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Friday, August 28, 2009

Maintenance Management - 11

LIST OF ATTEMPTED QUESTIONS AND ANSWERS


Select The Blank
Question Lubrication is said to be the ________ system of equipment.
Correct Answer Nervous
Your Answer Nervous


True/False
Question Reports are of no use if no action is taken on them to
correct the deficiencies.
Correct Answer True
Your Answer True


Select The Blank
Question ________ are involved for moving of store items from store
to actual use place.
Correct Answer Handling expenses
Your Answer Handling expenses


True/False
Question Too may cooks spoil the broth.
Correct Answer True
Your Answer True


Multiple Choice Multiple Answer
Question Evaluation of maintenance function can be done by taking
following steps :-
Correct Answer Set the achievable targets for maintenance dept for
the expected performance , Check results against set targets , Find out
reasons for variance
Your Answer Set the achievable targets for maintenance dept for the
expected performance , Check results against set targets , Find out reasons
for variance


True/False
Question Operating information is all relevant data of system &
equipment.
Correct Answer False
Your Answer True


Multiple Choice Single Answer
Question How a molecule of fuel fragmented?
Correct Answer H+ and OH-
Your Answer H+ and OH-


True/False
Question The cost of the ordering can be also substantial in case of
large organizations.
Correct Answer True
Your Answer True


Multiple Choice Single Answer
Question During commissioning of the equipment it is necessary to
train the staff & workers can be done with help of :-
Correct Answer Commissioning manuals & equipment supplier technical
team.
Your Answer Commissioning manuals & equipment supplier technical team.


True/False
Question PERT is event oriented while CPM is activity oriented.
Correct Answer True
Your Answer True


Multiple Choice Single Answer
Question Who is supposed to develop a clear-cut policy on line of
authority?
Correct Answer Maintenance manager
Your Answer Team manager


Multiple Choice Single Answer
Question Identify the method for coding "MA" :-
Correct Answer Mnemonics method
Your Answer Alphanumerical coding


True/False
Question Experience shows that no matter how much money & time is
spent on preventive maintenance, the breakdown do occur.
Correct Answer True
Your Answer True


Multiple Choice Single Answer
Question What is the requirement of effective & timely maintenance?
Correct Answer Organizational Support
Your Answer Organizational Support


Multiple Choice Multiple Answer
Question The objective inventory control is :-
Correct Answer To reduce lead time , To reduce finance cost of
inventory , To reduce storage cost of material
Your Answer To reduce lead time , To reduce finance cost of inventory ,
To reduce storage cost of material


Multiple Choice Multiple Answer
Question What information is given in a manual of building?
Correct Answer Maintenance of building , Schedule of maintenance ,
Description of maintenance
Your Answer File maintenance , Maintenance of building , Schedule of
maintenance


Multiple Choice Multiple Answer
Question What are the factors on which electrical current severity
depends?
Correct Answer Time of passage of current , Magnitude of current ,
Path of current
Your Answer Metal used , Magnitude of current , Path of current


Multiple Choice Multiple Answer
Question Which are the major hazards which can occur in Industry?
Correct Answer Toxicity , Radioactivity , Poisons
Your Answer Toxicity , Radioactivity , Skin burning


Multiple Choice Multiple Answer
Question Development of subordinates broadly will depend on :-
Correct Answer The level of education , The level of personal skill
, The level of intelligence
Your Answer The level of education , The level of personal skill , The
level of intelligence


Multiple Choice Single Answer
Question On what basis success of inspection depends?
Correct Answer Dedication of Staff
Your Answer Dedication of Staff


Select The Blank
Question Quality should not be ________ at the cost of lower price.
Correct Answer Sacrificed
Your Answer Sacrificed


True/False
Question The steam trap plays a vital role in the performance of the
machine.
Correct Answer True
Your Answer True


Multiple Choice Multiple Answer
Question The role of maintenance manager in New project is :-
Correct Answer To study of vendor assistance proposal , Study of
operating & maintenance requirement , To study monitoring technique
Your Answer To study of vendor assistance proposal , Study of operating
& maintenance requirement , To study monitoring technique


Select The Blank
Question There are two types of fault diagnostic charts, ________ &
dependency chart.
Correct Answer Algorithm
Your Answer Algorithm


Multiple Choice Multiple Answer
Question Fire can be extinguished by?
Correct Answer Taking away heat , Stopping oxygen , Chemical
extinguishing
Your Answer Taking away heat , Stopping oxygen , Chemical extinguishing


Multiple Choice Single Answer
Question Which Network Analysis is used for Time saving in
overhauling?
Correct Answer CPM
Your Answer CPM


Select The Blank
Question The contract service is ________.
Correct Answer Too expensive
Your Answer Not Expensive


True/False
Question A proper man for proper job should be a natural choice.
Correct Answer True
Your Answer True


Match The Following
Question Correct Answer Your Answer

Aging schedule Fast & slow moving items Fast & slow moving items

Ordering cost Advertisement expenses Advertisement expenses

Stock out cost Effect on worker moral Effect on worker moral

EOQ Reorder level Reorder level



Multiple Choice Single Answer
Question When to do inspection?
Correct Answer Running Condition
Your Answer After shutdown


Multiple Choice Single Answer
Question Proper spare part will enhance the life of equipment and
will save vital :-
Correct Answer Capital expenditure
Your Answer Capital expenditure


Select The Blank
Question ________ & maintenance department are closely interlinked to
each other.
Correct Answer Production
Your Answer Production


Multiple Choice Multiple Answer
Question Some of the elements of the ordering cost are :-
Correct Answer Cost of stationary used for purchase function ,
Depreciation for the furniture, computer & other equipments , Entertainment
of vendors.
Your Answer Cost of stationary used for purchase function , Handling
expenses , Entertainment of vendors.


True/False
Question Damage to the work in process material can be considered as
indirect cost of an accident.
Correct Answer True
Your Answer False


Select The Blank
Question ________ is an invisible, yet important cost.
Correct Answer Stock out cost
Your Answer Indirect cost


Multiple Choice Multiple Answer
Question The following costs can be treated under the heads of Wages
and salaries :-
Correct Answer The salaries of foreman, fitters, electricians etc.
, Overtime charges. , Contract labor charges.
Your Answer The salaries of foreman, fitters, electricians etc. ,
Overtime charges. , Contract labor charges.


Select The Blank
Question If the job performed on the purchased equipment is OK in
terms of quality & quantity, which was conceived at the beginning is known
as ________.
Correct Answer Proving
Your Answer Commissioning


True/False
Question Audio cassettes are the part of tools of training.
Correct Answer True
Your Answer True


Match The Following
Question Correct Answer Your Answer

Current voltage Multi meter Multi meter

Speed Tachometer Tachometer

Running time Stop watch Stop watch

Temperature Thermistors Thermistors



Multiple Choice Multiple Answer
Question The price of the spare part depends on :-
Correct Answer Demand and supply position , Urgency of buyer ,
Level of negotiations
Your Answer Demand and supply position , Urgency of buyer , Level of
negotiations


Multiple Choice Single Answer
Question What is more important while using components like nut
bolts, screws?
Correct Answer Standardization
Your Answer Standardization


Multiple Choice Single Answer
Question Maintenance spares are fast moving and are :-
Correct Answer Repetitive in nature
Your Answer Critical in nature


Multiple Choice Single Answer
Question With respect to Economy & with comparison to other
maintenance, Condition monitoring is :-
Correct Answer Costly
Your Answer Less expensive


Select The Blank
Question Time required to diagnose is about ________ percent to total
down time.
Correct Answer 40-80
Your Answer 50-60


Multiple Choice Multiple Answer
Question Where CPM can be used?
Correct Answer In Construction Business , In Research & Development
Projects , Launching new products in Marketing
Your Answer In Construction Business , In Research & Development
Projects , Launching new products in Marketing


Select The Blank
Question Advanced & complex machinery is normally run at high speed
in order to give higher speeds of ________.
Correct Answer Production
Your Answer Production


Select The Blank
Question ________ charts prepared by the senior engineers of the
organisations for equipments in plant can be of great help.
Correct Answer Trouble shooting
Your Answer Trouble shooting

