Question The short run financial plan which acts as a guide to
achieve the predefined targets is known as ________.
Correct Answer Budget
Your Answer Budget
True/False
Question Direct labour hour rate method of absorption of overheads
is suitable where most of the production is done by using machines.
Correct Answer False
Your Answer True
True/False
Question If the storage cost of inventory increases, then the
economic order quantity also increases.
Correct Answer False
Your Answer True
True/False
Question Accounting is an art of recording, classifying &
summarizing in a significant manner.
Correct Answer True
Your Answer True
True/False
Question Profitability statement indicates the amount of assets &
liabilities.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question Select the factor which can prove to be a very crucial key
factor in case of an oil refinery :-
Correct Answer Supply of crude oil
Your Answer Labour
Multiple Choice Multiple Answer
Question The components of the selling and distribution cost budget
are :-
Correct Answer Distribution expenses , Publicity expenditure ,
Salary of sales-office workers
Your Answer Distribution expenses , Publicity expenditure , Salary
of shop-floor workers
Select The Blank
Question 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 No effect on gross profit
Select The Blank
Question A ________ inventory turnover period indicates efficient
utilization of material.
Correct Answer Low
Your Answer Low
Multiple Choice Multiple Answer
Question Master budget provides a basis for computing effect of
changes in :-
Correct Answer Product mix of the company , Sales volume ,
Production facilities
Your Answer Product mix of the company , Sales volume , Production
facilities , Number of competitors
Multiple Choice Multiple Answer
Question The reasons and objectives of budgets may be stated as :-
Correct Answer To aid the planning of annual operations , To
communicate the organizational plans to the different departments , To
motivate the managers to strive for attainment of the organizational goals
Your Answer To aid the planning of annual operations , To
communicate the organizational plans to the different departments , To motivate
the managers to strive for their promotions
Select The Blank
Question The final result disclosed by Profit & Loss Account is the
________ profit after taxes earned by the organization.
Correct Answer Net
Your Answer Net
Match The Following
Question Correct Answer Your Answer
Transport facilities to employees Preventive cost of labour turnover
Preventive cost of labour turnover
Relationship between supervisor and worker Avoidable cause of labour
turnover Avoidable cause of labour turnover
Dismissal of employee Unavoidable cause of labour turnover Unavoidable
cause of labour turnover
Increased spoilage and defectives Replacement cost of labour turnover
Replacement cost of labour turnover
Multiple Choice Multiple Answer
Question Actual costs determined on the basis of costing records
maintained have following limitations :-
Correct Answer No practical utility from control point of view , No
practical utility for price fixation , Expensive
Your Answer No practical utility from control point of view , No
practical utility for price fixation , Expensive
Multiple Choice Multiple Answer
Question These are the methods of measuring labour turnover :-
Correct Answer Replacement Method , Separation Method , Flux Method
Your Answer Replacement Method , Separation Method , Flux Method
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 A trading concern will have only ________ overheads and
selling overheads.
Correct Answer Administration
Your Answer Distribution
Multiple Choice Single Answer
Question The profit volume ratio of X Ltd. is 50% and the margin of
safety to sales ratio is 40%. You are required to calculate the net
profit if sale volume is Rs.100,000/-
Correct Answer Rs.20,000/-
Your Answer Rs.40,000/-
True/False
Question 1) Financial statements are basically in two forms i.e.
profitability statement and balance sheet.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question A company produces 2.50 units of a product from one kg of
raw material, which is purchased at Rs.60/- per kg. The handling cost
is Rs.360/- and freight is Rs.390/- per order. The incremental carrying
cost of raw material is Re.0.50 per kg per month. In addition, the cost
of working capital finance on the investment in inventory of raw
materials is Rs.9/- per kg per annum. The annual production of the product
is 100,000 units. Select the statements which are true for this problem.
Correct Answer 20 orders should be placed in a year , Economic
order quantity is 2,000 kg , Storage cost is Rs.15/- per kg
Your Answer Economic order quantity is 2,000 kg , Storage cost is
Rs.15/- per kg , 50 orders should be placed in a year
True/False
Question Financial Accounting discloses the financial performance &
financial statements of the business as a whole.
