Cost & Management Accounting June 2017 for Mock Test
Practice online test series and previous year exam for CS Executive for best result. Cost & Management Accounting June 2017 questions are provided here for students appearing in CS executive to practice these online test series. 1. The
chief objective of cost accounting is to _________ 2. Cost
accounting differs from financial accounting in respect of : 3. A
power house which generates and supplies power is called _________ 4. Over-absorption
of factory overheads due to inefficiency of management should be disposed by
_________ 5. "Costs which can be identified easily and indisputably with a unit of operation or costing unit or cost centre is called : 7. Salary
of a foreman should be classified as a _________ 8. The
costing method in which fixed factory overheads are added to the inventory is : 9. The
primary documents used for collection of production overheads are _________ 10. Which
of the following costs is not a factory overhead expense 11. A
method of dealing with overheads involves spreading common costs over cost
centres on the basis of benefit received. This is known as 12. Which
of the following is not a means whereby factory overheads can be charged out of
production 13. An
organisation is divided into number of departments and overheads are collected,
allocated or apportioned to respective departments, is called 14. Ramya
Ltd. furnishes the following information : Production 10,000 units, Sales
10,000 units, Selling priceRs. 12 per unit, Variable costRs. 6 per unit, Fixed
costsRs. 40,000 per annum (normal capacity of 10,000 units) Profit/Loss under
marginal costing method will be : 15. A
manufacturer produces 2,00,000 units of
a product at a cost ofRs. 3.25 per unit. Later on he produces 2,75,000 units at
a cost ofRs. 3.20 per unit, when its fixed overheads have increased by 10%. The
original fixed overheads will be 16. Mr.
Mahesh has a sum ofRs. 3,00,000 which invested in a business. He wishes 15%
return on his fund. It is revealed from the present cost data analysis that
variable cost of operation are 60% of sales and fixed costs areRs. 1,50,000
p.a. On the basis of this information, you are required to find out the sales
volume to earn 15% return 17. In
a purely competitive market, 10,000 pocket transistors can be manufactured and
sold and certain profit is generated. It is estimated that 2,000 pocket
transistors need to be manufactured and sold in a monopoly market to earn the
same profit. Profit under both the conditions is targeted atRs. 2,00,000. The
variable cost per transistor isRs. 100 and the total fixed costs areRs. 37,000.
You are required to find out unit selling price per transistor under
competitive condition. 18. A
firm has given the following data :Fixed expenses at 50%Rs. 15,000, Fixed
expenses when factory is close downRs. 10,000, Additional expenses in closing
downRs. 1,000, Production at 50% capacity 5,000 units, contribution per unitRs.
1. Advise whether to run the factory or close it down 19. You
are requested to report to top management of Eastern India Engineering Company
the point of sales in terms of rupee to break-even. For the purpose, you obtain
that : Fixed overheads remain constant atRs. 12,000 Variable costs will rise
zero toRs. 12,000 Selling price isRs. 600 per ton The tonnage produced and sold
is 30 tons 20. In
a period sales amount toRs. 2,00,000, net profitRs. 20,000 and Fixed overheads
areRs. 30,000. If salesRs. 3,00,000 profit will be 21. Rowan
premium plan is an improvement over 22. A
company has fixed costs ofRs. 90,000 with sales ofRs. 3,00,000 and profit ofRs.
60,000.Margin of safety will be 23. A
company sells its product atRs. 15 per unit. In a period if it produces and
sells 8,000 units, it incurs a loss ofRs. 5 per unit. If the volume is raised
to 20,000 units, it earns a profit ofRs. 4 per unit. Break-even point in units
will be 24. The
cost accountant of M Ltd. has ascertained the selling price of a product isRs.
