Management -Set 2

Select The Blank Question 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 Multiple Choice Multiple Answer Question The main objectives of determining overhead rates are :Correct Answer Helps in immediate compilation of costs , Helps application of overhead on an equitable basis , Assists in calculating unit cost before starting production Your Answer Helps in immediate compilation of costs , Helps application of overhead on an equitable basis , Assists in calculating unit cost before starting production True/False Question Balance sheet indicates the financial status of the business at given period. Correct Answer True Your Answer True Select The Blank Question Entry for dishonour of cheque appears only in the pass book, this entry should be ________ in the bank book. Correct Answer Passed Your Answer Adjusted Select The Blank Question The capital intensive industry will have ________ angle of incidence. Correct Answer Higher Your Answer Higher Multiple Choice Single Answer Question Judge the following narrative according to the criteria given : There are many organizations whose sales fluctuate with fluctuations in the weather, viz. ice-cream, sweaters, etc. Correct Answer The statement and the reason are both incorrect Your Answer The statement and the reason are both correct Multiple Choice Multiple Answer Question Management is concerned with the following activities :Correct Answer Decision making , Safeguarding assets , Planning and controlling activities Your Answer Decision making , Planning and controlling activities Multiple Choice Single Answer Question A company budgets for a production of 150,000 units. The variable cost per unit is Rs.14/- and fixed cost is Rs.2/- per unit. The company fixes its selling price to fetch a profit of 15% on total cost. What is the break even point for the company?

Correct Answer 68,182 units Your Answer 68,182 units Multiple Choice Multiple Answer Question Plant and equipment can become a key factor in the following circumstances :Correct Answer Limited capacity due to lack of capital , Insufficient capacity due to shortage of space , Limited number of hours for which the plant can be used Your Answer Limited capacity due to lack of capital , Insufficient number of workers to work in the plant True/False Question One of the major drawback of the contribution approach to costing is that it ignores fixed cost. Correct Answer True Your Answer True True/False Question Under ABC analysis, category A represents items with high volumes. Correct Answer False Your Answer True Multiple Choice Multiple Answer 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 Packing material lying in stores but reserved for specific purposes , Availability of funds , Material in stores but reserved for specific purposes Multiple Choice Single Answer Question If the overhead expenditure to be absorbed in the foreman's salary, the most appropriate basis for absorption would be :Correct Answer Direct labour hours Your Answer Direct labour hours True/False Question In differential cost analysis, decisions are taken by comparing the incremental revenue with differential costs. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question Items credited to Trading Account are :Correct Answer Sales , Goods lost by fire , Closing stock Your Answer Sales , Goods lost by fire , Closing stock Multiple Choice Multiple Answer

Question The objectives of cost are :Correct Answer Cost control , Ascertainment of cost of each product , Assist in managerial decision-making Your Answer Cost control , Ascertainment of cost of each product , Assist in managerial decision-making Multiple Choice Multiple Answer 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 Multiple Choice Single Answer Question At 60% capacity utilization the overhead recovery rate is Rs.35/- per unit. At 70% capacity the rate gets reduced to Rs.32/- per unit. What should be the recovery rate if the production attains 90% capacity utilization? Correct Answer Rs.28/- per unit Your Answer Rs.28/- per unit Multiple Choice Single Answer Question Based on the journal entry given, identify what transaction has taken place? Suresh Account.Dr. Rs.500 To Cash Account Rs.500 (Being paid to Kailash on behalf of creditor Suresh) Correct Answer Cash paid to Kailash should not be recovered from creditor Suresh Your Answer Cash paid to Kailash should be recovered from creditor Suresh Multiple Choice Single Answer Question Which of the following cost is also termed as Prime Cost ? Correct Answer Direct cost Your Answer Direct cost Multiple Choice Single Answer Question Where, in the final statements of accounts, should we disclose the closing balance of income received in advance? Correct Answer Balance sheet - on the liability side Your Answer Balance sheet - on the liability side True/False Question Factory rent is a direct cost to the factory as a whole but indirect to the production departments. Correct Answer True Your Answer True True/False Question The greater the volume of production, the greater is the unit cost of production. Correct Answer False

Your Answer False Multiple Choice Multiple Answer Question For the given transaction find the wrong entry that has been passed in the books of accounts, the correct entry that should have been passed and the rectification entry required to rectify the mistake. "On 1st September, 2004 the total of the previous month's wages was debited to 'Manufacturing Wages Account". During the previous month, a new machine was installed, and the firm's own employees had spent time thereon; the previous month's wages for all such employees amounted to :Correct Answer Machinery A/c. . . Dr. Rs.14,100/- To Manufacturing Wages A/c Rs.14,100/- , Machinery A/c . . . Dr. Rs.14,100/- To Cash A/c Rs.14,100/- , Rs.14,100/- To Cash A/c Rs.14,100/Your Answer Machinery A/c. . . Dr. Rs.14,100/- To Manufacturing Wages A/c Rs.14,100/- , Machinery A/c . . . Dr. Rs.14,100/- To Cash A/c Rs.14,100/True/False Question 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 Penalty paid for delay in payment to creditors represents uncontrollable cost. Correct Answer False Your Answer False Multiple Choice Multiple Answer Question The selection of the supplier may depend upon the following aspects:Correct Answer Geographical location of the supplier , Price quoted by the supplier , Goodwill of the supplier Your Answer Geographical location of the supplier , Price quoted by the supplier , Goodwill of the supplier Select The Blank Question ________ variance arises when the mix of materials used in the production is different from the predetermined standard mix of operation. Correct Answer Materials mix Your Answer Product mix Select The Blank Question Expenditure on repairs may be ideally allocated on the basis of ________. Correct Answer Cost of repairs spread over the working life of the machine Your Answer Cost of repairs spread over the working life of the machine Multiple Choice Multiple Answer Question Cost control procedure deals with :Correct Answer Establishment of plans , Comparison of actual and planed performance ,

Computation of variance Your Answer Establishment of plans , Comparison of actual and planed performance , Computation of variance 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 Multiple Choice Single Answer Question Cash budget is extremely useful since it:Correct Answer Gives information about estimated cash inflows and outflows Your Answer Gives information about estimated cash inflows and outflows Select The Blank Question Accounts representing expenses will have ________ balance. Correct Answer Debit Your Answer Debit Match The Following Question Correct Answer Your Answer Operating income Cash Sales Cash Sales Non-Operating income Issue of shares Issue of shares Plan of investment in fixed assets Capital Expenditure Budget Capital Expenditure Budget Plan for surplus/shortage of cash Cash Budget Cash Budget 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 Long term loan borrowed from financial institution comes under the heading of long term liabilities. Correct Answer True Your Answer True Select The Blank Question Warehousing cost is an item of ________. Correct Answer Distribution overheads Your Answer Distribution overheads Multiple Choice Single Answer Question Product costs under direct costing include:Correct Answer Prime cost and variable factory overheads

Your Answer Prime cost only Select The Blank Question If the standard contribution is less than the actual contribution, then ________ variance arises. Correct Answer Favourable Your Answer Favourable Multiple Choice Multiple Answer Question The factors which influence the selection of the method for absorption of overheads are:Correct Answer Type of industry , Nature of products , Manufacturing process Your Answer Type of industry , Nature of products , Manufacturing process Multiple Choice Single Answer Question Currently Beta Ltd. is earning a contribution of Rs.80/- per unit and the variable cost is Rs.180/- per unit. Its fixed costs are Rs.200,000/-. Its existing sales are 5,000 units. The company has a proposal that the sales staff may be paid a commission of 10% of sales instead of fixed salaries totaling Rs.80,000/-. This action is expected to increase the sales by 10%. Compute the amount of profit assuming the proposal is accepted? Correct Answer Rs.177,000/Your Answer Rs.177,000/Select The Blank Question Fixed overhead volume variance = Expenditure variance + Capacity variance + ________ variance. Correct Answer Calendar Your Answer Productivity Select The Blank Question The ________ ledger carries the individual accounts, whereas the general ledger records the consolidated effect of the individual transactions. Correct Answer Control Your Answer Journal 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 Multiple Choice Single Answer Question Which of the following is most likely to be an allocated production overhead cost to the finishing cost centre? Correct Answer Salary of the finishing center's manager Your Answer Power used by machines of finishing centre

Match The Following Question Correct Answer Your Answer Advantageously applicable in similar industries Scope of uniform costing Process of uniform costing Spirit of mutual trust Requisite for uniform costing Requisite for uniform costing Avoids cut throat competition Advantage of uniform costing Advantage of uniform costing Treatment given to research and development costs Fields covered by uniform costing Scope of uniform costing True/False Question A business is an activity carried out with the intention of earning the profit. Correct Answer True Your Answer True

Showing posts with label Management -Set 1. Show all posts Showing posts with label Management -Set 1. Show all posts

Sunday, 6 November 2011 Management -Set 1

Management Select The Blank Question Furniture account will always have a ________ balance. Correct Answer Debit Your Answer Nil Multiple Choice Multiple Answer Question 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 Total variable overhead True/False Question 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 period Your Answer 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 Multiple Choice Single Answer 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/Multiple Choice Multiple Answer 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 Multiple Choice Multiple Answer 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 Multiple Choice Multiple Answer Question Techniques of management 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 Multiple Choice Multiple Answer Question If the sales forecast is less than the past sales but the top management insists upon a certain amount of additional profits, then following steps can be taken to achieve the target profit Correct Answer

Increase the selling price , Reduce cost of sales , Increase the selling efforts Your Answer Increase the selling price , Increase the sales volume , Increase the selling efforts Multiple Choice Multiple Answer 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 Multiple Choice Single Answer 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 Multiple Choice Single Answer 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 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 Multiple Choice Multiple Answer 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 Multiple Choice Multiple Answer 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.