Correct Answer True
Your Answer True
Select The Blank
Question Graphically, fixed cost line will be ________ the
'x-axis'.
Correct Answer Parallel to
Your Answer Parallel to
Multiple Choice Single Answer
Question A business's telephone bill should normally be classified
into which one of the following categories?
Correct Answer Semi-variable cost
Your Answer Variable cost
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 Balance sheet indicates the expenditure & income from the
business.
Correct Answer False
Your Answer False
Select The Blank
Question The systematic process of identifying and reporting
variance is known as ________.
Correct Answer Variance analysis
Your Answer Standard costing
Multiple Choice Single Answer
Question If the quantity of material purchased and quantity used
are different, then which quantity should be used to compute the material
price variance?
Correct Answer Quantity of material purchased
Your Answer Quantity of material purchased
Multiple Choice Multiple Answer
Question Essentials for effective implementation of budgetary
control system are :-
Correct Answer Commitment of top management , Clearly defined
objectives , Continuous budget education
Your Answer Commitment of top management , Clearly defined
objectives , Continuous budget education
Select The Blank
Question The sources which have been used by an organization to
raise funds indicate ________for the organization.
Correct Answer A liability
Your Answer A source of income
True/False
Question Differential cost analysis is incorporated in the cost
books.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question Piece rate systems are very useful in the following
circumstances:-
Correct Answer Units of output are measurable , Job is standardized
, The flow of work is regular
Your Answer Units of output are measurable , Job is standardized ,
The flow of work is regular
Multiple Choice Multiple Answer
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 Excess staffing , Lack of experienced and efficient
personnel , High labour turnover
Multiple Choice Multiple Answer
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
Multiple Choice Single Answer
Question If the proprietor has taken away goods worth Rs.5,500/-
for personal use, find its impact on the proprietor's account in the
organization.
Correct Answer The capital will decrease by Rs.5,500/-
Your Answer The balance of drawings account will increase by
Rs.5,500/-
Match The Following
Question Correct Answer Your Answer
Balance-sheet Financial status Financial status
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
Multiple Choice Multiple Answer
Question If you are required to enforce uniform costing system in
your industry, how would you proceed?
Correct Answer Collecting data from all units of your industry ,
Ensuring that the data collected is complete and correct , Maintaining
secrecy of the data collected
Your Answer Collecting data from all units of your industry ,
Ensuring that the data collected is complete and correct , Maintaining
secrecy of the data collected , Allowing free access to all the units to the
collected data
True/False
Question In case the standards are too difficult to achieve, they
will provide additional incentive for improvement.
Correct Answer False
Your Answer True
Multiple Choice Single Answer
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 Cash account - Rs.170,000/-
Multiple Choice Single Answer
Question Which of the following is a correct definition of the key
factor?
Correct Answer The factor which limits the activities of the
undertaking
Your Answer The factor which maximized sales
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
True/False
Question A journal entry is passed for trade discount, but no entry
is passed for cash discount.
Correct Answer False
Your Answer False
True/False
Question Depreciation under Reducing Balance Method is calculated
as (Number of units * Rate of depreciation per unit).
Correct Answer False
Your Answer True
Multiple Choice Multiple Answer
Question Causes for adverse material price variance are:-
Correct Answer Uneconomical size of purchase orders , Failure to
avail discounts allowed by suppliers. , Excessive freight charges
Your Answer Uneconomical size of purchase orders , Failure to avail
discounts allowed by suppliers. , Excessive freight charges
True/False
Question Balance sheet indicates the financial status of the
business at given period.
Correct Answer True
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
Plain Text Attachment [ Scan and Save to Computer ]
True/False
Question The sum of indirect material cost, indirect labour cost
and indirect expenses is termed as Overheads.
Correct Answer True
Your Answer True
True/False
Question Balance sheet indicates the expenditure & income of the
business.
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 True
Multiple Choice Single Answer
Question Which section of the Companies Act, 1956, states that cost
audit is compulsory for certain industries?
