Correct Answer Number of hours crane worked in the department

Your Answer Number of hours crane worked in the department


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


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


Select The Blank

Question A forecast is mere estimate of what is likely to happen, but ________ is the action

plan to be followed.

Correct Answer Budget

Your Answer Budget


True/False

Question A very wide scope of Management Accounting is the limitation by itself.

Correct Answer True

Your Answer True

Select The Blank

Question The combination in which different products are sold by a company is known as

________.

Correct Answer Sales mix

Your Answer Sales mix


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 objectives

True/False

Question Balance sheet indicates the financial status of the business at given period.

Correct Answer True

Your Answer True


Question The wages paid to maintenance department workers who do repair work

principally for production departments but also on the vehicles in the distribuiton

department shoud be charged as:

Correct Answer Service costs

Your Answer Service costs


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 Capital

Select The Blank

Question Measurement of ________ gives an idea of the degree of mobility of labour.

Correct Answer Labour turnover

Your Answer Labour turnover


Question Net profit for the year before charging commission to the manager, is Rs.111,775/-.

The manager of the company is entitled to commission @ 8% on net profits after charging

commission. Find the amount of commission due to the manager.



Match The Following


Total cost Cost of finished goods Cost of finished goods

Non operating income Profit on sale of investment Profit on sale of investment

Selling and distribution overheads Advertisement expenses Advertisement expenses

Factory overheads Repair for factory building Repair for factory building

True/False

Question Control on purchase of material is exercised by the storekeeper.


Your Answer True


Question A company wishes to earn a 15% profit margin on selling price when quoting for a

job. Which of the following is the profit margin of cost which will achieve the required profit

margin ?

Correct Answer 0.1765

Your Answer 0.15

Select The Blank

Question Economical use of labour, materials and facilities can achieved with the help of

________.

Correct Answer Budgetary control

Your Answer Cost control

at 9:29 PM 0 comments Links to this post

Labels: Management Accounting (Set II)

Wednesday, April 8, 2009Management Accounting - 5LIST OF ATTEMPTED QUESTIONS AND ANSWERS


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


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


Your 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


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


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


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


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/-


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


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


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


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



Question


Correct Answer


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


Question

Uniform costing system is useful in the following areas

Correct Answer

Classification of cost accounts

Your Answer

Preparing financial statements


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


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


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


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


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


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


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


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 Following

Question

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


Time booking department

Jobwise booking of time.


Time Recording Clock Method

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 Following

Question

Correct Answer

Your Answer

Book-Keeping

Books of Accounts

Books of Accounts

Financial statement



Accounting



Profitability statement



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


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


Labels: Management Accounting (Set II)






Monday, August 11, 2008Management Accounting - 4


True/False

Question 1) Financial statements are basically in two forms i.e. profitability statement and

balance sheet.

Correct Answer True

Your Answer True

True/False

Question Financial Accounting discloses the financial performance & financial statements of

the business as a whole.

Correct Answer True

Your Answer True

True/False

Question Management Accounting is the process of analysis and interpretation of financial

data collected with help of financial accounting and cost accounting

Correct Answer True

Your Answer True

True/False

Question P&L statement which is a period statement & relates to a certain period tells about

results of operations.

Correct Answer True

Your Answer True

True/False

Question Cost Accounting is concerned with calculation of the profitability and state of

affairs of the organization as a whole.


Your Answer False

True/False

Question Financial accounting may deal with the ascertainment of cost & calculation of

profitability of the individual product.


Your Answer False


True/False

Question Management Accounting aims at enabling the management to take the decisions

about the future. It may consider future data as well as non-financial factors.

Correct Answer True

Your Answer True

True/False

Question Financial Accounting primarily protects the interests of the outsiders dealing with

organization in various capacities.

Correct Answer True

Your Answer True

Match The Following


Financial Accounting Systematic recording of business transactions Systematic recording of

business transactions

Cost Accounting Ascertainment of cost Ascertainment of cost

Management Accounting Analyzing & interpretation of financial data Analyzing &

interpretation of financial data

Accounting Art of interpreting & classifying business transaction Art of interpreting &

classifying business transaction

Book Keeping Recording of business transactions Recording of business transactions

Match The Following


Bills Payable Amount payable to supplier Amount payable to supplier

Bills Receivable Amount received from the customer Amount received from the customer

Trade Discount Not accounted for in the books of Accounts Not accounted for in the books of

Accounts

Cash Discount Accounted for in the books of Accounts Accounted for in the books of

Accounts

Bad debts Amount not received from customer Amount not received from customer

True/False

Question Amount invested in purchasing Fixed Asset is a revenue expenditure.


Your Answer True


Question Going Concern Concept __________________

Correct Answer Indefinite longer period , Not likely to close down in shorter period , This

affects the values of asset and liabilities

Your Answer Indefinite longer period , Not likely to close down in shorter period , This affects

the values of asset and liabilities


Question Cost of asset is 1,20,000, estimated scrap value 20,000, cost of assets subjected to

depreciation 2,00,000, rate of depreciation is 10%. Calculate depreciation for 3 yrs as per

the reducing balance m

Correct Answer 20,000,18,000,16,200

Your Answer 20,000,18,000,16,200


Question Profit & Loss A/C credit side has

Correct Answer Gross profit , Commission received , Interested received

Your Answer Gross profit , Commission received , Interested received


Question Juhi started business with Rs borrowed capital of Rs. 1,00,000 with 10% interest

per year. What is the total amount of the capital


Your Answer 90,000

True/False

Question Cheques issued but not yet presented – the balance as per the bank pass book will

be higher.

Correct Answer True

Your Answer False


Question This cost indicates historical cost which is incurred in past.

Correct Answer Sunk cost

Your Answer Sunk cost


Question Labour cost is the cost of __________ paid to employees of the organization.

Correct Answer Remuneration

Your Answer Remuneration


Question Company having opening stock of Rs. 1,80,000 purchase Rs. 8,00,000. Freight

Inward Rs, 35000 & closing stock Rs. 2,00,000, having direct wages Rs. 2,35,000. What will

be prime cost.