Monday, August 24, 2009

Security Analysis And Portfolio Management - 21

LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Multiple Answer
Question An options contract allows the investor :-
Correct Answer To earn a profit while restricting the downside risk , To use
the
options for speculation , Either to honour or walk away from the
contract
Your Answer Either to honour or walk away from the contract , To earn a
profit
while restricting the downside risk , To use the options for
speculation
Multiple Choice Single Answer
Question Free Float index considers this to calculate market capitalisation
:-
Correct Answer Actual no. of shares available
Your Answer Actual no. of shares available
True/False
Question A rise in interest rates will push the market prises of outstanding
bonds where as a fall in interest rates will depress the market
prices down.
Correct Answer False
Your Answer True
Multiple Choice Single Answer
Question Who operates the sinking fund under the sinking fund provision
of a firm?
Correct Answer The bond trustee or the issuer
Your Answer The bond trustee or the issuer
Multiple Choice Single Answer
Question In India, the futures on individual securities have been
introduced from :-
Correct Answer 2001
Your Answer 2001
Select The Blank
Question ________ measures the profitability of equity funds invested in
the firms.
Correct Answer Return on equity
Your Answer Return on equity
True/False
Question Given the accounting standards across firm, price to book value
ratios can be compared across similar firms for signs of under
valuation.
Correct Answer True
Your Answer True
Select The Blank
Question A line is defined as a price movement two or three weeks or
longer, during which period the price variation of both averages
moves within a price range of approximately________%.
Correct Answer 5
Your Answer 10
Select The Blank
Question ________ measures the efficiency of credit management.
Correct Answer Average collection period
Your Answer Interest coverage ratio
Multiple Choice Multiple Answer
Question Major steps involved in construction of a index are :-
Correct Answer Selecting a set of scrips to be used , Fixing starting date ,
Calculating market capitalisation
Your Answer Selecting a set of scrips to be used , Fixing starting date ,
Fixing
ending date
Select The Blank
Question Risk can be referred as the ________ in the return with respect
to the expected return.
Correct Answer Volatility
Your Answer Difference
True/False
Question Bearish actions come from a series of declining peaks and
troughs.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question What were the achievements of Bharat Forge during the year
2003?
Correct Answer Secured second largest customer in China , Appointed a
Company Secretary to act as compliance officer , New contracts
won in passenger car components
Your Answer Secured second largest customer in China , Appointed a
Company Secretary to act as compliance officer , New contracts
won in passenger car components
Multiple Choice Single Answer
Question As per the exhibit 18-1 for individual stock futures on NSE, the
price steps in respect of all futures contract admitted to the
dealings of the exchange shall be :-
Correct Answer 0.05
Your Answer 0.05
Multiple Choice Single Answer
Question The Top-down approach is also known as :-
Correct Answer Economy-industry-company approach
Your Answer Economy-industry-company approach
Multiple Choice Single Answer
Question What is a technical approach to investment?
Correct Answer A reflection of the idea that prices move in trends which are
determined by various factors
Your Answer A reflection of the idea that prices move in trends which are
determined by various factors
Multiple Choice Single Answer
Question More than half the variation in stock price could be attributed to
which factor?
Correct Answer Market influence
Your Answer Market influence
Multiple Choice Multiple Answer
Question Formula for calculation of portfolio variance requires :-
Correct Answer Expected return on portfolio , Expected return on assets ,
Weight
of asset in the portfolio
Your Answer Expected return on portfolio , Expected return on assets ,
Standard deviation
Multiple Choice Multiple Answer
Question How can the financial statements can be manipulated while
giving the estimates for growth?
Correct Answer Change method of rate of depreciation , Change method of
stock
valuation , Inflating sales for current year by advancing sales for
the following year
Your Answer Change method of rate of depreciation , Change method of stock
valuation , Inflating sales for current year by advancing sales for
the following year
Multiple Choice Single Answer
Question What are index funds?
Correct Answer Investment in securities in the same weightage which
replicates
a particular index
Your Answer Investment in securities in the same weightage which replicates
a particular index
Select The Blank
Question All trades in the futures market are cash settled on a ________
basis.
Correct Answer T+1
Your Answer T+1
Select The Blank
Question ________ measures the profitability of operations without
considering the influence of financial structure and tax rate.
Correct Answer Earnings power
Your Answer ROE
Multiple Choice Multiple Answer
Question Which ratios are commonly used?
Correct Answer Debt equity ratio , Interest coverage ratios , Debt service
coverage ratios
Your Answer Debt equity ratio , Interest coverage ratios , Debt service
coverage ratios
Multiple Choice Multiple Answer
Question Mutual fund schemes could be broadly classified as :-
Correct Answer Open ended scheme , Close ended scheme
Your Answer Open ended scheme , Close ended scheme , Growth schemes
True/False
Question If a rupee weakens against the dollars it has favourable impact
for the exporters.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question What are the features of candle stick charts?
Correct Answer Indicates in black if the closing price is lower than the
opening
price , Indicates in white if the closing price is higher than the
opening price
Your Answer Indicates in black if the closing price is lower than the
opening
price , Indicates in white if the closing price is higher than the
opening price , Displays the correlation between the high and
low prices
Select The Blank
Question ________ identified five forces that determine the intrinsic long
run profit attractiveness of a market or market segment.
Correct Answer Michael Porter
Your Answer Harold Koontz
Match The Following
Question Correct Answer Your Answer
H-Model For Valuing
Growth
Initial growth rate is not
constant but linearly falls
over time to reach the
stable growth rate
Initial growth rate is not
constant but linearly falls
over time to reach the
stable growth rate
The general model Expected dividends and
required rate of return
Expected dividends and
required rate of return
The Gordons Growth
model
Expected dividends in the
next period, cost of equity
and expected growth rate
in dividends
Expected dividends in the
next period, cost of equity
and expected growth rate
in dividends
The Two-Stage Dividend
Discount Model
Based on two
extraordinary growth
phase lasting n years and
stable growth phase that
lasts forever
Based on two
extraordinary growth phase
lasting n years and stable
growth phase that lasts
forever
True/False
Question Because of statutory compulsion, generally Govt. securities are
held by banks, financial institutions, insurance companies etc.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question The Two-Stage dividend discount model is best suited for the
firms that are :-
Correct Answer In high growth rate phase , Expecting to maintain the growth
rate
phase steadily for a specific time period , Sources of high growth
are expected to disappear after specific period of time
Your Answer In high growth rate phase , Expecting to maintain the growth
rate
phase steadily for a specific time period , Expecting a
established dividend payout ratio
Match The Following
Question Correct Answer Your Answer
Weak form model is also
termed as
Random walk model Random walk model
Investors are rational Efficient market
hypothesis
Efficient market hypothesis
Securities current prices
fully reflect all historical
information
Weak form EMH Fama
Framework on efficient
capital markets, a review
of theory and empirical
work
Fama Strong form
Multiple Choice Multiple Answer
Question What are the features of Kisan Vikas Patra?
Correct Answer Term is for 8 years seven months , Provision of premature
withdrawal , Interest rate is 8.4% compounded annually
Your Answer Term is for 8 years seven months , Provision of premature
withdrawal , Tax benefits under 80 L available
Multiple Choice Multiple Answer
Question The underlying assumptions of Technical analysis are that :-
Correct Answer Prices move in predictable patterns , Market value is
determined
by supply & demand , Investors are emotional than being
rational
Your Answer Prices move in predictable patterns , Investors are emotional
than being rational
True/False
Question Sensex is the index of Calcutta Stock Exchange.
Correct Answer False
Your Answer False
Select The Blank
Question ________ refers to the possibility that there may not be a readily
available market for the particular bond.
Correct Answer Liquidity risk
Your Answer Liquidity risk
Multiple Choice Single Answer
Question What could be a better approach to flow-of -funds analysis?
Correct Answer An examination of liquidity trends in the banking system
Your Answer A study of macro economical changes
True/False
Question There may be convertible clause which gives the debenture
holder the option to convert the debentures into equity shares.
Correct Answer True
Your Answer True
Select The Blank
Question ________are good benchmark to compare the ratios for a firm.
Correct Answer Industry averages
Your Answer Trend analysis
Multiple Choice Single Answer
Question An agreement to buy or sell a specified quantity of an asset at a
certain future date or a certain price is know as :-
Correct Answer Forward contract
Your Answer Futures contract
Select The Blank
Question ________ ratio is the ratio of net profit to the sales.
Correct Answer Net Profit Margin
Your Answer Net Profit Margin
Select The Blank
Question When a debenture is sold to the general public a ________ is
appointed.
Correct Answer Trustee
Your Answer Brokers
Multiple Choice Single Answer
Question The general dividend model is based on the principle of :-
Correct Answer Present value of the expected future cash flow
Your Answer Present value of the expected future cash flow
Multiple Choice Single Answer
Question When the firm is not raising equity by issuing new shares, the
growth rate in net profits is given by :-
Correct Answer Retention ratio X return on equity
Your Answer Price earning ratio X return on equity
True/False
Question PPF is a good retirement planning and tax saving vehicle.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question What are short term trends?
Correct Answer Trends which interrupt the course of the intermediate cycle
Your Answer Trends which interrupt the course of the intermediate cycle
Select The Blank
Question A security is said to be ________ if its current market price is
over its intrinsic value.
Correct Answer Over priced
Your Answer Over priced
Multiple Choice Single Answer
Question What is the aim of growth funds?
Correct Answer To provide capital appreciation over medium to long term
Your Answer To provide capital appreciation over medium to long term

