CS Executive Cost and Management Accounting Online Test

Which of these is not an objective of Cost Accounting?

A profit centre is a centre

Responsibility Centre can be categorised into:

Cost Unit is defined as:

Fixed cost is a cost:

Uncontrollable costs are the costs which be influenced by the action of a specified member of an undertaking.

Element/s of Cost of a product are:

Abnormal cost is the cost:

Conversion cost includes cost of converting……….into……..

Sunk costs are:

Describe the method of costing to be applied in case of Nursing Home:

Describe the cost unit applicable to the Bicycle industry:

Calculate the prime cost from the following information:
Direct material purchased: Rs. 1,00,000
Direct material consumed: Rs. 90,000
Direct labour: Rs. 60,000
Direct expenses: Rs. 20,000
Manufacturing overheads: Rs. 30,000

Total cost of a product: Rs. 10,000
Profit: 25% on Selling Price
Profit is:

Calculate cost of sales from the following:
Net Works cost:                                         Rs. 2,00,000
Office & Administration Overheads:     Rs. 1,00,000
Opening stock of WIP:                             Rs. 10,000
Closing Stock of WIP:                               Rs. 20,000
Closing stock of finished goods:             Rs. 30,000
There was no opening stock of finished goods.
Selling overheads:                                     Rs. 10,000

Calculate value of closing stock from the following:
Opening stock of finished goods (500 units) : Rs. 2,000
Cost of production (10000 units) : Rs. 50,000
Closing stock (1000 units):?

Which of these is not a Material control technique:

Out of the following, what is not the work of purchase department:

Bin Card is a

Stores Ledger is a:

Re-order level is calculated as:

Economic order quantity is that quantity at which cost of holding and carrying inventory is:

ABC analysis is an inventory control technique in which:

Which one out of the following is not an inventory valuation method?

In case of rising prices (inflation), FIFO method will:

In case of rising prices (inflation), LIFO will:

Calculate Re-order level from the following:
Consumption per week: 100-200 units
Delivery period: 14-28 days

Calculate EOQ (approx.) from the following details:
Annual Consumption: 24000 units
Ordering cost: Rs. 10 per order
Purchase price: Rs. 100 per unit
Carrying cost: 5%

Calculate the value of closing stock from the following according to FIFO method:
1st January, 2014: Opening balance: 50 units @ Rs. 4
Receipts:
5th January, 2014: 100 units @ Rs. 5
12th January, 2014: 200 units @ Rs. 4.50
Issues:
2nd January, 2014: 30 units
18th January, 2014: 150 units

Calculate the value of closing stock from the following according to LIFO method:
1st January, 2014: Opening balance: 50 units @ Rs. 4
Receipts:
5th January, 2014: 100 units @ Rs. 5
12th January, 2014: 200 units @ Rs. 4.50
Issues:
2nd January, 2014: 30 units
18th January, 2014: 150 units

Calculate the value of closing stock from the following according to Weighted Average method:
1st January, 2014: Opening balance: 50 units @ Rs. 4
Receipts:
5th January, 2014: 100 units @ Rs. 5
12th January, 2014: 200 units @ Rs. 4.50
Issues:
2nd January, 2014: 30 units
18th January, 2014: 150 units

Cost of abnormal wastage is:

Calculate re-order level from the following:
Safety stock: 1000 units
Consumption per week: 500 units
It takes 12 weeks to reach material from the date of ordering.

From the following information, calculate the extra cost of material by following EOQ:
Annual consumption: = 45000 units
Ordering cost per order: = Rs. 10
Carrying cost per unit per annum: = Rs. 10
Purchase price per unit = Rs. 50
Re-order quantity at present = 45000 units
There is discount of 10% per unit in case of purchase of 45000 units in bulk.

Which of the following is an abnormal cause of Idle time:

If overtime is resorted to at the desire of the customer, then the overtime premium:

Labour turnover means:

Which of the following is not an avoidable cause of labour turnover:

Costs associated with the labour turnover can be categorised into:

Calculate workers left and discharged from the following:
Labour turnover rates are 20%, 10% and 6% respectively under Flux method, Replacement method and
Separation method. No. of workers replaced during the quarter is 80.

