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

No comments:

Post a Comment