Management Accounting 2

True/False
Question Balance sheet indicates the expenditure & income from the
business.
Correct Answer False
Your Answer False

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 According to the standard costing principles, only adverse
variance must be further investigated.
Correct Answer False
Your Answer True

Select The Blank
Question Education facility to workers and their children, pension,
superannuation fund are examples of ________ incentives.
Correct Answer Non-monetary
Your Answer Motivational

Match The Following
Question Correct Answer Your Answer

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

True/False
Question The purchase account should be debited when an order is
placed with the supplier of material.
Correct Answer False
Your Answer False

Multiple Choice Single Answer
Question The purchase budget for October is Rs.12,500/- and
November is Rs.15,000/-. If the materials are purchased for cash the supplier
is offering a rebate of 5%. If the materials are purchased on credit of
30 days, no rebate is offered. The company purchase
Correct Answer October- NIL, November- Rs.26,750/-
Your Answer October- Rs.11,875/-, November- Rs.14,250/-

Select The Blank
Question The variance which measures the profit consequences of
selling different products in proportions other than the standard, is
known as ________ variance.
Correct Answer Sales margin mix
Your Answer Sales margin mix

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

Multiple Choice Multiple Answer
Question Select the non-monetary incentives
Correct Answer Health and safety services , Canteen facility ,
Loans at reduced rate of interest
Your Answer Health and safety services , Canteen facility

True/False
Question Control on purchase of material is exercised by the
storekeeper.
Correct Answer False
Your Answer False

Select The Blank
Question In practical circumstances, the ________ are referred to
as application of funds.
Correct Answer Assets
Your Answer Assets

Multiple Choice Single Answer
Question The composition of selling costs is given below : 1
salaries 4% of sales, travelling expenses 1.5% of sales, and sales office 2%
of sales. Find the amount of selling overheads if the sales are
Rs.120,000/-.
Correct Answer Rs.9,000/-
Your Answer Rs.9,000/-

Match The Following
Question Correct Answer Your Answer

Ledger Maintain all types of accounts List of all types of accounts

Audit Reviewing internal control system Reviewing internal control
system

Accounting Process of analyzing & interpretation Process of analyzing &
interpretation

Journal Book of original entry Book of original entry


Select The Blank
Question The document which lays down the cost accounting plans and
procedures to be followed by the constituent units is known as
________.
Correct Answer uniform cost manual
Your Answer uniform cost manual

Multiple Choice Multiple Answer
Question The characteristics of a good wage system are :
Correct Answer Flexible , Economical to use , Easy to understand
Your Answer Flexible , Economical to use , Easy to understand

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, crediting interest accrued but
not due account should be passed

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

True/False
Question Uniform Costing simplifies the work of wage boards of
fixing minimum wages and fair wages.
Correct Answer True
Your Answer True

Multiple Choice Multiple Answer
Question Marginal costing is found to be unsuccessful in the
following situations :-
Correct Answer Impossible to distinguish costs into fixed and
variable component. , With respect to capital intensive industries where
fixed costs are very large and hence cannot be ignored , With respect to
service industries where employee costs are very large and almost fixed
in nature
Your Answer Impossible to distinguish costs into fixed and variable
component. , With respect to service industries where employee costs
are very large and almost fixed in nature

True/False
Question Accounting refers to the process of analyzing &
interpreting the information already recorded in the books of accounts.
Correct Answer True
Your Answer True