Multiple Choice Multiple Answer Question Techniques of management 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. 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 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 Single Answer Question

Commission payable to General Manager is 10 % of the net profits. If the net profit before charging commission is Rs.29,200/-, then what will be the amount of his net profit after commission? Correct Answer Rs.26,545.45 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 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 Multiple Choice Single Answer Question The reporting method used in the costing system should be based on the principle of Correct Answer Management by exception Your Answer Management by objectives True/False Question Balance sheet indicates the financial status of the business at given period. Correct Answer True Your Answer True Multiple Choice Single Answer 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 Multiple Choice Single Answer Question M/s Vivek Enterprises has paid rent relating to the residence of Mr. Vivek, proprietor of Vivek Enterprises. This payment should be treated as Correct Answer Drawings Your Answer 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 Multiple Choice Single Answer 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 Multiple Choice Single Answer 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 Match The Following Question Correct Answer Your Answer 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 to Trading A/C is an example of_______ Correct Answer Error of Commission Your Answer Error of Commission Multiple Choice Single Answer Question Labour cost indicates that labour cost which cannot be identified with the individual cost centre and is incurred for those employees who are not engaged in the manufacturing process but only assist i Correct Answer Remuneration Your Answer Indirect 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 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 Multiple Choice Single Answer 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 month , payment of wages for the month of February is Correct Answer 4,200 Your Answer 4,000 Select The Blank Question Management has a very ________ scope and it requires ________ organizational structure Correct Answer wide Your Answer wide Correct Answer elaborate Your Answer elaborate True/False Question is an art of recording, classifying & summarizing in a significant manner. Correct Answer True Your Answer True Multiple Choice Single Answer 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 Multiple Choice Multiple Answer Question P/L A/C debit side includes Correct Answer salary , discount allowed , postage & telegram Your Answer postage & telegram , salary , discount allowed Multiple Choice Multiple Answer 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 Multiple Choice Single Answer 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 ) Multiple Choice Multiple Answer 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. Correct Answer False Your Answer False Multiple Choice Single Answer 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.

Correct Answer False Your Answer False Match The Following Question Correct Answer Your Answer 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. Correct Answer False Your Answer True True/False Question The process of split into three steams i.e. financial, cost, management . Correct Answer True Your Answer True Multiple Choice Single Answer 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. Correct Answer False Your Answer True 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 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 Multiple Choice Multiple Answer 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 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. Correct Answer False 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 refers to the process of analyzing & interpreting the information already recorded in the books of accounts. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question 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 Multiple Choice Multiple Answer 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 Multiple Choice Single Answer 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 Multiple Choice Single Answer Question This is not the non monetary incentive. Correct Answer Co-partnership Your Answer Co-partnership Multiple Choice Multiple Answer 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 , ________ and ________ are the other streams of Correct Answer Cost Your Answer Cost Correct Answer Management Your Answer Management True/False Question A very wide scope of Management is the limitation by itself. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question The selection of the supplier may depend upon the following aspects: Correct Answer Geographical location of the supplier , Price quoted by the supplier , Goodwill of the supplier Your Answer Geographical location of the supplier , Price quoted by the supplier , Goodwill of the supplier Multiple Choice Single Answer Question Net book value of loose tools as on 1st April, 2003 was Rs.45,000/-. As on 31st March, 2004

the management felt that the real worth of these loose tools is only Rs.30,000/-. What can be done to achieve the desired reduction in the net book value of loose tools? Correct Answer By providing depreciation to the extent of Rs.15,000/Your Answer By providing depreciation to the extent of Rs.15,000/True/False Question Overhead absorption rate will be different at different capacity levels. Correct Answer True Your Answer True Select The Blank Question The budget that represents the funds investment for expansion, diversification, etc. is known as ________. Correct Answer Capital expenditure budget Your Answer Capital expenditure budget Select The Blank Question The ________ variance is the difference between the actual variable overhead incurred and the standard variable overhead charged to production. Correct Answer Total variable overhead Your Answer Total variable overhead Multiple Choice Single Answer Question The cost that indicates historical cost, which is incurred in past, is known as Correct Answer Sunk cost Your Answer Sunk cost Select The Blank Question Information as to the cost and profit / loss associated with the firms operations is provided to the ________ by Management . 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 Your Answer cost Multiple Choice Multiple Answer Question Which of the following budgets may be termed as a long term budget? Correct Answer Capital expenditure budget , Research and Development expenditure budget , Budget of a transportation company Your Answer Capital expenditure budget , Research and Development expenditure budget Multiple Choice Single Answer Question The following figures relate to a company manufacturing a varied range of products : Year 2003 Total sales Rs.22,23,000/- and total cost Rs.19,83,600/-. Year 2004 : Total sales Rs.24,51,000/- and Total cost Rs.21,43,200/-. Assuming stability in prices, calculate the profit volume ratio Correct Answer 0.3 Your Answer 0.3 Multiple Choice Single Answer Question The cost of idle time incurred by employees that is considered normal for the production process should be charged to : Correct Answer Factory overheads Your Answer Direct labour Select The Blank Question Creche expenses may be appropriately approtioned on the basis of ________. Correct Answer Number of female workers Your Answer Number of female workers Multiple Choice Single Answer Question Opening stock of Rs.1,80,000/-, purchases Rs.8,00,000/-, freight inward Rs.35,000/-, closing stock Rs.2,00,000/-, direct wages Rs.2,35,000/-. Calculate the prime cost.

Correct Answer Rs.10,50,000/Your Answer Rs.10,70,000/Multiple Choice Multiple Answer Question Limitations of Management includesCorrect Answer Its wide scope , Possibility of intuitive decision , Requires elaborate organizational structure Your Answer Its wide scope , Possibility of intuitive decision , Requires elaborate organizational structure Select The Blank Question Indirect Cost is termed as ________. Correct Answer Overhead Your Answer Overhead Multiple Choice Multiple Answer Question Features of Financial includes Correct Answer It is a legal requirement , It protects the interest of outsiders , It considers historical transactions Your Answer It is a legal requirement , It protects the interest of outsiders , It considers historical transactions Multiple Choice Multiple Answer Question Identify the budgets for which the production manager sould be held responsible : Correct Answer Production budget , Production overheads budget , Plant utilisation budget Your Answer Production budget , Production overheads budget , Plant utilisation budget Multiple Choice Single Answer Question A group of 10 men and 20 women workers were expected to produce 400 units of a product in an 8 hour day. The standard hourly rate was fixed at Rs.25/- and Rs.15/-, respectively.Actually, a group of 15 men and 10 women workers was deployed and paid for 8 hours a day at an hourly rate of Rs.22/- and Rs.18/-, respectively. Two hours were wasted for the entire group due to power failure and only 300 units were produced. Calculate labour rate variance. Correct Answer Rs.120/- (Favourable) Your Answer Rs.150/- (Favourable) Multiple Choice Multiple Answer Question

Techniques of management include: Correct Answer Marginal costing , Budgetary control , Standard costing Your Answer Cost control , Budgetary control , Standard costing True/False Question A grinding machine is an example of impersonal cost centre Correct Answer True Your Answer True True/False Question Profitability statement indicates the amount of assets & liabilities. Correct Answer False Your Answer False Multiple Choice Single Answer Question Uniform costing system is useful in the following areas Correct Answer Classification of cost accounts Your Answer Preparing financial statements Multiple Choice Multiple Answer Question The features of multiplicity of key factors are as follows : Correct Answer More than one key factors , Refers to a complex situation , Can be resolved by using linear programming technique Your Answer More than one key factors , Refers to a complex situation , Can be resolved by using linear programming technique True/False Question Balance sheet indicates the expenditure & income from the business. Correct Answer False Your Answer False True/False Question Interim dividend paid by the company should be debited to the profit and loss appropriation account. Correct Answer True

Your Answer True Multiple Choice Multiple Answer Question A materials requisition form normally contains the following aspects: Correct Answer Quantity requisitioned , Per unit material cost , Job number Your Answer Quantity requisitioned , Job number Multiple Choice Multiple Answer Question The production budget may be prepared in terms of : Correct Answer Units produced , Production cost , Material cost, labour cost and overheads Your Answer Units produced , Production cost , Material cost, labour cost and overheads Multiple Choice Single Answer Question Panna Ltd. temporarily has excess production capacity. The idle plant facilties can be used to manufacture a low-margin item. The low-margin item should be produced if it can be sold for more than its: Correct Answer Variable costs Your Answer Variable costs Multiple Choice Multiple Answer Question If the sales forecast is less than the past sales but the top management insists upon a certain amount of additional profits, then following steps can be taken to achieve the target profit Correct Answer Increase the selling price , Reduce cost of sales , Increase the selling efforts Your Answer Increase the selling price , Increase the sales volume , Reduce cost of sales True/False Question Receipts and payments method of cash budget is useful for preparing long term estimates. Correct Answer False Your Answer False Multiple Choice Multiple Answer Question Select the advantages of standard cost system. Correct Answer Provides reliable basis for budgeting , Facilitates delegation of authority , Promotes economy and efficiency Your Answer Provides reliable basis for budgeting , Facilitates delegation of authority

True/False Question The sales mix variance highlights the fact that the actual mix of sales has been in the same ratio as budgeted. Correct Answer False Your Answer False Select The Blank Question In case of seasonal industry, the budget period may be taken as ________. Correct Answer One season Your Answer One season True/False Question Lack of efficient control on various aspects related to raw-material increases the material cost component of the finished product. Correct Answer True Your Answer True True/False Question Due to compensating errors the arithmetical accuracy of the trial balance is affected. Correct Answer False Your Answer False Multiple Choice Single Answer Question Material price variance for a job is Rs.800/- (Favourable). Actual quantity of material used is 100 kg whereasthe standard quantity of material is 120% of actual quantity. Actual price paid for the material is 80% of the standard price. Calculate material cost variance. Correct Answer Rs.1,600/- (Favourable) Your Answer Rs.800/- (Favourable) Select The Blank Question The process of recording the business transactions in a defined set of records is referred to as ________. Correct Answer Balance sheet Your Answer Profit and Loss Account

Match The 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 Recording of workers time Time booking department Jobwise booking of time. Jobwise booking of time. Time Recording Clock Method Ticket number & clock card allotted to worker Ticket number & clock card allotted to worker True/False Question Purchased goods by paying Rs.35,000/-: In this case, the cash account should be debited. Correct Answer True Your Answer True Select The Blank Question If the customer is not likely to pay the amount receivable from him, this amount should to be treated as ________. Correct Answer Bad debts Your Answer Bad debts True/False Question 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 Profitability statement & Balance-sheet Profitability statement & Balance-sheet Process of analyzing & interpretation

Process of analyzing & interpretation Profitability statement Indicates the amount of profit earned Indicates the amount of profit earned Balance-sheet Financial status Financial status True/False Question The problem of multiple key factors can be solved with the help of techniques like linear programming, operations research, etc. Correct Answer True Your Answer True Select The Blank Question The ________ books are preferred when the volume of transactions is very large. Correct Answer Subsidiary Your Answer Journal Multiple Choice Multiple Answer Question If you are required to enforce uniform costing system in your industry, how would you proceed ? Correct Answer Collecting data from all units of your industry , Ensuring that the data collected is complete and correct , Maintaining secrecy of the data collected Your Answer Collecting data from all units of your industry , Ensuring that the data collected is complete and correct , Allowing free access to all the units to the collected data True/False Question All costs are controllable. Correct Answer False Your Answer False

Showing posts with label Management -Set 3. Show all posts Showing posts with label Management -Set 3. Show all posts

Monday, 5 December 2011 Management -Set 3

True/False Question Revenue expenditure indicates the amount of funds spent during a certain period with the intention to receive the returns in future.