Security Analysis And Portfolio Management - 20

LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Multiple Answer
Question What are the different types of profitability ratios?
Correct Answer Return on equity , Gross profit margin ratio , Earnings power
Your Answer Return on equity , Gross profit margin ratio , Earnings power
Select The Blank
Question Mutual fund is to be registered with ________ before raising
funds from public.
Correct Answer SEBI
Your Answer SEBI
Multiple Choice Multiple Answer
Question The security market is the market for :-
Correct Answer Equity , Debt , Derivatives
Your Answer Equity , Debt , Bank deposits
Multiple Choice Multiple Answer
Question The Gordon growth model is best suited for firms :-
Correct Answer Growing at a rate equal to or lower that the growth in the
economy , Which have well established dividend payout ratio
policy , Whose earnings are steady and perpetual
Your Answer Growing at a rate equal to or lower that the growth in the
economy , Which have well established dividend payout ratio
policy
Multiple Choice Single Answer
Question A security analysis is done :-
Correct Answer For decision making for investments
Your Answer As per instruction of the company
Multiple Choice Single Answer
Question The average investor in the market is driven more by emotions
than by rational analysis is a rule of :-
Correct Answer Technical analysis
Your Answer Fundamental Analysis
Multiple Choice Single Answer
Question Mr.Saurabh invests Rs. 5,000/- today. The rate of interest is 4%
compounded annually. What will be the value of his investment
after 5 years?
Correct Answer Rs. 6083/-
Your Answer Rs. 6083/-
Multiple Choice Single Answer
Question What is the objective of an income fund?
Correct Answer To provide regular and steady income
Your Answer To provide guaranteed returns to investors
Multiple Choice Multiple Answer
Question Explain what are leverage ratios ?
Correct Answer Help in assessing the risk arising using the debt capital ,
Debt
equity ratio and interest coverage ratio and DSCR are important
leverage ratios , Debt is riskier source of finance as it entails
fixed outgo of periodic payments
Your Answer Help in assessing the risk arising using the debt capital , Debt
equity ratio and interest coverage ratio and DSCR are important
leverage ratios , Debt is riskier source of finance as it entails
fixed outgo of periodic payments
Multiple Choice Multiple Answer
Question Which were the initiatives which the chairman said would focus
on in 2003-04 in the speech in annual report for the year 2003-
03?
Correct Answer Research and development , Capital investment and focus on
balance sheet , Overseas acquisitions
Your Answer Focus on mergers , Research and development , Capital
investment and focus on balance sheet
Multiple Choice Multiple Answer
Question What were the objectives for 2002-03 the chairman of Bharat
forge had emphasised on in the annual report for 2001 - 02
Correct Answer Maintain aggressive exports thrust , Increase shares of value
added products , Continue reducing costs
Your Answer Maintain aggressive exports thrust , Increase shares of value
added products , Continue reducing costs
True/False
Question A mutual fund is required to dispatch the dividend warrants to
the unit holders within thirty days of the declaration of dividend.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question What does lower level of unemployment indicates?
Correct Answer Positive economic conditions
Your Answer Economic slowdown
Multiple Choice Single Answer
Question The GDP growth rate in the economy in real terms has
fluctuated between :-
Correct Answer 4% and 5%
Your Answer 4% and 5%
Multiple Choice Single Answer
Question Mr.Rohan invests Rs.25,000/- today. The rate of interest is 6%
compounded annually. What will be the value of his investment
after 3 years?
Correct Answer Rs. 29775/-
Your Answer Rs. 29775/-
Multiple Choice Single Answer
Question Mr.Satish invests Rs.10,000/- today. The rate of interest is 8%
compounded annually. What will be the value of his investment
after 5 years?
Correct Answer Rs.14.693/-
Your Answer Rs.14.693/-
True/False
Question When you are making an investment you are expecting certain
future benefits from your investment.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question What is the limitation of Flow-of funds analysis method?
Correct Answer Cannot give indication of the inclination of market
participants to
purchase stock
Your Answer Does not give specific information
True/False
Question The returns of sector specific funds are solely dependant on the
performance of the respective sectors / industries.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Which are the different types of accounts offered to investors by
the stock brokers?
Correct Answer Cash trading , Margin trading
Your Answer General trading , Cash trading , Credit trading
Select The Blank
Question Under the options contract ________ gives the holder the right,
but not the obligation to buy or sell the underlying instrument
only on the expiry date.
Correct Answer European option
Your Answer American option
Select The Blank
Question An investor with a higher tolerance of risk should tilt his
portfolio
in favour of ________.
Correct Answer Stocks
Your Answer Bank deposits
Select The Blank
Question The ________ phase carries a lot of significance because it
marks the turning point between a rising and a falling market.
Correct Answer Transitional
Your Answer Sideways
Multiple Choice Multiple Answer
Question The growth rate in the initial phase is not constant but declines
linearly over time to reach the stable growth rate in steady state
is a phenomena of :-
Correct Answer H- Model for valuing growth , H-Two stage model for growth ,
HModel
unlike the classic two stage model
Your Answer H- Model for valuing growth , H-Two stage model for growth ,
HModel
unlike the classic two stage model
Select The Blank
Question Acid test ratio is more stringent measure of liquidity compared to
the ________.
Correct Answer Current ratio
Your Answer Current ratio
Multiple Choice Multiple Answer
Question The Two-Stage dividend discount model is based on the
assumption of :-
Correct Answer An initial phase where the growth is not a stable growth rate
, A
subsequent steady state of growth rate being stable and lasts n
years , A stable growth phase lasts forever
Your Answer An initial phase where the growth is not a stable growth rate ,
A
subsequent steady state of growth rate being stable and lasts n
years , A stable growth phase lasts forever
True/False
Question While calculating geometric mean calculation of root is not
important.
Correct Answer False
Your Answer False
True/False
Question The labour conditions do not play an important role in the
industry analysis.
Correct Answer False
Your Answer False
Select The Blank
Question ________ measures the efficiency of credit management.
Correct Answer Average collection period
Your Answer Average collection period
Select The Blank
Question ________ measures the profitability of operations without
considering the influence of financial structure and tax rate.
Correct Answer Earnings power
Your Answer Earnings power
Multiple Choice Single Answer
Question Which market is affected with the improving and higher growth
rate in economy?
Correct Answer Stock market
Your Answer Stock market
True/False
Question Certificate of Deposits offers high rate of interest than Treasury
Bills.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question What do you understand by money supply?
Correct Answer Total money in existence at any given time
Your Answer Total money in existence at any given time
Multiple Choice Single Answer
Question What is Gross National Product ?
Correct Answer Gross income generated from within the country
Your Answer Gross income generated from within the country
Multiple Choice Multiple Answer
Question What are the features of trend lines
Correct Answer A simple and useful tool in technical analysis , Prices move
in
trends , The trend lines represent points of support and
resistance
Your Answer A simple and useful tool in technical analysis , Prices move in
trends , The trend lines represent points of support and
resistance
True/False
Question A price rise accompanied by expanding volume denotes a
potential trend reversal.
Correct Answer False
Your Answer True
Multiple Choice Multiple Answer
Question Mutual fund schemes could be broadly classified as :-
Correct Answer Open ended scheme , Close ended scheme
Your Answer Open ended scheme , Close ended scheme , Balance fund
Multiple Choice Multiple Answer
Question Features of PSU Bonds are :-
Correct Answer No TDS , Transferable by endorsement , No stamp duty on
transfer
Your Answer No TDS , Transferable by endorsement , No stamp duty on
transfer
Match The Following
Question Correct Answer Your Answer
Future value of a series of
cash flows occurring at
the end of each period.
Future value of annuity Future value of annuity
Value today of a stream of
cash flows that occurs in
future.
Present Value Present Value
Value at a certain future
date today of a stream of
cash flows that occurs
over a period of time.
Future Value Future Value
Series of equal payments
or receipts occurring at
regular intervals of time.
Present value of annuity Present value of annuity
Select The Blank
Question A line is defined as a price movement two or three weeks or
longer, during which period the price variation of both averages
moves within a price range of approximately________%.
Correct Answer 5
Your Answer 5
True/False
Question Following a decline, heavy volume with little price change is
indicative of accumulation and is normally a bearish factor.
Correct Answer False
Your Answer True
Multiple Choice Single Answer
Question The greater the deviation of the actual returns from the actual
return :-
Correct Answer Greater the variance
Your Answer Greater the variance
True/False
Question A segment is unattractive if the buyers possess strong or
growing bargaining powers.
Correct Answer True
Your Answer False
Select The Blank
Question ________ refers to the possibility that there may not be a readily
available market for the particular bond.
Correct Answer Liquidity risk
Your Answer Liquidity risk
Multiple Choice Single Answer
Question What is GDP at factor cost ?
Correct Answer Excludes net income received from abroad
Your Answer Includes indirect taxes
Multiple Choice Single Answer
Question More than half the variation in stock price could be attributed to
which factor?
Correct Answer Market influence
Your Answer Market influence

