Management Accounting - 13

Multiple Choice Multiple Answer
Question	Cost Accounting ______________.
Correct Answer	Concerned with specific activities. , Classified according to their nature. , It deals with both i.e. past & present.
Your Answer	Concerned with specific activities. , Classified according to their nature. , It covers whole business
Multiple Choice Multiple Answer
Question	Management Accounting __________________.
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. , Only a, b, c.
Multiple Choice Multiple Answer
Question	Accounting 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
Multiple Choice Multiple Answer
Question	The process of accounting has three streams of accounting ---------------,--------and ----------------------.
Correct Answer	Financial Accounting , Cost Accounting , Management Accounting
Your Answer	Financial Accounting , Cost Accounting , Management Accounting
Match The Following
Question Correct Answer Your Answer
Personal A/C Debit the receiver, Credit the giver Debit the receiver, Credit the giver
Real A/C Debit what comes in, Credit what goes out Debit what comes in, Credit what goes out
Nominal A/C Debit all the expenses, Credit all the incomes Debit all the expenses, Credit all the incomes
Tangible assets Building, Machinery Building, Machinery
In tangible assets Patents, Trade marks Patents, Trade marks
True/False
Question	Credit note is an intimation send to person dealing with the business that his account being debited for the purpose indicated therein.
Correct Answer	False
Your Answer	True
True/False
Question	Amount invested in purchasing Fixed Asset is a revenue expenditure.
Correct Answer	False
Your Answer	False
True/False
Question	As per double entry system o accounting , total of all debits should be equal to all credits.
Correct Answer	True
Your Answer	True
Multiple Choice Multiple Answer
Question	Convention of Consistency Materiality ________________
Correct Answer	The accounting policies & procedures should follow consistently on period to period , It facilitates the comparison of financial statements on period to period , If any change the fact should be disclosed with its effects on profitability
Your Answer	The accounting policies & procedures should follow consistently on period to period , It facilitates the comparison of financial statements on period to period , If any change the fact should be disclosed with its effects on profitability
Multiple Choice Multiple Answer
Question	Cash and---------------are the two systems of accounting.
Correct Answer	Mercantile
Your Answer	Mercantile
Multiple Choice Single Answer
Question	The opening balance of cash account is Rs. 25,000, cash received from debtors Rs. 30,000, sold goods amounted to Rs. 50,000, paid to creditors Rs. 20,000, purchase furniture Rs. 5000. What is the clos
Correct Answer	80,000
Your Answer	80,000
Multiple Choice Single Answer
Question	Bank Reconciliation statement is required in case of
Correct Answer	difference between the bank balance as per the bank book and as per pass book
Your Answer	difference between the bank balance as per the bank book and as per pass book
Match The Following
Question Correct Answer Your Answer
Error of Principle Trial Balance does not get affected Wrong Posting
Error of Omission The transaction is totally omitted The transaction is totally omitted
Error of commission Wrong Posting Wrong classification
Compensating Error Wrong classification Trial Balance does not get affected
Difference in trial balance Transferred to suspense account Transferred to suspense account
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	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
Multiple Choice Multiple Answer
Question	The Prime Cost includes the aggregate of
Correct Answer	Direct Material Cost , Direct Labour Cost , Direct Expenses
Your Answer	Direct Material Cost , Direct Labour Cost , Direct Expenses
Multiple Choice Multiple Answer
Question	From the following particulars what must appear in purchase requisition
Correct Answer	Material to be purchased should be cleanly specified , Material should purchase whenever the market for the same is favorable , Purchase requisition should state the quantity of material required.
Your Answer	Material to be purchased should be cleanly specified , Purchase requisition should state the quantity of material required.
Multiple Choice Multiple Answer
Question	Following points are taking into consideration for evaluation of receipts
Correct Answer	The Price , The trade discount is to be deducted , Other amounts such as sales tax, excise duty, octroi duty
Your Answer	The Price , The trade discount is to be deducted , Other amounts such as sales tax, excise duty, octroi duty
Multiple Choice Multiple Answer
Question	While fixing the maximum level following factors are considered
Correct Answer	Maximum usage , Storage facilities , Availability of funds
Your Answer	Maximum usage , Rate of consumption
True/False
Question	Fixed cost tends to vary with time rather than with level of activity.
