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Saturday, June 20, 2009

Human Resource Management - 20

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

True/False
Question The data obtained through job analysis are recorded on what is known as job analysis sheet.
Correct Answer True
Your Answer True

Multiple Choice Single Answer
Question Which kind of literature identifies a number of systems & subsystems?
Correct Answer HRD
Your Answer HRD

Select The Blank
Question A fee market economy demands a transparent set of laws and________somthething that the archaic Indian judical system is ill-equipped tocope with
Correct Answer quick disposal of litigation
Your Answer a set of social security legislation

Multiple Choice Multiple Answer
Question Essentials of effective QC's :-
Correct Answer Prompt approval , Regular communication , Unconditional support
Your Answer Prompt approval , Regular communication , Unconditional support

Multiple Choice Multiple Answer
Question It is said that versality will be the key factor in determining employee value with following factors :
Correct Answer Technology , Leadership , Motivation
Your Answer Technology , Leadership , Motivation

True/False
Question The job falling under the same grade get different wage scale.
Correct Answer False
Your Answer True

Select The Blank
Question Under Voluntary retirement scheme income tax benefits for employees who have accepted the scheme are however , valid only for payouts of upto ________
Correct Answer Rs. 5 lakh
Your Answer Rs. 5 lakh

Multiple Choice Multiple Answer
Question Some questions that every corporation needs to address are as follows:-
Correct Answer How well are HR practices linked to business goals , Are good HR practices & HRD systems & processed being designed , Are the systems internally sound consistent & relevant
Your Answer How well are HR practices linked to business goals , Are good HR practices & HRD systems & processed being designed , Are the systems internally sound consistent & relevant

True/False
Question If the assessee is transferred after Feb. the immediate superior will complete the appraisal as at 31st Aug.
Correct Answer False
Your Answer True

Multiple Choice Single Answer
Question What is the programme of allowing flexibility in handling the type of work in various departments of the organisation in a systematic way be the employee during his tenure of employment in an organisation?
Correct Answer Flexi work
Your Answer Flexitime

True/False
Question Through consumers participation in management, consumer will lose their rights through served technique
Correct Answer False
Your Answer False

Multiple Choice Multiple Answer
Question Performance counselling refers to the help provided by a manager to his subordinates, it attempts to help the employee in.-
Correct Answer Supportive atmosphere , Empethetic atmosphere , Setting goals
Your Answer Supportive atmosphere , Empethetic atmosphere , Setting goals

True/False
Question Monitoring and Follow-up follows the distribution of questionnaires to all assessors.
Correct Answer True
Your Answer True

Select The Blank
Question In a re-engineering programme, when a process changes so does the ________ of the concerned employee.
Correct Answer job profile
Your Answer job profile

Multiple Choice Single Answer
Question Under the pre-Interview preparation it is useful to note the key points
Correct Answer Paper
Your Answer Paper

Multiple Choice Single Answer
Question Which system emphasis a lot on the need to motivate people
Correct Answer Human Resourse Development
Your Answer Human Resourse Development

Select The Blank
Question The whole process of conducting a 360 - Degree Feedback process in any Organisation could last about ________.
Correct Answer One & half to about 3 months
Your Answer One & half to about 3 months

Select The Blank
Question ________ is the example of the balanced score card applications in some companies.
Correct Answer AT & T
Your Answer AT & T

Select The Blank
Question A strong ________ can have a lasting effect and provide sustenance to an organisation.
Correct Answer Culture
Your Answer Vision

Multiple Choice Multiple Answer
Question Within the establishment stage of the career development cycle, what are very important occasions for a young employee?
Correct Answer The first promotion , Successfully completed asignment , The first performance appraisal
Your Answer The first promotion , Successfully completed asignment , The first performance appraisal

Select The Blank
Question ________ is known not to hold overly one-sided views.
Correct Answer Judgement
Your Answer Judgement

Select The Blank
Question ________ phase involves generating confidence in the employee to open up and frankly share his perceptions, feeling etc.
Correct Answer Rapport building
Your Answer Rapport building

Match The Following
Question Correct Answer Your Answer

Group goals Vs. Organisational goals Course organisational Politics Course organisational Politics

Better decisions about people based on improved information system HRA benefits HRA benefits

Standard cost method value of human resources for accounting purposes value of human resources for accounting purposes

It is "endomic to every organisation regadless of size, funtion or character of wonership Organisational politidering HRA model


Multiple Choice Single Answer
Question The Main contribution of HRD audit is to focus on
Correct Answer Value-adding HRD
Your Answer Value-function HRD

Select The Blank
Question The ________ provide resources to approved employment schemes in the organised & marginised sectors
Correct Answer Employment Generation Fund
Your Answer National Renewal Grant Fund

Multiple Choice Single Answer
Question Traditionally, human resources has been perceived as,
Correct Answer Bureacratic
Your Answer Lazziz-faire

Multiple Choice Multiple Answer
Question How can the limitations/ misgivings of management participation in employees organisations be overcome ?
Correct Answer by gaining the confidence of union leaders from the initail stages , managements should educate the members about the concept & value in strenghening union functioning , minimising misunderstandings
Your Answer by gaining the confidence of union leaders from the initail stages , managements should educate the members about the concept & value in strenghening union functioning , minimising misunderstandings

Select The Blank
Question Federation & union at all levels are managed on the lines of management of ________
Correct Answer A political body
Your Answer A social organisation

Multiple Choice Single Answer
Question HR managers to gurantee their viability need to think themselves as -
Correct Answer Strategic partners
Your Answer Strategic partners

Multiple Choice Multiple Answer
Question What are the general characteristics of a Technical - functional competence?
Correct Answer Primary interest in functional work , They would like to remain expert rather than become general managers , They consider managerial and administrative responsibilities as avoidable irritants
Your Answer Primary interest in functional work , They would like to remain expert rather than become general managers , They consider managerial and administrative responsibilities as avoidable irritants

Multiple Choice Single Answer
Question Which practices are service related and human resources related?
Correct Answer Organisational
Your Answer Organisational

True/False
Question Organizations gear most of their management succession activities to the immediate past.
Correct Answer False
Your Answer False

Multiple Choice Multiple Answer
Question Name the three performance counselling phase.-
Correct Answer Rapport building , Exploration , Action Planning
Your Answer Rapport building , Exploration , Action Planning

Select The Blank
Question In the interview method of training-need identification interviews must clearly distinguish between immediate training needs to improve present performance & ________.
Correct Answer Development needs for growth
Your Answer Development needs for growth

True/False
Question HRD should be series of adhoc decisions and practices.
Correct Answer False
Your Answer False

True/False
Question Increased acceptance of feedback appraisal system is that as large no. of managers work with wide range of other people, it becomes difficult for a single manager to accurately assess their contribution.
Correct Answer True
Your Answer True

Multiple Choice Single Answer
Question In the stage of career development cycle which out of the following approach should be adopted to bridge the gap? Alternatives for the training should include a -
Correct Answer "Swim or Sink approach"
Your Answer Job rotation

Multiple Choice Multiple Answer
Question In an interview Method of Training Need identification, what do the Questions asked need to outline?
Correct Answer Inputs expected from the Training Department , To prove weakness & strengths of individuals , Opportunities available to overcome such weaknesses.
Your Answer Inputs expected from the Training Department , To prove weakness & strengths of individuals , Opportunities available to overcome such weaknesses.

Multiple Choice Single Answer
Question Accounting is a management science group, what are the managers perceived as,
Correct Answer Decision-maker
Your Answer Decision-maker

Match The Following
Question Correct Answer Your Answer

Continued self development A leadership quality A leadership quality

"Working on your liabilities" Life long mission Life long mission

Assignment to some important task force or committee Offsetting Plateauing effect Officiating Assignment

Need-opportunity Alignment Crucial role played by HRD Success formula


Multiple Choice Multiple Answer
Question Name the internal operational measures dealing with how well HR practices are designed and delivered:
Correct Answer Cycle time, quality & cost of HR practices , The ratio of HR enpenses , The ratio of HR professionals to employee population.
Your Answer Cycle time, quality & cost of HR practices , The ratio of HR enpenses , The ratio of HR professionals to employee population.

