Scdl Management Accounting Solved Paper - 1

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Management AccountingPaper Code-103

SCDL- PGDBA- I Semester _____________________________________________________________________

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Multiple Choice Multiple Answer Question Essentials for effective implementation of budgetary control

system areCorrect Answer Commitment of top management , Clearly defined objectives ,

Continous budget educationYour Answer Commitment of top management , Clearly defined objectives ,

Continous budget education

Multiple Choice Multiple Answer Question Features of convention of consistency are . . .

Correct Answer The accounting policies and procedures should be followed

consistently , Facilitates the comparison of financial statements ,It facilitates comparison of financial statements on period-to-period basis

Your Answer The accounting policies and procedures should be followedconsistently , It facilitates comparison of financial statements onperiod-to-period basis

True/False Question The bin card and stores ledger, being independent records,

comparison of these two records should be avoided.Correct Answer False

Your Answer False

Match The Following

Question Correct Answer Your Answer

Dividend paid Profit and lossappropriation account

Profit and loss account

Freight inwards Manufacturing account Manufacturing account

Sales Trading account Capital account

Freight outwards Profit and loss account Trading account

Select The Blank Question Large angle of incidence indicates ________ amount of profits.

Correct Answer higher





Your Answer same

True/False Question Error of commission refer to a situation where a transaction is

not recorded in the books of account.Correct Answer False

Your Answer True

Multiple Choice Single Answer Question Relevant costs in decision making are :

Correct Answer Those costs which will arise as a result of the proposed action

Your Answer Those costs which will arise as a result of the proposed action

Select The Blank Question ________is the summary of all the balances in all the accounts

listed in ledger account of an organization at any given point of time.

Correct Answer Trial Balance

Your Answer Trial Balance

Multiple Choice Multiple Answer Question Overhead capacity variance is the outcome of:

Correct Answer Shortage of labour , Enforced idle time, e.g.power breakdowns ,Customer demand being more or less than anticipated

Your Answer Shortage of labour , Enforced idle time, e.g.power breakdowns ,Customer demand being more or less than anticipated

True/False Question Factory overheads consist of all overhead costs incurred from

the stage of procurement of material till the production of finishedgoods.

Correct Answer True

Your Answer True

True/False Question Bank reconciliation statement must be prepared before the

preparation of profit and loss account and balance sheet.Correct Answer True





Your Answer True

Multiple Choice Single Answer Question Included in the trial balance is the sales promotion suspense

account with a debit balance of Rs.6,300/-. It is given that thisbalance should be written off. Calculate its impact on profit of thecompany.

Correct Answer The net profit will decrease by Rs.6,300/-

Your Answer The gross profit will increase by Rs.6,300/-

Select The Blank Question In calculation of total sales margin variance, the ________cost of

sales is deducted from the actual sales revenue.Correct Answer Standard

Your Answer Actual

Match The Following


Increase in contributionwill lead to

Increase in profits Increase in profit volumeratio

Increase in fixed cost will

lead to

Increase in break even

point

Decrease in contribution

Decrease in variable costwill lead to

Increase in profit volumeratio

Increase in profits

Decrease in selling pricewill lead to

Decrease in contribution Increase in break evenpoint

Multiple Choice Multiple Answer Question Marginal costing technique is useful in taking decisions relating

to which of the following courses of action?Correct Answer Decision to drop a product line , Decision to accept a special

offer at price lower than the normal selling price , Decision

regarding temporary shut-downsYour Answer Decision to drop a product line , Decision to accept a specialoffer at price lower than the normal selling price , Decision toaccept a special offer at price higher than the normal sellingprice , Decision regarding temporary shut-downs

Multiple Choice Single Answer Question Basic objective of Uniform Costing is . . .





Correct Answer comparison

Your Answer To control cost

Select The Blank Question Re-order level should be higher than ________ but lesser than

maximum stock level.Correct Answer Minimum level

Your Answer Minimum level

True/False Question The variable costs are controllable at the lower lever.

Correct Answer True

Your Answer False

Select The Blank Question Economical use of labour, materials and facilities can achieved

with the help of ________.Correct Answer Budgetary control

Your Answer Budgetary control

Select The Blank Question Goods returned by Pawan worth Rs.1,000/- is debited to

Pawan's Account. In order to rectify the mistake, which accountshould be debited ? ________

Correct Answer Suspense account

Your Answer Personal account

True/False Question The purchase account should be debited when an order is

placed with the supplier of material.