Wednesday, August 19, 2009

Compensation Management - 14

Question Documents used for wage analysis are :-
Answer Wage sheets , Job cards
Question Indirect compensation mainly acts as :-
Answer Maintenance factor
Question The lacuna which led to the introduction of 'Employee's
Deposit Linked Insurance Scheme' did not have effect from :-
Answer 7th of March 1971 , 3rd of March 1971 , 2nd of March 1971
Question Source documents for preparations of wages are :-
Answer Daily time sheet , Weekly time sheet. , Attendance register.
Question Following are causes of idle time of labour pertaining to
administration :-
Answer Poor management , Management policy
Answer Managerial attitude
Unskilled worker Lower compensation Lower compensation
Good compensation system Avoid exploitation Higher skills
High demand & Low supply High compensation High compensation
Equal work Equal pay Equal pay
Question Employees in the railways are entitled of payment of wages
Act, 1936 who are drawing wages and salaries below :-
Answer Rs. 1600/- a month
Question In the case of salary income, it is important that there
should be a :-
Answer Relation of employer and employee
Question Disadvantage of maintaining hand written register for
attendance is :-
Answer Depends upon honesty.
Question Ratio of number of persons over 4 years of service at
present to present total employees is called ________
Answer Skill dilution index
Question ________ is a source document for preparation of wage sheet.
Answer Attendance Register
Question Financial &/or quantitative statement prepared & approved
prior to period of time is called :-
Answer Budget
Question Group incentive payments are :-
Answer Less than individual ones
Question In profit-sharing plan, employees :-
Answer Work more diligently , Try to achieve higher profits ,
Fulfill entirely their responsibilities
Question Every worker is ensured the minimum payment in :-
Answer Piece rate & time rate combination
Question In the history of Indian IT industry, the year 2001-2002
will be remembered as ________.
Answer Year of lay-offs
Question Carpenters engaged in cutting of wood in a furniture making
shop is an example of :-
Answer Direct labour
Question Time rate systems are :-
Answer Ordinary level , High wage level , Graduated time rates
Question After deducting depreciation and initial or development
rebate from profit, we arrive at ________.
Answer Surplus profit
Question Any other amenity or service excluded from the computation
of wages by a general or special order of appropriate Govt.
Answer False
Question Taylor differential piece rate system is difficult to
understand and implement.
Answer False
Question Employees are paid incentives on 'Output' basis if :-
Answer Units of output can be measured , Direct relationship
between employee efforts and quantity of output , Jobs are standardised
Your Answer Units of output can be measured , Direct relationship
between employee efforts and quantity of output , Jobs are standardised


Question Wage differentials have been classified into ________
categories.
Answer 3
Question Compensation policy does not need criteria for promotions.
Answer False
Question ________ is financial / quantitative statement prepared &
approved prior to a period of time.
Answer Budget
Question Halsey Premium plan is a combination of the day wage & piece
wage in modified form.
Answer True
Question Employees are paid incentives on 'Time' basis if :-
Answer Units of output are difficult to measure , Delays in work
are frequent , Quality is prime consideration
Question In profit-sharing plan, the proportion of profits to be
distributed among the employees is determined :-
Answer In advance
Question Direct labour cost varies in proportion to output of
production.
Answer False
Question First to lay down the guidelines for fixation of Minimum
Wages was :-
Answer Indian Labour Conference
Question Within the factory group promotion is important.
Answer False
Question There are many methods that an alive ________ management can
creatively develop for employees rendered redundant through little
forethought.
Answer HRD
Question Wage structure is made flexible according to the changes in
the price level and ________.
Answer Working efficiency
Question Remuneration paid for the service of the labour in
production is :-
Answer Wage
Question Various enactments that are applicable to employees of
organization are :-
Answer Payment of Gratuity Act , Payment of Bonus Act , Employee's
Provident Fund & Misc. Provisions Act
Question Salary is still the only or chief motivator for IT
employees.
Answer False
Question Time rate system at ordinary level is suitable where :-
Answer Quality of output is of great importance , Quantitative
measurement of work is not possible , Production unit is small
Question If the same or about the same general rates of wages were
not paid to the employees as were paid by the organisation's competitors, it
would not be able to attract and maintain a sufficient quantity and quality
of manpower.
Answer False
Question Which of the following are used to compensate major
executives?
Answer Straight salaries , Bonuses , Profit sharing
Question Direct labour costs are included in cost of production of
each unit.
Answer True
Wage disbursement Actual payment of remuneration Payment on vouchers
Attendance Register Input to payroll process Actual payment of
remuneration
Pay slips Output of payroll process Output of payroll process
Journal entry Amounts of debit & credit Amounts of debit & credit
Question ________ cost do not vary much in proportion to output or
volume of production.
Answer Direct Labour
Question The total of direct material, direct labour, direct expenses
is called :-
Answer Prime cost
Question If workers do not understand relationship between
performance and rewards, incentive plans cannot motivate workers.
Answer True
Question Overtime payment given to the worker for completing work
before scheduled date art the instruction of buyer is treated as ________
cost
Answer Direct
Question Contribution to the P.F. have to be remitted along with the
challan for Account No.:-
Answer 2 , 21 , 10
Question Surprise check on calculation & disbursement of payments is
necessary to avoid any fraud.
Answer True
Question Dotcom companies were founded to go beyond :-
Answer Physical business
Question Piece workers come under ________ class of workers.
Answer Semi - skilled
Question Persons interested in enhancing their reputations and
receiving recognition may respond to ________.
Answer Verbal praise
Question Direct labour costs are included in cost of production of
each unit.
Answer True
Question In co-partnership Incentive system, there is division of :-
Answer Surplus profit
Question Wage & salary administration refers to the establishment and
implementation of sound policies and practices of employee :-
Answer Compensation
Question Remuneration paid for the service of the labour in
production is :-
Answer Wage
Question Which of the following are used to compensate major
executives?
Answer Straight salaries , Bonuses , Profit sharing
Question Carpenters engaged in cutting of wood in a furniture making
shop is an example of :-
Answer Direct labour
Question Employee's State Insurance Act, ________ is a pioneering
measure in the field of social insurance of our country.
Answer 1948
Question Following are avoidable causes of employees turnover :-
Answer Unsatisfactory pay package , Absence of job satisfaction
Francis A Walker 1840 - 1897 1849 - 1883
David Ricardo 1772 - 1823 1723 - 1790
Adam Smith 1723 - 1790 1728 - 1794
Karl Marx 1849 - 1883 1772 - 1823
Question Marriages were supposed to be made in :-
Answer Heaven
Question Wage differentials are of following factors :-
Answer Difference in labour efficiency , Social esteem , Occupation
Question In India, Group incentive plans face problems like :-
Answer High norms of standard work , Illiterate workforce ,
Numerous slabs in rate structure
Question HR or Personnel department realises the relative worth of
jobs by :-
Answer Job evaluation
Question Scanlon plan of profit sharing aims at :-
Answer Reduction of cost of operation of increased production ,
Sharing in gains , Workers participation
Question Ratio of number persons over 4 years of service at present
to total employed 4 years ago is called ________
Answer Skill wastage index
Question To minimize disparity in wages & levels, following act is
passed :-
Answer Minimum wages Act
Question In developmental phase, the dotcom companies concentrate on
:-
Answer Building brand
Question Employees are paid incentives on 'Output' basis if :-
Answer Units of output can be measured , Direct relationship
between employee efforts and quantity of output , Jobs are standardised
Question Compensation system should reduce ________.
Answer Employee turnover
Question Article 43 reads: State shall endeavour to secure by
suitable legislation to all :-
Answer Agricultural workers , Industrial , Working in a living wage
Question To perform a ________ function by way of determining the
social status of workers.
Answer Social
Question If workers do not understand relationship between
performance and rewards, incentive plans cannot motivate workers.
Answer True
Question Sequence of operations for a job is clear in case of :-
Answer Job cards.
Question Level II in senior managers include or comprises of :-
Answer General Manager , Senior General Manager , Deputy General
Manager
Question Group incentive plans are best suited for :-
Answer Small work groups
Question compensation should be ________ efficiency & result .
Answer Directly proportional
Question IT jobs still remain the best paying jobs in the country.
Answer True
Good compensation system Avoid exploitation Avoid exploitation
High demand & Low supply High compensation High compensation
Equal work Equal pay Equal pay
Unskilled worker Lower compensation Lower compensation


Question If the idle time is controllable and normal, its cost is
treated as ________ cost.
Answer Indirect
Question Life and Medical insurance or reimbursement of medical bills
is considered as a part of ________.
Answer Perks
Question Overtime paid because of inefficiency of other department is
charged to the job.
Answer False
Question Effectiveness of incentive system is ascertained with the
help of :-
Answer Efficiency report.
Question Demerits of time rate system at ordinary level are :-
Answer No distinction between efficient and inefficient workers at
regards output , Increase the cost of production in case of low productivity
Question Job analysis describes :-
Answer Duties , Responsibilities , Working conditions
Question A good incentive scheme should have :-
Answer Elasticity , Parity , Less operational costs
Question Employee turnover rate focuses on stability of employee in
the organisation.
Answer False
Question Employees cost to the company includes :-
Answer Basic wages , Incentives
Question The cost of time lost in strikes is charged to Profit & Loss
Account.
Answer True
Question When a dotcom company starts earning profits, promoters are
focused on the launch of:-
Answer IPO
Question The total of direct material, direct labour, direct expenses
is called :-
Answer Prime cost
Question Insurance of a worker is a part of gross salary.
Answer False
Question At germination stage, to attract and retain talent, dotcom
companies offer :
Answer Stock option
Question The ________ criterion is usually regarded as an automatic
minimum equity pay criterion.
Answer Cost of living pay