Multiple Choice Multiple Answer
Question Under HRD, name the factors that act as motivating forces
Correct Answer Job enrichment , Informal organisation , Participative management
Your Answer Job enrichment , Informal organisation , Participative management

True/False
Question The reviewer has the prime role of recording major appraisal details.
Correct Answer False
Your Answer False

True/False
Question Trade union is a group of two people who come to strengthen their bargaining position.
Correct Answer False
Your Answer True

Multiple Choice Multiple Answer
Question Member ship of the nation wide consumer councils (as formed by the Government) would comprise representative of
Correct Answer various ministeries , manufactures of commerce , cost account & Consumer
Your Answer employess organisations , manufactures of commerce , cost account & Consumer

Multiple Choice Single Answer
Question Participation of management' representatives in the trade unions meetings particularly at the time of industrial dispute help both the parties -
Correct Answer To exchange their contradictory views
Your Answer To exchange their contradictory views

Multiple Choice Single Answer
Question What is it that Moon-lighting by employees, if extensively part taken, affect Human Resource Manager in the future adversely?
Correct Answer Disharmony in individual & organisational goal balance.
Your Answer Disharmony in individual & organisational goal balance.

Human Resource Management - 19

LIST OF ATTEMPTED QUESTIONS AND ANSWERS


Multiple Choice Multiple Answer
Question The components of a compensation system includes :
Correct Answer Job Evaluation , Job Description , Job Analysis
Your Answer Job Evaluation , Job Description , Job Analysis


True/False
Question The first HRD department in the Indian corporate sector was started in 1975 in Larsen & Toubro (L & T).
Correct Answer True
Your Answer True


Select The Blank
Question A paper prepared by Mr. P Chidambaram, titled Indian subsidies reveals that in order to cleen its fiscal dificult ina few year, India needs to out down about 50% of subsidies in ________ goods since it yields only 10% returns
Correct Answer Non-merit
Your Answer Non-merit


Select The Blank
Question The factors coming under Discipline & Attendance are Time keeping and ________.
Correct Answer Obedience
Your Answer Obedience


Multiple Choice Single Answer
Question What is the general principle (as per P.A.S policy of premier) of Assessment Routes?
Correct Answer 2nd Assessor-superior of first assessor, 2nd Assessor- superior of the 1st assessor
Your Answer 1st Assessor-immediate superior, 2nd Assessor HR manager


True/False
Question It can be enagued that globalization has reduced poverty in India and China, home to move that half a billion of the world's poor income group
Correct Answer True
Your Answer True


Select The Blank
Question ________ means providing the employee with necessary tools & authority to overcome obstacles to achieving goals.
Correct Answer Employee empowerment
Your Answer Employee empowerment


Multiple Choice Single Answer
Question What is the primary objective behind SSL?
Correct Answer To not only measure training supervisors by comparing their performance with that of several thousand supervisors in other Cos.
Your Answer To objectively measure training needs


Multiple Choice Single Answer
Question Who is the person who should always remain away from Doppelganger effect.
Correct Answer Chief Executive
Your Answer Chief Executive


Multiple Choice Single Answer
Question What is one of the major reasons for a perceived rise in number of moon - lights in the coming future?
Correct Answer Change in values & expectations.
Your Answer A change in standard of living


Multiple Choice Multiple Answer
Question Why do most companies want HRD audit?
Correct Answer Change of Leadership , To make HR function business-driven , For growth & diversification
Your Answer Change of Leadership , To make HR function business-driven , For growth & diversification


Select The Blank
Question ________ are those who provide competitive advantage to corporations.
Correct Answer People
Your Answer Managers


Multiple Choice Multiple Answer
Question What are the factors that warrant the attention for successful implementation?
Correct Answer Feedback management , Action planning , Reinforcement of new behaviour
Your Answer Feedback management , Action planning , Feedback analysis


True/False
Question The functioning of federations and unions has its impact on human resources management of varios industries & organisation
Correct Answer True
Your Answer True


Multiple Choice Single Answer
Question The role of which manager must parallel the needs of his changing organisation.
Correct Answer HR
Your Answer HR


Multiple Choice Single Answer
Question What is the long form of CII?
Correct Answer Confederation of Indian Industry
Your Answer Confederation of Indian Industry


Multiple Choice Single Answer
Question Name one of the components / elements of the flow of decisions in the Management quadrant :
Correct Answer Sound Industrial relations
Your Answer Sound Industrial relations


True/False
Question It is not necessary that the subordinate should feel free to participate without fear in the process of review & feedback.
Correct Answer False
Your Answer False


Select The Blank
Question Most HRD audit are due to failures of ________.
Correct Answer Implementation
Your Answer Implementation


Select The Blank
Question Under Voluntary retirement scheme income tax benefits for employees who have accepted the scheme are however , valid only for payouts of upto ________
Correct Answer Rs. 5 lakh
Your Answer Rs. 3 lakh


Multiple Choice Single Answer
Question The liberalization swept through the nation bringing in a new era which compelled Indian business to value up from shumber & reassess its assumption. The characterstics were that of
Correct Answer a complete or perish situation
Your Answer an open economy


Multiple Choice Multiple Answer
Question Name the two facters which lead people to work:
Correct Answer Economic , Motivation
Your Answer Economic , Motivation


Select The Blank
Question For closure , if there is no response ( from government ) within ________ permission is deemed to have been granted
Correct Answer 60
Your Answer 90


Select The Blank
Question ________ system stresses on discipline and there is simplicity in the form.
Correct Answer Merit rating
Your Answer Rating scale


True/False
Question The individual with a deep speed insight will not go quickly to the least of a problem.
Correct Answer False
Your Answer True


True/False
Question An employee who is categorised as Dead wood is one who has absolutely no potential for growth & should be included in a rationalization programme.
Correct Answer False
Your Answer False


Multiple Choice Multiple Answer
Question Some organisations have successfully experimented with foreign assignment in the career path model. What are the benefits of this form of assignment?
Correct Answer The individual is tested in an alien environment , He is trained to see the business in a globle context , Lack of opportunity in our country dosen't come in the way of career progression
Your Answer The individual is tested in an alien environment , He is trained to see the business in a globle context , Lack of opportunity in our country dosen't come in the way of career progression


Select The Blank
Question HRD ________ is in methodology of evaluating various elements of HRD .
Correct Answer Audit
Your Answer Audit


Multiple Choice Single Answer
Question The first HRD department in the Indian corporate sector was started in which year?
Correct Answer 1975
Your Answer 1975


Multiple Choice Multiple Answer
Question what are the common objections against the treatment of people as assets in a HRM system
Correct Answer There is no assurance of future benefits , people are not owened by the organisation , it may not be recognised by tax laws
Your Answer There is no assurance of future benefits , it does not recognise the human side human side to mgmt side to side to mgt of human resources , people are not owened by the organisation


Select The Blank
Question Employer has to pay ________ of the basic wages to the employees during the lay off period
Correct Answer 0.5
Your Answer 0.5


Multiple Choice Multiple Answer
Question Name the three important components in aligning business strategy with HR practice:
Correct Answer Business Strategy , Human Resource Practices , Organisational Capabilities
Your Answer Business Strategy , Organisational Strategy , Human Resource Practices


True/False
Question Employees feel frustrated due to low specialisation in the work
Correct Answer True
Your Answer True


Multiple Choice Single Answer
Question Under the pre-Interview preparation it is useful to note the key points
Correct Answer Paper
Your Answer Paper


Select The Blank
Question The link between sense of reality and ________ is important for proper understanding of the definition of sense of reality
Correct Answer imagination
Your Answer vision


Multiple Choice Single Answer
Question Five main phases make up the process of the feedback exercise, name the PHASE 4-
Correct Answer Data feeding Reports & Analysis
Your Answer Data feeding Reports & Analysis


Multiple Choice Multiple Answer
Question What are the major advantages of a Generic Benchmarking Technique?
Correct Answer It is readily transferable , New practices, earlier implemented in an entire industry can be brought in, giving an organisation an edge over its rivals. , Proven systems can be implemented with minimal modification
Your Answer It is readily transferable , New practices, earlier implemented in an entire industry can be brought in, giving an organisation an edge over its rivals. , Proven systems can be implemented with minimal modification


Multiple Choice Single Answer
Question What is it that Union leader usually do to gain the confidence of its member?
Correct Answer Win something in grievance procedure
Your Answer Challenge management


Match The Following
Question Correct Answer Your Answer

Knowledge of the subject hand work & a sincere approach requisites for consumersim one of the roles of the advisory committee

To divert manufacturing activities from urban to rural areas one of the roles of the consumer councial a much neglected sphere of the market

The mechanism of price fixation a much neglected sphere of the market one of the roles of the consumer councial