Correct Answer False

Your Answer False

True/False Question Accounting refers to the process of analyzing & interpreting the

information already recorded in the books of accounts.





Correct Answer True

Your Answer True

Select The Blank Question Interest receivable is a________ for the organisation.

Correct Answer Current sset

Your Answer Long term asset

Multiple Choice Single Answer Question Purchases returns of Rs.18,000/- were wrongly transferred to the

sales returns account. Calculate its impact on net profit.Correct Answer The net profit will not be affected

Your Answer The net profit will decrease by Rs.18,000/-

Multiple Choice Single Answer Question Amit sold Goods to Atul for Rs. 50,000/- on cash & Rs. 50,000/-

on credit basis. Amit allowed 10% discount for on the spottransaction. What is the amount that should be debited to thecash account?

Correct Answer Rs.45,000/-

Your Answer Rs.50,000/-

Multiple Choice Single Answer Question Interest on bank loan, was paid till the quarter ending 30th

September, 2003, Rs.36,000/-. Find the amount to be debited tothe profit and loss account for the year ending on 31st March,2004, assuming the loan is not yet repaid as on this date.

Correct Answer Rs.72,000/-


Multiple Choice Single Answer Question The features of the Halsey Plan are:

Correct Answer The benefit of time saved is divided equally between theemployer and employee

Your Answer The benefit of time saved is divided equally between theemployer and employee

True/False





Question The sum of indirect material cost, indirect labour cost andindirect expenses is termed as factory cost.


Your Answer True

Multiple Choice Single Answer Question Determine re-order level from the following : Maximum daily

consumption - 200 units; maximum delivery period - 12 days;average daily consumption - 150 units and average deliveryperiod - 8 days.

Correct Answer 2,400 units

Your Answer 2,400 units

Select The Blank Question An error of partial omission can be rectified by either debiting or

crediting the ________ account, as the case maybe.Correct Answer suspense

Your Answer adjusted profit and loss

Multiple Choice Multiple Answer Question Select the examples of functional budgets:

Correct Answer Sales budget , Production budget , Research and developmentbudget

Your Answer Sales budget , Production budget , Research and developmentbudget

Multiple Choice Single Answer Question With the help of the given information, find actual fixed

overheads for actual output. Fixed overheads volume variance -Rs.75,000/- (Favourable); fixed overheads efficiency variance -Rs.95,000/- (Favourable); fixed overheads calendar varianceRs.20,000/- (Adverse); fixed voerheads expenditure varianceRs.100,000/- (Adverse) and standard fixed overheads for actual

output -Rs.575,000/-.Correct Answer Rs.600,000/-


Select The Blank Question Furniture account will always have a ________ balance.





Correct Answer Debit

Your Answer Credit

Select The Blank Question If the ordering cost ________s, then the economic order quantity

will Increase.Correct Answer Increase

Your Answer Increase

Multiple Choice Multiple Answer Question Which of the following information is included in the goods

received note?Correct Answer Date of receipt of material , Quantity received , Description of goods

Your Answer Date of receipt of material , Quantity received , Price of goods ,Description of goods

Multiple Choice Multiple Answer Question Select the non-monetary incentives

Correct Answer Health and safety services , Canteen facility , Loans at reducedrate of interest

Your Answer Health and safety services , Canteen facility

True/False Question A business is an activity carried out with the intention of earning

the profit.Correct Answer True

Your Answer True

True/False Question Linking overhead to a cost unit is known as overhead absorption.

Correct Answer True

Your Answer True

Multiple Choice Multiple Answer Question The operating profit as per cost statement may differ from the

profit as per Profit and Loss Account due to existence of Correct Answer Depreciation on plant and machinery , Interest on loans taken





from other , Interest on loans granted to others

Your Answer Depreciation on plant and machinery , Interest on loans takenfrom other

Multiple Choice Multiple Answer Question The main advantages of profit sharing are :

Correct Answer Employees try to increase productivity , Incentives are shared byall the employees , Augments emplyees' efficiency

Your Answer Employees try to increase productivity , Incentives are shared byall the employees

Multiple Choice Multiple Answer Question Labour efficiency variance Rs.1,000/- (favourable); labour mix

variance Rs.260/- (adverse) and labour rate variance Rs.300/-(adverse). Compute labour cost variance and labour yieldvariance.

