Cost & Management Accounting June 2017 for Mock Test

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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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