These are not the days of indvidualism & unorganisation unionsim unionsim



True/False
Question Objective of performance appraisal system is to identify the developmental needs of each employee.
Correct Answer True
Your Answer True


Multiple Choice Multiple Answer
Question What were the unmet deliveriables of the economic refructing or what were its put falls?
Correct Answer unmet social objectives , status of small-scale industries , advantage MNC's had over their Indian compethtions
Your Answer unmet social objectives , reliance on agriculture , status of small-scale industries


True/False
Question The process of 360 Degree appraisal is broken into two stages - planning, implementation.
Correct Answer False
Your Answer False


True/False
Question Organisations should pay for the value of the job but not for the value of the person.
Correct Answer False
Your Answer True


Multiple Choice Multiple Answer
Question Experience has shown HRD audit has tremendous impact on business in areas like:
Correct Answer strategic Planning , role clarity , Streamlining practices
Your Answer strategic Planning , role clarity , Streamlining practices


Multiple Choice Multiple Answer
Question In order to attain the support of Line Managers many organisations have formulated Training Committees or Management Development Committee, membership consists of -
Correct Answer Mostly of Line Managers , The Chief Executive or a very senior managers take up the role of Chairman , Training Managers is the member-Secretary in such committee.
Your Answer Supervisory staff for their effective participation in management. , Mostly of Line Managers , The Chief Executive or a very senior managers take up the role of Chairman


Multiple Choice Multiple Answer
Question Succession planning is done in three time frames, those are-
Correct Answer Immediate , Intermediate , Long range
Your Answer Immediate , Intermediate , Long range

Monday, June 8, 2009

Management Accounting - 10

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

True/False
Question Purchased goods by paying Rs.35,000/-: In this case, the cash account should be debited.
Correct Answer True
Your Answer False

Multiple Choice Single Answer
Question Compute fixed overheads calendar variance when fixed overhead volume variance is Rs.250/- (Favourable); fixed overheads efficiency variance is Rs.2,150/- (Adverse) and fixed overheads capacity variance is Rs.800/-(Favourable).
Correct Answer Rs.1,600/- (Favourable)
Your Answer Rs.1,100/- (Favourable)

Select The Blank
Question The process of recording the business transactions in a defined set of records is referred to as ________.
Correct Answer Balance sheet
Your Answer Balance sheet

True/False
Question In the ledger account only credit entries relating to a particular account are posted.
Correct Answer False
Your Answer False

True/False
Question Error of commission refer to a situation where a transaction is not recorded in the books of account.
Correct Answer False
Your Answer True

Multiple Choice Multiple Answer
Question The selection of the supplier may depend upon the following aspects:
Correct Answer Geographical location of the supplier , Price quoted by the supplier , Goodwill of the supplier
Your Answer Geographical location of the supplier , Price quoted by the supplier , Goodwill of the supplier

Multiple Choice Single Answer
Question Which system involves adoption of same costing principles, practices and procedures by the individual firms of an industry ?
Correct Answer Uniform costing
Your Answer Uniform costing

True/False
Question Predetermined rate of absorption of overheads helps in quick preparation of cost estimates and quoting prices.
Correct Answer True
Your Answer False

True/False
Question Idle capacity and idle time mean one and the same thing.
Correct Answer False
Your Answer False

Multiple Choice Multiple Answer
Question Purchased goods worth Rs.6,450/- on 10th March, 2004. However the goods were delivered directly to the plant situated at Nagar and hence this transaction was not recorded in the purchase book, which is maintained at the corporate office. Analyse the impact of this transaction.
Correct Answer The gross profit will increase by Rs.6,450/-
Your Answer The gross profit will increase by Rs.6,450/-

Select The Blank
Question Payment by ________ method lowers the cost of production through their impact on fixed costs.
Correct Answer Results
Your Answer Time

Multiple Choice Single Answer
Question The overheads of a machine shop X should be apportioned using which of the following basis?
Correct Answer Machine hours
Your Answer Direct labour cost

Multiple Choice Multiple Answer
Question Features of convention of conservation are . . .
Correct Answer Anticipates all future losses and expenses , Ignores all future incomes and profits, unless they are actually realised , Applicable to valuation of current assets
Your Answer Anticipates all future losses and expenses , Applicable to valuation of current assets , Applicable to valuation of non-current asset

Multiple Choice Multiple Answer
Question Merits of break even point analysis are as follows:
Correct Answer Useful diagnostic tool. , Used for analysing the risk implication of alternative actions. , Used to graphically represent complicated data.
Your Answer Useful diagnostic tool. , Used for analysing the risk implication of alternative actions. , Useful in the long run.

True/False
Question Narration must be mentioned in the ledger.
Correct Answer False
Your Answer True

True/False
Question The actual hours taken by the labour are compared with the standard hours allowed for output to find out the labour yield variance.
Correct Answer True
Your Answer True

Multiple Choice Multiple Answer
Question The features of multiplicity of key factors are as follows :
Correct Answer More than one key factors , Refers to a complex situation , Can be resolved by using linear programming technique
Your Answer More than one key factors , Refers to a complex situation , Can be resolved by using linear programming technique

Multiple Choice Single Answer
Question Included in the trial balance is the sales promotion suspense account with a debit balance of Rs.6,300/-. It is given that this balance should be written off. Calculate its impact on profit of the company.
Correct Answer The net profit will decrease by Rs.6,300/-
Your Answer The gross profit will decrease by Rs.6,300/-

Multiple Choice Multiple Answer
Question Items credited to Profit & Loss Account are…
Correct Answer Gross profit , Commission received , Interested received
Your Answer Gross profit , Commission received , Interested received

Multiple Choice Multiple Answer
Question The production budget may be prepared in terms of :
Correct Answer Units produced , Production cost , Material cost, labour cost and overheads
Your Answer Units produced , Production cost , Material cost, selling cost and overheads

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

Select The Blank
Question Goods returned to the suppliers from whom it was ________d is recorded in thePurchasereturn register.
Correct Answer Purchase
Your Answer Purchase

Select The Blank
Question Profit volume ratio is also known as ________.
Correct Answer Contribution to sales ratio
Your Answer Sales to contribution ratio

True/False
Question Standard costing is always accompanied by a system of budgeting but budgetary control may be operated in business where standard costing is impracticable.
Correct Answer True
Your Answer True

Select The Blank
Question Crane expenses should be apportioned on the basis of ________.
Correct Answer Number of hours crane worked in the department
Your Answer Number of hours crane worked in the department

Select The Blank
Question Marginal costing is also known as ________.
Correct Answer Variable costing
Your Answer Variable costing

Multiple Choice Multiple Answer
Question Select the examples of functional budgets:
Correct Answer Sales budget , Production budget , Research and development budget
Your Answer Sales budget , Production budget , Research and development budget

Multiple Choice Single Answer
Question A firm has purchased a plant to manufacture a new product, the cost data for which is given below : Estimated annual sales 24,000 units. Estimated costs : Materials Rs.4/- per unit; labour Re.0.60 per unit; overheads Rs.24,000/- per year; administrative expenses Rs.28,800/- per year and selling expenses are 15% of sales; Calculate the selling price per unit if profit per unit is Rs.1.02.
Correct Answer Rs.9.20/-
Your Answer Rs.7.74/-

Multiple Choice Single Answer
Question A worker 12 hours on a scheme of payment by results. His day rate is Rs.150/- an hour, the material cost of the product is Rs.600/- and the overheads are recovered at 15% of the total direct wages. Calculate the factory cost of the product under the piece rate work plan.
Correct Answer Rs.2,670/-
Your Answer Rs.2,850/-

Match The Following
Question Correct Answer Your Answer

Change in profit/ Change in activity level Profit volume ratio Profit volume ratio

Change in total cost/ Change in activity level Variable cost per unit Total contribution

Total sales X Profit volume ratio Total contribution Variable cost per unit

Selling price ( Actual sales - Break even sales) Margin of safety Margin of safety


Select The Blank
Question Preparation of direct material ________ budget is the responsibility of the Purchase manager.
Correct Answer Purchase
Your Answer Purchase

True/False
Question Uniform costing may lead to monopolistic conditions within the industry, prices may be raised and customers may suffer.
Correct Answer True
Your Answer False

Select The Blank
Question ________ system of wage payment is a combination of Halsey system and Gantt system.
Correct Answer Diemer
Your Answer Barth premium

Select The Blank
Question The system which provides an opportunity to the small units to take advantage of the research work taken by the large scale units of the same industry is known as ________ system.
Correct Answer Uniform costing
Your Answer Uniform costing