Your Answer 10,50,000


Question For the proper interpretation and presentation of cost the overhead further

classified as

Correct Answer Factory overheads , Office and administration overheads , Selling &

distribution overhead

Your Answer Factory overheads , Office and administration overheads , Selling & distribution

overhead

True/False

Question Valuation of returns indicates the material returned by store department to

production department


Your Answer False

True/False

Question The wage payment system should take into consideration the external obligations

such as the Minimum wages Act and the agreement entered into by the organization with

the workers.

Correct Answer True

Your Answer True

True/False

Question A good wage payment system will punish the workers for the matters beyond the

control of the workers.


Your Answer False


Question These are the features of fixed overheads

Correct Answer total cost remains the same , per unit cost may vary , not dependent on

volume of output

Your Answer total cost remains the same , per unit cost may vary , not dependent on

volume of output

True/False

Question Under marginal costing technique only fixed costs are considered as relevant for

decision making.


Your Answer False

True/False

Question Product mix refers to the proportion in which various products of a company can

be sold.

Correct Answer True

Your Answer True


Question The cost that varies in direct proportion with the level of activity is called

Correct Answer variable cost

Your Answer variable cost


Question Basic assumptions made by marginal costing are

Correct Answer per unit selling price remains constant at all the levels of activities. ,

whatever is produced by the organisation is sold off. , per unit variable cost remain constant.

Your Answer per unit selling price remains constant at all the levels of activities. , whatever

is produced by the organisation is sold off. , per unit variable cost remain constant.


Question Calculate Volume Variance, If budgeted production is 20,000 units, actual

production is 22,000 units and Standard rate per unit is Rs.1.5/-.

Correct Answer Rs.3,000/- ( Favorable )

Your Answer Rs.3,000/- ( Favorable )


Question Calculate Sales Price Variance, If actual price is Rs.5.40/- per unit, Standard price is

Rs.5/- per unit and actual sales volume is 500 units.

Correct Answer Rs.200/- ( Favorable )

Your Answer Rs.200/- ( Favorable )


Question Standard Costs are used as tool for

Correct Answer Cost Control

Your Answer Price fixation


Question Standard Costing specifically relates to the function of

Correct Answer Production

Your Answer Production

True/False

Question Uniform Costing disturbs the healthy competition in the industry


Your Answer True


Question Uniform Costing Methods may be advantageously applied

Correct Answer In single organization having number of branches. , Number of companies in

same industry. , Similar Industries such as cotton, jute etc.

Your Answer In single organization having number of branches. , Number of companies in

same industry. , Similar Industries such as cotton, jute etc.


Question The following factors affects the budgeted advertisement cost

Correct Answer Percentage of profits , Availability of funds , Competitors policy

Your Answer Percentage of profits , Availability of funds , Competitors policy


Question In Cash budget , Operating cash outflow includes

Correct Answer Payment to Creditors , Cash purchases of raw material , Wages/salaries

Your Answer Payment to Creditors , Cash purchases of raw material , Wages/salaries


Question Characteristics of budget can be said to be

Correct Answer It may be prepared in terms of quantity or money or both , It is prepared for

a fixed period of time , It spells out objectives to be attained

Your Answer It may be prepared in terms of quantity or money or both , It is prepared for a

fixed period of time , It spells out objectives to be attained

Select The Blank

Question Like initial formation expenses, ________ and R & D are the examples of Deferred

Revenue Expenditure

Correct Answer Initial Advertisement

Your Answer Purchase of an asset

Correct Answer R & D

Your Answer

Select The Blank

Question If ________ is not provided, the asset may appear in the Balance Sheet at an

________ amount

Correct Answer depreciation

Your Answer depreciation

Correct Answer overstated

Your Answer overstated

Select The Blank

Question If ________ books are the books which record the transactions in the chronological

order, ________ is the book where transactions of a similar nature are pooled together

Correct Answer subsidiary

Your Answer jornal

Correct Answer ledger

Your Answer ledger

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 Preventive costs of labour turnover refers to all the costs which may be incurred by

the organisation to keep workers happy and ________ them from ________ the job

Correct Answer discourage

Your Answer discourage

Correct Answer leaving

Your Answer leaving

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 101% to 125 %

Correct Answer 80% to90%

Your Answer 80% to90%

Select The Blank

Question Expenditure like general lighting are apportioned considering ________ as a base

and expenditure like depreciation are apportioned considering ________ as a base.

Correct Answer number of light points

Your Answer number of light points

Correct Answer value of assets

Your Answer value of assets

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 indirect labour

Select The Blank

Question Break even point is a situation of no ________ no ________

Correct Answer profit

Your Answer profit

Correct Answer loss

Your Answer loss

Select The Blank

Question A key factor is defined as the factor which, at a particular point of time or over a

period will ________ the volume of ________

Correct Answer limit

Your Answer limit

Correct Answer output

Your Answer output



Question The management of Horngreen Ltd. is deciding whether to continue working at loss

or to temporarily shut down the factory. State the qualitative aspects that must be

considered before arriving at a decision.

Correct Answer Loss of trained personnel , Loss of regular customers , Expenditure required

to restart the factory

Your Answer Expenditure required to restart the factory


Question The purchase budget for October is Rs.12,500/- and November is Rs.15,000/-. If the

materials are purchased for cash the supplier is offering a rebate of 5%. If the materials are

purchased on credit of 30 days, no rebate is offered. The company purchase

Correct Answer October- NIL, November- Rs.26,750/-

Your Answer October- Rs.14,250/-, November- Rs.11,875/-

True/False

Question Maintenance Department is a service cost centre.

Correct Answer True

Your Answer True


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 Laxman's capital Rs.88,000/- , Interest on capital should be debited to the Profit

and loss account


Question Rs.2,650/- were paid to ABC Ltd. for maintenance of machine; which account

should be debited for this transaction?