Correct Answer False Your Answer True Multiple Choice Multiple Answer 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 Delegation of authority to various managers , Inter-functional relationships of these managers , Functional responsibility of different functional managers 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 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 True/False Question is an art of recording, classifying & summarizing in a significant manner. Correct Answer True Your Answer True Multiple Choice Single Answer 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.24,050/- (Adverse) Select The Blank Question If the time booked as per the job cards is less than the attendance time it indicates ________ during which the worker has not done any work though he was present in the factory. Correct Answer Idle time Your Answer Idle time Multiple Choice Single Answer Question The finance manager is responsible for which of the following budget? Correct Answer Cash budget Your Answer Cash budget True/False

Question A business is an activity carried out with the intention of earning the profit. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question From the following transactions find the value of closing stock on 4/10/04, 7/10/04 and 12/10/04 using the simple average method of issue pricing. 1/10/04 Purchased 400 units @ Rs.5/-. 4/10/04 - Issued to production 120 units. 5/10/04 Purchased 200 units @ Rs.6/-. 7/10/04 - Issued to production 180 units. 11/10/04 Purchased 100 units @ Rs.7/-. 12/10/04 - Issued to production 160 units. Correct Answer 4/10/04 - 280 units @ Rs.1,400/- , 7/10/04 - 300 units @ Rs.1,610/- , 12/10/04 - 240 units @ Rs.1,350/Your Answer 12/10/04 - 240 units @ Rs.1,350/Select The Blank Question The final result disclosed by trading account is the ________ profit earned by the organization. Correct Answer Gross Your Answer Gross True/False Question While passing the journal entry, it is of utmost importance to ensure that the total of amount debited is equal to the total of the amount credited. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question Identify the variable expenses :Correct Answer Repairs of plant when it is undertaken by an outside agency , Carriage inward by hired carriers , Wages paid to casual workers Your Answer Repairs of plant when it is undertaken by an outside agency , Carriage inward by hired carriers , Wages paid to casual workers Multiple Choice Single Answer Question Presentation of information to enable managerial decision making is one of the objects of which of the following? Correct Answer Cost Your Answer Cost Select The Blank Question If it is given that the office expenses account includes Rs.10,000/- for purchase of computer-table, the net profit will ________, after the necessary adjustment is done. Correct Answer Increase Your Answer Remain the same True/False Question Profitability statement indicates the amount of assets & liabilities.

Correct Answer False Your Answer False 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 Multiple Choice Multiple Answer Question The selection of the supplier may depend upon the following aspects:Correct Answer Geographical location of the supplier , Price quoted by the supplier , Goodwill of the supplier Your Answer Geographical location of the supplier , Price quoted by the supplier , Goodwill of the supplier Select The Blank 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 Multiple Choice Single Answer Question Fixed deposit bearing interest @ 5.50%, for Rs.10,000/- was kept with Bank of India on 1st June, 2003, for a period of one year. The type of the fixed deposit is cumulative, i.e. interest shall be received only on maturity. What treatment should be given in the books of accounts on 31st March, 2004, the year ending date? Correct Answer An entry for Rs.458.34, debiting interest accrued but not due account should be passed Your Answer An entry for Rs.458.34, debiting interest accrued but not due account should be passed 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. , Considers standard price X actual quantity , Considers standard price X standard quantity 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 Process of analyzing & interpretation Process of analyzing & interpretation Profitability statement Indicates the amount of profit earned Indicates the amount of profit earned True/False Question Balance sheet indicates the financial status of the business at given period. Correct Answer True Your Answer True Multiple Choice Single Answer Question Select the correct journal entry for the following transaction. "Received Rs.475/from M/s.Manohar & Co. in full settlement of Rs.500/-'. Correct Answer Cash account....Dr. Rs.475/- Discount account ...Dr. Rs.25/To M/s. Manohar & Co. A/c Cr. Rs.475/Your Answer Cash account....Dr. Rs.475/- Discount account ...Dr. Rs.25/To M/s. Manohar & Co. A/c Cr. Rs.475/True/False Question Balance sheet indicates the expenditure & income from the business. Correct Answer False Your Answer False Multiple Choice Single Answer Question At 60% capacity utilization the overhead recovery rate is Rs.35/- per unit. At 70% capacity the rate gets reduced to Rs.32/- per unit. What should be the recovery rate if the production attains 90% capacity utilization? Correct Answer Rs.28/- per unit Your Answer Rs.28/- per unit Multiple Choice Single Answer Question 200 units of material were purchased from X @ Rs.5/- per unit and 300 units were purchased from Y @ Rs.6/- per unit. The organization follows FIFO system of pricing of issues and the above purchases have been recorded in stores ledger. 120 units have already been issued. 60 units received from X are defective and are therefore returned. Find the value of the material returned to X. Correct Answer Rs.300/Your Answer Rs.300/True/False Question It is said that the income statement represents wealth increase /decrease for the organization. Correct Answer True Your Answer True

Multiple Choice Multiple Answer Question When bank balance as per bank book is considered for preparing bank reconciliation statement, then following items need to be added :Correct Answer Cheques issued but not presented , Direct deposit made by customer , Wrong credits given by bank Your Answer Cheques issued but not presented , Direct deposit made by customer , Wrong credits given by bank Multiple Choice Single Answer Question Sita and Gita are partners of SGL & Co. As on 1st August, 2003 Sita's capital stood as Rs.10,000/- and Gita's capital as Rs.18,000/-. If interest on capital is to be provided @ 10% p.a., what should be the treatment of this interest in the profitability statement, assuming there were no additions to capital during this period? Correct Answer Profit and loss account should be debited with Rs.1,866.67 Your Answer Profit and loss account should be debited with Rs.1,866.67 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 net profit will decrease by Rs.6,300/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 Multiple Choice Multiple Answer Question Labour turnover means :Correct Answer Influx and exit of employees , Quantitative measurement of instability of working force , Rate of change in the average working force Your Answer Influx and exit of employees , Quantitative measurement of instability of working force , Rate of change in the average working force Select The Blank Question One of the limitations of the budgetary control is that it ________. Correct Answer Is an expensive affair Your Answer Requires fixing of responsibilities Multiple Choice Multiple Answer Question The various areas in which uniform costing can be adopted are :Correct Answer Valuation of inventories , Charging of depreciation , Apportionment of overheads Your Answer Valuation of inventories , Charging of depreciation , Apportionment of

overheads 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 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 run Match The Following Question Correct Answer Your Answer 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 < Overdraft as 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 Multiple Choice Single Answer Question Which of the following is usually prepared daily by employees for each job worked on? Correct Answer Job card Your Answer Job card Multiple Choice Single Answer Question Benefits available from revenue expenditure are received in the :Correct Answer Same year Your Answer Same year 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 Select The Blank Question In order to rectify the totaling mistake, wherein the sales return ledger was undercast by Rs.2,000/-, the suspense account should be ________ with Rs.2,000/Correct Answer Credited Your Answer Adjusted

True/False Question 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 Yield variance equal to zero indicates that the standard yield and actual yield are the same. Correct Answer True Your Answer True Select The Blank Question If the profit of Y Ltd. is Rs.10,000/- and its profit volume ratio is 10%, then its margin of safety will be Rs.________. Correct Answer 100,000/Your Answer 100,000/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 True/False Question In marginal costing, decisions are guided by profit rather than contribution margin. Correct Answer False Your Answer False

Showing posts with label Management -Set 4. Show all posts Showing posts with label Management -Set 4. Show all posts

Monday, 5 December 2011 Management -Set 4

Multiple Choice Single Answer Question Which of the following transactions fall within the definition of the 'standing instruction'? Correct Answer Club membership subscription Your Answer Club membership subscription Multiple Choice Single Answer Question In a certain factory, three products are made from different materials by similar process. For a typical period, production costs are as under : Product A : material used Rs.1,600/-; direct labour cost Rs.1,200/-; overheads Rs.800/-. Product B : material used Rs.2,000/-; direct labour cost Rs.1,000/-; overheads Rs.400/-. Product C : material used Rs.800/-; direct labour cost Rs.400/-; overheads Rs.160/-. What is the basis used for

charging the overheads to these products? Correct Answer Percentage of direct material cost Your Answer Percentage of prime cost Multiple Choice Single Answer Question The statement, mainly applicable to company form of organization, which discloses the manner in which the profit after tax is distributed is known as: Correct Answer Profit & Loss Account Appropriation Account Your Answer Profit & Loss Account Appropriation Account True/False Question Deferred revenue expenditure written off account is a real account. Correct Answer False Your Answer False Multiple Choice Single Answer Question A company had incurred fixed expenses of Rs.225,000/- with sales of Rs.750,000/- and earned a profit of Rs.150,000/- during the first month. In the second month, it suffered a loss of Rs.75,000/-. You are required to calculate the margin of safety for the first month. Correct Answer Rs.300,000/Your Answer Rs.300,000/True/False Question Budgetary control system provides a basis for establishment of the incentive systems. Correct Answer True Your Answer True True/False Question Management is the process of analysis and interpretation of financial data collected with help of financial and cost Correct Answer True Your Answer True Select The Blank Question The cash flow format is used for preparing the cash budget by the ________ method. Correct Answer Adjusted Profits/Losses Your Answer Receipts and Payments Multiple Choice Multiple Answer Question Select the steps to be followed while preparing bank reconciliation statement :Correct Answer Compare the transactions in the bank book and the pass book , Check the totals and the balancing of both the books , Confirm that the opening balances of both the books are tallying Your Answer Compare the transactions in the bank book and the pass book , Check the

totals and the balancing of both the books , Confirm that the opening balances of both the books are tallying Multiple Choice Single Answer Question XYZ Ltd. is selling 50,000 units of a product at Rs.40/- per unit. Variable cost is Rs.25/- per unit and fixed cost is Rs.200,000/-. The producer can increase sales volume by 20% by reducing the price by 10%. Do you recommend reduction in price? What will be profit if this action in undertaken? Correct Answer No; Revised profit Rs.460,000/Your Answer No; Revised profit Rs.460,000/True/False Question GAIL having monopoly in the CNG (Compressed Natural Gas) market can implement the Uniform costing system. Correct Answer False Your Answer True Multiple Choice Single Answer Question The store-keeper should initiate action for the purchase of a material, when it reaches its :Correct Answer Re-order level Your Answer Re-order level Multiple Choice Multiple Answer Question Cost control procedure deals with :Correct Answer Establishment of plans , Comparison of actual and planed performance , Computation of variance Your Answer Establishment of plans , Computation of profit , Comparison of actual and planed performance Multiple Choice Single Answer Question Unearned commission of Rs.5,000/- needs to be recorded in the books of accounts. Find its correct impact. Correct Answer The asset side of the balance sheet will increase by Rs.5,000/Your Answer The asset side of the balance sheet will increase by Rs.5,000/Multiple Choice Multiple Answer 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.13,250/- , Involves an error of principle , Involves an error of commission Multiple Choice Multiple Answer