Calculate workers recruited and joined from the following:
Labour turnover rates are 20%, 10% and 6% respectively under Flux method, Replacement method and Separation method. No. of workers replaced during the quarter is 80.

Calculate the labour turnover rate according to replacement method from the following:
No. of workers on the payroll:
– At the beginning of the month: 500
– At the end of the month: 600
During the month, 5 workers left, 20 workers were discharged and 75 workers were recruited. Of
these, 10 workers were recruited in the vacancies of those leaving and while the rest were
engaged for an expansion scheme.

Calculate the labour turnover rate according to Separation method from the following:
No. of workers on the payroll:
– At the beginning of the month: 500
– At the end of the month: 600
During the month, 5 workers left, 20 workers were discharged and 75 workers were recruited. Of these,
10 workers were recruited in the vacancies of those leaving and while the rest were engaged for an
expansion scheme.

A worker is allowed 60 hours to complete the job on a guaranteed wage of Rs. 10 per hour. Under
the Rowan Plan, he gets an hourly wage of Rs. 12 per hour. For the same saving in time, how much he
will get under the Halsey Plan?

Overhead refers to:

Allotment of whole item of cost to a cost centre or cost unit is known as:

Which of the following is not a method of cost absorption?

Service departments costs should be allocated to:

Most suitable basis for apportioning insurance of machine would be:

Blanket overhead rate is:

AT Co makes a single product and is preparing its material usage budget for next year. Each unit of
product requires 2kg of material, and 5,000 units of product are to be produced next year.
Opening inventory of material is budgeted to be 800 kg and AT co budgets to increase material inventory
at the end of next year by 20%
The material usage budget for next year is

During a period 17, 500 labour hours were worked at a standard cost of Rs 6.50 per hour. The
labour efficiency variance was Rs 7,800 favourable.
How many standard hours were produced?

Which of the following is not a reason for an idle time variance?

During September, 300 labour hours were worked for a total cost of Rs 4800. The variable
overhead expenditure variance was Rs 600 (A). Overheads are assumed to be related to direct labour
hours of active working.
What was the standard cost per labour hour?

Which of the following would explain an adverse variable production overhead efficiency variance?
1. Employees were of a lower skill level than specified in the standard
2. Unexpected idle time resulted from a series of machine breakdown
3. Poor Quality material was difficult to process

Budgeted sales of X for March are 18000 units. At the end of the production process for X, 10% of
production units are scrapped as defective. Opening inventories of X for March are budgeted to be 15000
units and closing inventories will be 11,400 units. All inventories of finished goods must have successfully
passed the quality control check. The production budget for X for March, in units is:

CG Co manufactures a single product T. Budgeted production output of product T during June is
200 units. Each unit of product T requires 6 labour hours for completion and CG Co anticipates 20 per
cent idle time. Labour is paid at a rate of Rs7 per hour. The direct labour cost budget for March is

A Local Authority is preparing cash Budget for its refuse disposal department. Which of the following items would not be included in the cash budget?

BDL Ltd. is currently preparing its cash budget for the year to 31 March 2014. An extract from its sales budget for the same year shows the following sales values.

40% of its sales are expected to be for cash. Of its credit sales, 70% are expected to pay in month after sale and take a 2% discount. 27% are expected to pay in the second month after the sale, and the remaining 3% are expected to be bad debts. The value of sales budget to be shown in the cash budget for May 2013 is

The actual output of 162,500 units and actual fixed costs of Rs. 87000 were exactly as budgeted.
However, the actual expenditure of Rs 300,000 was Rs. 18,000 over budget.
What was the budget variable cost per unit?

CA Co manufactures a single product and has drawn up the following flexed budget for the year.

What would be the total cost in a budget that is prepared at the 77% level of activity?