Correct Answer Maintenance of machine account

Your Answer ABC Ltd.'s Account

Match The Following


Advantageously applicable in similar industries Scope of uniform costing Fields covered by

uniform costing

Spirit of mutual trust Requisite for uniform costing Disadvantage of uniform costing

Avoids cut throat competition Advantage of uniform costing Requisite for uniform costing

Treatment given to research and development costs Fields covered by uniform costing

Advantage of uniform costing

http://scdlpapers.blogspot.com/search/label/Management%20Accounting%20(Set%20III)


Select The Blank

Question Under the AB________ analysis, nuts and bolts used as material will be classified as

category C.

Correct Answer C

Your Answer C

Select The Blank

Question If overhead absorbed i.e. overheads charged to units during the period is more

than the overhead incurred, it is said that the overheads are ________.

Correct Answer Over-absorbed

Your Answer True and fair


Question Identify the causes due to which the cost of labour may be high:

Correct Answer Excess staffing , Lack of experienced and efficient personnel , High labour

turnover

Your Answer Lack of experienced and efficient personnel , High labour turnover , No idle

time


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 , Wages paid to indirect workers like cleaners,

helpers,etc. , Salary paid to factory supervisor


Question From the following, select intangible assets:

Correct Answer Goodwill , Patents , Trade Marks

Your Answer Goodwill , Patents , Trade Marks

True/False

Question According to Reducing Balance Method, the depreciation is provided at a

predetermined percentage on the balance of cost of asset after deduction of the

depreciation previously charged.

Correct Answer True

Your Answer False

Select The Blank

Question Average stock = ________ + (Order size / 2)

Correct Answer Safety stock



Your Answer Reorder level

True/False

Question High time wages means necessarily high cost of production.


Your Answer True


Question The integrated form of all functional budgets is known as :

Correct Answer Master budget

Your Answer Master budget

Select The Blank

Question Marginal costing is also known as ________.

Correct Answer Variable costing

Your Answer Indirect costing


Question Purchased 200 shares of Bharat Forge Ltd. for Rs.850/- per share, which account

should be debited?

Correct Answer Investment account - Rs.170,000/-

Your Answer Investment account - Rs.170,000/-


Question For a bought out material item the following are the relevant data : Ordering cost

Rs.512/- per order; holding cost is 40%; cost per item Rs.100/- and annual demand 1,000

units. The Purchase manager places 5 orders of equal quantity in one year, in order to avail

the discount of 5% on the cost of the item. Work out the total cost to the organisation due to

his ordering policy for this item.



True/False

Question Due to compensating errors the arithmetical accuracy of thetrial balance is

affected.


Your Answer False


Question From the given information compute the total cost variance. Material cost variance

-Rs.4,400/- (Favourable); labour cost variance -Rs.450/- (Adverse); fixed overhead cost


variance -Rs.22,000/- (Adverse); variable overhead cost variance -Rs.6,000/- (adverse).

Correct Answer Rs.24,050/- (Adverse)

Your Answer Rs.32,850/- (Favourable)


Question Advance tax account should appear in which of the final statement of accounts.

Correct Answer Asset side of the balance sheet

Your Answer Debit side of the profit and loss account

Match The Following


Operating income Cash Sales Cash Sales

Non-Operating income Issue of shares Issue of shares

Plan of investment in fixed assets Capital Expenditure Budget Cash Budget

Plan for surplus/shortage of cash Cash Budget Capital Expenditure Budget

Select The Blank

Question Furniture account will always have a ________ balance.


Your Answer Inflated

Select The Blank

Question Payment by ________ method lowers the cost of production through their impact on

fixed costs.

Correct Answer Results

Your Answer Cash


Question The objects of cost accountancy are . .

Correct Answer To ascertain cost and profitability , Cost Control , Presentation of

Information

Your Answer To ascertain cost and profitability , Cost Control , To portray the financial

status


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 Absorption costing is more suitable for decision making than marginal costing


Your Answer True

Select The Blank

Question A low margin of safety indicates ________ fixed overheads.

Correct Answer higher

Your Answer higher


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 Identifying the principal budget factor

True/False

Question Period cost is the cost assigned to the products.


Your Answer True

Select The Blank

Question Profit = Contribution per unit X ________.

Correct Answer Margin of safety (units)

Your Answer Sales (units)


Question Which of the following aspects are mainly responsible for difficulty in application of

Uniform costing system.

Correct Answer Capital investment , Plant size , Location

Your Answer Capital investment , Plant size , Loans taken

Select The Blank

Question As per the provisions of Section 209 of ________, all the company form of

organisation is legally required to follow the mercantile or accrual system of accounting.

Correct Answer The Companies Act, 1956

Your Answer The Companies Act, 1956


Question ABC Ltd. produces 10,000 units at 100% capacity utilization and its cost structure

is as follows : Fixed cost Rs.50,000/-; variable costs Rs.30,000/- and semi-variable costs

Rs.40,000/- (40% var

Correct Answer Rs.13.85

Your Answer Rs.11.85

Select The Blank

Question Loss of uninsured goods by fire was debited incorrectly to United India Assurance

Company's account instead of debiting it to ________ account.

Correct Answer Goods lost by fire

Your Answer Goods lost by fire


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 Helpful in estimating the future along with past period , Useful in furnishing the

necessary information to the management , A legal requirement.


Question The disadvantages of supplementary overhead rates are:

Correct Answer It can be determined only after the end of the accounting period , Defeats

the basic concept of normal cost , Involves lot of clerical activity

Your Answer Defeats the basic concept of normal cost , Involves lot of clerical activity , It can

be determined only in the beginning of the accounting period

True/False

Question GAIL having monopoly in the CNG (Compressed Natural Gas) market can

implement the Uniform costing system.


Your Answer True

True/False

Question One of the main objection to the contribution approach of costing is that it ignores

fixed cost.

Correct Answer True

Your Answer False



Question Pre-requisites of Uniform Costing are . . .