Multiple Choice Single Answer
Question The credit side of the sales book was overcast by Rs.2,000/-. As a result of this rectification, what of the given impacts is likely to happen?
Correct Answer The liability side of the balance sheet will increase by Rs.2,000/-
Your Answer The liability side of the balance sheet will increase by Rs.2,000/-

Select The Blank
Question The method of overhead apportionment which considers both the material cost as well as the labour cost, is known as ________ method.
Correct Answer Prime cost percentage rate
Your Answer Prime cost percentage rate

Multiple Choice Multiple Answer
Question The components of the selling and distribution cost budget are :
Correct Answer Distribution expenses , Publicity expenditure , Salary of sales-office workers
Your Answer Distribution expenses , Publicity expenditure , Salary of shop-floor workers

Match The Following
Question Correct Answer Your Answer

Normal Standards Anticipated to be achieved in future Once established can never be altered

Basic Standards Established for a longer period of time Anticipated to be achieved in the budget period

Current Standards Established for a shorter period of time Anticipated to be unachievable in future

Expected Standards Anticipated to be achieved in the budget period Established for a shorter period of time


Multiple Choice Single Answer
Question The cost that indicates historical cost, which is incurred in past, is known as
Correct Answer Sunk cost
Your Answer Sunk cost

Multiple Choice Multiple Answer
Question Which of the following budgets may be termed as a long term budget?
Correct Answer Capital expenditure budget , Research and Development expenditure budget , Budget of a transportation company
Your Answer Capital expenditure budget , Research and Development expenditure budget , Budget of a transportation company

Multiple Choice Single Answer
Question If a predetermined overhead rate is not employed an the volume of production is increased over the level planned, the cost per unit would be expected to :
Correct Answer Decrease for fixed costs and remain unchanged for variable costs
Your Answer Remain unchanged for fixed costs and increase for variable costs

Multiple Choice Single Answer
Question If the overhead expenditure to be absorbed is the foreman's salary, the most appropriate basis for absorption would be :
Correct Answer Direct labour hours
Your Answer Weight of material

Multiple Choice Single Answer
Question Which system provides an opportunity to companies to adopt the one best method of cost accounting system known to the industry ?
Correct Answer Uniform costing
Your Answer Job costing

Select The Blank
Question Loans which are borrowed from financial institutions are to be paid off in 8 years, should be disclosed as ________ in the balance sheet.
Correct Answer Long term liabilities
Your Answer Current liabilities

True/False
Question The bin card and stores ledger, being independent records, comparison of these two records should be avoided.
Correct Answer False
Your Answer True

Multiple Choice Multiple Answer
Question Accounting is the art where transactions are …
Correct Answer Summarized , Classified , Recorded
Your Answer Summarized , Classified , Recorded

Management Accounting - 9

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Multiple Choice Multiple Answer
Question The management of Horngreen Ltd. is deciding whether to continue working at loss or to temporarily shut down the factory. State the qualitative aspects that must be considered before arriving at a decision.
Correct Answer Loss of trained personnel , Loss of regular customers , Expenditure required to restart the factory
Your Answer Expenditure required to restart the factory

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.14,250/-, November- Rs.11,875/-

True/False
Question Maintenance Department is a service cost centre.
Correct Answer True
Your Answer True

Multiple Choice Multiple Answer
Question Ram and Laxman are partners of Kush & Bros. As on 1st April, 2003 Ram's capital is Rs.50,000/- and Laxman's capital is Rs.80,000/-. If interest on capital is to be provided @ 10% p.a., what will be amount of capital of each of the partners as on 31st March, 2004, assuming there were no additions during this period? Also, state the treatment of this item in the Profit and loss account.
Correct Answer Ram's capital Rs.55,000/- , Laxman's capital Rs.88,000/- , Interest on capital should be debited to the Profit and loss account
Your Answer Laxman's capital Rs.88,000/- , Interest on capital should be debited to the Profit and loss account

Multiple Choice Single Answer
Question Rs.2,650/- were paid to ABC Ltd. for maintenance of machine; which account should be debited for this transaction?
Correct Answer Maintenance of machine account
Your Answer ABC Ltd.'s Account

Match The Following
Question Correct Answer Your Answer

Advantageously applicable in similar industries Scope of uniform costing Fields covered by uniform costing

Spirit of mutual trust Requisite for uniform costing Disadvantage of uniform costing

Avoids cut throat competition Advantage of uniform costing Requisite for uniform costing

Treatment given to research and development costs Fields covered by uniform costing Advantage of uniform costing


Select The Blank
Question Under the AB________ analysis, nuts and bolts used as material will be classified as category C.
Correct Answer C
Your Answer C

Select The Blank
Question If overhead absorbed i.e. overheads charged to units during the period is more than the overhead incurred, it is said that the overheads are ________.
Correct Answer Over-absorbed
Your Answer True and fair

Multiple Choice Multiple Answer
Question Identify the causes due to which the cost of labour may be high:
Correct Answer Excess staffing , Lack of experienced and efficient personnel , High labour turnover
Your Answer Lack of experienced and efficient personnel , High labour turnover , No idle time

Multiple Choice Multiple Answer
Question Identify the fixed expenses from the following.
Correct Answer Rent and taxes of the factory , Wages paid to indirect workers like cleaners, helpers,etc. , Salary paid to factory supervisor
Your Answer Rent and taxes of the factory , Wages paid to indirect workers like cleaners, helpers,etc. , Salary paid to factory supervisor

Multiple Choice Multiple Answer
Question From the following, select intangible assets:
Correct Answer Goodwill , Patents , Trade Marks
Your Answer Goodwill , Patents , Trade Marks

True/False
Question According to Reducing Balance Method, the depreciation is provided at a predetermined percentage on the balance of cost of asset after deduction of the depreciation previously charged.
Correct Answer True
Your Answer False

Select The Blank
Question Average stock = ________ + (Order size / 2)
Correct Answer Safety stock
Your Answer Reorder level

True/False
Question High time wages means necessarily high cost of production.
Correct Answer False
Your Answer True

Multiple Choice Single Answer
Question The integrated form of all functional budgets is known as :
Correct Answer Master budget
Your Answer Master budget

Select The Blank
Question Marginal costing is also known as ________.
Correct Answer Variable costing
Your Answer Indirect costing

Multiple Choice Single Answer
Question Purchased 200 shares of Bharat Forge Ltd. for Rs.850/- per share, which account should be debited?
Correct Answer Investment account - Rs.170,000/-
Your Answer Investment account - Rs.170,000/-

Multiple Choice Single Answer
Question For a bought out material item the following are the relevant data : Ordering cost Rs.512/- per order; holding cost is 40%; cost per item Rs.100/- and annual demand 1,000 units. The Purchase manager places 5 orders of equal quantity in one year, in order to avail the discount of 5% on the cost of the item. Work out the total cost to the organisation due to his ordering policy for this item.
Correct Answer Rs.101,360/-
Your Answer Rs.101,360/-

True/False
Question Due to compensating errors the arithmetical accuracy of the trial balance is affected.
Correct Answer False
Your Answer False

Multiple Choice Single Answer
Question From the given information compute the total cost variance. Material cost variance -Rs.4,400/- (Favourable); labour cost variance -Rs.450/- (Adverse); fixed overhead cost variance -Rs.22,000/- (Adverse); variable overhead cost variance -Rs.6,000/- (adverse).
Correct Answer Rs.24,050/- (Adverse)
Your Answer Rs.32,850/- (Favourable)

Multiple Choice Single Answer
Question Advance tax account should appear in which of the final statement of accounts.
Correct Answer Asset side of the balance sheet
Your Answer Debit side of the profit and loss account

Match The Following
Question Correct Answer Your Answer

Operating income Cash Sales Cash Sales

Non-Operating income Issue of shares Issue of shares

Plan of investment in fixed assets Capital Expenditure Budget Cash Budget

Plan for surplus/shortage of cash Cash Budget Capital Expenditure Budget


Select The Blank
Question Furniture account will always have a ________ balance.
Correct Answer Debit
Your Answer Inflated

Select The Blank
Question Payment by ________ method lowers the cost of production through their impact on fixed costs.
Correct Answer Results
Your Answer Cash

Multiple Choice Multiple Answer
Question The objects of cost accountancy are . .
Correct Answer To ascertain cost and profitability , Cost Control , Presentation of Information
Your Answer To ascertain cost and profitability , Cost Control , To portray the financial status