Compensation Management - 13

Question Standards of efficiency should be fixed by taking into
consideration ________ worker & Normal working conditions.
Answer Normal
Question In graduated time rates system, if basic salary is Rs.2000
and dearness allowance is 150% then total remuneration will be :-
Answer Rs.5000/-
Question Job evaluation is the output provided by :-
Answer Job Analysis
Question The persons working in multinational companies occupying the
higher positions in hierarchy enjoy :-
Answer Lavish life-style
Question Incentive schemes sometimes lead to jealousies and
misunderstanding among the workers.
Answer True
Question Dotcom companies were founded to go beyond :-
Answer Physical business
Question Persons interested in enhancing their reputations and
receiving recognition may respond to ________.
Answer Verbal praise
Question IT jobs still remain the best paying jobs in the country.
Answer True
Question In developmental phase, the dotcom companies concentrate on
:-
Answer Building brand
Question Salesmen are usually given incentives in the form of sales
commission because of :-
Answer Unsupervised nature of most sales work , Tradition in the
market , Assumption that incentives are needed to motivate salesman
Question The wage and salary administration is concerned with the
financial aspect of need, reward and :-
Answer Motivation
Question Gross Earnings - Deductions equals ________.
Answer Net Earnings
Question Insurance of a worker is a part of gross salary.
Answer False
Question Organization's ability to pay, determines ________.
Answer Wage level
Question Objectives laid down by I.L.O. are :-
Answer Promote Trade Union , Abolish malpractices , Abuse in wage
payment
Question Article 43 reads: State shall endeavour to secure by
suitable legislation to all :-
Answer Agricultural workers , Industrial , Working in a living wage
Question Following are the forms of the cost of replacement :-
Answer Cost of advertisement for recruitment , Cost of conducting
interviews , Cost of interruption in production
Question Main features of society are :-
Answer Domination of machines , Exploitation of workers , Poor
working conditions
Question In Compensation plans the following are taken into account
:-
Answer Cost of production , Reduction in expenses , Profits made
Question ________ had a decisive influence on the wage structure &
wage level.
Answer Managerial attitude
Question The approach of managerial / executive staff towards the
perquisites has changed since last :-
Answer 10 years , 9 years , 8 years
Question Aspects which were considered while determining pay ranges
are :-
Answer Maintain adequate difference between supervisors &
subordinates , Attention must be given to handling upward changes in wage
structure
Question If the rent paid by employee for his accommodation is equal
to or more than the value of rent-free house, the value of the concession in
rent is 'NIL'.
Answer True
Question Gradewise flat allowances are also being considered
generally except where tax exemption benefit are still available.
Answer True
Question A job is rated in order to determine its value relative to
all the others jobs in organization which are subject to :-
Answer Evaluation
Question In marginal costing costs are classified as:-
Answer Fixed & Variable
Question Indirect labour cost forms a part of overheads.
Answer True
Question Which of the following are used to compensate major
executives?
Answer Straight salaries , Bonuses , Profit sharing
Question If classification system is used, the jobs are already
categorized into grade or :-
Answer Class
Question Production bonus is calculated on the basis of output norms
decided through :-
Answer Job analysis , Time studies
Question Cost of employee welfare activities comes under ________
cost.
Answer Preventive
Ranking System Ranks Ranks
Wage and salary administration Compensation Compensation
Remuneration paid Wage Wage
Classification System Class Class


Question Production planning includes :-
Answer Product engineering.
Question Incentive schemes sometimes lead to jealousies and
misunderstanding among the workers.
Answer True
Question Following are economic causes of idle time of labour :-
Answer Trade cycles. , Non availability of working capital.
Question Reward may be money or promotion, but more likely it will be
some pay-off -a smile, and :-
Answer Acceptance by peer
Question The cost of time lost in strikes is charged to Profit & Loss
Account.
Answer True
Question House rent allowance paid to a employee residing in his own
house is not exempt from tax.
Answer True
Question Today there is strong competition for acquiring as much
________ as possible.
Answer Wealth
Question Payment is done on the basis of units of output, incase of
________ workers.
Answer Piece
Question Ratio of number of persons over 4 years of service at
present to present total employees is called ________
Answer Skill dilution index
Question In post IPO stage, dotcom company gives its employees :-
Answer Balanced total reward package
Question Factors not related to money can also serve as ________.
Answer Attention seekers
Question In material costing ________ Costs are written at to
Marginal profit & loss A/c.
Answer Fixed
Employee turnover Separation rate Difficult to control
Direct labour cost Difficult to control Fixed costs
Indirect labour cost Cannot be easily identified with product
Indirect expenses.
Stability index Skill dilution index Skill dilution index
Question One worker is working under piece rate & time rate
combination system of compensation. He has worked in a week of 06 days
consisting of 48 hours. His hourly rate is Rs.2/- per piece. His output for
the week is 40 units. What will be his earning ?
Answer Rs.96/-
Question If the employment is merely incidental to the exercise of a
profession, the gains from such employment would be :-
Answer Professional earnings
Question Group incentive system is more widely prevalent in the
Indian industry than the system of individual incentive.
Answer True
Question IT jobs still remain the best paying jobs in the country.
Answer True
Question ________ is financial / quantitative statement prepared &
approved prior to a period of time.
Answer Budget
Question Consideration for wage and salary administration are :-
Answer Job requirement
Question Person working in MNC's occupying higher positions devote
most of their time for their :-
Answer Employment & job
Question Components of wage & salary are :-
Answer Basic wage , Overtime wage , Dearness allowance
Question Monetary incentives imply :-
Answer External motivation
Question The incentive plan designed for the group based on group's
performance is called :-
Answer Long-term wage incentive plan
Question Taylor differential piece rate system is suitable for large
scale production.
Answer True
Question Salesmen are usually given incentives in the form of sales
commission because of :-
Answer Unsupervised nature of most sales work , Tradition in the
market , Assumption that incentives are needed to motivate salesman
Question ________ of payment recognizes that individuals are
concerned about the money paid to them and also the relationship of this
amount to what others are paid.
Answer Equity approach
Question Wage Policy is not of great concern to labour, management
and Govt.
Answer False
Question To perform a ________ function by way of determining the
social status of workers.
Answer Social
Question Life and Medical insurance or reimbursement of medical bills
is considered as a part of ________.
Answer Perks
Question Extent of employees turnover depends upon :-
Answer Physical conditions within organisation , Type of industry ,
Male to female ratio
Question Performance standards & norms for incentive payments should
be set up high for better results.
Answer False
Question E.S.I. Act aims at providing for certain cash benefits to
employees in case of :-
Answer Sickness , Maternity , Medical
Question Employer's contribution to Superannuation Fund is taxable.
Answer False
Question Forces that favour regional differences are :-
Answer Low mobility , Lower skilled job , Sources of income
Question The goals and ideals of a traditional Indian family were
spiritual and religious.
Answer True
Question In graduated time rates system, if basic salary is Rs.2000
and dearness allowance is 150% then total remuneration will be :-
Answer Rs.5000/-
Top managers Non-financial benefits Compensatory day-off
Workers Piece-rate Piece-rate
Salesmen Commission Bonus
Managers Bonus Overtime
Question The scanlon plan of profit sharing gives utmost importance
to ________.
Answer Employee participation
Question If workers do not understand relationship between
performance and rewards, incentive plans cannot motivate workers.
Answer True
Question Financial &/or quantitative statement prepared & approved
prior to period of time is called :-
Answer Budget
Question Group incentive plans may not become successful due to :-
Answer Unevenness of performance of different members of groups ,
Ill-feeling among group members , No recognition for individual performance
Question Bonus is component of deductions.
Answer False
Question The ________ criterion is usually regarded as an automatic
minimum equity pay criterion.
Answer Cost of living pay
Question Wages of security men in a production unit comes under :-
Answer Indirect labour
Question Major features of production are :-
Answer Labour , Land , Capital
Question The Scanlon plan of profit sharing is more effective where
no of participants is more than 1000.
Answer False
Question Incentive plans fail due to :-
Answer Lack of required tools / training , Unfair standards , Fear
of rate cut
Question Objectives laid down by I.L.O. are :-
Answer Abolish malpractices , Abuse in wage payment , Promote Trade
Union
Question Persons interested in enhancing their reputations and
receiving recognition may respond to ________.
Answer Verbal praise
Question Profit sharing, as an incentive plan, realizes these
advantages :-
Answer Higher profits , Increased efficiency , Climate for better
employee relations
Question Characteristic of a good compensation system is :-
Answer Higher the efficiency of worker, higher is compensation.
Question The institutions of marriage and family are also to be found
in every :-
Answer Society
Question Hospitality industries includes :-
Answer Hotels
Question To make Scanlon plan successful, there should be :-
Answer Stable product lines and costs , Strong commitment to plan ,
Healthy labour relations
Question For higher management, ________ are influenced by the size
of a company, specific industry and the process of decision making.
Answer Salaries
Question Indirect labour cost forms a part of overheads.
Answer True
Question Salary is still the only or chief motivator for IT
employees.
Answer False
Question Perquisites taxable in all cases include :-
Answer Value of rent free accommodation provided by employer to his
employee
Question A good incentive scheme should have :-
Answer Elasticity , Parity , Less operational costs
Question In Taylor differential piece rate system, high piece rate is
applicable if ________.
Answer Output is above standard
Question Leave pay of current year is treated as ________.
Answer Direct Expenses
Question Cost of time spent on conducting interviews & selecting a
candidate for ________ is called Replacement cost.
Answer Replacement
Question One worker is working under piece rate & time rate
combination system of compensation. He has worked in a week of 06 days
consisting of 48 hours. His hourly rate is Rs.2/- per piece. His output for
the week is 40 units. What will be his earning ?
Answer Rs.96/-
Question Wage differentials are of following factors :-
Answer Difference in labour efficiency , Social esteem , Occupation
Question Monetary incentives imply :-
Answer External motivation
Question Documents useful for the purpose of wage analysis are :-
Answer Wage sheets , Payroll , Accounting registers
Question Variance analysis is done in case of :-
Answer Standard costing
Question If classification system is used, the jobs are already
categorized into grade or :-
Answer Class
Question Inter-firm differentials reflect ________ wage levels of
workers.
Answer Relative
Question Wage Policy is of great concern to :-
Answer Labour Management & Govt.
Question ________ of payment recognizes that individuals are
concerned about the money paid to them and also the relationship of this
amount to what others are paid.
Answer Equity approach
Institutions of marriages & family Society Metros
Past Marriages Permanent Society