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 Select The Blank Question The assets which are supposed to be used by the organization to do business, are known as ________assets. Correct Answer Fixed Your Answer Fixed 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 Select The Blank Question A trading concern will have only ________ overheads and selling overheads. Correct Answer Administration Your Answer Administration 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 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 Match The Following Question Correct Answer Your Answer Labour hour method of absorption of overheads Not affected by output related remuneration schemes Not affected by output related remuneration schemes Percentage of direct material cost methods of absorption of overheads Useful when prices of materials are fairly stable Useful when prices of materials are fairly stable Percentage of direct labour cost methods of absorption of overheads Useful when ratio of skilled and unskilled labour remains constant Useful when ratio of skilled and unskilled labour remains constant Percentage of prime cost methods of absorption of overheads Useful when there are no wide fluctuations in processing Useful when there are no wide fluctuations in processing

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 Multiple Choice Multiple Answer Question Ram and Laxman are partners of Kush & Bros. As on 1st April, 2003 Ram's capital is Rs.50,000/- and Laxman's capital is Rs.80,000/-. If interest on capital is to be provided @ 10% p.a., what will be the amount of capital of each of the partners as on 31st March, 2004, assuming there were no additions during this period? Also, state the treatment of this item in the Profit and loss account. Correct Answer Ram's capital Rs.55,000/- , Laxman's capital Rs.88,000/- , Interest on capital should be debited to the Profit and loss account Your Answer Ram's capital Rs.55,000/- , Laxman's capital Rs.88,000/- , Interest on capital should be credited to the Profit and loss account Multiple Choice Multiple Answer Question Features of convention of consistency are :Correct Answer The policies and procedures should be followed consistently , Facilitates the comparison of financial statements , It facilitates comparison of financial statements on period-to-period basis Your Answer The policies and procedures should be followed consistently , Facilitates the comparison of financial statements , It facilitates comparison of financial statements on period-to-period basis Select The Blank Question Retirement from the service is an ________ cause of labour turnover. Correct Answer Unavoidable Your Answer Unavoidable Multiple Choice Single Answer Question Calculate the machine hour rate. The amount of overhead pertaining to June, 2004 to be apportioned is Rs.170,010/-. The machine cannot work without an operator. During the month June, 2004 the machine operator has been paid for 5,670 hours. Correct Answer Rs.29.98 Your Answer Rs.29.98 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 , Description of goods Select The Blank Question Non-trading income is disclosed on the credit side of ________ account. Correct Answer Profit and loss Your Answer Profit and loss appropriation

True/False Question Depreciation can be defined as a permanent, continuous and gradual reduction in the book value of a fixed asset. Correct Answer True Your Answer True Multiple Choice Single Answer Question Which of the following is a valid classification of the salary paid to the foreman in charge of the packing department? Correct Answer Direct product cost Your Answer Direct product cost 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 Select The Blank Question The capital intensive industry will have ________ angle of incidence. Correct Answer Higher Your Answer Higher Multiple Choice Multiple Answer 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.

Multiple Choice Single Answer Question A lathe machine was purchased on 31st March, 2004 for Rs.65,000/-, however it was installed only on 5th April, 2004. The depreciation is charged @ 15% p.a.. Find the amount of depreciation charge for the said lathe machine for the year ended 31st March, 2004. Correct Answer Nil Your Answer Nil 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 The process of split into three steams i.e. financial, cost, management . Correct Answer True Your Answer True Multiple Choice Multiple Answer Question While preparing sales budget the following factors must be considered :Correct Answer The number and types of products sold by the organization , Whether the organization's market share is increasing or decreasing? , Details of seasonal fluctuations in sales Your Answer The number and types of products sold by the organization , Whether the organization's market share is increasing or decreasing? , Details of seasonal fluctuations in sales True/False Question The actual loss incurred by a company, due to fire, is the extent of difference between the cost of goods destroyed and the amount of claim settled by the insurance company. Correct Answer True Your Answer True 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 Multiple Choice Multiple Answer Question The balance as per bank book as on 30th November, 2004 was Rs.6,500/- and the bank pass book balance as on the same date was Rs.8,015/-. Select the transactions representing the reasons for this difference. Correct Answer Cheques deposited but not cleared Rs.1,200/- , Unpresented cheques Rs.2,625/- , Bank interest not entered in the bank book Rs.90/Your Answer Cheques deposited but not cleared Rs.1,200/- , Unpresented cheques Rs.2,625/- , Bank interest not entered in the bank book Rs.90/Select The Blank Question As per the provisions of Section 209 of ________, all the company form of organization is legally required to follow the mercantile or accrual system of . Correct Answer The Companies Act, 1956 Your Answer The Companies Act, 1956 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 True/False Question Financial discloses the financial performance & financial statements of the business as a whole. Correct Answer True Your Answer True Select The Blank Question A standard that is never altered, after being established, is known as ________ standard. Correct Answer Ideal Your Answer Basic Select The Blank Question Copy of a firm's account in the bank's ledger is known as ________. Correct Answer Bank statement Your Answer Bank book Select The Blank Question Normally, the planning for dividend payments and interest payments is based on the ________ budget. Correct Answer Cash Your Answer Income

Showing posts with label Management -Set 5. Show all posts Showing posts with label Management -Set 5. Show all posts

Monday, 5 December 2011 Management -Set 5

Multiple Choice Multiple Answer Question Master budget provides a basis for computing effect of changes in :Correct Answer Production facilities , Product mix of the company , Sales volume Your Answer Production facilities , Product mix of the company , Sales volume True/False Question The bin card and stores ledger, being independent records, comparison of these two records should be avoided. Correct Answer False Your Answer False Multiple Choice Single Answer Question Material price variance for a job is Rs.800/- (Favourable). Actual quantity of material used is 100 kg where as the standard quantity of material is 120% of actual quantity. Actual price paid for the material is 80% of the standard price. Calculate material cost variance.

Correct Answer Rs.1,600/- (Favourable) Your Answer Rs.1,600/- (Favourable) True/False Question A very wide scope of Management is the limitation by itself. Correct Answer True Your Answer True Select The Blank Question The variance which denotes the variation in overhead recovery due to the budgeted quantity of products being greater or less than actual production, is known as ________ variance. Correct Answer Volume Your Answer Volume True/False Question The greater the volume of production, the greater is the unit cost of production. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question Financial ______________ Correct Answer Designed to supply information for internal/ external uses. , Deals with the transaction during specific period. , It is compulsory Your Answer Designed to supply information for internal/ external uses. , Deals with the transaction during specific period. , It is compulsory True/False Question The labour cost which can be identified with the individual cost centre is known as the Direct Labour Cost. Correct Answer True Your Answer True True/False Question Suspense account is closed automatically after rectification of all the errors. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question Management __________________. Correct Answer Designed particularly for internal use only. , Looks forward in estimating the future along with past period. , This furnishes the necessary information to management. Your Answer Designed particularly for internal use only. , Looks forward in estimating the future along with past period. , This furnishes the necessary information to management. 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 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 Multiple Choice Multiple Answer Question is the art of ______________,____________ and ____________ in a significant manner and in terms of money transactions and events which are of a financial character and interpreting the res Correct Answer Summarizing , Classifying , Recording Your Answer Summarizing , Classifying , Recording True/False Question Balance sheet indicates the financial status of the business at given period. Correct Answer True Your Answer True Match The Following Question Correct Answer Your Answer Liabilities All the amount owed by the business All the amount owed by the business Drawing Withdrawn for personal use Withdrawn for personal use 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 Select The Blank Question Excess direct labour wages will be disclosed by 'Direct labour ________ variance'. Correct Answer Rate Your Answer Usage Select The Blank Question Income Tax Act, recognize only one method of depreciation namely ________. Correct Answer Written down value method Your Answer Written down value method Multiple Choice Multiple Answer Question Features of convention of conservation are :Correct Answer Anticipates all future losses and expenses , Ignores all future incomes and profits, unless they are actually realized , Applicable to valuation of current assets Your Answer Anticipates all future losses and expenses , Ignores all future incomes and

profits, unless they are actually realized , Applicable to valuation of current assets Multiple Choice Single Answer Question Interest on bank loan, was paid till the quarter ending 30th September, 2003, Rs.36,000/-. Find the amount to be debited to the profit and loss account for the year ending on 31st March, 2004, assuming the loan is not yet repaid as on this date. Correct Answer Rs.72,000/Your Answer Rs.72,000/Multiple Choice Multiple Answer 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 Multiple Choice Multiple Answer Question While preparing sales budget the following factors must be considered :Correct Answer The number and types of products sold by the organization , Whether the organization's market share is increasing or decreasing? , Details of seasonal fluctuations in sales Your Answer The number and types of products sold by the organization , Whether the organization's market share is increasing or decreasing? , Details of seasonal fluctuations in sales Multiple Choice Single Answer Question Unearned commission of Rs.5,000/- needs to be recorded in the books of accounts. Find its correct impact. Correct Answer The asset side of the balance sheet will increase by Rs.5,000/Your Answer The asset side of the balance sheet will increase by Rs.5,000/Multiple Choice Single Answer Question Metal India Ltd. is holding two accounts, savings and current, with the Central Bank of India. On 31st January, 2004 his ledger shows the following balances : Savings account Rs.5,000/-; Current account Rs.2,250/- (overdraft). It is found that a deposit of Rs.1,500/- made into the savings account on 20th January, 2004 has been entered in the ledger in the of Current account. Find the correct ledger balances of savings and current accounts. Correct Answer Savings account-Rs.6,500/-, current account-Rs.3,750/- (overdraft) Your Answer Savings account-Rs.5,000/-, current account-Rs.3,750/- (overdraft Select The Blank 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 Multiple Choice Single Answer Question A worker completes a job in a certain number of hours. The standard time

allowed for the job is 10 hours, and the hourly rate of wages is Rs.10/-. The worker earns at 50% rate, a bonus of Rs.20/- under Halsey plan. Find out his total earnings under the Rowan plan. Correct Answer Rs.84/Your Answer Rs.70/Multiple Choice Single Answer Question Selecting an appropriate method of valuation of inventory is important because :Correct Answer It influences the figure of gross profit Your Answer It influences the figure of gross profit True/False Question Error of commission refer to a situation where a transaction is not recorded in the books of account. Correct Answer False Your Answer False True/False Question All costs are controllable. Correct Answer False Your Answer False True/False Question While passing the journal entry, it is of utmost importance to ensure that the total of amount debited is equal to the total of the amount credited. 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 Profitability statement & Balance-sheet 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 Multiple Choice Multiple Answer Question Features of convention of materiality are :Correct Answer Transactions having material impact on profitability should be considered , Insignificant transactions will be ignored Your Answer Transactions having material impact on profitability should be considered , Insignificant transactions will be ignored Multiple Choice Multiple Answer Question The various areas in which uniform costing can be adopted are :-

