Cost & Management Accounting June 2016 for Mock Test

CS Executive previous year Solved June 2016 Cost And Management Accounting . Now practice along with answer key to CS Executive previous year question papers. Practicing mock test helps students in achieving their goal as mock test is the best way to evaluate your practice for an exam. It becomes more important to practice mock test for those exams which have negative marking like CS Executive. 

Questions from this attempt are listed below. 

Question 1.        What journal entry is to be passed in nonintegrated accounting system when finished goods are sold at cost

Question 2.        Which one of the following statements is false _____

Question 3.        4,000 Kgs. of material is purchased @ Rs. 2 per Kg. Normal wastage is estimated at the rate of 10%. The wastage has recovery value of Rs. 1.10 per Kg. Calculate cost of material of work order of 600 units, if each unit requires 1.5 Kg. of material ______

Question 4.        What is the treatment of unrealised profit in process costing _______

Question 5.        Cost Volume Profit analysis is based on several assumptions. Which one of the following is not one of these assumptions _____

Question 6.        Pride Ltd. has profit after tax Rs. 90,000, depreciation Rs. 17,000, and decrease of debtors Rs. 20,000. The cash generated from operating activities will be _____

Question 7.        Under Merrick multiple piece rate system, 110% of the ordinary piece rate is given to workers whose level of performance lies between _______ of the standard output.

Question 8.        Current liabilities of a firm are Rs. 1,50,000. Its current ratio is 3:1 and liquid ratio is 1:1. The value of stock will be ________

Question 9.        The state of production at which separate products are identified is known as ____

Question 10.    Under marginal costing, unit product cost would most likely be increased by _____

Question 11.    In process costing, abnormal effectives would arise if ____

Question 12.    A company producing three products, viz., X,Y and Z has sales mix in the ratio of 2:1:3. The profit volume ratio of the products X, Y and Z are 15%, 30% and 20% respectively. The total fixed cost of the company is Rs. 3,50,000. The break-even point of the company will be _____

Question 13.    Which one of the following is a non current item _____

Question 14.    Identify the cost which is not relevant or useful for decision making __

Question 15.    EOQ is 200 units, ordering cost Rs. 20 per order and total purchases 4,000 units. The carrying cost per unit will be _____

Question 16.    From the following particulars, calculate the selling price per unit, if the break-even point is brought down to 10,000 units : Selling price per unit Rs. 20; Variable cost per unit Rs. 16; Fixed expenses Rs. 60,000. Choose the correct option ___

Question 17.    Standard time allowed for a job is 20 hours @ Rs. 2 per hour. Actual time taken by a worker is 15 hours. The earning and effective wage rate under Halsey Plan (50% sharing) will be _____

Question 18.    Cost Accounting Standard ____________ is related to bringing uniformity and consistency in the principles and methods of determining the selling and distribution overheads with reasonable accuracy

Question 19.    Which of the following statements is wrong with reference to contract costing —

Question 20.    Which one of the following statements is true in ABC classification of materials —

Question 21.    Aman Ltd. sells its products at Rs. 16 per unit. In a period, if it produces and sells 20,000 units, it incurs a loss of Rs. 2 per unit. If the volume is doubled, it earns a profit of Rs. 2.20 per unit. The amount of fixed cost and breakeven point (in units) will be

Question 22.    In a situation of rising prices, profit and tax liability would be lower under _______ method than under _______ method of material issue pricing.

Question 23.    The purchase of machinery by issuing long-term notes payable should be reported as a —

Question 24.    A standard that represents the most likely scenario can be referred to as

Question 25.    Stock turnover 6 times; Total sales Rs. 3,00,000; Gross profit ratio 20%; Closing stock Rs. 4,000 more than opening stock. The opening stock is

Question 26.    Which one of the following would not form part of master budget

Question 27.    Standard time for a job is 40 hours @ Rs. 2 per hour. Actual time taken by a worker is 30 hours. His total earnings under Rowan plan and Halsey plan will be

Question 28.    Section ___________ of the Companies Act, 2013 gives the cost auditor same power as the financial auditor has under section __________ of the Companies Act, 2013.