Question Incentive payments should be made at the end of fiscal year.
Answer False
Question Most companies as against earlier visible cost don't use the
"Total Cost To The Company".
Answer False
Question During the research it was found that in certain cities
prevailing wage rate are ________where as organizational ability to pay is
more.
Answer Very low
Question In the history of Indian IT industry, the year 2001-2002
will be remembered as ________.
Answer Year of lay-offs















Compensation Management - 12

Question The lacuna which led to the introduction of 'Employee's
Deposit Linked Insurance Scheme' did not have effect from :-
Answer 7th of March 1971 , 3rd of March 1971 , 2nd of March 1971
Question Time rate system at ordinary level is suitable where :-
Answer Quality of output is of great importance , Quantitative
measurement of work is not possible , Production unit is small
Question In piece rate & time rate combination, if payment is
calculated on the basis of piece rate guaranteed and if number of pieces
fall below the minimum wages guaranteed, he is paid by time rate (T).
Answer True
Question E.S.I. Act aims at providing for certain cash benefits to
employees in case of :-
Answer Sickness , Maternity , Medical
Question Overtime payment given to the worker due to inefficiency of
other department is charged to ________.
Answer Responsible Department
Question Wage differentials are inter-industry, inter-firm and
________.
Answer Inter area
Question If the point method of job evaluation is used the pay grade
consists of jobs falling within the range of :-
Answer Points
Question ________ is the unique code allotted to each & every
employee in the organization.
Answer Employee No.
Question Earning in time rate systems, at ordinary levels is
calculated by formula :-
Answer Rate per hour x hours worked
Question The nature and extent of wage differential are conditioned
by a ________.
Answer Set of factors
Question Monetary incentive plans result in :-
Answer Greater output per man-hour , Lower unit cost , Higher wages

Question Contribution to the Provident Funds are made at certain rate
or certain percentage of salary of employee, only by the Employer.
Answer False
Question For adequate and effective internal check on disbursement of
wages, these factors are important :-
Answer Proper time recording , Proper record of output by workers ,
Well-defined terms of remuneration and incentive schemes
Question With about 2-5 years of experience, an employee can move
upto manager level from executive level in IT industry.
Answer True
Question In dotcom companies, there is :-
Answer Huge no of employees , Direct interaction with customers and
client organizations , Reduction of capital cost
Question Any other amenity or service excluded from the computation
of wages by a general or special order of appropriate Govt.
Answer False
Question In effective incentive plan, standards on which plan is
based should be :-
Answer Fair , Reasonable , Specific
Question The institutions of marriage and family are also to be found
in every :-
Answer Society
Institutions of marriages & family Society Metros

Past Marriages Permanent Society

Question In the history of Indian IT industry, the year 2001-2002
will be remembered as ________.
Answer Year of lay-offs
Question Sequence of operations for a job is clear in case of :-
Answer Job cards.
Question The wage structure or grade is comprised of jobs of
appropriately equal difficulty or importance as determined by :-
Answer Job evaluation
Question Generally, the strong & more powerful is the trade union,
the ________ are the wages.
Answer Higher
Question Overtime payment given to the worker due to general pressure
of work is treated as ________ cost.
Answer Indirect
Question In standard costing, cost is controlled through :-
Answer Variance analysis
Question The expenditure on remuneration of workers/employees
responsible for conversion of raw material into finished products is called
:-
Answer Direct labour
Employee turnover Separation rate Difficult to control

Direct labour cost Difficult to control Fixed costs

Indirect labour cost Cannot be easily identified with product
Cannot be easily identified with product

Stability index Skill dilution index Skill dilution index



Question Hospitality industries includes :-
Answer Hotels
Question By using straight piece rate system of compensation output
:-
Answer Increases
Question Ratio of number persons over 4 years of service at present
to total employed 4 years ago is called ________
Answer Skill wastage index
Question Group incentive plans may not become successful due to :-
Answer Unevenness of performance of different members of groups ,
Ill-feeling among group members , No recognition for individual performance
Question compensation should be ________ efficiency & result .
Answer Directly proportional
Question Rate of change in the working force of an organisation
during a period of time is known as employee turnover.
Answer True
Question In case of construction work / transportation / bidi rolling
businesses, internal check of disbursement of payment to workers is very
important.
Answer True
Question Group incentive system is more widely prevalent in the
Indian industry than the system of individual incentive.
Answer True
Question After deducting depreciation and initial or development
rebate from profit, we arrive at ________.
Answer Surplus profit
Question Profession Tax is deducted as per the enactment by :-
Answer State Govt.
Question Gradewise flat allowances are also being considered
generally except where tax exemption benefit are still available.
Answer True
Question Incentive plans fail due to :-
Answer Unfair standards , Fear of rate cut , Lack of required tools
/ training
Question Any imbalance in input-output relation in any incentive
payment scheme can result in :-
Answer Tension , Lower productivity , More absenteeism
Question The management must concentrate on creating proper
industrial relations climate before introducing incentive schemes.
Answer True
Question Wage & salary administration refers to the establishment and
implementation of sound policies and practices of employee :-
Answer Compensation
Question Factors not related to money can also serve as ________.
Answer Attention seekers
Question According to the thinking and beliefs of these young
persons, the major need filled by marriage is biological and this can be
easily satisfied out of :-
Answer Wedlock
Question Wages have at least ________ connotations from stand points
of employers and employees.
Answer 2
Question Advantage of disc method of attendance recording is :-
Answer Suitable for illiterate worker.
Question Overtime paid because of inefficiency of other department is
charged to the job.
Answer False

Under E.S.I. employee's contribution 0.0175 0.0175

Employee Pension Scheme is 8.33% of Employer Employer

Employer & Employee Contribution under E.P.F. 0.12 0.12

Under E.S.I., employer's contribution 0.0475 0.0475



Question The cutting edge of an organization is its people. The work
culture thus is being redefined to bring out the best in :-
Answer Employees , Managers , Executives
Question When a dotcom company starts earning profits, promoters are
focused on the launch of:-
Answer IPO
Question Halsey Premium plan is a combination of the day wage & piece
wage in modified form.
Answer True
Question Main features of society are :-
Answer Domination of machines , Exploitation of workers , Poor
working conditions
Question In material costing ________ Costs are written at to
Marginal profit & loss A/c.
Answer Fixed
Question Level II in junior managers comprises of :-
Answer Engineers , Officers , Senior Engineers
Question Forces that favour regional differences are :-
Answer Low mobility , Lower skilled job , Sources of income
Question ________ under profit sharing contributes directly to an
employee's immediate economic gain.
Answer Cash plan
Question Indirect labour cost forms a part of overheads.
Answer True
Question In following circumstances of overtimes, the cost is treated
indirect costs :-
Answer General pressure of work. , Inefficiency.
Question Following are the forms of the cost of replacement :-
Answer Cost of advertisement for recruitment , Cost of conducting
interviews , Cost of interruption in production
Question To make Scanlon plan successful, there should be :-
Answer Stable product lines and costs , Strong commitment to plan ,
Healthy labour relations
Question Monetary incentives imply :-
Answer External motivation
Question Return and wage differentials are contained by a set of
factors such as :-
Answer Market conditions , Bargaining power , Productivity
Question Monitory payment often act as motivators and satisfiers
interdependently of other job factors.
Answer True
Question Time booking on job helps for :-
Answer Estimating labour cost.
Question Process of readjustment inevitable calls for changes in the
________ system and its practice.
Answer Human Resource
Question Wage differentials have a great ________ and social
significance.
Answer Economic
Question Employee turnover rate focuses on stability of employee in
the organisation.
Answer False
Question Jobs are graded according to the relative skill :-
Answer Effort , Responsibility , Calculations
Question Direct labour costs are included in cost of production of
each unit.
Answer True
Question ________ provides benefits at the time of retirement/ death
/ following disability of worker.
Answer Deferred plan
Question To minimize disparity in wages & levels, following act is
passed :-
Answer Minimum wages Act
Question A job is rated to determine :-
Answer Its value relative to other jobs in organization
Article 43 Emphasizes need for legislation To avoid exploitation of
labour

I. L. O. To bring appropriate payment systems Increase economic
welfare

Child Exploitation Article 39 Article 39

Wage Policy Increase economic welfare To bring appropriate payment
systems



Question Cost accounting department analyze payroll for the purpose
of revealing :-
Answer Normal and abnormal idle time , Direct & indirect labour ,
Variance from budgeted costs
Question Marriages were supposed to be made in :-
Answer Heaven
Question Bonus is component of deductions.
Answer False
Question Provident Funds can be of the following types :-
Answer Statutory Provident Fund , Recognised Provident Fund ,
Public Provident Fund