20 per unit. Variable cost isRs. 15 per unit and break-even point is 21,600
units. Management has decided to treat 12,000 units of B.E.P. because
production department cannot produce more than this at the moment. The selling
price for 12,000 units B.E.P. will be 25. Yadhav
Co. has annual fixed cost ofRs. 1,20,000. In 2015 sales amounted toRs. 6,00,000
as compared toRs. 4,50,000 in 2014 and profit in 2015 wasRs. 50,000 higher than
in 2014. If there is not need to expand the company’s capacity. The profit or
loss in 2016 on a forecasted sales ofRs. 9,00,000 will be : 26. A
company manufactures and sells three types of product namely A, B and C. Total
sales per month isRs. 80,000 in which the share of these three products are
50%, 30% and 20% respectively. Variable cost of these products are 60%, 50% and
40% respectively. The combined P/V Ratio will be : 27. A
plant produces a product in the quantity of 10,000 units at a cost ofRs. 3 per
unit. If 20,000 units are produced, the cost per unit will beRs. 2.50. Selling
price per unit isRs. 4. The variable cost per unit will be 28. A
plant is operating at 60% capacity. The fixed costs areRs. 30,000, the variable
costs areRs. 1,00,000 and the sales amount toRs. 1,50,000. The percentage of
capacity at which the plant should operate to earn a profit ofRs. 40,000 will
be 29. When
demand forecasting is difficult, budget which is prepared 30. The
following information is given : Materials purchased 3,000 kg. Value of
materials purchasedRs. 9,000 Standard quantity 25 kg. for one kg. finished
goods Standard priceRs. 2 per kg. Closing stock of materials 500 kg. Finished
goods produced 80 kg. Material usage variance will be 31. Normal
number of workers in the department 50 Normal hours paid for in a week 40
Standard rate of wages per hourRs. 0.80 Standard output of the department per
hour taking into account normal 20 units In the first week of March, 2016, it
was ascertained that 1,000 units were produced despite 20% idle time due to
power failure and actual rate of wages wasRs. 0.90 per hour. Labour Cost
variance will be : 32. The
branch of accounting which primarily deals with processing and accounting data
for internal use in a concern is 33. Material
cost variance is due to : 34. In
cash flow, income tax paid is treated as : 35. When
margin of safety is 20% and P/V ratio is 60%, the profit will be 36. Proprietor’s
net capital employed is known as 37. Which
of the following is not applied in Management Accounting 38. EBIT/Total
assets ratio is 39. If
the total cost of producing 20,000 units of a product isRs. 90,000 and if
25,000 units will be produced, then the total cost will beRs. 1,05,000 and the
selling price isRs. 8 per unit. The break-even point will be 40. P/V
ratio 25%, SalesRs. 1,20,000 and Fixed costsRs. 17,500, Profit will be : 41. Under
marginal costing system, product costs are 42. A,
B, C analysis is _________ 43. In
differential cost analysis, managerial decisions are based on 44. The
difference between the standard hours for the actual output and actual hours
for actual output and multiplied by standard rate per hour is 45. The
difference between actual price and standard price multiplied by actual
quantity will result into : 46. The
budget which usually takes the form of profit and loss account and balance
sheet is known as 47. A
fixed budget is one which 48. A
good costing system gives equal emphasis on cost ascertainment and cost
.......... 49. The
method of costing used both in a cinema and a hospital is
....................... costing 50. _________
is a location, person or item of equipment for which cost may be determined and
used for the purpose of cost control. 51. Difference
between standard normal loss and actual normal loss is 52. Prime
cost plus variable overheads gives : 53. One
of the most significant tools in cost planning is 54. Cost
of goods produced consists of : 55. Two
avoidable reasons for the difference between bin card and physical quantity of
material may be ___________ and wrong
posting in the bin card 56. When
prices fluctuate widely, which of the following method will even out the effect
of fluctuations 57. In
which of the following methods, material issues are priced at pre-determined
rate 58. Which
of the following does not normally appear on a material requisition form 59. __________
is defined as the rate of exchange of labour force in an establishment during a
particular period. 60. Overtime
wages arising out of abnormal conditions, eg. flood, strike etc. should not be
charged to ....................... 61. When
standard output is 10 units per hour and actual output is 14 units per hour,
the efficiency level will be 62. Given
that Standard Time for a job is 10 hours, actual time taken is 6 hours and the
rate of wages isRs. 3 per hour. The total wages under Halsey scheme will be : 63. Maximum
possible production capacity of a plant when operating time is fully utilised
is its 64. Research
cost undertaken at the request of the consumer should be charged to 65. When
direct materials are issued to production, the accounting entry is to debit
____________ control a/c and credit stores ledgers control a/c. 66. Which
of the following items is not included in cost accounts 67. When
costing loss isRs. 6,500, administrative overhead under absorbed beingRs. 500,
the loss as per financial accounts should be 68. In
big contracts the completion of work is certified by 69. Batch
production is suitable for 70. The
stage of production where separate products are identified is called ........ 71. Costs
incurred upto the point where individual products can be identified are called
........ 72. The
method of costing is suitable in chemical industries is 73. Individual
products, each of a significant sales value, produced simultaneously from the
identical raw materials are called : 74. Credit
sales Rs. 3,00,000, Opening balance of accounts receivableRs. 50,000 and
Closing balance of accounts receivableRs. 70,000 (assuming 360 days in a year).
Debtors turnover ratio will be 75. Profit
on sale of machinery should be ........................ from the net profit to
get funds from operations 76. Short-term
solvency is indicated by 77. By
‘Cash Equivalents’ we mean
78. Management
Accounting aims at
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