Correct Answer Spirit of mutual trust , Free Exchange of ideas , No rivalry

Your Answer Spirit of mutual trust , Free Exchange of ideas , Tendency of withholding

information

Select The Blank

Question Uniform costing is not a separate method of ________.

Correct Answer cost accounting

Your Answer costing


Question Tom company has sales of Rs.200,000/- with variable expenses of Rs.150,000/-,

fixed expenses of Rs.60,000/-, and an operating loss of Rs.10,000/-. By how much would

Tom have to increase its sales in order to achieve an operating income of 10% of sales?



True/False

Question An entry in the stores ledger is required for transfer of material from one job to

another in the same department.


Your Answer False


Question For the month of November, a firm has budgeted sales of 20,000 units of X at a

price of Rs.10/- and sale of 30,000 untis of Y at a price of Rs.6/- per unit. Actual sale during

the month was 35,000 units of X at Rs.9/- per unit and 25,000 units of Y at Rs.8/- per unit.

Calculate sales volume variance, sales mix variance and sales quantity variance.

Correct Answer Sales volume variance -Rs.120,000/- (Favourable) , Sales mix variance -

Rs.44,000/- (Favourable) , Sales Quantity variance-Rs.76,000/- (Favourable)

Your Answer Sales volume variance -Rs.120,000/- (Favourable) , Sales mix variance -

Rs.44,000/- (Favourable) , Sales Quantity variance-Rs.76,000/- (Favourable)

True/False

Question The purpose of the profit and loss account is to bring togethre information which

relates to gross profit and the expenses for running the business.

Correct Answer True

Your Answer True


Question A firm has purchased a plant to manufacture a new product, the cost data for

which is given below : Estimated annual sales 24,000 units. Estimated costs : Materials

Rs.4/- per unit; labour Re.0.60 per unit; overheads Rs.24,000/- per year; administrative

expenses Rs.28,800/- per year and selling expenses are 15% of sales; Calculate the selling

price per unit if profit per unit is Rs.1.02.

Correct Answer Rs.9.20/-

Your Answer Rs.7.74/-


Question A company wishes to earn a 15% profit margin on selling price when quoting for a

job. Which of the following is the profit margin of cost which will achieve the required profit

margin ?

Correct Answer 0.1765

Your Answer 0.15


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Management Accounting - 8


True/False

Question Purchased goods by paying Rs.35,000/-: In this case, the cash account should be

debited.

Correct Answer True

Your Answer False

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

Select The Blank

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

system and ________.

Correct Answer presentation of information

Your Answer organisation structure







True/False

Question It is said that marginal costs are used primarily in guiding decisions that are yet to

be made.

Correct Answer True

Your Answer True


Question Select the examples of functional budgets:

Correct Answer Sales budget , Production budget , Research and development budget

Your Answer Sales budget , Production budget , Capital expenditure budget


Question A business's telephone bill should nromally be classified into which one of the

following categories?

Correct Answer Semi-variable cost

Your Answer Variable cost

Match The Following


Closed the account with State Bank of India Henceforth, there shall be no difference in

overdraft balances Henceforth, there shall be no difference in overdraft balances

Debit side of bank book is overcast Overdraft as per bank book < Overdraft as per pass book

Overdraft as per bank book = Balanceas per pass book

Interest on debentures directly credited by bank Overdraft as per bank book > Overdraft as

per pass book Overdraft as per bank book = Overdraft as per pass book

Received sanction for a loan of Rs.10 lakhs Overdraft as per bank book = Overdraft as per

pass book Overdraft as per bank book < Overdraft as per pass book


Question The total production cost for making 20,000 units was Rs.21,000/- and the total

production cost for making 50,000 units was Rs.34,000/-. Once production exceeds 25,000

units, additional fixed costs of Rs.4,000/- are incurred. The full production cost per unit of

making 30,000 units is:

Correct Answer Re.0.98

Your Answer Re.0.68

Select The Blank

Question The process of finding the reasons for the difference in the balance as per bank

book and pass book is known as ________.

Correct Answer Reconciliation

Your Answer Reconciliation


Question State the features of these transactions : (i) Commission paid Rs.250/- was posted

twice to Commission account (ii) Rs.5,000/- representing goods sold to A, was posted to the

credit to commission received account (iii) Sold machine for Rs.8000/-, was credited to Sales

account.

Correct Answer The debit side of the trial balance will be in excess by Rs.250/- , Involves an

error of principle , Involves an error of commission

Your Answer The debit side of the trial balance will be in excess by Rs.250/- , Involves an

error of principle , Involves an error of commission


Question It is difficult to apply Uniform costing system for an industry which has labour

intensive companies as well as capital intensive companies, because :

Correct Answer The cost structure is different

Your Answer The cost structure is different


Question Balance sheet is statement of

Correct Answer All Assets and Properties

Your Answer All Assets and Properties

Select The Blank

Question The closing stocks should ________ the cost of the goods which sent on approval

basis.

Correct Answer Be increased by

Your Answer Not get affected by

True/False

Question Under the Rowan plan bonus is a fixed percentage.


Your Answer True

True/False

Question Idle time variance is always favourable.


Your Answer False


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 , Rent of raw

material godown

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 Cost


Question Compute actual total cost based on the data given below: Total standard cost

(standard material cost + standard labour cost) -Rs.19,633.33; labour rate variance-Rs.900/-

(adverse); material price variance -Rs.90/- (Favourable); material yield variance -Rs.700/-

(Favourable); labour yield variance -Rs.333.33 (Favourable).




Question The standard production for a particular work order is 20 units per day and piece

rate wages is 60 paise per unit. Cost of material is 30 paise per unit. It is proposed to charge

factory overheads equal to 100% of labour cost. Indicate the factory overhead per unit.

Correct Answer Rs.1.50/-

Your Answer Rs.1.30/-


Question The suspense account has a debit balance of Rs.40,000/-. Select the transactions

which are capable of nullifying this balance.