Compensation Management - 11

Question Minimum wages are not to be fixed in an industry which
employs less then how many employees in the entire state?
Answer 1000
Question Control of labour cost is essential in every organisation to
:-
Answer Determine indirect labour cost.
Question Effectiveness of incentive system is ascertained with the
help of :-
Answer Efficiency report.
Question In case of ________ workers payment is done on the basis of
total work done.
Answer Casual
Question Following are unavoidable causes of employees turnover :-
Answer Retirement , Marriage
Question Cost of labour minute operation is available from :-
Answer Job cards.
Question Broad groups may be illustrated within manufacturing as :-
Answer Managerial , Clerical , Factory
Question Contribution to the Provident Funds are made at certain rate
or certain percentage of salary of employee, only by the Employer.
Answer False
Question The management must concentrate on creating proper
industrial relations climate before introducing incentive schemes.
Answer True
Question Time booking helps to ascertain direct and indirect labour
costs.
Answer True
Question ________ generated out of payroll system shows amounts of
debits and credits.
Answer Journal entry
Question In post IPO stage, dotcom company gives its employees :-
Answer Balanced total reward package
Question In material costing ________ Costs are written at to
Marginal profit & loss A/c.
Answer Fixed
Question If the employee receives conveyance allowance, or, he is
provided with a vehicle by employer, he is not eligible to get 'Standard
deduction' from his salary.
Answer False
Question Overtime payment given to the worker for completing work
before scheduled date art the instruction of buyer is treated as ________
cost
Answer Direct
Question Major features of production are :-
Answer Labour , Land , Capital
Question The Scanlon plan of profit sharing is more effective where
no of participants is more than 1000.
Answer False
Question In developmental phase, the dotcom companies concentrate on
:-
Answer Building brand
Question In recent times, in addition to stock options, employees of
dotcom companies are demanding :-
Answer Cash bonus
Question Sequence of operations for a job is clear in case of :-
Answer Job cards.
Question The wages of workers not present at the time of payment
disbursement should be entered into ________.
Answer Undisbursed wage register
Question Wage & salary are also subject to a variety of legislation &
in this context, compliance with existing legislative measure is very
important.
Answer True
Question For the valuation of rent free accommodation, 'Salary'
includes :
Answer D A , Bonus , Education Allowance
Bonus to top management Overall corporate results Overall corporate
results

Time' incentive plan Delays in work are frequent Delays in work are
frequent

Output' Incentive plan Units of output are measurable Units of output are
measurable

Commission' to salesmen Unsupervised nature of job Unsupervised nature
of job



Select The Blank
Question In the history of Indian IT industry, the year 2001-2002
will be remembered as ________.
Answer Year of lay-offs
Question Basic compensation systems are :-
Answer Time rate system , Piece rate system
Question Dotcom companies were founded to go beyond :-
Answer Physical business
Question From economic and ________ point of view woman was subject
to man.
Answer Social
Question In effective incentive plan, standards on which plan is
based should be :-
Answer Fair , Reasonable , Specific
Question The cost of living pay criterion is usually regarded as an
automatic minimum equity pay criterion
Answer True
Question E.S.I. Act aims at providing for certain cash benefits to
employees in case of :-
Answer Sickness , Maternity , Medical
Question Wages have at least ________ connotations from stand points
of employers and employees.
Answer 2

Psychological & social factor Determines how hard a person will work for
compensation received Determines how hard a person will work for
compensation received

Trade union bargaining power Affect rate of wages Affect rate of wages

Job requirement The more difficult a job, the higher the wages The more
difficult a job, the higher the wages

Managerial attitudes Decisive influence on the wage structure
Decisive influence on the wage structure



Multiple Choice Single Answer
Question Rate range can be developed in many ways, one usually
adopted is :-
Answer Wage curve
Question Earning in time rate systems, at ordinary levels is
calculated by formula :-
Answer Rate per hour x hours worked
Question Remuneration paid for the service of the labour in
production is :-
Answer Wage
Question Contribution to the P.F. have to be remitted along with the
challan for Account No.:-
Answer 2 , 21 , 10
Question Payment is done on the basis of units of output, incase of
________ workers.
Answer Piece
Question Differential piece rate system is suitable where :-
Answer Fixed costs are higher in proportion to veriable cost , It
is possible to count production accurately , There are standardised methods
of production
Question Cost of time spent on conducting interviews & selecting a
candidate for ________ is called Replacement cost.
Answer Replacement
Question Direct labour cost varies in proportion to output of
production.
Answer False
Question Group incentive system is more widely prevalent in the
Indian industry than the system of individual incentive.
Answer True
True/False
Question The management must concentrate on creating proper
industrial relations climate before introducing incentive schemes.
Answer True
Question Time booking on job helps for :-
Answer Estimating labour cost.
Question ________ is the unique code allotted to each & every
employee in the organization.
Answer Employee No.
Question Monetary incentive plans result in :-
Answer Greater output per man-hour , Lower unit cost , Higher wages

Question First to lay down the guidelines for fixation of Minimum
Wages was :-
Answer Indian Labour Conference
Question At germination stage, to attract and retain talent, dotcom
companies offer :
Answer Stock option
Question Payment is done on the basis of units of output, incase of
________ workers.
Answer Piece
Question In Payroll process, Cost of Living Index provides the basis
for calculating :-
Answer D.A.
Question Following are causes of idle time of labour pertaining to
production,
Answer Failure of electricity. , Seasonal nature of demand. ,
Breakdown of machinery
Question Usually multinational companies ay higher than small scale
industry.
Answer True
Question When a dotcom company starts earning profits, promoters are
focused on the launch of:-
Answer IPO
Question Correct Answer

Cost accounting Dept. Accumulation & classification all cost data

Personnel Dept. Selection & training of employees.

Payroll Dept. Maintain record of wage rate of each employee.

Engineering Dept. Preparation of time & motion studies



Multiple Choice Multiple Answer
Question Salient features of profit-sharing are :-
Answer Agreement is voluntary , Payment may be in cash / stock of
future credits , Computation on the basis of some agreed formula
Question Any imbalance in input-output relation in any incentive
payment scheme can result in :-
Answer Tension , Lower productivity , More absenteeism
Question A worker produces 50 units a week of 06 days and piece rate
is Rs.2/- per piece. Then his earning will be :-
Answer Rs.100/-
Question ________ are also aid to executives a certain percentage of
the profits.
Answer Bonuses
Question Education expenses on employee's family members paid or
reimbursed by the employer are not taxable.
Answer False
Question In post IPO stage, dotcom company gives its employees :-
Answer Balanced total reward package
Question Payment to out workers is done on ________ basis.
Answer Monthly
Question Following are causes of idle time of labour pertaining to
administration :-
Answer Poor management , Management policy
Question In recent times, in addition to stock options, employees of
dotcom companies are demanding :-
Answer Cash bonus
Elements of good Wage Plan Two

Remuneration Employees

Wage Differentials Three categories

Mathematical tables Calculations

Question The scanlon plan of profit sharing gives utmost importance
to ________.
Answer Employee participation
Question Apart from salaries, IT employees are giving importance to
:-
Answer Company image , Job content , Job security
Question Article 43 reads: State shall endeavour to secure by
suitable legislation to all :-
Answer Agricultural workers , Industrial , Working in a living wage

Question The cost of time lost in setting a machine is treated as
indirect cost.
Answer False
Question The contemporary practice for enhancing organizational
growth involves focuses on internal and external factors such as :-
Answer Customer needs , Market trends , Costs
Question Wage differentials have a great ________ and social
significance.
Answer Economic
Question ________ is a source document for preparation of wage sheet.
Answer Attendance Register
Question In addition to the result of job analysis and wage survey
several other variables have to be given due consideration in establishing
:-
Answer Wage structure
Question Wage differentials have been classified into ________
categories.
Answer 3
Question Individuals from various level of the organisation have
different :-
Answer Life Style
Question ________ are assured of a stable amount of money.
Answer Employees
Question ________ provides benefits at the time of retirement/ death
/ following disability of worker.
Answer Deferred plan
Question Demand for a particular skill is high and supply is low,
compensation given is:-
Answer High
Question Employee's State Insurance Act, ________ is a pioneering
measure in the field of social insurance of our country.
Answer 1948
Question Bonus, as the incentive to managers is determined :-
Answer By formula , By discretion used in allocation of bonus
Question In developmental phase, the dotcom companies concentrate on
:-
Answer Building brand
Question Following are the forms of the cost of replacement :-
Answer Cost of advertisement for recruitment , Cost of conducting
interviews , Cost of interruption in production
Question Any other amenity or service excluded from the computation
of wages by a general or special order of appropriate Govt.
Answer False
Question Minimum wages are not to be fixed in an industry which
employs less then how many employees in the entire state?
Answer 1000
Question Remuneration paid for the service of the labour in
production is :-
Answer Wage
Question Profit sharing plans can be on :-
Answer Industry basis , Locality basis , Unit basis
Question Provident Funds can be of the following types :-
Answer Statutory Provident Fund , Recognised Provident Fund ,
Public Provident Fund
Question Direct labour cost varies in proportion to output of
production.
Answer False
Question Components of deductions in salary are :-
Answer E.S.I. , Housing loan installment.
Question Payment is done on the basis of units of output, incase of
________ workers.
Answer Piece