Correct Answer Valuation of inventories , Charging of depreciation , Apportionment of overheads Your Answer Valuation of inventories , Charging of depreciation , Apportionment of overheads Multiple Choice Multiple Answer Question Following are the examples of service cost centre :Correct Answer Stores department , Transport department , department Your Answer Stores department , Transport department , department True/False Question Receipts and payments method of cash budget is useful for preparing long term estimates. Correct Answer False Your Answer False Multiple Choice Single Answer Question The overheads of a machine shop X should be apportioned using which of the following basis? Correct Answer Machine hours Your Answer Machine hours Multiple Choice Single Answer Question P Ltd. produces a product having a monthly demand of 4,000 units. For every one unit of finished product one unit of a component X is required at purchase price of Rs.20/-. The ordering cost is Rs.120/- per order and the holding cost is 10% per annum. If the company places each order for 2,000 units due to financial constraints, what is the extra annual cost? Correct Answer Rs.80/Your Answer Rs.80/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 Multiple Choice Multiple Answer Question The disadvantages of time rate system are :Correct Answer Ignores the efficiency of workers , Higher labour cost , Lack of motivation to increase productivity Your Answer Ignores the efficiency of workers , Higher labour cost , Lack of motivation to increase productivity 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 Select The Blank Question ________ is an example of intangible asset. Correct Answer Goodwill Your Answer Goodwill True/False Question A business is an activity carried out with the intention of earning the profit. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question Select the transactions which can be entered in the Journal proper :Correct Answer Opening entries , Closing entries , Rectification entries Your Answer Opening entries , Closing entries , Rectification entries Multiple Choice Single Answer Question A firm has monthly fixed cost commitment of Rs.200,000/-. It is producing only one product which is sold at a price of Rs.80/- per unit. Per unit variable cost is Rs.50/-. Calculate annual break even point. Correct Answer 80,000 units Your Answer 80,000 units Select The Blank Question In case of seasonal industry, the budget period may be taken as ________. Correct Answer One season Your Answer One season Select The Blank Question The process of attributing proportions of items of costs amongst cost centres is called ________. Correct Answer Cost apportionment Your Answer Cost apportionment Multiple Choice Single Answer Question Which system can assist in fixing a common selling price for the industry as a whole on the basis of cost of production of all units belonging to that industry? Correct Answer Uniform costing Your Answer Uniform costing Select The Blank Question Angle formed by the intersection of total cost line and sales line is called angle of ________.

Correct Answer Incidence Your Answer Incidence

Showing posts with label Management -Set 6. Show all posts Showing posts with label Management -Set 6. Show all posts

Saturday, 22 December 2012 Management -Set 6

True/False Question Revenue expenditure indicates the amount of funds spent during a certain period with the intention to receive the returns in future. Correct Answer False Your Answer True Multiple Choice Multiple Answer 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 Delegation of authority to various managers , Inter-functional relationships of these managers , Functional responsibility of different functional managers 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 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 True/False Question is an art of recording, classifying & summarizing in a significant manner. Correct Answer True Your Answer True Multiple Choice Single Answer 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.24,050/- (Adverse) Select The Blank Question If the time booked as per the job cards is less than the attendance time it indicates ________ during which the worker has not done any work though he was present

in the factory. Correct Answer Idle time Your Answer Idle time Multiple Choice Single Answer Question The finance manager is responsible for which of the following budget? Correct Answer Cash budget Your Answer Cash budget True/False Question A business is an activity carried out with the intention of earning the profit. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question From the following transactions find the value of closing stock on 4/10/04, 7/10/04 and 12/10/04 using the simple average method of issue pricing. 1/10/04 Purchased 400 units @ Rs.5/-. 4/10/04 - Issued to production 120 units. 5/10/04 Purchased 200 units @ Rs.6/-. 7/10/04 - Issued to production 180 units. 11/10/04 Purchased 100 units @ Rs.7/-. 12/10/04 - Issued to production 160 units. Correct Answer 4/10/04 - 280 units @ Rs.1,400/- , 7/10/04 - 300 units @ Rs.1,610/- , 12/10/04 - 240 units @ Rs.1,350/Your Answer 12/10/04 - 240 units @ Rs.1,350/Select The Blank Question The final result disclosed by trading account is the ________ profit earned by the organization. Correct Answer Gross Your Answer Gross True/False Question While passing the journal entry, it is of utmost importance to ensure that the total of amount debited is equal to the total of the amount credited. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question Identify the variable expenses :Correct Answer Repairs of plant when it is undertaken by an outside agency , Carriage inward by hired carriers , Wages paid to casual workers Your Answer Repairs of plant when it is undertaken by an outside agency , Carriage inward by hired carriers , Wages paid to casual workers Multiple Choice Single Answer Question Presentation of information to enable managerial decision making is one of the objects of which of the following? Correct Answer Cost

Your Answer Cost Select The Blank Question If it is given that the office expenses account includes Rs.10,000/- for purchase of computer-table, the net profit will ________, after the necessary adjustment is done. Correct Answer Increase Your Answer Remain the same True/False Question Profitability statement indicates the amount of assets & liabilities. Correct Answer False Your Answer False 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 Multiple Choice Multiple Answer Question The selection of the supplier may depend upon the following aspects:Correct Answer Geographical location of the supplier , Price quoted by the supplier , Goodwill of the supplier Your Answer Geographical location of the supplier , Price quoted by the supplier , Goodwill of the supplier Select The Blank 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 Multiple Choice Single Answer Question Fixed deposit bearing interest @ 5.50%, for Rs.10,000/- was kept with Bank of India on 1st June, 2003, for a period of one year. The type of the fixed deposit is cumulative, i.e. interest shall be received only on maturity. What treatment should be given in the books of accounts on 31st March, 2004, the year ending date? Correct Answer An entry for Rs.458.34, debiting interest accrued but not due account should be passed Your Answer An entry for Rs.458.34, debiting interest accrued but not due account should be passed

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. , Considers standard price X actual quantity , Considers standard price X standard quantity 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 Process of analyzing & interpretation Process of analyzing & interpretation Profitability statement Indicates the amount of profit earned Indicates the amount of profit earned

True/False Question Balance sheet indicates the financial status of the business at given period. Correct Answer True Your Answer True Multiple Choice Single Answer Question Select the correct journal entry for the following transaction. "Received Rs.475/from M/s.Manohar & Co. in full settlement of Rs.500/-'. Correct Answer Cash account....Dr. Rs.475/- Discount account ...Dr. Rs.25/To M/s. Manohar & Co. A/c Cr. Rs.475/Your Answer Cash account....Dr. Rs.475/- Discount account ...Dr. Rs.25/To M/s. Manohar & Co. A/c Cr. Rs.475/True/False Question Balance sheet indicates the expenditure & income from the business. Correct Answer False Your Answer False Multiple Choice Single Answer Question At 60% capacity utilization the overhead recovery rate is Rs.35/- per unit. At 70% capacity the rate gets reduced to Rs.32/- per unit. What should be the recovery rate if the production attains 90% capacity utilization? Correct Answer Rs.28/- per unit Your Answer Rs.28/- per unit

Multiple Choice Single Answer Question 200 units of material were purchased from X @ Rs.5/- per unit and 300 units were purchased from Y @ Rs.6/- per unit. The organization follows FIFO system of pricing of issues and the above purchases have been recorded in stores ledger. 120 units have already been issued. 60 units received from X are defective and are therefore returned. Find the value of the material returned to X. Correct Answer Rs.300/Your Answer Rs.300/True/False Question It is said that the income statement represents wealth increase /decrease for the organization. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question When bank balance as per bank book is considered for preparing bank reconciliation statement, then following items need to be added :Correct Answer Cheques issued but not presented , Direct deposit made by customer , Wrong credits given by bank Your Answer Cheques issued but not presented , Direct deposit made by customer , Wrong credits given by bank Multiple Choice Single Answer Question Sita and Gita are partners of SGL & Co. As on 1st August, 2003 Sita's capital stood as Rs.10,000/- and Gita's capital as Rs.18,000/-. If interest on capital is to be provided @ 10% p.a., what should be the treatment of this interest in the profitability statement, assuming there were no additions to capital during this period? Correct Answer Profit and loss account should be debited with Rs.1,866.67 Your Answer Profit and loss account should be debited with Rs.1,866.67 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 net profit will decrease by Rs.6,300/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 Multiple Choice Multiple Answer

Question Labour turnover means :Correct Answer Influx and exit of employees , Quantitative measurement of instability of working force , Rate of change in the average working force Your Answer Influx and exit of employees , Quantitative measurement of instability of working force , Rate of change in the average working force Select The Blank Question One of the limitations of the budgetary control is that it ________. Correct Answer Is an expensive affair Your Answer Requires fixing of responsibilities Multiple Choice Multiple Answer Question The various areas in which uniform costing can be adopted are :Correct Answer Valuation of inventories , Charging of depreciation , Apportionment of overheads Your Answer Valuation of inventories , Charging of depreciation , Apportionment of overheads 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 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 run Match The Following Question Correct Answer Your Answer 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 < Overdraft as 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

Multiple Choice Single Answer Question Which of the following is usually prepared daily by employees for each job

worked on? Correct Answer Job card Your Answer Job card Multiple Choice Single Answer Question Benefits available from revenue expenditure are received in the :Correct Answer Same year Your Answer Same year 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 Select The Blank Question In order to rectify the totaling mistake, wherein the sales return ledger was undercast by Rs.2,000/-, the suspense account should be ________ with Rs.2,000/Correct Answer Credited Your Answer Adjusted True/False Question 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 Yield variance equal to zero indicates that the standard yield and actual yield are the same. Correct Answer True Your Answer True Select The Blank Question If the profit of Y Ltd. is Rs.10,000/- and its profit volume ratio is 10%, then its margin of safety will be Rs.________. Correct Answer 100,000/Your Answer 100,000/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 True/False

Question In marginal costing, decisions are guided by profit rather than contribution margin. Correct Answer False Your Answer False

Showing posts with label Management -Set 7. Show all posts Showing posts with label Management -Set 7. Show all posts