Correct Answer Conveyance expenses of Rs.25,000/- were posted on the wrong side of the

account. , Purchased computer worth Rs.28,000/- was recorded in the ledger as , The total of

the purchase book was cast short by Rs.44,000/-

Your Answer Free samples worth Rs.40,000/- distributed during the year were credited to

sales account , Conveyance expenses of Rs.25,000/- were posted on the wrong side of the

account. , Purchased computer worth Rs.28,000/- was recorded in the ledger as


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

Select The Blank

Question Contribution represents pool of resources available for meeting all costs other than

________.

Correct Answer Variable costs

Your Answer Variable costs

Select The Blank

Question Goods returned to the suppliers from whom it was ________d is recorded in

thePurchasereturn register.

Correct Answer Purchase

Your Answer Purchase


Question From the available information calculate sales value variance and budgeted sales

quantity of X.Actual sales of X -500 units; budgeted price per unit -Rs.12/-; actual price per

unit-Rs.15/- and sales volume variance -Rs.1,200/- (Favourable).

Correct Answer Budgeted sales - 400 units , Sales value variance -Rs.2,700/- , The sales

value variance is favourable

Your Answer The sales value variance is adverse

True/False

Question Depreciation, interest and property tax continue even when the operations are

discontinued.

Correct Answer True

Your Answer True

Select The Blank

Question The balance of the suspense account will ________ after all the errors are

Correct Answer become zero

Your Answer become zero


Question Management accounting is concerned with the following activities :

Correct Answer Decision making , Safeguarding assets , Planning and controlling activities

Your Answer Decision making , Planning and controlling activities

True/False

Question It is said that the income statement represents wealth increase /decrease for the

organisation.

Correct Answer True

Your Answer False

Select The Blank

Question The difference between sales and prime cost is known as ________.

Correct Answer Gross Profit

Your Answer Gross Profit


Question In which of the following situations, the flexible budget should be preferred?

Correct Answer Sales are too difficult to predict , Supply level of input cannot be predicted ,


Your Answer Sales are too difficult to predict , Supply level of input cannot be predicted ,



Question Debtors as on 31st March, 2004 stood as Rs.75,400/-. Out of this amount,

Rs.15,884/- is receivable from ABC & Co. Also, Rs.21,555/- included in the creditors,

indicates amount due to ABC & Co. Total creditors as on 31st March, 2004 = Rs.88,466/-.

Find the amount of debtors and creditors that should be disclosed in the balance sheet as on

31st March, 2004.

Correct Answer Debtors - Rs.59,516/-; Creditors - Rs.66,911/-

Your Answer Debtors - Rs.53,845/-; Creditors - Rs.72,582/-

Match The Following


Sunk Cost Historical Cost Historical Cost

Cost Centre Facilitate the fixation of responsibility Facilitate the fixation of responsibility

Cost Control Process of controlling costs of operations Process of controlling costs of

operations

Differential Cost Increase or Decrease in cost Increase or Decrease in cost

Select The Blank

Question Cost volume profit analysis focuses attention on the ________ effect of a particular

course of action.

Correct Answer short run

Your Answer short and long run


Question The balance as per bank book as on 30th June, 2004 is Rs.10,298/- while the

balance as per pass book as on the same date is Rs.10,123.60. Select the transactions

representing the reasons for this difference.

Correct Answer Interest credited by bank, not entered in the bank book, Rs.125.60 ,

Cheques dishonoured not entered in the bank book Rs.200/- , Debit side of the cash book is

overcast by Rs.100/-

Your Answer Interest credited by bank, not entered in the bank book, Rs.125.60


Question Uniform costing system is useful in the following areas

Correct Answer Classification of cost accounts

Your Answer Preparing financial statements

True/False

Question Revenue expenditure indicates the amount of funds spent during a certain period

with the intention to receive the returns in future.


Your Answer True

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

True/False

Question Cheque received from a client on 28th September, 2004 must be entered in the

bank book only after it is credited in the pass book.


Your Answer False


Question The objectives of Uniform costing system are as follows :

Correct Answer To fix a common selling price for the industry as a whole , To compare

efficiency of each unit against industry's overall performance , To compile reliable cost data

for inter-firm comparison of costs

Your Answer To fix a common selling price for the industry as a whole , To compare

efficiency of each unit against industry's overall performance , To compile reliable cost data

for inter-firm comparison of costs


Question Purchased goods worth Rs.6,450/- on 10th March, 2004. However the goods were

delivered directly to the plant situated at Nagar and hence this transaction was not recorded

in the purchase book, which is maintained at the corporate office. Analyse the impact of this

transaction.

Correct Answer The gross profit will increase by Rs.6,450/-

Your Answer The purhases will increase by Rs.6,450/- , The closing stock will increase by

Rs.6,450/- , The gross profit will increase by Rs.6,450/-

Select The Blank

Question Carriage charges paid for a new machine purchased if debited to carriage account

would affect the ________

Correct Answer Machinery A/c and carriage A/c

Your Answer Carriage A/c


Question Different types of tenders are :

Correct Answer Singly tender , Open tender , Global tender

Your Answer Multiple tender , Open tender , Global tender


Question Purchased 200 shares of Bharat Forge Ltd. for Rs.850/- per share, which account

should be debited?

Correct Answer Investment account - Rs.170,000/-

Your Answer Investment account - Rs.170,000/-


Question Basic objective of Uniform Costing is . . .

Correct Answer comparison

Your Answer To control cost


Question Select the entries which need to be rectified

Correct Answer Purchase A/c ......... Dr. to Damodar's A/c (Being furniture purchased from

Damodar) , Gopal's A/c ........... Dr. to cash A/c (Being entry for payment of railway freight for

goods purchased) , Cash A/c ............Dr. to Suresh's A/c (Being cash received from Suresh for

goods sold to him for)

Your Answer Gopal's A/c ........... Dr. to cash A/c (Being entry for payment of railway freight

for goods purchased)


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.



Select The Blank

Question The varinace that attempts to ascertain the effect of change in sales volume on the

difference between actual and budgeted contribution is known as ________ variance.