Multiple Choice Multiple Answer
Question Select the various methods adopted for treatment of under or over absorbed overheads
Correct Answer Use of supplementary rates , Carrying over the amount to remaining period , Writing off to the Costing Profit and Loss Account
Your Answer Use of supplementary rates , Carrying over the amount to remaining period , Writing off to the Costing Profit and Loss Account

True/False
Question Absorption costing is more suitable for decision making than marginal costing
Correct Answer False
Your Answer True

Select The Blank
Question A low margin of safety indicates ________ fixed overheads.
Correct Answer higher
Your Answer higher

Multiple Choice Single Answer
Question Which of the following operations would normally be carried out first when preparing a master budget?
Correct Answer Determining the budget period
Your Answer Identifying the principal budget factor

True/False
Question Period cost is the cost assigned to the products.
Correct Answer False
Your Answer True

Select The Blank
Question Profit = Contribution per unit X ________.
Correct Answer Margin of safety (units)
Your Answer Sales (units)

Multiple Choice Multiple Answer
Question Which of the following aspects are mainly responsible for difficulty in application of Uniform costing system.
Correct Answer Capital investment , Plant size , Location
Your Answer Capital investment , Plant size , Loans taken

Select The Blank
Question As per the provisions of Section 209 of ________, all the company form of organisation is legally required to follow the mercantile or accrual system of accounting.
Correct Answer The Companies Act, 1956
Your Answer The Companies Act, 1956

Multiple Choice Single Answer
Question ABC Ltd. produces 10,000 units at 100% capacity utilization and its cost structure is as follows : Fixed cost Rs.50,000/-; variable costs Rs.30,000/- and semi-variable costs Rs.40,000/- (40% var
Correct Answer Rs.13.85
Your Answer Rs.11.85

Select The Blank
Question Loss of uninsured goods by fire was debited incorrectly to United India Assurance Company's account instead of debiting it to ________ account.
Correct Answer Goods lost by fire
Your Answer Goods lost by fire

Multiple Choice Multiple Answer
Question Management Accounting is…
Correct Answer Designed particularly for internal use , Helpful in estimating the future along with past period , Useful in furnishing the necessary information to the management
Your Answer Helpful in estimating the future along with past period , Useful in furnishing the necessary information to the management , A legal requirement.

Multiple Choice Multiple Answer
Question The disadvantages of supplementary overhead rates are:
Correct Answer It can be determined only after the end of the accounting period , Defeats the basic concept of normal cost , Involves lot of clerical activity
Your Answer Defeats the basic concept of normal cost , Involves lot of clerical activity , It can be determined only in the beginning of the accounting period

True/False
Question GAIL having monopoly in the CNG (Compressed Natural Gas) market can implement the Uniform costing system.
Correct Answer False
Your Answer True

True/False
Question One of the main objection to the contribution approach of costing is that it ignores fixed cost.
Correct Answer True
Your Answer False

Multiple Choice Multiple Answer
Question Pre-requisites of Uniform Costing are . . .
Correct Answer Spirit of mutual trust , Free Exchange of ideas , No rivalry
Your Answer Spirit of mutual trust , Free Exchange of ideas , Tendency of withholding information

Select The Blank
Question Uniform costing is not a separate method of ________.
Correct Answer cost accounting
Your Answer costing

Multiple Choice Single Answer
Question Tom company has sales of Rs.200,000/- with variable expenses of Rs.150,000/-, fixed expenses of Rs.60,000/-, and an operating loss of Rs.10,000/-. By how much would Tom have to increase its sales in order to achieve an operating income of 10% of sales?
Correct Answer Rs.200,000/-
Your Answer Rs.251,000/-

True/False
Question An entry in the stores ledger is required for transfer of material from one job to another in the same department.
Correct Answer False
Your Answer False

Multiple Choice Multiple Answer
Question For the month of November, a firm has budgeted sales of 20,000 units of X at a price of Rs.10/- and sale of 30,000 untis of Y at a price of Rs.6/- per unit. Actual sale during the month was 35,000 units of X at Rs.9/- per unit and 25,000 units of Y at Rs.8/- per unit. Calculate sales volume variance, sales mix variance and sales quantity variance.
Correct Answer Sales volume variance -Rs.120,000/- (Favourable) , Sales mix variance -Rs.44,000/- (Favourable) , Sales Quantity variance-Rs.76,000/- (Favourable)
Your Answer Sales volume variance -Rs.120,000/- (Favourable) , Sales mix variance -Rs.44,000/- (Favourable) , Sales Quantity variance-Rs.76,000/- (Favourable)

True/False
Question The purpose of the profit and loss account is to bring togethre information which relates to gross profit and the expenses for running the business.
Correct Answer True
Your Answer True

Multiple Choice Single Answer
Question A firm has purchased a plant to manufacture a new product, the cost data for which is given below : Estimated annual sales 24,000 units. Estimated costs : Materials Rs.4/- per unit; labour Re.0.60 per unit; overheads Rs.24,000/- per year; administrative expenses Rs.28,800/- per year and selling expenses are 15% of sales; Calculate the selling price per unit if profit per unit is Rs.1.02.
Correct Answer Rs.9.20/-
Your Answer Rs.7.74/-

Multiple Choice Single Answer
Question A company wishes to earn a 15% profit margin on selling price when quoting for a job. Which of the following is the profit margin of cost which will achieve the required profit margin ?
Correct Answer 0.1765
Your Answer 0.15

Management Accounting - 8

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

True/False
Question Purchased goods by paying Rs.35,000/-: In this case, the cash account should be debited.
Correct Answer True
Your Answer False

True/False
Question The rates at which the depreciation is to be calculated are specified in the Income Tax Act 1961 and The Companies Act, 1956.
Correct Answer True
Your Answer True

Select The Blank
Question The various contents of a uniform cost manual are organisation, cost accounting system and ________.
Correct Answer presentation of information
Your Answer organisation structure

True/False
Question It is said that marginal costs are used primarily in guiding decisions that are yet to be made.
Correct Answer True
Your Answer True

Multiple Choice Multiple Answer
Question Select the examples of functional budgets:
Correct Answer Sales budget , Production budget , Research and development budget
Your Answer Sales budget , Production budget , Capital expenditure budget

Multiple Choice Single Answer
Question A business's telephone bill should nromally be classified into which one of the following categories?
Correct Answer Semi-variable cost
Your Answer Variable cost

Match The Following
Question Correct Answer Your Answer

Closed the account with State Bank of India Henceforth, there shall be no difference in overdraft balances Henceforth, there shall be no difference in overdraft balances

Debit side of bank book is overcast Overdraft as per bank book < Overdraft as per pass book Overdraft as per bank book = Balanceas per pass book

Interest on debentures directly credited by bank Overdraft as per bank book > Overdraft as per pass book Overdraft as per bank book = Overdraft as per pass book

Received sanction for a loan of Rs.10 lakhs Overdraft as per bank book = Overdraft as per pass book Overdraft as per bank book < Overdraft as per pass book


Multiple Choice Single Answer
Question The total production cost for making 20,000 units was Rs.21,000/- and the total production cost for making 50,000 units was Rs.34,000/-. Once production exceeds 25,000 units, additional fixed costs of Rs.4,000/- are incurred. The full production cost per unit of making 30,000 units is:
Correct Answer Re.0.98
Your Answer Re.0.68

Select The Blank
Question The process of finding the reasons for the difference in the balance as per bank book and pass book is known as ________.
Correct Answer Reconciliation
Your Answer Reconciliation

Multiple Choice Multiple Answer
Question State the features of these transactions : (i) Commission paid Rs.250/- was posted twice to Commission account (ii) Rs.5,000/- representing goods sold to A, was posted to the credit to commission received account (iii) Sold machine for Rs.8000/-, was credited to Sales account.
Correct Answer The debit side of the trial balance will be in excess by Rs.250/- , Involves an error of principle , Involves an error of commission
Your Answer The debit side of the trial balance will be in excess by Rs.250/- , Involves an error of principle , Involves an error of commission

Multiple Choice Single Answer
Question It is difficult to apply Uniform costing system for an industry which has labour intensive companies as well as capital intensive companies, because :
Correct Answer The cost structure is different
Your Answer The cost structure is different

Multiple Choice Single Answer
Question Balance sheet is statement of
Correct Answer All Assets and Properties
Your Answer All Assets and Properties

Select The Blank
Question The closing stocks should ________ the cost of the goods which sent on approval basis.
Correct Answer Be increased by
Your Answer Not get affected by

True/False
Question Under the Rowan plan bonus is a fixed percentage.
Correct Answer False
Your Answer True