Correct Answer 209(1) (d)
Your Answer 209(1) (d)
Select The Blank
Question The various contents of a uniform cost manual are
organization, cost accounting system and ________.
Correct Answer Presentation of information
Your Answer Presentation of information
True/False
Question Manufacturing overheads represents all costs incurred in
the factory including direct material cost and direct labour cost.
Correct Answer False
Your Answer False
True/False
Question Goods sent to the customers on approval basis should be
treated as sales.
Correct Answer False
Your Answer True
Multiple Choice Multiple Answer
Question 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. , Measures the
difference between the quantity of materials actually purchased and that
should have been purchased. , Considers standard price X actual quantity ,
Considers standard price X standard quantity
Select The Blank
Question Purchase of national saving certificates by the company
from its profits, should be debited to ________ account.
Correct Answer Investments
Your Answer Savings
Multiple Choice Multiple Answer
Question In practical circumstances, control ledgers may be
maintained for the following categories:-
Correct Answer Sundry debtors , Sundry creditors , Advance to Staff
Your Answer Sundry debtors , Sundry creditors , Advance to Staff
True/False
Question Trading account is used to analyze how successfully and
how efficiently the firm runs, particularly with regards to the
maintenance of the gross profit margin.
Correct Answer True
Your Answer True
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
Multiple Choice Multiple Answer
Question From the following, select current assets:-
Correct Answer Sundry debtors , Stock , Pre paid expenses
Your Answer Sundry debtors , Stock , Pre paid expenses
Multiple Choice Single Answer
Question The variance which measures the deviation of the rate
actually paid to labour as from the standard hourly rate is known as:-
Correct Answer Labour rate variance
Your Answer Labour rate variance
True/False
Question Cost Accounting is concerned with calculation of the
profitability and state of affairs of the organization as a whole.
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
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
Multiple Choice Multiple Answer
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 compile reliable cost data for inter-firm comparison
of costs , To fix a common selling price for the industry as a whole ,
To compare efficiency of each unit against industry's overall
performance
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
True/False
Question Financial Accounting primarily protects the interests of
the outsiders dealing with organization in various capacities.
Correct Answer True
Your Answer True
Select The Blank
Question Computation of gross wages, deductions and net wages
payable is the function of the ________ department.
Correct Answer Personnel
Your Answer Personnel
Select The Blank
Question Margin of safety indicates ________ of operations.
Correct Answer Profitability
Your Answer Profitability
Multiple Choice Multiple Answer
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 ,
Change in material mix
Multiple Choice Multiple Answer
Question Examples of indirect material are :-
Correct Answer Consumable stores , Glue used in book binding ,
Nails used in packing boxes
Your Answer Consumable stores , Glue used in book binding ,
Rear-view mirror of a two wheeler
Match The Following
Question Correct Answer Your Answer
Total cost - Fixed cost Variable cost Variable cost
Contribution - Fixed cost Profit Profit
Total cost + Profit Sales Sales
Fixed cost + Variable cost Total cost Total cost
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
Match The Following
Question Correct Answer Your Answer
Change in profit/ Change in activity level Profit volume ratio Profit
volume ratio
Change in total cost/ Change in activity level Variable cost per unit
Profit
Total sales X Profit volume ratio Total contribution Total contribution
Selling price ( Actual sales - Break even sales) Margin of safety
Margin of safety ratio
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
Select The Blank
Question The difference between sales and prime cost is known as
________.
Correct Answer Gross Profit
Your Answer Net Profit
Multiple Choice Single Answer
Question Standard labour cost of a job has been specified as 50
hours work by skilled workers @ Rs.20/- per hour and 150 hours work by
unskilled workers @ Rs.10/- per hour. Actual time taken was 70 hours by
skilled workers @ Rs.18/- per hour and 170 hours by unskilled workers @
Rs.13/- per hour. Calculate labour yield variance.
Correct Answer Rs.500/- (Adverse)
Your Answer Rs.500/- (Adverse)
Select The Blank
Question The stores department is a ________ department.
Correct Answer Service
Your Answer Valuable
No comments:
Post a Comment