Correct Answer Sales margin volume

Your Answer Sales margin yield


Labels: Management Accounting (Set III)

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True/False

Question Credit balances in all the Personal & Real accounts appear on asset side.


Your Answer False


Question Contents of Uniform Cost Manual are

Correct Answer Organization , Cost Accounting system , Presentation of information

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Your Answer Organization , Cost Accounting system , Presentation of information


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. , Number of companies in

same industry , Similar Industries such as cotton, jute etc.

True/False

Question 1) Financial statements are basically in two forms i.e. profitability statement

and balance sheet.

Correct Answer True

Your Answer True


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

True/False

Question Long term loan borrowed from financial institution comes under the heading of

long term liabilities.

Correct Answer True

Your Answer True

Match The Following


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


Question Judge the statement according to the criteria given : ' The accounting period

for XYZ Ltd. ends on 31st December, 2003. It is noted that office rent for the month of

December, 2003 is paid on 15th January, 2004. "According to concept of matching expenses

with the revenues, this expenditure should be recorded in the books of accounts in January,

Correct Answer The statement and its reason are both incorrect

Your Answer The statement is correct but its reason is incorrect


Question Features of money measurement concept are . . .

Correct Answer Only those transactions and facts are included expressed in terms of

money are considered , Imposes severe restrictions on the kind of information available from

financial statements , Works as a major drawback of financial accounting

Your Answer Only those transactions and facts are included expressed in terms of money

are considered , Imposes severe restrictions on the kind of information available from

financial statements , Works as a major drawback of financial accounting


Question The installation and operation of ___________ accounting requires a very

elaborate organizational structure and large number of rules & regulations


Your Answer Management

Select The Blank

Question ________account can be defined as the record of all the transactions pertaining

to a person, asset, liability income or expenditure which have taken place in a specified

period.

Correct Answer Ledger

Your Answer Trading

Match The Following


Sunk Cost Historical Cost Historical Cost

Cost Centre Facilitate the fixation of responsibility Facilitate the fixation of

responsibility

Cost Control Process of controlling costs of operations Process of controlling costs of

operations

Differential Cost Increase or Decrease in cost Increase or Decrease in cost


Question Which of the following transactions should be excluded while preparing a cost

sheet ?

Correct Answer Interest on loan , Bad debts , Expenses on criminal law suit

Your Answer Sale of scrap material , Interest on loan , Bad debts

True/False

Question In a Balance-Sheet right hand side is referred as assets side and left hand side

is referred as liabilities.

Correct Answer True

Your Answer True

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.


Your Answer False

True/False

Question Primary distribution is effected on the basis of service rendered to the service

departments by the production departments.


Your Answer True


Question Marginal costing is found to be unsuccessful in the following situations :-

Correct Answer Impossible to distinguish costs into fixed and variable component. ,

With respect to capital intensive industries where fixed costs are very large and hence

cannot be ignored , With respect to service industries where employee costs are very large

and almost fixed in nature

Your Answer Impossible to distinguish costs into fixed and variable component. , With

respect to capital intensive industries where fixed costs are very large and hence cannot be

ignored , With respect to service industries where employee costs are very large and almost

fixed in nature

True/False

Question Debit Note is an intimation sent to person dealing with the business that his

account is being credited for the purpose indicated therein.


Your Answer True


Question Labour efficiency variance arises due to:

Correct Answer Inefficient supervisor , Poor working conditions , Use of sub-standard

quality of material

Your Answer Inefficient supervisor , Poor working conditions , Use of sub-standard quality

of material

True/False

Question Financial Accounting discloses the financial performance & financial

statements of the business as a whole.

Correct Answer True

Your Answer True

True/False

Question Balance sheet indicates the expenditure & income from the business.


Your Answer True

Select The Blank

Question The indirect material cost, indirect labour cost and indirect expenses cost,

collectively are termed as ________.

Correct Answer Overhead

Your Answer Overhead

Select The Blank

Question A person in charge of a ________ may be held responsible for its proper

functioning and cost control.

Correct Answer Cost centre

Your Answer Cost centre


Question The organization chart shows the following aspects :

Correct Answer Functional responsibility of different functional managers , Delegation

of authority to various managers , Inter-functional relationships of these managers

Your Answer Functional responsibility of different functional managers , Delegation of

authority to various managers , Inter-functional relationships of these managers

True/False

Question Uniform costing system is a pre-requisite to an inter-firm comparison of firms

belonging to the different industries.


Your Answer False

True/False

Question P&L statement which is a period statement & relates to a certain period tells

about results of operations.

Correct Answer True

Your Answer False

Select The Blank

Question Depreciation charged on office furniture on straight line basis is an example of

________.

Correct Answer Administration overheads

Your Answer Administration overheads

True/False

Question Under time rate system a worker is paid on the basis of production achieved

by him in a given time.


Your Answer False

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.



True/False

Question Danger level for inventory of materials means the safety stock of inventory.


Your Answer True

True/False

Question The role of the budget committee may be taken as an advisory role to the

Chief Executive.

Correct Answer True

Your Answer True


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 , Augments emplyees' efficiency

Select The Blank

Question ________ Accounting assists the management in establishing the plans to attain

the economic objectives and take proper decisions for the attainment of its objectives.




Question Which of the following is likely to be a contributory factor to the incidence of

excess expenditure on material cost?

Correct Answer The level of control of the used of material in the production cycle ,

The incorrect choice of purchase order quantity , Failure to control the issue of materials

from stores

Your Answer An increase in the maximum material inventory level , The incorrect choice

of purchase order quantity , Failure to control the issue of materials from stores


Question Management accounting is concerned with the following activities :

Correct Answer Decision making , Safeguarding assets , Planning and controlling

activities

Your Answer Decision making , Safeguarding assets , Planning and controlling activities


Question Features of double entry accounting system are . . .

Correct Answer Every business transaction has two elements , When business receives

something, it has to pay something , Every debit has a corresponding credit

Your Answer Every business transaction has two elements , When business receives

something, it has to pay something , Every debit has a corresponding credit

Select The Blank

Question Under Differential Time Rate method payment is made at Rs. 1.40 per hour

when the level of efficiency is between________.

