Management Accounting - 3

LIST OF ATTEMPTED QUESTIONS AND ANSWERS


Match The Following
Question Correct Answer Your Answer
Accounting 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 ½ month , payment of wages for the month of February is
Correct Answer 4,200
Your Answer 4,000

Select The Blank
Question Management Accounting has a very ________ scope and it requires ________ organizational structure
Correct Answer wide
Your Answer wide
Correct Answer elaborate
Your Answer elaborate

True/False
Question Accounting 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 accounting split into three steams i.e. financial, cost, management accounting.
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 Accounting 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 Accounting 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 accounting, ________ and ________ are the other streams of accounting
Correct Answer Cost Accounting
Your Answer Cost Accounting
Correct Answer Management Accounting
Your Answer Management Accounting

True/False
Question A very wide scope of Management Accounting is the limitation by itself.
Correct Answer True
Your Answer True