Saturday, 22 December 2012 Management -Set 7

Select The Blank Question 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 Multiple Choice Multiple Answer Question The main objectives of determining overhead rates are :Correct Answer Helps in immediate compilation of costs , Helps application of overhead on an equitable basis , Assists in calculating unit cost before starting production Your Answer Helps in immediate compilation of costs , Helps application of overhead on an equitable basis , Assists in calculating unit cost before starting production True/False Question Balance sheet indicates the financial status of the business at given period. Correct Answer True Your Answer True Select The Blank Question Entry for dishonour of cheque appears only in the pass book, this entry should be ________ in the bank book. Correct Answer Passed Your Answer Adjusted Select The Blank Question The capital intensive industry will have ________ angle of incidence. Correct Answer Higher Your Answer Higher Multiple Choice Single Answer Question Judge the following narrative according to the criteria given : There are many organizations whose sales fluctuate with fluctuations in the weather, viz. ice-cream, sweaters, etc. Correct Answer The statement and the reason are both incorrect Your Answer The statement and the reason are both correct Multiple Choice Multiple Answer

Question Management is concerned with the following activities :Correct Answer Decision making , Safeguarding assets , Planning and controlling activities Your Answer Decision making , Planning and controlling activities Multiple Choice Single Answer Question A company budgets for a production of 150,000 units. The variable cost per unit is Rs.14/- and fixed cost is Rs.2/- per unit. The company fixes its selling price to fetch a profit of 15% on total cost. What is the break even point for the company? Correct Answer 68,182 units Your Answer 68,182 units Multiple Choice Multiple Answer Question Plant and equipment can become a key factor in the following circumstances :Correct Answer Limited capacity due to lack of capital , Insufficient capacity due to shortage of space , Limited number of hours for which the plant can be used Your Answer Limited capacity due to lack of capital , Insufficient number of workers to work in the plant True/False Question One of the major drawback of the contribution approach to costing is that it ignores fixed cost. Correct Answer True Your Answer True True/False Question Under ABC analysis, category A represents items with high volumes. Correct Answer False Your Answer True Multiple Choice Multiple Answer 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 Packing material lying in stores but reserved for specific purposes , Availability of funds , Material in stores but reserved for specific purposes Multiple Choice Single Answer Question If the overhead expenditure to be absorbed in the foreman's salary, the most appropriate basis for absorption would be :Correct Answer Direct labour hours Your Answer Direct labour hours True/False Question In differential cost analysis, decisions are taken by comparing the incremental revenue with differential costs. Correct Answer True Your Answer True

Multiple Choice Multiple Answer Question Items credited to Trading Account are :Correct Answer Sales , Goods lost by fire , Closing stock Your Answer Sales , Goods lost by fire , Closing stock Multiple Choice Multiple Answer Question The objectives of cost are :Correct Answer Cost control , Ascertainment of cost of each product , Assist in managerial decision-making Your Answer Cost control , Ascertainment of cost of each product , Assist in managerial decision-making Multiple Choice Multiple Answer 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 Multiple Choice Single Answer Question At 60% capacity utilization the overhead recovery rate is Rs.35/- per unit. At 70% capacity the rate gets reduced to Rs.32/- per unit. What should be the recovery rate if the production attains 90% capacity utilization? Correct Answer Rs.28/- per unit Your Answer Rs.28/- per unit Multiple Choice Single Answer Question Based on the journal entry given, identify what transaction has taken place? Suresh Account.Dr. Rs.500 To Cash Account Rs.500 (Being paid to Kailash on behalf of creditor Suresh) Correct Answer Cash paid to Kailash should not be recovered from creditor Suresh Your Answer Cash paid to Kailash should be recovered from creditor Suresh Multiple Choice Single Answer Question Which of the following cost is also termed as Prime Cost ? Correct Answer Direct cost Your Answer Direct cost Multiple Choice Single Answer Question Where, in the final statements of accounts, should we disclose the closing balance of income received in advance? Correct Answer Balance sheet - on the liability side Your Answer Balance sheet - on the liability side True/False

Question Factory rent is a direct cost to the factory as a whole but indirect to the production departments. Correct Answer True Your Answer True True/False Question The greater the volume of production, the greater is the unit cost of production. Correct Answer False Your Answer False Multiple Choice Multiple Answer Question For the given transaction find the wrong entry that has been passed in the books of accounts, the correct entry that should have been passed and the rectification entry required to rectify the mistake. "On 1st September, 2004 the total of the previous month's wages was debited to 'Manufacturing Wages Account". During the previous month, a new machine was installed, and the firm's own employees had spent time thereon; the previous month's wages for all such employees amounted to :Correct Answer Machinery A/c. . . Dr. Rs.14,100/- To Manufacturing Wages A/c Rs.14,100/- , Machinery A/c . . . Dr. Rs.14,100/- To Cash A/c Rs.14,100/- , Rs.14,100/- To Cash A/c Rs.14,100/Your Answer Machinery A/c. . . Dr. Rs.14,100/- To Manufacturing Wages A/c Rs.14,100/- , Machinery A/c . . . Dr. Rs.14,100/- To Cash A/c Rs.14,100/True/False Question 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 Penalty paid for delay in payment to creditors represents uncontrollable cost. Correct Answer False Your Answer False Multiple Choice Multiple Answer Question The selection of the supplier may depend upon the following aspects:Correct Answer Geographical location of the supplier , Price quoted by the supplier , Goodwill of the supplier Your Answer Geographical location of the supplier , Price quoted by the supplier , Goodwill of the supplier Select The Blank Question ________ variance arises when the mix of materials used in the production is different from the predetermined standard mix of operation. Correct Answer Materials mix Your Answer Product mix

Select The Blank Question Expenditure on repairs may be ideally allocated on the basis of ________. Correct Answer Cost of repairs spread over the working life of the machine Your Answer Cost of repairs spread over the working life of the machine Multiple Choice Multiple Answer Question Cost control procedure deals with :Correct Answer Establishment of plans , Comparison of actual and planed performance , Computation of variance Your Answer Establishment of plans , Comparison of actual and planed performance , Computation of variance 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 Multiple Choice Single Answer Question Cash budget is extremely useful since it:Correct Answer Gives information about estimated cash inflows and outflows Your Answer Gives information about estimated cash inflows and outflows Select The Blank Question Accounts representing expenses will have ________ balance. Correct Answer Debit Your Answer Debit Match The Following Question Correct Answer Your Answer Operating income Cash Sales Cash Sales Non-Operating income Issue of shares Issue of shares Plan of investment in fixed assets Capital Expenditure Budget Capital Expenditure Budget Plan for surplus/shortage of cash Cash Budget Cash Budget

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

long term liabilities. Correct Answer True Your Answer True Select The Blank Question Warehousing cost is an item of ________. Correct Answer Distribution overheads Your Answer Distribution overheads Multiple Choice Single Answer Question Product costs under direct costing include:Correct Answer Prime cost and variable factory overheads Your Answer Prime cost only Select The Blank Question If the standard contribution is less than the actual contribution, then ________ variance arises. Correct Answer Favourable Your Answer Favourable Multiple Choice Multiple Answer Question The factors which influence the selection of the method for absorption of overheads are:Correct Answer Type of industry , Nature of products , Manufacturing process Your Answer Type of industry , Nature of products , Manufacturing process Multiple Choice Single Answer Question Currently Beta Ltd. is earning a contribution of Rs.80/- per unit and the variable cost is Rs.180/- per unit. Its fixed costs are Rs.200,000/-. Its existing sales are 5,000 units. The company has a proposal that the sales staff may be paid a commission of 10% of sales instead of fixed salaries totaling Rs.80,000/-. This action is expected to increase the sales by 10%. Compute the amount of profit assuming the proposal is accepted? Correct Answer Rs.177,000/Your Answer Rs.177,000/Select The Blank Question Fixed overhead volume variance = Expenditure variance + Capacity variance + ________ variance. Correct Answer Calendar Your Answer Productivity Select The Blank Question The ________ ledger carries the individual accounts, whereas the general ledger records the consolidated effect of the individual transactions. Correct Answer Control Your Answer Journal

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 Multiple Choice Single Answer Question Which of the following is most likely to be an allocated production overhead cost to the finishing cost centre? Correct Answer Salary of the finishing center's manager Your Answer Power used by machines of finishing centre Match The Following Question Correct Answer Your Answer Advantageously applicable in similar industries Scope of uniform costing Process of uniform costing Spirit of mutual trust Requisite for uniform costing Requisite for uniform costing Avoids cut throat competition Advantage of uniform costing Advantage of uniform costing Treatment given to research and development costs Fields covered by uniform costing Scope of uniform costing

True/False Question A business is an activity carried out with the intention of earning the profit. Correct Answer True Your Answer True

Showing posts with label Management -Set 8. Show all posts Showing posts with label Management -Set 8. Show all posts

Saturday, 22 December 2012 Management -Set 8

 True/False Question Financial statements can be presented in two forms i.e. profitability statement and balance sheet. Correct Answer True Your Answer True Match The Following Question Correct Answer Your Answer Advantageously applicable in similar industries Scope of uniform costing Scope of uniform costing

Spirit of mutual trust Requisite for uniform costing Requisite for uniform costing Avoids cut throat competition Advantage of uniform costing Advantage of uniform costing Treatment given to research and development costs Fields covered by uniform costing Fields covered by uniform costing

True/False Question refers to the process of analyzing & interpreting the information already recorded in the books of accounts. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question The productive causes of idle time are :Correct Answer Instructions are not clearly given , Power failures , Machine breakdown Your Answer Instructions are not clearly given , Power failures , Machine breakdown Multiple Choice Multiple Answer Question If the sales forecast is less than the past sales but the top management insists upon a certain amount of additional profits, then following steps can be taken to achieve the target profit :Correct Answer Increase the selling price , Reduce cost of sales , Increase the selling efforts Your Answer Increase the selling price , Reduce cost of sales , Increase the selling efforts True/False Question Cash account can have a credit balance. Correct Answer False Your Answer False Select The Blank Question A low margin of safety indicates ________ fixed overheads. Correct Answer Higher Your Answer Higher 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 attainment of the organizational goals 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 employees' efficiency Your Answer Employees try to increase productivity , Incentives are shared by all the employees , Augments employees' efficiency True/False Question Profitability statement indicates the amount of assets & liabilities. Correct Answer False Your Answer False True/False Question Balance sheet indicates the expenditure & income from the business. Correct Answer False Your Answer False True/False Question A business is an activity carried out with the intention of earning the profit. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question The net profit before certain adjustments was Rs.95,040/-. After giving due effects to the adjustments, the revised net profit (after considering the adjustments) is Rs.78,560/-. Select the adjustments which might have brought this change. Correct Answer Accrued commission income of Rs.32,960/- was not entered in the books , Rent for the month of March was payable and yet to be recorded Rs.19,280/- , Repairs expenditure to the extent of Rs.30,160/- was wrongly transferred to Machinery account Your Answer Accrued commission income of Rs.32,960/- was not entered in the books , Rent for the month of March was payable and yet to be recorded Rs.19,280/- , Repairs expenditure to the extent of Rs.30,160/- was wrongly transferred to Machinery account Match The Following Question Correct Answer Your Answer Operating income Cash Sales Cash Sales Non-Operating income Issue of shares Issue of shares Plan of investment in fixed assets Capital Expenditure Budget Capital Expenditure Budget Plan for surplus/shortage of cash Cash Budget Cash Budget