Compensation Management - 10

  Question  
What is the main objective of the promoting Discount and finance house of
India (DFHI) ?
  Answer
Increasing transactions of money market assets
  Question  
A portfolio manager need not necessarily sell or purchase securities
separately for each client.
  Answer
False
  Question  
During the budget 2003 - 04, Finance Minister made some announcements which
he hopes will make investors think in terms of returning to stock market :-
  Answer
No capital gains tax on investment made in equity after 1/3/03 held for 1
year , Removal of income tax on dividends in the hands of receiver
  Question  
What is the time frame to submit a report to SEBI for acquisition
transactions arising out of firm allotment in public issues right issues
etc?
  Answer
21 days
  Question  
Who can buy or sell securities on containing the certificate of
registration?
  Answer
Underwriter , Merchant banker , Investment advisor
  Question  
Which company was responsible for spreading the equity culture in India ?
  Answer
Reliance Industries
  Question  
When is the share of the target company deemed to be frequently traded
  Answer
If the turnover in the preceding 6 months prior to the month in which PA is
made is m ore than 5%
  Question  
What are the facilities offered by NSDL?
  Answer
Enable surrender and withdrawal of securities to and from the depository ,
Maintain the investor's holdings in an electronic form , Effect settlement
of securities traded on exchanges
  Question  
What is a Point of sale terminal?
  Answer
Mechanism for collecting debit card payments
  Question  
What must be the quality of a good portfolio manager?
  Answer
Sound General knowledge , Analytical ability and marketing skills ,
Experience
  Question  
SEBI can investigate and inspect books of accounts and records of insiders.
  Answer
True
  Question  
The depository can legally transfer beneficial ownership.
  Answer
True
  Question  
The issue price for placement portion and net offer to public are not the
same.
  Answer
False
  Question  
What is Discretionary Portfolio management service ?
  Answer
Client gives his money for investment to the portfolio manager and leaves it
to him to make all the investment decisions.
  Question  
In case of a public issue by a listed company participation by promoters in
the proposed issues in excess of the required minimum percentage shall also
be looked in for a period of ________.
  Answer
1 year
  Question  
RBI has permitted all commercial banks, financial institutions and large
corporates to issue certificate of deposits.
  Answer
False
 Match The Following
Question
Correct Answer
Your Answer

Charge card
Form of plastic money
Form of plastic money

Warning Bulletin
Authenticity test
Authenticity test

Credit information company
SBI, HDFC bank
SBI, HDFC bank

Credit card issuing company
Visa/Master Card
Visa/Master Card


 
 Multiple Choice Single Answer
  Question  
A worker produces 50 units a week of 06 days and piece rate is Rs.2/- per
piece. Then his earning will be :-
  Answer
Rs.100/-
  Question  
Work study department is engaged in activities like determining :-
  Answer
Standard procedure
  Question  
Better production planning & control is facilitated through :-
  Answer
Job cards.
  Question  
If an employee pays fees for attending some management course, the fees can
be allowed for deduction from salary income.
  Answer
False
  Question  
For adequate and effective internal check on disbursement of wages, these
factors are important :-
  Answer
Proper time recording , Proper record of output by workers , Well-defined
terms of remuneration and incentive schemes
Question
Correct Answer
Your Answer

Good compensation system
Avoid exploitation
Higher skills

High demand & Low supply
High compensation
Long working hours

Equal work
Equal pay
Equal pay

Unskilled worker
Lower compensation
Lower compensation


 
 Multiple Choice Single Answer
  Question  
Indirect compensation mainly acts as :-
  Answer
Maintenance factor
  Question  
In graduated time rates system, if basic salary is Rs.2000 and dearness
allowance is 150% then total remuneration will be :-
  Answer
Rs.5000/-
  Question  
Source documents for preparations of wages are :-
  Answer
Daily time sheet , Weekly time sheet. , Attendance register.
  Question  
Wages of inspector at a particular point of production comes under :-
  Answer
Direct labour cost.
  Question  
Production bonus is calculated on the basis of output norms decided through
:-
  Answer
Job analysis , Time studies
  Question  
Profit sharing, as an incentive plan, realizes these advantages :-
  Answer
Higher profits , Increased efficiency , Climate for better employee
relations
  Question  
________ is financial / quantitative statement prepared & approved prior to
a period of time.
  Answer
Budget
Question
Correct Answer
Your Answer

Idle time due to tea breaks
Direct costs
Direct costs

Basic Salary
Gross Earning
Gross Earning

Professional Tax
Deductions
Deductions

Overtime due to general pressure of work
Indirect costs.
Indirect costs.


 
 True/False
  Question  
Indirect labour cost are distributed on a basis of suitable proportion.
  Answer
True
  Question  
If the rent paid by employee for his accommodation is equal to or more than
the value of rent-free house, the value of the concession in rent is 'NIL'.
  Answer
True
  Question  
________ provides benefits at the time of retirement/ death / following
disability of worker.
  Answer
Deferred plan
  Question  
Equal remuneration Act, 1976 discriminates on the ground of sex against
women in the matter of employment.
  Answer
False
  Question  
By using straight piece rate system of compensation output :-
  Answer
Increases
  Question  
Gradewise flat allowances are also being considered generally except where
tax exemption benefit are still available.
  Answer
True
  Question  
Incentive schemes should be installed right from beginning of production.
  Answer
False
  Question  
Wage differentials have been classified into ________ categories.
  Answer
3
  Question  
________ refers to compensation programmes that allow employees to choose
the type and quantity of reward desired by him during the year.
  Answer
Cafeteria style compensation
  Question  
Demerits of time rate system at ordinary level are :-
  Answer
No distinction between efficient and inefficient workers at regards output ,
Increase the cost of production in case of low productivity
  Question  
Employees are paid incentives on 'Time' basis if :-
  Answer
Units of output are difficult to measure , Delays in work are frequent ,
Quality is prime consideration
  Question  
Economic system does result in the concentration of wealth.
  Answer
False
  Question  
With about 2-5 years of experience, an employee can move upto manager level
from executive level in IT industry.
  Answer
True
  Question  
Salary is still the only or chief motivator for IT employees.
  Answer
False
  Question  
Group incentive system is more widely prevalent in the Indian industry than
the system of individual incentive.
  Answer
True
  Question  
To minimize disparity in wages & levels, following act is passed :-
  Answer
Minimum wages Act
  Question  
Provident Funds can be of the following types :-
  Answer
Statutory Provident Fund , Recognised Provident Fund , Public Provident Fund

  Question  
Prevailing market rate is also known as :-
  Answer
Comparable wage
  Question  
Carpenters engaged in cutting of wood in a furniture making shop is an
example of :-
  Answer
Direct labour
  Question  
During the research it was found that in certain cities prevailing wage rate
are ________where as organizational ability to pay is more.
  Answer
Very low
  Question  
Documents used for wage analysis are :-
  Answer
Job cards , Wage sheets
  Question  
The contemporary practice for enhancing organizational growth involves
focuses on internal and external factors such as :-
  Answer
Customer needs , Market trends , Costs
  Question  
For higher management, ________ are influenced by the size of a company,
specific industry and the process of decision making.
  Answer
Salaries
  Question  
Cost of time spent on conducting interviews & selecting a candidate for
________ is called Replacement cost.
  Answer
Replacement
  Question  
Job cluster is defined as the stable group of :-
  Answer
Job Classification
  Question  
If the idle time is controllable and normal, its cost is treated as ________
cost.
  Answer
Indirect
  Question  
Overtime payment given to the worker for completing work before scheduled
date art the instruction of buyer is treated as ________ cost
  Answer
Direct
  Question  
Differential piece rate system is suitable where :-
  Answer
Fixed costs are higher in proportion to veriable cost , It is possible to
count production accurately , There are standardised methods of production
  Question  
The approach of managerial / executive staff towards the perquisites has
changed since last :-
  Answer
10 years , 9 years , 8 years
  Question  
Casual workers comes under ________ class of workers.
  Answer
Unskilled
  Question  
Monetary incentive plans result in :-
  Answer
Greater output per man-hour , Lower unit cost , Higher wages
  Question  
Payment is done on the basis of units of output, incase of ________ workers.
  Answer
Piece
  Question  
If classification system is used, the jobs are already categorized into
grade or :-
  Answer
Class
  Question  
The approach of managerial / executive staff towards the perquisites has
changed since last :-
  Answer
8 years , 10 years , 9 years
  Question  
According to the thinking and beliefs of these young persons, the major need
filled by marriage is biological and this can be easily satisfied out of :-
  Answer
Wedlock
  Question  
At germination stage, to attract and retain talent, dotcom companies offer :
  Answer
Stock option
  Question  
In Payroll process, a Journal entry is treated as Control entry to :-
  Answer
Book deductions effected during the month , Book expenses for the month on
account of payroll , Make remittances to respective authorities
  Question  
When a dotcom company starts earning profits, promoters are focused on the
launch of:-
  Answer
IPO

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