Correct Answer Labour cost variance -Rs.700/- (Favourable) , Labour yieldvariance -Rs.1,260/- , Labour yield variance is favourable

Your Answer Labour cost variance -Rs.700/- (Favourable) , Labour yieldvariance -Rs.1,260/-

True/False Question The best way to reduce labour cost is to recruit cheap labour.


Your Answer False

True/False Question Balance sheet indicates the financial status of the business at

given period.Correct Answer True

Your Answer True

Multiple Choice Multiple Answer

Question Select the items which may be classified as selling anddistribution overheads.

Correct Answer Delivery van expenses , Rent of finished goods warehouse ,Sales research expenses

Your Answer Delivery van expenses , Rent of finished goods warehouse ,Sales research expenses

Select The Blank





Question In India the gas industry and electricity industry, and ________ industry are examples of industries using the uniform costingsystem.

Correct Answer fertilizer

Your Answer fertilizer

Multiple Choice Single Answer Question The process of recording the costs in a formal and systematic

manner with the intention of preparing statistical data there froma ascertain the cost, is known as . . .

Correct Answer Cost accounting

Your Answer Cost accounting

Multiple Choice Single Answer Question Fixed deposit bearing interest @ 5.50%, for Rs.10,000/- was

kept with Bank of India on 1st June, 2003, for a period of oneyear. The type of the fixed deposit is cumulative, i.e. interestshall be received only on maturity. What treatment should begiven in the books of accounts on 31st March, 2004, the year ending date?

Correct Answer An entry for Rs.458.34, debiting interest accrued but not dueaccount should be passed

Your Answer An entry for Rs.458.34, crediting interest accrued but not dueaccount should be passed

True/False Question A business is an activity carried out with the intention of

earning the profit.Correct Answer True

Your Answer True

True/False Question Balance sheet indicates the financial status of the business atgiven period.

Correct Answer True

Your Answer True

True/False





Question Accounting refers to the process of analyzing & interpreting theinformation already recorded in the books of accounts.

Correct Answer True

Your Answer False

True/False Question Accounting is an art of recording, classifying & summarizing in

a significant manner.Correct Answer True

Your Answer True

True/False Question Financial accounting may deal with the ascertainment of cost &

calculation of profitability of the individual product.Correct Answer False

Your Answer False

True/False Question The reports generated by financial accounting are meant for

the use by management for effective decisions.

Correct Answer TrueYour Answer True

Multiple Choice Multiple Answer Question Cost Accounting ______________.

Correct Answer Concerned with specific activities. , Classified according totheir nature. , It deals with both i.e. past & present.

Your Answer Concerned with specific activities. , Classified according totheir nature. , It covers whole business

Multiple Choice Multiple Answer Question Management Accounting __________________.

Correct Answer Designed particularly for internal use only. , Looks forward inestimating the future along with past period. , This furnishesthe necessary information to management.

Your Answer Designed particularly for internal use only. , Looks forward inestimating the future along with past period. , This furnishes





the necessary information to management. , Only a, b, c.

Multiple Choice Multiple Answer Question Accounting is the art of ______________,____________ and

____________ in a significant manner and in terms of moneytransactions and events which are of a financial character andinterpreting the res

Correct Answer Summarizing , Classifying , Recording

Your Answer Summarizing , Classifying , Recording


Question The process of accounting has three streams of accounting ---------------,--------and ----------------------.Correct Answer Financial Accounting , Cost Accounting , Management

AccountingYour Answer Financial Accounting , Cost Accounting , Management

Accounting

Match The Following


Personal A/C Debit the receiver, Credit

the giver

Debit the receiver, Credit

the giver Real A/C Debit what comes in,

Credit what goes outDebit what comes in,Credit what goes out

Nominal A/C Debit all the expenses,Credit all the incomes

Debit all the expenses,Credit all the incomes

Tangible assets Building, Machinery Building, Machinery

In tangible assets Patents, Trade marks Patents, Trade marks

True/False Question Credit note is an intimation send to person dealing with thebusiness that his account being debited for the purposeindicated therein.