Correct Answer	True
Your Answer	True
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
Multiple Choice Single Answer
Question	Find out the break even point and profit if sales are Rs. 50,00,000 and P/V Ratio is 50% and margin of safety is 40%
Correct Answer	Rs.30,00,000 and Rs.10,00,000
Your Answer	Rs.30,00,000 and Rs.10,00,000
True/False
Question	For better control, variances of a period may be compare with the previous period.
Correct Answer	True
Your Answer	True
True/False
Question	Expected standards are more realistic and useful for cost control.
Correct Answer	True
Your Answer	True
True/False
Question	The difference between standard cost and actual cost is termed as Variance.
Correct Answer	True
Your Answer	True
Multiple Choice Multiple Answer
Question	For reporting of variance, following propositions should be considered
Correct Answer	Responsibility of each individual should be defined , Reporting should be simple, clear and quick , Analysis of variance should be accurate.
Your Answer	Responsibility of each individual should be defined , Reporting should be simple, clear and quick , Analysis of variance should be accurate.
Multiple Choice Multiple Answer
Question	Basic three steps in Standard Costing are
Correct Answer	Setting standards , Comparing actuals with standards , Measurement of variance
Your Answer	Setting standards , Comparing actuals with standards , Measurement of variance
Multiple Choice Single Answer
Question	Find out Labour Efficiency Variance, if Standard Rate is Rs.1.50/- per hour, Standard hours are 12,000 and Actual hours are 12,600.
Correct Answer	Rs.900/- ( Adverse )
Your Answer	Rs.900/- ( Adverse )
Multiple Choice Single Answer
Question	Standard costs are the targets to be attained by the actual performance.
Correct Answer	Minimum
Your Answer	Minimum
Multiple Choice Single Answer
Question	Standard Costs are used as tool for
Correct Answer	Cost Control
Your Answer	Cost Control
Select The Blank
Question	Accounting to the matching principles of accounting, the ________ incurred during an accounting period are required to be match with ________ during that period
Correct Answer	cost
Your Answer	cost
Correct Answer	revenues
Your Answer	revenues
Select The Blank
Question	Along with financial accounting, ________ and ________ are the other streams of accounting
Correct Answer	Cost Accounting
Your Answer	Management Accounting
Correct Answer	Management Accounting
Your Answer	Cost Accounting
Select The Blank
Question	If the revenue expenditure is treated as ________ expenditure , it will not affect the agreement of ________ balance
Correct Answer	capital
Your Answer	capital
Correct Answer	trial
Your Answer	trial
Select The Blank
Question	While selecting source of supply ________ epartment may call for the ________ from the prospective suppliers
Correct Answer	purchase
Your Answer	purchase
Correct Answer	quotation
Your Answer	quotation
Select The Blank
Question	After material is received from the supplier, quantity actually received is compared with quantity ________-and ________-if any, are taken up with the supplier
Correct Answer	ordered
Your Answer	ordered
Correct Answer	variation
Your Answer	variation
Select The Blank
Question	Under the daily ________ sheets method, each worker is provided with a daily time sheet on which time ________ by him on various jobs is expected to be mentioned
Correct Answer	time
Your Answer	work
Correct Answer	spent
Your Answer	spent
Select The Blank
Question	4.Under the differential time rate method the wages are paid at Rs. 1.50 per hour between ________ efficiency and Rs.1.25 per hour between ________ efficiency
Correct Answer	101% to 125 %
Your Answer	90-100
Correct Answer	80% to90%
Your Answer	101% to 125 %
Select The Blank
Question	Under Gannt Task bonus system where the output is ________ payment is made as per minimum time rate, output is ________ payment is made as per time wages plus some increase in wage rates
Correct Answer	below standard
Your Answer	below standard
Correct Answer	at standard
Your Answer	at standard
Select The Blank
Question	________ and ________ are examples of element wise classification ofoverhead costs
Correct Answer	Idirect material
Your Answer	Idirect material
Correct Answer	indirect labour
Your Answer	selling overheads
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
Select The Blank
Question	The process of Allocation & apportionment can followed to decide the ________ of overheads to each budget center
Correct Answer	Allocation & apportionment
Your Answer	Distribution
Correct Answer	Loading
Your Answer