Multiple Choice Single Answer Question A producer has estimated annual requirement of a material as 72,000 units. Cost of placing an order has been worked out as Rs.50/- per order and annual storage cost per unit of material is Rs.5/-. Calculate total cost of holding the material. Correct Answer Rs.3,000/-

Your Answer Rs.3,000/Multiple Choice Single Answer Question The following figures relate to a company manufacturing a varied range of products : Year 2003 Total sales Rs.22,23,000/- and total cost Rs.19,83,600/-. Year 2004 : Total sales Rs.24,51,000/- and Total cost Rs.21,43,200/-. Assuming stability in prices, calculate the profit volume ratio :Correct Answer 0.3 Your Answer 0.3 Multiple Choice Single Answer Question Standard labour cost of producing 500 metre of cloth has been specified as 20 hours work by skilled workers @ Rs.15/- per hour and 30 hours work by unskilled workers @ Rs.10/- per hour. For producing 500 metre cloth they worked for 30 hours each they were paid at the rate of Rs.17/- per hour and Rs.10/- per hour, respectively. Calculate labour mix variance. Correct Answer Rs.30/- (Adverse) Your Answer Rs.60/- (Adverse) Multiple Choice Single Answer Question An important feature of cost is : Correct Answer Focuses attention on the profitability of each product and service. Your Answer Focuses attention on the profitability of each product and service. 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 Investments Select The Blank Question ________ system of wage payment is a combination of Halsey system and Gantt system. Correct Answer Diemer Your Answer Diemer Multiple Choice Single Answer Question 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, debiting interest accrued but not due account should be passed True/False

Question Balance sheet indicates the financial status of the business at given period. Correct Answer True Your Answer True 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 Supply of crude oil Multiple Choice Single Answer Question A producer has a policy of fixing selling price at two-and-a-half times the variable cost. He also wants to have a monthly break-even at sales of 20,000 units. Annual fixed cost is Rs.18,00,000/-. What is the selling price per unit of the product? Correct Answer Rs.12.50 Your Answer Rs.7.50 Select The Blank Question Depreciation is caused by use factor, obsolescence and ________. Correct Answer Time factor Your Answer Time factor True/False Question is an art of recording, classifying & summarizing in a significant manner. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question Features of convention of conservation are :Correct Answer Anticipates all future losses and expenses , Ignores all future incomes and profits, unless they are actually realized , Applicable to valuation of current assets Your Answer Anticipates all future losses and expenses , Ignores all future incomes and profits, unless they are actually realized , Applicable to valuation of current assets 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 Time rate system is suitable for workers of the maintenance department. Correct Answer True Your Answer True

Select The Blank Question Uniform costing is not a separate method of ________. Correct Answer Cost Your Answer Cost Select The Blank Question The expenses relating to maintenance and creation of demand for the product should be included in the ________budget. Correct Answer Selling expenses Your Answer Selling expenses True/False Question Overhead absorption rate will be different at different capacity levels. Correct Answer True Your Answer True Multiple Choice Multiple Answer 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 , Location Multiple Choice Single Answer Question Amit sold Goods to Atul for Rs. 50,000/- on cash & Rs. 50,000/- on credit basis. Amit allowed 10% discount for on the spot transaction. What is the amount that should be debited to the cash account? Correct Answer Rs.45,000/Your Answer Rs.45,000/Multiple Choice Single Answer Question Selecting an appropriate method of valuation of inventory is important because :Correct Answer It influences the figure of gross profit Your Answer It influences the figure of gross profit Select The Blank Question Furniture account will always have a ________ balance. Correct Answer Debit Your Answer Debit Multiple Choice Single Answer Question Select the correct journal entry for the following transaction. "Received Rs.475/from M/s.Manohar & Co. in full settlement of Rs.500/-'. Correct Answer Cash account....Dr. Rs.475/- Discount account ...Dr. Rs.25/To M/s. Manohar & Co. A/c Cr. Rs.475/Your Answer Cash account....Dr. Rs.475/- Discount account ...Dr. Rs.25/-

To M/s. Manohar & Co. A/c Cr. Rs.475/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 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 True/False Question The amount of profit which is retained by the organization is transferred to 'Reserves and Surplus' in the balance sheet. Correct Answer True Your Answer True Multiple Choice Single Answer Question Which document is a part of the perpetual inventory system? Correct Answer Bin card Your Answer Bin card Select The Blank Question ________ is any documentary evidence to justify that a particular transaction has taken place. Correct Answer Voucher Your Answer Voucher Select The Blank Question Marginal costing is also known as ________. Correct Answer Variable costing Your Answer Variable costing True/False Question Penalty paid for delay in payment to creditors represents uncontrollable cost. Correct Answer False Your Answer False Select The Blank Question Indirect Cost is termed as ________. Correct Answer Overhead Your Answer Overhead

Multiple Choice Multiple Answer 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 , No rivalry True/False Question Credit balance in interest account indicates income for the organization. Correct Answer True Your Answer True

Showing posts with label Management -Set 9. Show all posts Showing posts with label Management -Set 9. Show all posts

Saturday, 22 December 2012 Management -Set 9

Multiple Choice Single Answer Question Which of the following transactions fall within the definition of the 'standing instruction'? Correct Answer Club membership subscription Your Answer Club membership subscription Multiple Choice Single Answer Question In a certain factory, three products are made from different materials by similar process. For a typical period, production costs are as under : Product A : material used Rs.1,600/-; direct labour cost Rs.1,200/-; overheads Rs.800/-. Product B : material used Rs.2,000/-; direct labour cost Rs.1,000/-; overheads Rs.400/-. Product C : material used Rs.800/-; direct labour cost Rs.400/-; overheads Rs.160/-. What is the basis used for charging the overheads to these products? Correct Answer Percentage of direct material cost Your Answer Percentage of prime cost Multiple Choice Single Answer Question The statement, mainly applicable to company form of organization, which discloses the manner in which the profit after tax is distributed is known as: Correct Answer Profit & Loss Account Appropriation Account Your Answer Profit & Loss Account Appropriation Account True/False Question Deferred revenue expenditure written off account is a real account. Correct Answer False Your Answer False Multiple Choice Single Answer Question A company had incurred fixed expenses of Rs.225,000/- with sales of Rs.750,000/- and earned a profit of Rs.150,000/- during the first month. In the second month, it suffered a loss of Rs.75,000/-. You are required to calculate the margin of safety for

the first month. Correct Answer Rs.300,000/Your Answer Rs.300,000/True/False Question Budgetary control system provides a basis for establishment of the incentive systems. Correct Answer True Your Answer True True/False Question Management is the process of analysis and interpretation of financial data collected with help of financial and cost Correct Answer True Your Answer True Select The Blank Question The cash flow format is used for preparing the cash budget by the ________ method. Correct Answer Adjusted Profits/Losses Your Answer Receipts and Payments Multiple Choice Multiple Answer Question Select the steps to be followed while preparing bank reconciliation statement :Correct Answer Compare the transactions in the bank book and the pass book , Check the totals and the balancing of both the books , Confirm that the opening balances of both the books are tallying Your Answer Compare the transactions in the bank book and the pass book , Check the totals and the balancing of both the books , Confirm that the opening balances of both the books are tallying Multiple Choice Single Answer Question XYZ Ltd. is selling 50,000 units of a product at Rs.40/- per unit. Variable cost is Rs.25/- per unit and fixed cost is Rs.200,000/-. The producer can increase sales volume by 20% by reducing the price by 10%. Do you recommend reduction in price? What will be profit if this action in undertaken? Correct Answer No; Revised profit Rs.460,000/Your Answer No; Revised profit Rs.460,000/True/False Question GAIL having monopoly in the CNG (Compressed Natural Gas) market can implement the Uniform costing system. Correct Answer False Your Answer True Multiple Choice Single Answer Question The store-keeper should initiate action for the purchase of a material, when it

reaches its :Correct Answer Re-order level Your Answer Re-order level Multiple Choice Multiple Answer Question Cost control procedure deals with :Correct Answer Establishment of plans , Comparison of actual and planed performance , Computation of variance Your Answer Establishment of plans , Computation of profit , Comparison of actual and planed performance Multiple Choice Single Answer Question Unearned commission of Rs.5,000/- needs to be recorded in the books of accounts. Find its correct impact. Correct Answer The asset side of the balance sheet will increase by Rs.5,000/Your Answer The asset side of the balance sheet will increase by Rs.5,000/Multiple Choice Multiple Answer 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.13,250/- , Involves an error of principle , Involves an error of commission Multiple Choice Multiple Answer 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 Select The Blank Question The assets which are supposed to be used by the organization to do business, are known as ________assets. Correct Answer Fixed Your Answer Fixed 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

Select The Blank Question A trading concern will have only ________ overheads and selling overheads. Correct Answer Administration Your Answer Administration 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 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 Match The Following Question Correct Answer Your Answer Labour hour method of absorption of overheads Not affected by output related remuneration schemes Not affected by output related remuneration schemes Percentage of direct material cost methods of absorption of overheads Useful when prices of materials are fairly stable Useful when prices of materials are fairly stable Percentage of direct labour cost methods of absorption of overheads Useful when ratio of skilled and unskilled labour remains constant Useful when ratio of skilled and unskilled labour remains constant Percentage of prime cost methods of absorption of overheads Useful when there are no wide fluctuations in processing Useful when there are no wide fluctuations in processing

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 Multiple Choice Multiple Answer Question Ram and Laxman are partners of Kush & Bros. As on 1st April, 2003 Ram's capital is Rs.50,000/- and Laxman's capital is Rs.80,000/-. If interest on capital is to be provided @ 10% p.a., what will be the amount of capital of each of the partners as on 31st

March, 2004, assuming there were no additions during this period? Also, state the treatment of this item in the Profit and loss account. Correct Answer Ram's capital Rs.55,000/- , Laxman's capital Rs.88,000/- , Interest on capital should be debited to the Profit and loss account Your Answer Ram's capital Rs.55,000/- , Laxman's capital Rs.88,000/- , Interest on capital should be credited to the Profit and loss account Multiple Choice Multiple Answer Question Features of convention of consistency are :Correct Answer The policies and procedures should be followed consistently , Facilitates the comparison of financial statements , It facilitates comparison of financial statements on period-to-period basis Your Answer The policies and procedures should be followed consistently , Facilitates the comparison of financial statements , It facilitates comparison of financial statements on period-to-period basis Select The Blank Question Retirement from the service is an ________ cause of labour turnover. Correct Answer Unavoidable Your Answer Unavoidable Multiple Choice Single Answer Question Calculate the machine hour rate. The amount of overhead pertaining to June, 2004 to be apportioned is Rs.170,010/-. The machine cannot work without an operator. During the month June, 2004 the machine operator has been paid for 5,670 hours. Correct Answer Rs.29.98 Your Answer Rs.29.98 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 , Description of goods Select The Blank Question Non-trading income is disclosed on the credit side of ________ account. Correct Answer Profit and loss Your Answer Profit and loss appropriation True/False Question Depreciation can be defined as a permanent, continuous and gradual reduction in the book value of a fixed asset. Correct Answer True Your Answer True Multiple Choice Single Answer Question Which of the following is a valid classification of the salary paid to the foreman in charge of the packing department?