Your Answer True





True/False Question Amount invested in purchasing Fixed Asset is a revenue

expenditure.Correct Answer False

Your Answer False

True/False Question As per double entry system o accounting , total of all debits

should be equal to all credits.Correct Answer True

Your Answer True

Multiple Choice Multiple Answer Question Convention of Consistency Materiality ________________

Correct Answer The accounting policies & procedures should followconsistently on period to period , It facilitates the comparison of financial statements on period to period , If any change the factshould be disclosed with its effects on profitability

Your Answer The accounting policies & procedures should followconsistently on period to period , It facilitates the comparison of financial statements on period to period , If any change the fact

should be disclosed with its effects on profitability

Multiple Choice Multiple Answer Question Cash and---------------are the two systems of accounting.

Correct Answer Mercantile

Your Answer Mercantile

Multiple Choice Single Answer Question The opening balance of cash account is Rs. 25,000, cash

received from debtors Rs. 30,000, sold goods amounted to Rs.50,000, paid to creditors Rs. 20,000, purchase furniture Rs.5000. What is the clos

Correct Answer 80,000

Your Answer 80,000

Multiple Choice Single Answer





Question Bank Reconciliation statement is required in case of

Correct Answer difference between the bank balance as per the bank book andas per pass book

Your Answer difference between the bank balance as per the bank book andas per pass book

Match The Following


Error of Principle Trial Balance does notget affected

Wrong Posting

Error of Omission The transaction is totally

omitted

The transaction is totally

omittedError of commission Wrong Posting Wrong classification

Compensating Error Wrong classification Trial Balance does not getaffected

Difference in trial balance Transferred to suspenseaccount

Transferred to suspenseaccount

Multiple Choice Multiple Answer Question Direct Cost includes

Correct Answer Direct material , Direct labour , Direct expenses

Your Answer Direct material , Direct labour , Direct expenses

Multiple Choice Single Answer Question Labour cost indicates that labour cost which cannot be

identified with the individual cost centre and is incurred for those employees who are not engaged in the manufacturingprocess but only assist i

Correct Answer Remuneration

Your Answer Indirect

Multiple Choice Multiple Answer Question The Prime Cost includes the aggregate of

Correct Answer Direct Material Cost , Direct Labour Cost , Direct Expenses





Your Answer Direct Material Cost , Direct Labour Cost , Direct Expenses

Multiple Choice Multiple Answer Question From the following particulars what must appear in purchase

requisitionCorrect Answer Material to be purchased should be cleanly specified , Material

should purchase whenever the market for the same isfavorable , Purchase requisition should state the quantity of material required.

Your Answer Material to be purchased should be cleanly specified ,Purchase requisition should state the quantity of materialrequired.

Multiple Choice Multiple Answer Question Following points are taking into consideration for evaluation of

receiptsCorrect Answer The Price , The trade discount is to be deducted , Other

amounts such as sales tax, excise duty, octroi dutyYour Answer The Price , The trade discount is to be deducted , Other

amounts such as sales tax, excise duty, octroi duty

Multiple Choice Multiple Answer Question While fixing the maximum level following factors are

consideredCorrect Answer Maximum usage , Storage facilities , Availability of funds

Your Answer Maximum usage , Rate of consumption

True/False Question Fixed cost tends to vary with time rather than with level of

activity.Correct Answer True

Your Answer True

True/False Question To take make or buy decision under the marginal costing , if

purchase price of the product is less than its variable cost it isadvisable to go for manufacturing proposition.


Your Answer False





Multiple Choice Single Answer

Question Find out the break even point and profit if sales are Rs.50,00,000 and P/V Ratio is 50% and margin of safety is 40%

Correct Answer Rs.30,00,000 and Rs.10,00,000

Your Answer Rs.30,00,000 and Rs.10,00,000

True/False Question For better control, variances of a period may be compare with

the previous period.Correct Answer True

Your Answer True

True/False Question Expected standards are more realistic and useful for cost

control.Correct Answer True

Your Answer True

True/False

Question The difference between standard cost and actual cost istermed as Variance.Correct Answer True

Your Answer True

Multiple Choice Multiple Answer Question For reporting of variance, following propositions should be

consideredCorrect Answer Responsibility of each individual should be defined , Reporting

should be simple, clear and quick , Analysis of variance should

be accurate.Your Answer Responsibility of each individual should be defined , Reporting

should be simple, clear and quick , Analysis of variance shouldbe accurate.

Multiple Choice Multiple Answer Question Basic three steps in Standard Costing are





Correct Answer Setting standards , Comparing actuals with standards ,Measurement of variance

Your Answer Setting standards , Comparing actuals with standards ,Measurement of variance

Multiple Choice Single Answer Question Find out Labour Efficiency Variance, if Standard Rate is

Rs.1.50/- per hour, Standard hours are 12,000 and Actualhours are 12,600.

