Management Accounting 1

Select The Blank 

Question If the profit volume ratio is 25%, then the variable cost is equal to ________ of sales value.

Correct Answer 0.75 

Your Answer 0.75 

True/False 

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

Correct Answer False 

Your Answer False 

Multiple Choice Multiple Answer 

Question Direct Cost includes 

  Correct Answer Direct material , Direct labour , Direct expenses 

  Your Answer Direct material , Direct labour , Direct expenses 

  Multiple Choice Single Answer 

Question Which of the following costs is most likely to have a cost behaviour pattern described as ..a fixed cost upto an activity level of 1,000 units, with a variable cost there after which decreases from 10 paise to 8 paise per unit at 2,000 units? 

  Correct Answer Wages payment which is fixed for a minimum output quantity after which a bonus per unit is paid which reduces when activity level exceeds 1,000 units 

  Your Answer Material cost 12 paise per unit for the first 1,000 units followed by 10 paise per unit upto 2,000 units and 8 paise per unit thereafter. 

  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 In case of defective material being returned by the stores department to the vendor, such material should be valued at the________. 

  Correct Answer Purchase price 

  Your Answer Purchase price 

  True/False 

Question Piece rate system is suitable when quality of goods produced is of extreme importance.

  Correct Answer False 

  Your Answer False 

  True/False 

Question A firm earns profit when contribution is equal to fixed costs under variable costing. 

  Correct Answer False 

  Your Answer False 

  Select The Blank 

Question While preparing trial balance, the balance as per ________ book is considered as bank balance. 

  Correct Answer Bank 

  Your Answer Bank 

  Multiple Choice Single Answer 

Question Standard time required for a job is 10 hours, i.e.10 X 60 = 600 'Bs'. The worker has actually completed the job in 6 hours, i.e.6 X 60 = 360 'Bs'. Time wage rate is Rs.20/- per hour. Bonus is shared between the worker and the foreman in the ratio of 3:1. Calculate total earning of the worker as per Bedeaux Point System. 

  Correct Answer Rs.180/- 

  Your Answer Rs.180/- 

  Select The Blank 

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

Correct Answer Variable costs 

  Your Answer Variable costs 

  Multiple Choice Multiple Answer 

Question Locate the steps involved in rectifying the errors in the books of accounts 

  Correct Answer Find the wrong entry passed , Find the correct entry to be passed , Find the entry that will resolve the mistake in the books 

  Your Answer Find the wrong entry passed , Find the correct entry to be passed , Find the entry that will resolve the mistake in the books 

  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 

  Select The Blank Question Overheads chargeable to a product, using direct labour cost basis, may be calculated by multiplying percentage of direct labour cost and ________. 

  Correct Answer Direct labour cost of the product 

  Your Answer Number of labour hours worked 

  Multiple Choice Multiple Answer 

Question Causes for adverse material price variance are: 

  Correct Answer Uneconomical size of purchase orders , Failure to avail discounts allowed by suppliers. , Excessive freight charges 

  Your Answer Uneconomical size of purchase orders , Failure to avail discounts allowed by suppliers. , Excessive freight charges 

Multiple Choice Multiple Answer 

Question The objectives of Uniform costing system are as follows : 

  Correct Answer To fix a common selling price for the industry as a whole , To compare efficiency of each unit against industry's overall performance , To compile reliable cost data for inter-firm comparison of costs 

  Your Answer To fix a common selling price for the industry as a whole , To compare efficiency of each unit against industry's overall performance , To compile reliable cost data for inter-firm comparison of costs , To fix a common selling price so as to maximize profits of each 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 organisation 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 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 If the total manufacturing overhead of a tiles producing factory amounted to Rs.15 lakhs and the overhead rate was Rs.5/- per sq.ft, then the production for the period can be stated as ________ sq.ft. tiles. 

  Correct Answer 300000 

  Your Answer 300000 

  True/False 

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

  Correct Answer True 

  Your Answer False 

  True/False 

Question Profitability statement indicates the amount of assets & liabilities. 

  Correct Answer False 

  Your Answer False 

  True/False 

Question Category C items, as per the ABC analysis, usually refers to indirect material. 

  Correct Answer True 

  Your Answer True