Correct Answer 90% to 100%

Your Answer 90% to 100%

True/False

Question Maintenance Department is a service cost centre.

Correct Answer True

Your Answer True

True/False

Question The process of accounting split into three steams i.e. financial, cost,

management accounting.

Correct Answer True

Your Answer True

Select The Blank

Question The difference between sales and cost of sales is termed as ________.

Correct Answer Net Profit

Your Answer Net Profit

Select The Blank

Question The final result disclosed by trading account is the ________profit earned by the

organization.

Correct Answer Gross

Your Answer Gross


Question Select the accounts to be disclosed on the liability side of the Balance sheet.

Correct Answer Loan , Outstanding expenses , Creditors

Your Answer Loan , Outstanding expenses , Creditors

True/False

Question Penalty paid for delay in payment to creditors represents uncontrollable cost.


Your Answer False


Question Which document facilitates estimating material cost of a particular job, before

completion of that job?

Correct Answer Bill of material

Your Answer Material requisition note


Question Purchases returns of Rs.18,000/- were wrongly transferred to the sales returns

account. Calculate its impact on net profit.

Correct Answer The net profit will not be affected

Your Answer The net profit will not be affected


Question It is said that adoption of uniform costing creates customer confidence

because . . .

Correct Answer Prices are reliable

Your Answer Prices are reliable


Question An order for goods worth Rs.18,000/- was placed on 25th March, 2004. The

goods were received on 1st April, 2004. Calculate the impact of this transaction on the final

statements of accounts for the year ended 31st March, 2004.


Your Answer The net profit will not be affected

Top of Form

Multiple Choice Multiple Answer Question

The objects of cost accountancy are :-

Correct Answer

To ascertain cost and profitability , Cost Control , Presentation of Information

Your Answer

To ascertain cost and profitability , Cost Control , Presentation of Information


Management accounting is concerned with the following activities :-

Correct Answer


Your Answer

Decision making , Planning and controlling activities


Features of material usage variance are :-

Correct Answer

Measures the difference between the quantity of materials actually used and that should have been used. , Considers standard price X actual quantity , Considers standard price X standard quantity

Your Answer

Measures the difference between the quantity of materials actually used and that should have been used. , Considers standard price X actual quantity , Considers standard price X standard quantity

True/False Question

Under the accelerating premium system incentive increases at a fast rate with the decrease in output.

Correct Answer

False

Your Answer

False

True/False Question

If the physical stock is less than the stock as per the stores ledger, such shortage should be treated as an issue of material.

Correct Answer

True

Your Answer

False

Multiple Choice Single Answer Question

An analysis of the time card of a worker on a machine shows that of the total 48 hours, he worked 45 hours (including 4 hours overtime) on production and that 3 hours was idle

http://scdlpapers.blogspot.com/search/label/Management%20Accounting%20(Set%20IV)

due to machine break-down. The rate of the worker is rupees ten per hour : but overtime is paid at 50 per cent extra. You are required to calculate the earnings of the worker.

Correct Answer

Rs.500/-

Your Answer

Rs.500/-

True/False Question

Predetermined rate of absorption of overheads helps in quick preparation of cost estimates and quoting prices.

Correct Answer

True

Your Answer

True

Select The Blank Question

If overhead absorbed i.e. overheads charged to units during the period is more than the overhead incurred, it is said that the overheads are ________.

Correct Answer

Over-absorbed

Your Answer

Under-absorbed


A worker is paid a monthly salary of Rs.500/- along with a bonus of 50 paise per unit completed, this type of labour cost may be classified as ________ cost.

Correct Answer

Semi-variable

Your Answer

Semi-variable


Goods purchased from A for Rs.2,020/- were passed through the sales book. The rectification of this error will result in ________.

Correct Answer

Decrease in gross profit by Rs.2,020/-

Your Answer

Increase in gross profit by Rs.2,020/-

True/False Question

High time wages means necessarily high cost of production.

Correct Answer

False

Your Answer

False


The management of Dick Ltd. is deciding whether to buy component Y from the supplier, since the purchase cost is less than the manufacturing cost. State the non-financial aspects that must be considered before arriving at a decision :-

Correct Answer

Reliability regarding quality of the material supplied by the supplier , Alternative use of labour of engaged in manufacturing component Y , Regularity of material supplies from the supplier

Your Answer

Reliability regarding quality of the material supplied by the supplier , Alternative use of labour of engaged in manufacturing component Y , Regularity of material supplies from the supplier



Loans which are borrowed from financial institutions are to be paid off in 8 years, should be disclosed as ________ in the balance sheet.

Correct Answer

Long term liabilities

Your Answer

Long term liabilities


Interest receivable is a________ for the organization.

Correct Answer

Current asset

Your Answer

Current asset

True/False Question

Period cost is the cost assigned to the products.

Correct Answer

False

Your Answer

True


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

Your Answer

Rs.40,953.70


The direct material usage 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

The level of efficiency of men or machines

True/False Question

New companies can adopt Uniform costing system as a ready-made system.

Correct Answer

True

Your Answer

True


Pre-requisites of Uniform Costing are :-

Correct Answer

Spirit of mutual trust , Free Exchange of ideas , No rivalry

Your Answer

Free Exchange of ideas , No rivalry , Spirit of mutual trust


The principal functions of the cost accounting department are :-

Correct Answer

Classifying labour cost according to jobs, processes, etc. , Preparation of different reports based on direct, indirect labour cost, etc. , To focus on areas where labour cost may be reduced.


Your Answer

Classifying labour cost according to jobs, processes, etc. , Preparation of different reports based on direct, indirect labour cost, etc. , To focus on areas where labour cost may be reduced.


In which of the following situations, the flexible budget should be preferred?