Correct Answer Direct product cost Your Answer Direct product cost 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 Select The Blank Question The capital intensive industry will have ________ angle of incidence. Correct Answer Higher Your Answer Higher Multiple Choice Multiple Answer 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. Multiple Choice Single Answer Question A lathe machine was purchased on 31st March, 2004 for Rs.65,000/-, however it was installed only on 5th April, 2004. The depreciation is charged @ 15% p.a.. Find the amount of depreciation charge for the said lathe machine for the year ended 31st March, 2004. Correct Answer Nil Your Answer Nil 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 The process of split into three steams i.e. financial, cost, management . Correct Answer True Your Answer True Multiple Choice Multiple Answer Question While preparing sales budget the following factors must be considered :Correct Answer The number and types of products sold by the organization , Whether the

organization's market share is increasing or decreasing? , Details of seasonal fluctuations in sales Your Answer The number and types of products sold by the organization , Whether the organization's market share is increasing or decreasing? , Details of seasonal fluctuations in sales True/False Question The actual loss incurred by a company, due to fire, is the extent of difference between the cost of goods destroyed and the amount of claim settled by the insurance company. Correct Answer True Your Answer True 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 Multiple Choice Multiple Answer Question The balance as per bank book as on 30th November, 2004 was Rs.6,500/- and the bank pass book balance as on the same date was Rs.8,015/-. Select the transactions representing the reasons for this difference. Correct Answer Cheques deposited but not cleared Rs.1,200/- , Unpresented cheques Rs.2,625/- , Bank interest not entered in the bank book Rs.90/Your Answer Cheques deposited but not cleared Rs.1,200/- , Unpresented cheques Rs.2,625/- , Bank interest not entered in the bank book Rs.90/Select The Blank Question As per the provisions of Section 209 of ________, all the company form of organization is legally required to follow the mercantile or accrual system of . Correct Answer The Companies Act, 1956 Your Answer The Companies Act, 1956 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 True/False Question Financial discloses the financial performance & financial statements of the business as a whole. Correct Answer True Your Answer True Select The Blank

Question A standard that is never altered, after being established, is known as ________ standard. Correct Answer Ideal Your Answer Basic Select The Blank Question Copy of a firm's account in the bank's ledger is known as ________. Correct Answer Bank statement Your Answer Bank book Select The Blank Question Normally, the planning for dividend payments and interest payments is based on the ________ budget. Correct Answer Cash Your Answer Income

Monday, June 8, 2009

Management - 10
LIST OF ATTEMPTED QUESTIONS AND ANSWERS 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 Multiple Choice Single Answer Question Compute fixed overheads calendar variance when fixed overhead volume variance is Rs.250/- (Favourable); fixed overheads efficiency variance is Rs.2,150/(Adverse) and fixed overheads capacity variance is Rs.800/-(Favourable). Correct Answer Rs.1,600/- (Favourable) Your Answer Rs.1,100/- (Favourable) Select The Blank Question The process of recording the business transactions in a defined set of records is referred to as ________. Correct Answer Balance sheet Your Answer Balance sheet True/False Question In the Error! Hyperlink reference not valid. account only credit entries relating to a particular account are posted. Correct Answer False Your Answer False

True/False Question Error of commission refer to a situation where a transaction is not recorded in the books of account. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question The selection of the supplier may depend upon the following aspects: Correct Answer Geographical location of the supplier , Price quoted by the supplier , Goodwill of the supplier Your Answer Geographical location of the supplier , Price quoted by the supplier , Goodwill of the supplier Multiple Choice Single Answer Question Which system involves adoption of same costing principles, practices and procedures by the individual firms of an industry ? Correct Answer Uniform costing Your Answer Uniform costing True/False Question Predetermined rate of absorption of overheads helps in quick preparation of Error! Hyperlink reference not valid. and quoting prices. Correct Answer True Your Answer False True/False Question Idle capacity and idle time mean one and the same thing. Correct Answer False Your Answer False Multiple Choice Multiple Answer 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 gross profit will increase by Rs.6,450/Select The Blank Question Payment by ________ method lowers the cost of production through their impact on fixed costs. Correct Answer Results Your Answer Time Multiple Choice Single Answer Question The overheads of a machine shop X should be apportioned using which of the

following basis? Correct Answer Machine hours Your Answer Direct labour cost Multiple Choice Multiple Answer Question Features of convention of conservation are . . . Correct Answer Anticipates all future losses and expenses , Ignores all future incomes and profits, unless they are actually realised , Applicable to valuation of current assets Your Answer Anticipates all future losses and expenses , Applicable to valuation of current assets , Applicable to valuation of non-current asset Multiple Choice Multiple Answer Question Merits of break even point analysis are as follows: Correct Answer Useful diagnostic tool. , Used for analysing the risk implication of alternative actions. , Used to graphically represent complicated data. Your Answer Useful diagnostic tool. , Used for analysing the risk implication of alternative actions. , Useful in the long run. True/False Question Narration must be mentioned in the ledger. Correct Answer False Your Answer True True/False Question The actual hours taken by the labour are compared with the standard hours allowed for output to find out the labour yield variance. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question The features of multiplicity of key factors are as follows : Correct Answer More than one key factors , Refers to a complex situation , Can be resolved by using linear programming technique Your Answer More than one key factors , Refers to a complex situation , Can be resolved by using linear programming technique Multiple Choice Single Answer Question Included in the Error! Hyperlink reference not valid. 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 decrease by Rs.6,300/Multiple Choice Multiple Answer Question Items credited to Error! Hyperlink reference not valid. Account are Correct Answer Gross profit , Commission received , Interested received

Your Answer Gross profit , Commission received , Interested received Multiple Choice Multiple Answer Question The production budget may be prepared in terms of : Correct Answer Units produced , Production cost , Material cost, labour cost and overheads Your Answer Units produced , Production cost , Material cost, selling cost and overheads 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 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 Select The Blank Question Profit volume ratio is also known as ________. Correct Answer Contribution to sales ratio Your Answer Sales to contribution ratio True/False Question Standard costing is always accompanied by a system of Error! Hyperlink reference not valid. but budgetary control may be operated in business where standard costing is impracticable. 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 Select The Blank Question Marginal costing is also known as ________. Correct Answer Variable costing Your Answer Variable costing 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 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/Multiple Choice Single Answer Question A worker 12 hours on a scheme of payment by results. His day rate is Rs.150/an hour, the material cost of the product is Rs.600/- and the overheads are recovered at 15% of the total direct wages. Calculate the factory cost of the product under the piece rate work plan. Correct Answer Rs.2,670/Your Answer Rs.2,850/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 Total contribution Total sales X Profit volume ratio Total contribution Variable cost per unit Selling price ( Actual sales - Break even sales) Margin of safety Margin of safety Select The Blank Question Preparation of direct material ________ budget is the responsibility of the Purchase manager. Correct Answer Purchase Your Answer Purchase True/False Question Uniform costing may lead to monopolistic conditions within the industry, prices may be raised and customers may suffer. Correct Answer True Your Answer False Select The Blank

Question ________ system of wage payment is a combination of Halsey system and Gantt system. Correct Answer Diemer Your Answer Barth premium Select The Blank Question The system which provides an opportunity to the small units to take advantage of the research work taken by the large scale units of the same industry is known as ________ system. Correct Answer Uniform costing Your Answer Uniform costing Multiple Choice Single Answer Question The credit side of the sales book was overcast by Rs.2,000/-. As a result of this rectification, what of the given impacts is likely to happen? Correct Answer The liability side of the balance sheet will increase by Rs.2,000/Your Answer The liability side of the balance sheet will increase by Rs.2,000/Select The Blank Question The method of overhead apportionment which considers both the material cost as well as the labour cost, is known as ________ method. Correct Answer Prime cost percentage rate Your Answer Prime cost percentage rate 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 Match The Following Question Correct Answer Your Answer Normal Standards Anticipated to be achieved in future Once established can never be altered Basic Standards Established for a longer period of time Anticipated to be achieved in the budget period Current Standards Established for a shorter period of time Anticipated to be unachievable in future Expected Standards Anticipated to be achieved in the budget period Established for a shorter period of time

Multiple Choice Single Answer Question The cost that indicates historical cost, which is incurred in past, is known as Correct Answer Sunk cost Your Answer Sunk cost Multiple Choice Multiple Answer Question Which of the following budgets may be termed as a long term budget? Correct Answer Capital expenditure budget , Research and Development expenditure budget , Budget of a transportation company Your Answer Capital expenditure budget , Research and Development expenditure budget , Budget of a transportation company Multiple Choice Single Answer Question If a predetermined overhead rate is not employed an the volume of production is increased over the level planned, the cost per unit would be expected to : Correct Answer Decrease for fixed costs and remain unchanged for variable costs Your Answer Remain unchanged for fixed costs and increase for variable costs Multiple Choice Single Answer Question If the overhead expenditure to be absorbed is the foreman's salary, the most appropriate basis for absorption would be : Correct Answer Direct labour hours Your Answer Weight of material Multiple Choice Single Answer Question Which system provides an opportunity to companies to adopt the one best method of cost Error! Hyperlink reference not valid. known to the industry ? Correct Answer Uniform costing Your Answer Job costing Select The Blank Question 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 Current liabilities True/False Question The bin card and stores ledger, being independent records, comparison of these two records should be avoided. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question . is the art where transactions are

Correct Answer Summarized , Classified , Recorded Your Answer Summarized , Classified , Recorded