Question 29.    Balance of investment account is Rs. 20,000 on 31st March, 2014 and Rs. 30,000 on 31st March, 2015. As per additional information, dividend received Rs. 3,000 includes Rs. 1,000 from pre-acquisition profit which is credited to investment account. he amount of investment purchased/ sold during the year 2014-15 is

Question 30.    Which one of the following statements is correct —

Question 31.    Direct labour cost will include

Question 32.    Those fixed costs which continue to be incurred even when there is no production are called

Question 33.    Which one of the following is not a part of reciprocal method for re-distribution of service departments overheads to production departments

Question 34.    Profit  Rs. 50,000; Contribution  Rs. 70,000; Sales  Rs. 7,00,000. The amount of margin of safety will be

Question 35.    Which one of the following is not an advantage of budgetary control

Question 36.    Job analysis is the analysis of each job to determine a list of _______ needed by workers to perform the work satisfactorily

Question 37.    The technique of economic order quantity is losing significance since the development

Question 38.    A firm plans to produce 1,980 units of a product per 8 hour shift. The standard productivity is 2 units per man hour. Average labour efficiency is 91%, idle time is 15% of attendance time and absenteeism is 20%. How many workers should be recruited to produce planned output

Question 39.    Two articles A and B are produced in a factory. Their specifications show that 4 units of A or 2 units of B can be produced in one hour. The budgeted production for January, 2015 is 800 units of A and 200 units of B. The actual production for the month was 900 units of A and 180 units of B. Actual labour hours spent were 350. The efficiency ratio for January, 2015 is

Question 40.    A direct cost is a cost which can be classified on the basis of 

Question 41.    The original standard rate of pay in a factory as Rs. 4 per hour. Due to settlement with Trade Unions, this rate of pay per hour was increased by 15%. During a particular period, 5,000 actual hours were worked whereas work done was equivalent to 4,400 hours. Actual labour cost was Rs. 24,000. Labour cost variance will be

Question 42.    Following information relates to a travel agency; Distance of one way route 40 Kms; Round trips per day 3; Days operated in a month 25; Seating capacity (80% occupied) 50 passengers. The effective passenger km per annum. will be

Question 43.    Which method of joint cost apportionment is suitable where further processing costs after separation point are not incurred proportionately or all the joint products are not subject to further processing

Question 44.    The ratio of variable cost to sales is 75%. The break-even point occurs at 64% of the capacity sales when fixed cost is Rs. 1,20,000. The 100% capacity sales will be

Question 45.    Management accounting does not include the function of

Question 46.    Following information is given for Component A : Normal usage 50 units per week, maximum usage 75 units per week, reorder period 4 to 6 weeks. The minimum level of stock will be

Question 47.    Which statement contains opening as well as closing balances of cash and cash equivalents and prepared on accrual basis

Question 48.    Which of the following account will be debited under the integrated accounting system when materials are purchased on credit

Question 49.    Cost of maintenance of an equipment for 12,000 hours of running is Rs. 1,70,000 and for 18,500 hours of running, it is Rs. 2,09,000. The cost of maintenance for 14,000 hours will be

Question 50.    Acute Ltd. is committed to supply 24,000 bearings per annum to Mighty Ltd. on a steady basis. It is estimated that it costs 10 paise as inventory holding cost per bearing per month and that the set-up cost per run of bearing manufacture is Rs. 324. The optimum run size for bearing manufacture would be —

Question 51.    Which one of the following is the correct sequence of the purchase procedure of inventory —

Question 52.    In financial analysis Time Series Analysis refers to —

Question 53.    The standard material required to manufacture one unit of Product A is 5 Kgs. and the standard price per Kg. of material is Rs. 3. The cost accountant's records, however, reveal that 16,000 Kgs. of material costing Rs. 52,000 were used for producing 3,000 units of Product A. Material price variance will be

Question 54.    The formula for computing overheads efficiency variance is —

Question 55.    If average collection period is 15 days and average account receivables is Rs. 45,000, the total amount of credit sales will be (assume 360 days in a year)

Question 56.    A process in which management is looking outward to examine how others achieve their performance levels and to understand the process they use, is called

Question 57.    Which one of the following is not a statistical technique of cost audit —

Question 58.    If provision for taxation is treated as a current liability, then payment of tax is —

Question 59.    Margin of safety is Rs. 8,000 which represents 40% of sales. P/V ratio is 50%. Fixed cost will be

Question 60.    What is the proper sequence in standard costing to control cost and measure efficiency

Question 61.                     A budget in which a responsibility centre manager must justify each planned activity and its budgeted total cost is called