True/False
Question Idle time variance is always favourable.
Correct Answer False
Your Answer False

Multiple Choice Multiple Answer
Question Select the items which may be classified as selling and distribution overheads.
Correct Answer Delivery van expenses , Rent of finished goods warehouse , Sales research expenses
Your Answer Delivery van expenses , Rent of finished goods warehouse , Rent of raw material godown

Select The Blank
Question Information as to the cost and profit / loss associated with the firm's operations is provided to the ________ by Management accounting.
Correct Answer Management
Your Answer Cost

Multiple Choice Single Answer
Question Compute actual total cost based on the data given below: Total standard cost (standard material cost + standard labour cost) -Rs.19,633.33; labour rate variance-Rs.900/- (adverse); material price variance -Rs.90/- (Favourable); material yield variance -Rs.700/- (Favourable); labour yield variance -Rs.333.33 (Favourable).
Correct Answer Rs.19,410/-
Your Answer Rs.17,610/-

Multiple Choice Single Answer
Question The standard production for a particular work order is 20 units per day and piece rate wages is 60 paise per unit. Cost of material is 30 paise per unit. It is proposed to charge factory overheads equal to 100% of labour cost. Indicate the factory overhead per unit.
Correct Answer Rs.1.50/-
Your Answer Rs.1.30/-

Multiple Choice Multiple Answer
Question The suspense account has a debit balance of Rs.40,000/-. Select the transactions which are capable of nullifying this balance.
Correct Answer Conveyance expenses of Rs.25,000/- were posted on the wrong side of the account. , Purchased computer worth Rs.28,000/- was recorded in the ledger as , The total of the purchase book was cast short by Rs.44,000/-
Your Answer Free samples worth Rs.40,000/- distributed during the year were credited to sales account , Conveyance expenses of Rs.25,000/- were posted on the wrong side of the account. , Purchased computer worth Rs.28,000/- was recorded in the ledger as

Multiple Choice Single Answer
Question Panna Ltd. temporarily has excess production capacity. The idle plant facilties can be used to manufacture a low-margin item. The low-margin item should be produced if it can be sold for more than its:
Correct Answer Variable costs
Your Answer Variable costs

Select The Blank
Question Contribution represents pool of resources available for meeting all costs other than ________.
Correct Answer Variable costs
Your Answer Variable costs

Select The Blank
Question Goods returned to the suppliers from whom it was ________d is recorded in thePurchasereturn register.
Correct Answer Purchase
Your Answer Purchase

Multiple Choice Multiple Answer
Question From the available information calculate sales value variance and budgeted sales quantity of X.Actual sales of X -500 units; budgeted price per unit -Rs.12/-; actual price per unit-Rs.15/- and sales volume variance -Rs.1,200/- (Favourable).
Correct Answer Budgeted sales - 400 units , Sales value variance -Rs.2,700/- , The sales value variance is favourable
Your Answer The sales value variance is adverse

True/False
Question Depreciation, interest and property tax continue even when the operations are discontinued.
Correct Answer True
Your Answer True

Select The Blank
Question The balance of the suspense account will ________ after all the errors are
Correct Answer become zero
Your Answer become zero

Multiple Choice Multiple Answer
Question Management accounting is concerned with the following activities :
Correct Answer Decision making , Safeguarding assets , Planning and controlling activities
Your Answer Decision making , Planning and controlling activities

True/False
Question It is said that the income statement represents wealth increase /decrease for the organisation.
Correct Answer True
Your Answer False

Select The Blank
Question The difference between sales and prime cost is known as ________.
Correct Answer Gross Profit
Your Answer Gross Profit

Multiple Choice Multiple Answer
Question In which of the following situations, the flexible budget should be preferred?
Correct Answer Sales are too difficult to predict , Supply level of input cannot be predicted , Varying levels of production activity
Your Answer Sales are too difficult to predict , Supply level of input cannot be predicted , Varying levels of production activity

Multiple Choice Single Answer
Question Debtors as on 31st March, 2004 stood as Rs.75,400/-. Out of this amount, Rs.15,884/- is receivable from ABC & Co. Also, Rs.21,555/- included in the creditors, indicates amount due to ABC & Co. Total creditors as on 31st March, 2004 = Rs.88,466/-. Find the amount of debtors and creditors that should be disclosed in the balance sheet as on 31st March, 2004.
Correct Answer Debtors - Rs.59,516/-; Creditors - Rs.66,911/-
Your Answer Debtors - Rs.53,845/-; Creditors - Rs.72,582/-

Match The Following
Question Correct Answer Your Answer

Sunk Cost Historical Cost Historical Cost

Cost Centre Facilitate the fixation of responsibility Facilitate the fixation of responsibility

Cost Control Process of controlling costs of operations Process of controlling costs of operations

Differential Cost Increase or Decrease in cost Increase or Decrease in cost


Select The Blank
Question Cost volume profit analysis focuses attention on the ________ effect of a particular course of action.
Correct Answer short run
Your Answer short and long run

Multiple Choice Multiple Answer
Question The balance as per bank book as on 30th June, 2004 is Rs.10,298/- while the balance as per pass book as on the same date is Rs.10,123.60. Select the transactions representing the reasons for this difference.
Correct Answer Interest credited by bank, not entered in the bank book, Rs.125.60 , Cheques dishonoured not entered in the bank book Rs.200/- , Debit side of the cash book is overcast by Rs.100/-
Your Answer Interest credited by bank, not entered in the bank book, Rs.125.60

Multiple Choice Single Answer
Question Uniform costing system is useful in the following areas
Correct Answer Classification of cost accounts
Your Answer Preparing financial statements

True/False
Question Revenue expenditure indicates the amount of funds spent during a certain period with the intention to receive the returns in future.
Correct Answer False
Your Answer True

True/False
Question Price based on Uniform Costing may be taken to be reliable and representative of the whole industry.
Correct Answer True
Your Answer True

True/False
Question Cheque received from a client on 28th September, 2004 must be entered in the bank book only after it is credited in the pass book.
Correct Answer False
Your Answer False

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

Multiple Choice Multiple Answer
Question Purchased goods worth Rs.6,450/- on 10th March, 2004. However the goods were delivered directly to the plant situated at Nagar and hence this transaction was not recorded in the purchase book, which is maintained at the corporate office. Analyse the impact of this transaction.
Correct Answer The gross profit will increase by Rs.6,450/-
Your Answer The purhases will increase by Rs.6,450/- , The closing stock will increase by Rs.6,450/- , The gross profit will increase by Rs.6,450/-

Select The Blank
Question Carriage charges paid for a new machine purchased if debited to carriage account would affect the ________
Correct Answer Machinery A/c and carriage A/c
Your Answer Carriage A/c

Multiple Choice Multiple Answer
Question Different types of tenders are :
Correct Answer Singly tender , Open tender , Global tender
Your Answer Multiple tender , Open tender , Global tender

Multiple Choice Single Answer
Question Purchased 200 shares of Bharat Forge Ltd. for Rs.850/- per share, which account should be debited?
Correct Answer Investment account - Rs.170,000/-
Your Answer Investment account - Rs.170,000/-

Multiple Choice Single Answer
Question Basic objective of Uniform Costing is . . .
Correct Answer comparison
Your Answer To control cost

Multiple Choice Multiple Answer
Question Select the entries which need to be rectified
Correct Answer Purchase A/c ......... Dr. to Damodar's A/c (Being furniture purchased from Damodar) , Gopal's A/c ........... Dr. to cash A/c (Being entry for payment of railway freight for goods purchased) , Cash A/c ............Dr. to Suresh's A/c (Being cash received from Suresh for goods sold to him for)
Your Answer Gopal's A/c ........... Dr. to cash A/c (Being entry for payment of railway freight for goods purchased)

Multiple Choice Single Answer
Question A new computer worth Rs.35,000 was purchased on 18th June, 2003. The company has 10 such computers costing Rs.20,000/- each. The depreciation is charged @ 18% p.a. Find the depreciation on computers to be charged for the year.
Correct Answer Rs.40,953.70
Your Answer Rs.36,000/-

Select The Blank
Question The varinace that attempts to ascertain the effect of change in sales volume on the difference between actual and budgeted contribution is known as ________ variance.
Correct Answer Sales margin volume
Your Answer Sales margin yield

Wednesday, June 3, 2009

Management Accounting - 7

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LIST OF ATTEMPTED QUESTIONS AND ANSWERS


 True/False
  Question      Credit balances in all the Personal & Real accounts appear on asset side.
  Correct Answer        False
  Your Answer   False


 Multiple Choice Multiple Answer
  Question      Contents of Uniform Cost Manual are
  Correct Answer        Organization , Cost Accounting system , Presentation of information
  Your Answer   Organization , Cost Accounting system , Presentation of information


 Multiple Choice Multiple Answer
  Question      Uniform Costing Methods may be advantageously applied to . . .
  Correct Answer        Single organization having number of branches. , Number of companies in same industry , Similar Industries such as cotton, jute etc.
  Your Answer   Single organization having number of branches. , Number of companies in same industry , Similar Industries such as cotton, jute etc.