Correct Answer Rs.900/- ( Adverse )

Your Answer Rs.900/- ( Adverse )

Multiple Choice Single Answer Question Standard costs are the targets to be attained by the actual

performance.Correct Answer Minimum

Your Answer Minimum

Multiple Choice Single Answer Question Standard Costs are used as tool for

Correct Answer Cost Control

Your Answer Cost Control

Select The Blank Question Accounting to the matching principles of accounting, the

________ incurred during an accounting period are required tobe match with ________ during that period

Correct Answer cost

Your Answer cost

Correct Answer revenuesYour Answer revenues

Select The Blank Question Along with financial accounting, ________ and ________ are

the other streams of accounting





Correct Answer Cost Accounting

Your Answer Management Accounting

Correct Answer Management Accounting

Your Answer Cost Accounting

Select The Blank Question If the revenue expenditure is treated as ________ expenditure

, it will not affect the agreement of ________ balanceCorrect Answer capital

Your Answer capital

Correct Answer trial

Your Answer trial

Select The Blank Question While selecting source of supply ________ epartment may call

for the ________ from the prospective suppliersCorrect Answer purchase

Your Answer purchase

Correct Answer quotation

Your Answer quotation

Select The Blank Question After material is received from the supplier, quantity actually

received is compared with quantity ________-and ________-if any, are taken up with the supplier

Correct Answer ordered

Your Answer ordered

Correct Answer variation

Your Answer variation

Select The Blank Question Under the daily ________ sheets method, each worker is

provided with a daily time sheet on which time ________ by





him on various jobs is expected to be mentioned

Correct Answer time

Your Answer work

Correct Answer spent

Your Answer spent

Select The Blank Question 4.Under the differential time rate method the wages are paid at

Rs. 1.50 per hour between ________ efficiency and Rs.1.25per hour between ________ efficiency

Correct Answer 101% to 125 %

Your Answer 90-100

Correct Answer 80% to90%

Your Answer 101% to 125 %

Select The Blank Question Under Gannt Task bonus system where the output is

________ payment is made as per minimum time rate, outputis ________ payment is made as per time wages plus someincrease in wage rates

Correct Answer below standard

Your Answer below standard

Correct Answer at standard

Your Answer at standard

Select The Blank Question ________ and ________ are examples of element wise

classification ofoverhead costsCorrect Answer Idirect material

Your Answer Idirect material

Correct Answer indirect labour

Your Answer selling overheads





Select The Blank

Question Fixed cost is the cost that tend to remain ________ irrespective of ________

Correct Answer constant

Your Answer constant

Correct Answer level of activity

Your Answer level of activity

Select The Blank Question The process of Allocation & apportionment can followed to

decide the ________ of overheads to each budget center Correct Answer Allocation & apportionment

Your Answer Distribution

Correct Answer Loading

Your Answer

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Multiple Choice Multiple Answer Question The selection of the supplier may depend upon the following aspects:

Correct Answer Geographical location of the supplier , Price quoted by the supplier ,Goodwill of the supplier

Your Answer Geographical location of the supplier , Price quoted by the supplier ,Goodwill of the supplier

Multiple Choice Single Answer Question Net book value of loose tools as on 1st April, 2003 was Rs.45,000/-. As

on 31st March, 2004 the management felt that the real worth of theseloose tools is only Rs.30,000/-. What can be done to achieve the desiredreduction in the net book value of loose tools?

Correct Answer By providing depreciation to the extent of Rs.15,000/-

Your Answer By providing depreciation to the extent of Rs.15,000/-





True/False

Question Overhead absorption rate will be different at different capacity levels.

Correct Answer True

Your Answer True

Select The Blank Question The budget that represents the funds investment for expansion,

diversification, etc. is known as ________.

Correct Answer Capital expenditure budget

Your Answer Capital expenditure budget

Select The Blank Question The ________ variance is the difference between the actual variable

overhead incurred and the standard variable overhead charged toproduction.

Correct Answer Total variable overhead

Your Answer Total variable overhead

Multiple Choice Single Answer Question The cost that indicates historical cost, which is incurred in past, is known

as

Correct Answer Sunk cost

Your Answer Sunk cost

Select The Blank Question Information as to the cost and profit / loss associated with the firm's

operations is provided to the ________ by Management accounting.