A ltd is a manufacturing company that has no production resource limitations for the foreseeable
future. The Managing Director has asked the company mangers to coordinate the preparation of their
budgets for the next financial year. In what order should the following budgets be prepared?
(1) Sales budget
(2) Cash budget
(3) Production budget
(4) Purchase budget
(5) Finished goods inventory budget

S produces and sells one product, P, for which the data are as follows:
Selling price     Rs 28
Variable cost    Rs 16
Fixed cost         Rs 4
The fixed costs are based on a budgeted production and sales level of 25,000 units for the next period.
Due to market changes both the selling price and the variable cost are expected to increase above the
budgeted level in the next period.
If the selling price and variable cost per unit increase by 10% and 8% respectively, by how much must
sales volume change, compared with the original budgeted level, in order to achieve the original
budgeted profit for the period?

In process costing, a joint product is

Process B had no opening inventory. 13,500 units of raw material were transferred in at Rs 4.50
per unit. Additional material at Rs1.25per unit was added in process. Labour and overheads were Rs 6.25
per completed unit and Rs 2.50 per unit incomplete.
If 11,750completed units were transferred out, what was the closing inventory in Process B?

A process costing system for J Co used an input of 3,500Kg of materials at Rs20 per Kg and labour hours of 2,750 at Rs 25 per hour. Normal loss is 20% and losses can be sold at a scrap value of Rs 5per Kg. Output was 2,950 Kg. What is the value of the output?

In process costing, if an abnormal loss arises, the process account is generally

Which of the following statements is/are correct?
1. A materials requisition note is used to record the issue of direct material to a specific job.
2. A typical job cost will contain actual costs for material, labour and production overheads, and
non –production overheads are often added as a percentage of total production cost
3. The job costing method can be applied in costing batches

A job is budgeted to require 3,300 productive hours after incurring 25% idle time. If the total labour cost budgeted for the job is Rs36,300. What is the labour cost per hour( to the nearest cent)?

A company calculates the prices of jobs by adding overheads to the prime cost and adding 30% to total costs as a profit margin. Job number Y256 was sold for Rs1690 and incurred overheads of Rs 694.
What was the prime cost of the job?

State which of the following are the characteristics of service costing.
1. High levels of indirect costs as a proportion of total costs
2. Use of composite cost units
3. Use of equivalent units

Which of the following organisations should not be advised to use service costing?

Calculate the most appropriate unit cost for a distribution division of a multinational company using the following information.

The following information is available for the W hotel for the latest thirty day period.
Number of rooms available per night    40
Percentage occupancy achieved              65%
Room servicing cost incurred                  Rs. 3900
The room servicing cost per occupied room-night last period, to the nearest Rs, was:

A company makes a single product and incurs fixed costs of Rs. 30,000 per annum. Variable cost per unit is Rs. 5 and each unit sells for Rs. 15. Annual sales demand is 7,000 units. The breakeven point is:

A company manufactures a single product for which cost and selling price data are as follows:
Selling price per unit – Rs. 12
Variable cost per unit – Rs. 8
Fixed cost for a period – Rs. 98,000
Budgeted sales for a period – 30,000 units
The margin of safety, expressed as a percentage of budgeted sales,is:

Information concerning A Ltd.’s single product is as follows:
Selling price – Rs. 6 per unit
Variable production cost – RS. 1.20 per unit
Variable selling cost – Rs. 0.40 per unit
Fixed production cost – Rs. 4 per unit
Fixed selling cost – Rs. 0.80 per unit.
Budgeted production and sales for the year are 10,000 units.

What is the company’s breakeven point:

Information concerning A Ltd.’s single product is as follows:
Selling price – Rs. 6 per unit
Variable production cost – RS. 1.20 per unit
Variable selling cost – Rs. 0.40 per unit
Fixed production cost – Rs. 4 per unit
Fixed selling cost – Rs. 0.80 per unit.
Budgeted production and sales for the year are 10,000 units.

How many units must be sold if company wants to achieve a profit of Rs. 11,000 for the year?