Correct Answer

Sales are too difficult to predict , Supply level of input cannot be predicted , Varying levels of production activity

Your Answer

Sales are too difficult to predict , Supply level of input cannot be predicted , Varying levels of production activity


Select the information to be considered before installing a costing system :-

Correct Answer

Labour intensity of the product

Your Answer

Number of workers required


Tom company has sales of Rs.200,000/- with variable expenses of Rs.150,000/-, fixed expenses of Rs.60,000/-, and an operating loss of Rs.10,000/-. By how much would Tom have to increase its sales in order to achieve an operating income of 10% of sales?

Correct Answer

Rs.200,000/-

Your Answer

Rs.231,000/-



Question

As on 31st March, 2004, it was decided to write off Rs.800/- of debtors as bad debts. Also, provision for bad and doubtful debts is to be made @ 5% and for discount on debtors @ 4%. Find the net amount of debtors to be disclosed in the balance sheet, if the total debtors before the aforesaid adjustments is Rs.98,623/-.

Correct Answer

Rs.89,214.58

Your Answer

Rs.88,285.26


Payment by ________ method lowers the cost of production through their impact on fixed costs.

Correct Answer

Results

Your Answer

Time


Which of the following aspects are mainly responsible for difficulty in application of Uniform costing system?

Correct Answer

Capital investment , Plant size , Location

Your Answer

Capital investment , Plant size , Location


The most appropriate method for apportionment of overheads of the purchasing and stores department is percentage on ________.

Correct

Direct Material

Answer Your Answer

Direct Material


Judge the given statement according to the given criteria :- 'Provision for doubtful debts account' and 'provision for discount on debtors account' mean same account can be maintained under two account-heads, since both are related to debtors and indicate a loss to the organization.

Correct Answer

The statement is incorrect but the reason is correct

Your Answer

The statement and the reason both are incorrect


Following errors affect the trial balance :-

Correct Answer

Wrong totaling of subsidiary books , Posting on the wrong side of an account , Omission of posting an account in the ledger

Your Answer

Wrong totaling of subsidiary books , Posting on the wrong side of an account , Omission of posting an account in the ledger


If the owner brings in personal calculator for office use, ________ account should be credited.

Correct Answer

Capital

Your Answer

Cash



Question

From the following select the examples of errors of commission :-

Correct Answer

Sales recorded in the sales register as Rs.2,020/- instead of Rs.2,200/- , Received cash from Sham, credited to Ram's account , Paid transport charges, credited to transport charges account

Your Answer

Sales recorded in the sales register as Rs.2,020/- instead of Rs.2,200/- , Received cash from Sham, credited to Ram's account , Paid transport charges, credited to transport charges account


A ________ can be defined as a part of the organization for which separate budget can be prepared and implemented.

Correct Answer

Budget centre

Your Answer

Budget centre


Net sales Rs,7,50,000/-, opening stock Rs.1,14,375/-, purchases Rs.483,375/- and closing stock Rs.1,47,750/-. Calculate the Gross Profit.

Correct Answer

Rs.3,00,000/-

Your Answer

Rs.3,00,000/-

True/False Question

Profitability statement is a period statement & provides information about the results of operations.

Correct Answ

True


er Your Answer

True


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

Prime cost percentage rate


Net profit for the year before charging commission to the manager, is Rs.111,775/-. The manager of the company is entitled to commission @ 8% on net profits after charging commission. Find the amount of commission due to the manager.

Correct Answer

Rs.8,279.63

Your Answer

Rs.8,942/-


A manufacturer is producing alloy for which standard mix is 25% copper and 75% iron. Standard price for copper is Rs.80/- per kg. and for iron Rs.20/- per kg. 20% of input is standard loss. Actual output is 8,000 kg. of alloy using 2,000 kg of copper at Rs.90/- per kg. and 9,000 kg of iron at Rs.15/- per kg. Calculate the standard cost of copper.

Correct Answer

Rs.200,000/-

Your Answer

Rs.150,000/-

True/False Question

Cheque received from a client on 28th September, 2004 must be entered in the bank book only after it is credited in the pass book.

Correct Answer

False

Your Answer

False


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


The gross profit for the year 2004 is Rs.184,326/-. The depreciation on furniture for the year is Rs.24,561/-; dividend received amounted to Rs.12,000/- and the director's remuneration worked out to be Rs.95,784/-. Find the net profit for the year 2004.

Correct Answer

Rs.75,981/-

Your Answer

Rs.75,981/-

True/False Question

The purpose of the profit and loss account is to bring together information

which relates to gross profit and the expenses for running the business.

Correct Answer

True

Your Answer

True

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



Journal

Book of original entry

Book of original entry


Correct Answer

Your Answer

Daily Time sheets

Time spent by worker

Time spent by worker

on job is recorded

on job is recorded

Time Keeping Department



Time booking department



Time Recording Clock Method




Items credited to Profit & Loss Account are :-

Correct Answer

Gross profit , Commission received , Interested received

Your Answer

Gross profit , Commission received , Interested received

True/False Question

For a manufacturing company, dividend received is a non-operating income.

Correct Answer

True

Your Answer

False

Select The Blank

Question

A standard that is never altered, after being established, is known as ________ standard.

Correct Answer

Ideal

Your Answer

Basic


Rs.2,650/- were paid to ABC Ltd. for maintenance of machine; which account should be debited for this transaction?

Correct Answer

Maintenance of machine account

Your Answer

ABC Ltd.'s Account

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

http://scdlpapers.blogspot.com/search/label/Management%20Accounting%20(Set%20V)

, 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.


Your Answer False


Correct Answer

Your Answer

Dividendpaid

Profit and loss appropriationaccount

Profit and loss account

Freight inwards



Sales Tradingaccount

Capital account

Freight outwards

Profit and loss accou

Trading account








nt

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.


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


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.


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.


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?



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.



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.


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/-.



Select The Blank Question Furniture account will

always have a ________ balance.


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.


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


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 True

Answer 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

management accounting

Documents

answer wide correct

correct answer rs

correct answer false

correct answer salary

correct answer reasons

correct answer constant

correct answer remuneration

answer accounting process