Correct Answer Management

Your Answer Management

Select The Blank Question Factory cost of a product is Rs.335,000/-, if the selling overheads are

charged @25% of factory cost, then the amount of selling overheadsshould be Rs.________/-

Correct Answer 83750

Your Answer 83750





Select The Blank Question Uniform costing is not a separate method of ________.

Correct Answer cost accounting

Your Answer cost accounting

Multiple Choice Multiple Answer Question Which of the following budgets may be termed as a long term budget?

Correct Answer Capital expenditure budget , Research and Development expenditurebudget , Budget of a transportation company

Your Answer Capital expenditure budget , Research and Development expenditurebudget

Multiple Choice Single Answer Question The following figures relate to a company manufacturing a varied range

of products : Year 2003 Total sales Rs.22,23,000/- and total costRs.19,83,600/-. Year 2004 : Total sales Rs.24,51,000/- and Total costRs.21,43,200/-. Assuming stability in prices, calculate the profit volumeratio

Correct Answer 0.3

Your Answer 0.3

Multiple Choice Single Answer Question The cost of idle time incurred by employees that is considered normal for

the production process should be charged to :Correct Answer Factory overheads

Your Answer Direct labour

Select The Blank Question Creche expenses may be appropriately approtioned on the basis of

________.

Correct Answer Number of female workers

Your Answer Number of female workers

Multiple Choice Single Answer Question Opening stock of Rs.1,80,000/-, purchases Rs.8,00,000/-, freight inward

Rs.35,000/-, closing stock Rs.2,00,000/-, direct wages Rs.2,35,000/-.Calculate the prime cost.

Correct Answer Rs.10,50,000/-

Your Answer Rs.10,70,000/-






Question Limitations of Management Accounting includes-------------------

Correct Answer Its wide scope , Possibility of intuitive decision , Requires elaborateorganizational structure

Your Answer Its wide scope , Possibility of intuitive decision , Requires elaborateorganizational structure

Select The Blank Question Indirect Cost is termed as ________.

Correct Answer Overhead

Your Answer Overhead

Multiple Choice Multiple Answer Question Features of Financial Accounting includes-----------------

Correct Answer It is a legal requirement , It protects the interest of outsiders , It considershistorical transactions

Your Answer It is a legal requirement , It protects the interest of outsiders , It considershistorical transactions

Multiple Choice Multiple Answer Question Identify the budgets for which the production manager sould be held

responsible :

Correct Answer Production budget , Production overheads budget , Plant utilisation

budgetYour Answer Production budget , Production overheads budget , Plant utilisation

budget

Multiple Choice Single Answer Question A group of 10 men and 20 women workers were expected to produce 400

units of a product in an 8 hour day. The standard hourly rate was fixed atRs.25/- and Rs.15/-, respectively.Actually, a group of 15 men and 10women workers was deployed and paid for 8 hours a day at an hourlyrate of Rs.22/- and Rs.18/-, respectively. Two hours were wasted for theentire group due to power failure and only 300 units were produced.Calculate labour rate variance.

Correct Answer Rs.120/- (Favourable)

Your Answer Rs.150/- (Favourable)

Multiple Choice Multiple Answer Question Techniques of management accounting include:

Correct Answer Marginal costing , Budgetary control , Standard costing





Your Answer Cost control , Budgetary control , Standard costing

True/False Question A grinding machine is an example of impersonal cost centre

Correct Answer True

Your Answer True

True/False Question Profitability statement indicates the amount of assets & liabilities.


Your Answer False

Multiple Choice Single Answer Question Uniform costing system is useful in the following areas

Correct Answer Classification of cost accounts

Your Answer Preparing financial statements

Multiple Choice Multiple Answer Question The features of multiplicity of key factors are as follows :

Correct Answer More than one key factors , Refers to a complex situation , Can beresolved by using linear programming technique

Your Answer More than one key factors , Refers to a complex situation , Can beresolved by using linear programming technique

True/False Question Balance sheet indicates the expenditure & income from the business.


Your Answer False

True/False Question Interim dividend paid by the company should be debited to the profit and

loss appropriation account.