 True/False
  Question      1) Financial statements are basically in two forms i.e. profitability statement and balance sheet.
  Correct Answer        True
  Your Answer   True


 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


 True/False
  Question      Long term loan borrowed from financial institution comes under the heading of long term liabilities.
  Correct Answer        True
  Your Answer   True


 Match The Following
Question        Correct Answer  Your Answer

Book-Keeping    Books of Accounts       Books of Accounts

Financial statement     Profitability statement & Balance-sheet Profitability statement & Balance-sheet

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



 Multiple Choice Single Answer
  Question      Judge the statement according to the criteria given : ' The accounting period for XYZ Ltd. ends on 31st December, 2003. It is noted that office rent for the month of December, 2003 is paid on 15th January, 2004. "According to concept of matching expenses with the revenues, this expenditure should be recorded in the books of accounts in January,
  Correct Answer        The statement and its reason are both incorrect
  Your Answer   The statement is correct but its reason is incorrect


 Multiple Choice Multiple Answer
  Question      Features of money measurement concept are . . .
  Correct Answer        Only those transactions and facts are included expressed in terms of money are considered , Imposes severe restrictions on the kind of information available from financial statements , Works as a major drawback of financial accounting
  Your Answer   Only those transactions and facts are included expressed in terms of money are considered , Imposes severe restrictions on the kind of information available from financial statements , Works as a major drawback of financial accounting


 Multiple Choice Single Answer
  Question      The installation and operation of ___________ accounting requires a very elaborate organizational structure and large number of rules & regulations
  Correct Answer        Management
  Your Answer   Management


 Select The Blank
  Question      ________account can be defined as the record of all the transactions pertaining to a person, asset, liability income or expenditure which have taken place in a specified period.
  Correct Answer        Ledger
  Your Answer   Trading


 Match The Following
Question        Correct Answer  Your Answer

Sunk Cost       Historical Cost Historical Cost

Cost Centre     Facilitate the fixation of responsibility       Facilitate the fixation of responsibility

Cost Control    Process of controlling costs of operations      Process of controlling costs of operations

Differential Cost       Increase or Decrease in cost    Increase or Decrease in cost



 Multiple Choice Multiple Answer
  Question      Which of the following transactions should be excluded while preparing a cost sheet ?
  Correct Answer        Interest on loan , Bad debts , Expenses on criminal law suit
  Your Answer   Sale of scrap material , Interest on loan , Bad debts


 True/False
  Question      In a Balance-Sheet right hand side is referred as assets side and left hand side is referred as liabilities.
  Correct Answer        True
  Your Answer   True


 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   False


 True/False
  Question      Primary distribution is effected on the basis of service rendered to the service departments by the production departments.
  Correct Answer        False
  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 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


 True/False
  Question      Debit Note is an intimation sent to person dealing with the business that his account is being credited for the purpose indicated therein.
  Correct Answer        False
  Your Answer   True


 Multiple Choice Multiple Answer
  Question      Labour efficiency variance arises due to:
  Correct Answer        Inefficient supervisor , Poor working conditions , Use of sub-standard quality of material
  Your Answer   Inefficient supervisor , Poor working conditions , Use of sub-standard quality of material


 True/False
  Question      Financial Accounting discloses the financial performance & financial statements of the business as a whole.
  Correct Answer        True
  Your Answer   True


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


 Select The Blank
  Question      The indirect material cost, indirect labour cost and indirect expenses cost, collectively are termed as ________.
  Correct Answer        Overhead
  Your Answer   Overhead


 Select The Blank
  Question      A person in charge of a ________ may be held responsible for its proper functioning and cost control.
  Correct Answer        Cost centre
  Your Answer   Cost centre


 Multiple Choice Multiple Answer
  Question      The organization chart shows the following aspects :
  Correct Answer        Functional responsibility of different functional managers , Delegation of authority to various managers , Inter-functional relationships of these managers
  Your Answer   Functional responsibility of different functional managers , Delegation of authority to various managers , Inter-functional relationships of these managers


 True/False
  Question      Uniform costing system is a pre-requisite to an inter-firm comparison of firms belonging to the different industries.
  Correct Answer        False
  Your Answer   False


 True/False
  Question      P&L statement which is a period statement & relates to a certain period tells about results of operations.
  Correct Answer        True
  Your Answer   False


 Select The Blank
  Question      Depreciation charged on office furniture on straight line basis is an example of ________.
  Correct Answer        Administration overheads
  Your Answer   Administration overheads


 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


 Select The Blank
  Question      Information as to the cost and profit / loss associated with the firm's operations is provided to the ________ by Management accounting.
  Correct Answer        Management
  Your Answer   Management


 True/False
  Question      Danger level for inventory of materials means the safety stock of inventory.
  Correct Answer        False
  Your Answer   True


 True/False
  Question      The role of the budget committee may be taken as an advisory role to the Chief Executive.
  Correct Answer        True
  Your Answer   True


 Multiple Choice Multiple Answer
  Question      The main advantages of profit sharing are :
  Correct Answer        Employees try to increase productivity , Incentives are shared by all the employees , Augments emplyees' efficiency
  Your Answer   Employees try to increase productivity , Incentives are shared by all the employees , Augments emplyees' efficiency


 Select The Blank
  Question      ________ Accounting assists the management in establishing the plans to attain the economic objectives and take proper decisions for the attainment of its objectives.
  Correct Answer        Management
  Your Answer   Management


 Multiple Choice Multiple Answer
  Question      Which of the following is likely to be a contributory factor to the incidence of excess expenditure on material cost?
  Correct Answer        The level of control of the used of material in the production cycle , The incorrect choice of purchase order quantity , Failure to control the issue of materials from stores
  Your Answer   An increase in the maximum material inventory level , The incorrect choice of purchase order quantity , Failure to control the issue of materials from stores


 Multiple Choice Multiple Answer
  Question      Management accounting is concerned with the following activities :
  Correct Answer        Decision making , Safeguarding assets , Planning and controlling activities
  Your Answer   Decision making , Safeguarding assets , Planning and controlling activities


 Multiple Choice Multiple Answer
  Question      Features of double entry accounting system are . . .
  Correct Answer        Every business transaction has two elements , When business receives something, it has to pay something , Every debit has a corresponding credit
  Your Answer   Every business transaction has two elements , When business receives something, it has to pay something , Every debit has a corresponding credit


 Select The Blank
  Question      Under Differential Time Rate method payment is made at Rs. 1.40 per hour when the level of efficiency is between________.
  Correct Answer        90% to 100%
  Your Answer   90% to 100%


 True/False
  Question      Maintenance Department is a service cost centre.
  Correct Answer        True
  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


 Select The Blank
  Question      The difference between sales and cost of sales is termed as ________.
  Correct Answer        Net Profit
  Your Answer   Net Profit


 Select The Blank
  Question      The final result disclosed by trading account is the ________profit earned by the organization.
  Correct Answer        Gross
  Your Answer   Gross


 Multiple Choice Multiple Answer
  Question      Select the accounts to be disclosed on the liability side of the Balance sheet.
  Correct Answer        Loan , Outstanding expenses , Creditors
  Your Answer   Loan , Outstanding expenses , Creditors


 True/False
  Question      Penalty paid for delay in payment to creditors represents uncontrollable cost.
  Correct Answer        False
  Your Answer   False


 Multiple Choice Single Answer
  Question      Which document facilitates estimating material cost of a particular job, before completion of that job?
  Correct Answer        Bill of material
  Your Answer   Material requisition note


 Multiple Choice Single Answer
  Question      Purchases returns of Rs.18,000/- were wrongly transferred to the sales returns account. Calculate its impact on net profit.
  Correct Answer        The net profit will not be affected
  Your Answer   The net profit will not be affected


 Multiple Choice Single Answer
  Question      It is said that adoption of uniform costing creates customer confidence because . . .
  Correct Answer        Prices are reliable
  Your Answer   Prices are reliable