Information concerning A Ltd.’s single product is as follows:
Selling price – Rs. 6 per unit
Variable production cost – RS. 1.20 per unit
Variable selling cost – Rs. 0.40 per unit
Fixed production cost – Rs. 4 per unit
Fixed selling cost – Rs. 0.80 per unit.
Budgeted production and sales for the year are 10,000 units.

It is now expected that the variable production cost per unit and the selling price per unit will each
increase by 10%, and fixed production cost will rise by 25%. What will be the new break even point?

A company’s break even point is 6,000 units per annum. The selling price is Rs. 90 per unit and the variable cost is Rs. 40 per unit. What are the company’s annual fixed costs?

Capital gearing ratio is ___________.

After inviting tenders for supply of raw materials, two quotations are received as follows—
Supplier P Rs. 2.20 per unit, Supplier Q Rs. 2.10 per unit plus Rs. 2,000 fixed charges irrespective of the units ordered. The order quantity for which the purchase price per unit will be the same—

In case of joint products, the main objective of accounting of the cost is to apportion the joint costs
incurred up to the split off point. For cost apportionment one company has chosen Physical Quantity
Method. Three joint products ‘A’, ‘B’ and ‘C’ are produced in the same process. Up to the point of split off
the total production of A, B and C is 60,000 kg, out of which ‘A’ produces 30,000 kg and joint costs are
Rs. 3,60,000. Joint costs allocated to product A is

A transport company is running five buses between two towns, which are 50 kms apart. Seating capacity of each bus is 50 passengers. Actually passengers carried by each bus were 75% of seating capacity. All buses ran on all days of the month. Each bus made one round trip per day. Passenger kms are:

The cost per unit of a product manufactured in a factory amounts to Rs. 160 (75% variable) when the production is 10,000 units. When production increases by 25%, the cost of production will be Rs. per unit.

In ‘make or buy’ decision, it is profitable to buy from outside only when the supplier’s price is below the firm’s own ______________.

A budget which is prepared in a manner so as to give the budgeted cost for any level of activity is known as:

_________ is also known as working capital ratio.

___________ is a summary of all functional budgets in a capsule form.

_____________ is a detailed budget of cash receipts and cash expenditure incorporating both revenue and capital items.

Statutory cost audit are applicable only to:

For the financial year ended as on March 31, 2013 the figures extracted from the balance sheet ofXerox Limited as under:

Opening Stock Rs. 29,000; Purchases Rs. 2,42,000; Sales Rs. 3,20,000; Gross Profit 25% of Sales.
Stock Turnover Ratio will be :-

If credit sales for the year is Rs. 5,40,000 and Debtors at the end of year is Rs. 90,000 the Average Collection Period will be

The summarized balance sheet of Rakesh udyog Limited shows the balances of previous and current year of provision for taxation Rs. 50,000 and Rs. 65,000. If taxed paid during the current year amounted to Rs. 70,000 then amount charge from Profit and Loss Account will be:

The summarized balance sheet of Autolight Limited shows the balances of previous and current year of retained earnings Rs. 25,000 and Rs. 35,000. If dividend paid during the current year amounted to Rs. 5,000 then profit earned during the year will be:

Following information is available of XYZ Limited for quarter ended June, 2013
Fixed cost            Rs. 5,00,000
Variable cost       Rs. 10 per unit
Selling price        Rs. 15 per unit
Output level        1,50,000 units
What will be amount of profit earned during the quarter using the marginal costing technique?

The P/v ratio of a company is 50% and margin of safety is 40%. If present sales is Rs. 30,00,000 then Break Even Point in Rs. will be

Following information is available of PQR for year ended March, 2013: 4,000 units in process, 3,800 units output, 10% of input is normal wastage, Rs. 2.50 per unit is scrap value and Rs. 46,000 incurred towards total process cost then amount on account of abnormal gain to be transferred to Costing
P&L will be:-

In element-wise classification of overheads, which one of the following is not included —

When the sales increase from Rs. 40,000 to Rs. 60,000 and profit increases by Rs. 5,000, the P/V ratio is —