Correct Answer True

Your Answer True





Multiple Choice Multiple Answer Question A materials requisition form normally contains the following aspects:

Correct Answer Quantity requisitioned , Per unit material cost , Job number

Your Answer Quantity requisitioned , Job number

Multiple Choice Multiple Answer Question The production budget may be prepared in terms of :

Correct Answer Units produced , Production cost , Material cost, labour cost andoverheads

Your Answer Units produced , Production cost , Material cost, labour cost andoverheads

Multiple Choice Single Answer Question Panna Ltd. temporarily has excess production capacity. The idle plant

facilties can be used to manufacture a low-margin item. The low-marginitem should be produced if it can be sold for more than its:

Correct Answer Variable costs

Your Answer Variable costs

Multiple Choice Multiple Answer Question If the sales forecast is less than the past sales but the top management

insists upon a certain amount of additional profits, then following stepscan be taken to achieve the target profit

Correct Answer Increase the selling price , Reduce cost of sales , Increase the sellingefforts

Your Answer Increase the selling price , Increase the sales volume , Reduce cost of sales

True/False Question Receipts and payments method of cash budget is useful for preparing

long term estimates.


Your Answer False

Multiple Choice Multiple Answer Question Select the advantages of standard cost system.

Correct Answer Provides reliable basis for budgeting , Facilitates delegation of authority ,Promotes economy and efficiency

Your Answer Provides reliable basis for budgeting , Facilitates delegation of authority

True/False





Question The sales mix variance highlights the fact that the actual mix of sales hasbeen in the same ratio as budgeted.


Your Answer False

Select The Blank Question In case of seasonal industry, the budget period may be taken as

________.

Correct Answer One season

Your Answer One season

True/False

Question Lack of efficient control on various aspects related to raw-materialincreases the material cost component of the finished product.

Correct Answer True

Your Answer True

True/False Question Due to compensating errors the arithmetical accuracy of the trial balance

is affected.


Your Answer False

Multiple Choice Single Answer Question Material price variance for a job is Rs.800/- (Favourable). Actual quantity

of material used is 100 kg whereasthe standard quantity of material is120% of actual quantity. Actual price paid for the material is 80% of thestandard price. Calculate material cost variance.

Correct Answer Rs.1,600/- (Favourable)

Your Answer Rs.800/- (Favourable)

Select The Blank

Question The process of recording the business transactions in a defined set of records is referred to as ________.

Correct Answer Balance sheet

Your Answer Profit and Loss Account

Match The Following






Daily Time sheets Time spent by worker on jobis recorded

Time spent by worker on jobis recorded

Time Keeping Department Recording of workers time Recording of workers time

Time booking department Jobwise booking of time. Jobwise booking of time.

Time Recording ClockMethod

Ticket number & clock cardallotted to worker

Ticket number & clock cardallotted to worker

True/False Question Purchased goods by paying Rs.35,000/-: In this case, the cash account

should be debited.

Correct Answer True

Your Answer True

Select The Blank Question If the customer is not likely to pay the amount receivable from him, this

amount should to be treated as ________.

Correct Answer Bad debts

Your Answer Bad debts

True/False Question Accounting is an art of recording, classifying & summarizing in a

significant manner.Correct Answer True

Your Answer True

Match The Following


Book-Keeping Books of Accounts Books of Accounts

Financial statement Profitability statement &Balance-sheet

Profitability statement &Balance-sheet

Accounting Process of analyzing &interpretation

Process of analyzing &interpretation

Profitability statement Indicates the amount of profitearned

Indicates the amount of profitearned

Balance-sheet Financial status Financial status





True/False Question The problem of multiple key factors can be solved with the help of

techniques like linear programming, operations research, etc.

Correct Answer True

Your Answer True

Select The Blank Question The ________ books are preferred when the volume of transactions is

very large.

Correct Answer Subsidiary

Your Answer Journal

Multiple Choice Multiple Answer Question If you are required to enforce uniform costing system in your industry,

how would you proceed ?

Correct Answer Collecting data from all units of your industry , Ensuring that the datacollected is complete and correct , Maintaining secrecy of the datacollected

Your Answer Collecting data from all units of your industry , Ensuring that the datacollected is complete and correct , Allowing free access to all the units tothe collected data

True/False Question All costs are controllable.


Your Answer False

Scdl Management Accounting Solved Paper - 1

Documents

correct answertrue

correct answerfalse

correct answertrial

correct answercommitment

correct answerhigher

correct answerthose

ledger account

correct answerthe net