 Multiple Choice Single Answer
  Question      An order for goods worth Rs.18,000/- was placed on 25th March, 2004. The goods were received on 1st April, 2004. Calculate the impact of this transaction on the final statements of accounts for the year ended 31st March, 2004.
  Correct Answer        The net profit will not be affected
  Your Answer   The net profit will not be affected

Management Accounting - 6

LIST OF ATTEMPTED QUESTIONS AND ANSWERS


Select The Blank
Question Furniture account will always have a ________ balance.
Correct Answer Debit
Your Answer Nil


Multiple Choice Multiple Answer
Question Accounting is the art where transactions are …
Correct Answer Summarized , Classified , Recorded
Your Answer Summarized , Classified , Recorded


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 The ________ variance is the difference between the actual variable overhead incurred and the standard variable overhead charged to production.
Correct Answer Total variable overhead
Your Answer Total variable overhead


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


Select The Blank
Question The selection of ________ may depend upon the various factors like characteristics of the business organisation, tax considerations, statutory requirements etc.
Correct Answer Accounting period
Your Answer Accounting period


True/False
Question Standard costs are used for external reporting.
Correct Answer False
Your Answer False


True/False
Question It is said that the income statement represents wealth increase /decrease for the organisation.
Correct Answer True
Your Answer False


Multiple Choice Single Answer
Question Mr. Oak, materials manager, spends 40% time in the factory and the remaining in office. If his annual salary is Rs.500,000/-, what amount should be charged as office overheads ?
Correct Answer Rs.300,000/-
Your Answer Rs.200,000/-


Multiple Choice Multiple Answer
Question The factors to be considered while preparing the direct materials budget are :
Correct Answer Adequacy of material storing space , Availability of funds , Material in stores but reserved for specific purposes
Your Answer Adequacy of material storing space , Availability of funds , Material in stores but reserved for specific purposes


Multiple Choice Multiple Answer
Question In which of the following situations, the flexible budget should be preferred?
Correct Answer Sales are too difficult to predict , Supply level of input cannot be predicted , Varying levels of production activity
Your Answer Sales are too difficult to predict , Supply level of input cannot be predicted , Varying levels of production activity


Multiple Choice Multiple Answer
Question Techniques of management accounting include:
Correct Answer Marginal costing , Budgetary control , Standard costing
Your Answer Marginal costing , Cost control , Budgetary control , Standard costing


Match The Following
Question Correct Answer Your Answer

Profit and loss account Commission received Dividend paid

Manufacturing account Work in Progress Land & Building

Balance Sheet Land & Building Closing stock of finished goods

Trading account Closing stock of finished goods Work in Progress



True/False
Question While preparing the labour cost budget, factors such as overtime working or night shift working may be ignored.
Correct Answer False
Your Answer False


Multiple Choice Multiple Answer
Question If the sales forecast is less than the past sales but the top management insists upon a certain amount of additional profits, then following steps can be taken to achieve the target profit
Correct Answer Increase the selling price , Reduce cost of sales , Increase the selling efforts
Your Answer Increase the selling price , Increase the sales volume , Increase the selling efforts


Multiple Choice Multiple Answer
Question From the following, select intangible assets:
Correct Answer Goodwill , Patents , Trade Marks
Your Answer Patents , Trade Marks , Investments


True/False
Question Bank reconciliation statement must be prepared before the preparation of profit and loss account and balance sheet.
Correct Answer True
Your Answer False


Multiple Choice Single Answer
Question Find the budget which is inadequate as a cost control technique :
Correct Answer Fixed budget
Your Answer Fixed budget


True/False
Question Predetermined rate of absorption of overheads helps in quick preparation of cost estimates and quoting prices.
Correct Answer True
Your Answer True


Multiple Choice Single Answer
Question Net sales Rs,7,50,000/-, opening stock Rs.1,14,375/-, purchases Rs.483,375/- and closing stock Rs.1,47,750/-. Calculate the Gross Profit.
Correct Answer Rs.3,00,000/-
Your Answer Rs.3,00,000/-


Select The Blank
Question ________ is an example of intangible asset.
Correct Answer Goodwill
Your Answer Land


True/False
Question Accounting is an art of recording, classifying & summarizing in a significant manner.
Correct Answer True
Your Answer True


True/False
Question Goods sent to the customers on approval basis should be treated as sales.
Correct Answer False
Your Answer False


Multiple Choice Multiple Answer
Question Features of Sunk cost are . . .
Correct Answer Indicates historical cost , Not relevant in decision making process , Incurred in past
Your Answer Indicates historical cost , Incurred in past , Relevant in decision making process


True/False
Question Profitability statement indicates the amount of assets & liabilities.
Correct Answer False
Your Answer True


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 Multiple Answer
Question Identify the steps involved in selecting the optimum product mix, when the limiting factor is number of labour hours and sales demand.
Correct Answer For each product find the contribution per unit and per labour hour , Award ranks to each of the products based on contribution per limiting factor , Priority is given to fulfill the market demand of the product which gives maximum contribution per labour hour.
Your Answer For each product find the contribution per unit and per labour hour , Award ranks to each of the products based on contribution per limiting factor , Priority is given to fulfill the market demand of the product which gives maximum contribution per labour hour.


Multiple Choice Multiple Answer
Question Techniques of management accounting include:
Correct Answer Marginal costing , Budgetary control , Standard costing
Your Answer Marginal costing , Cost control , Budgetary control


True/False
Question The ideal budget period for a company engaged in generation and distribution of electricity is one year.
Correct Answer False
Your Answer False


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 According to Reducing Balance Method, the depreciation is provided at a predetermined percentage on the balance of cost of asset after deduction of the depreciation previously charged.
Correct Answer True
Your Answer True


Select The Blank
Question Crane expenses should be apportioned on the basis of ________.
Correct Answer Number of hours crane worked in the department
Your Answer Number of hours crane worked in the department


Multiple Choice Multiple Answer
Question Essentials for effective implementation of budgetary control system are
Correct Answer Commitment of top management , Clearly defined objectives , Continous budget education
Your Answer Commitment of top management , Clearly defined objectives , Continous budget education


Multiple Choice Single Answer
Question Commission payable to General Manager is 10 % of the net profits. If the net profit before charging commission is Rs.29,200/-, then what will be the amount of his net profit after commission?
Correct Answer Rs.26,545.45
Your Answer Rs.29,200/-


Select The Blank
Question A forecast is mere estimate of what is likely to happen, but ________ is the action plan to be followed.
Correct Answer Budget
Your Answer Budget


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


Select The Blank
Question The combination in which different products are sold by a company is known as ________.
Correct Answer Sales mix
Your Answer Sales mix


Multiple Choice Single Answer
Question The reporting method used in the costing system should be based on the principle of
Correct Answer Management by exception
Your Answer Management by objectives


True/False
Question Balance sheet indicates the financial status of the business at given period.
Correct Answer True
Your Answer True


Multiple Choice Single Answer
Question The wages paid to maintenance department workers who do repair work principally for production departments but also on the vehicles in the distribuiton department shoud be charged as:
Correct Answer Service costs
Your Answer Service costs


Multiple Choice Single Answer
Question M/s Vivek Enterprises has paid rent relating to the residence of Mr. Vivek, proprietor of Vivek Enterprises. This payment should be treated as
Correct Answer Drawings
Your Answer Capital


Select The Blank
Question Measurement of ________ gives an idea of the degree of mobility of labour.
Correct Answer Labour turnover
Your Answer Labour turnover


Multiple Choice Single Answer
Question Net profit for the year before charging commission to the manager, is Rs.111,775/-. The manager of the company is entitled to commission @ 8% on net profits after charging commission. Find the amount of commission due to the manager.
Correct Answer Rs.8,279.63
Your Answer Rs.8,942/-


Match The Following
Question Correct Answer Your Answer

Total cost Cost of finished goods Cost of finished goods

Non operating income Profit on sale of investment Profit on sale of investment

Selling and distribution overheads Advertisement expenses Advertisement expenses

Factory overheads Repair for factory building Repair for factory building



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


Multiple Choice Single Answer
Question A company wishes to earn a 15% profit margin on selling price when quoting for a job. Which of the following is the profit margin of cost which will achieve the required profit margin ?
Correct Answer 0.1765
Your Answer 0.15


Select The Blank
Question Economical use of labour, materials and facilities can achieved with the help of ________.
Correct Answer Budgetary control
Your Answer Cost control

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