Accts Assgn 13 Sejal

Accts assgn:13: Sejal Multiple Choice Single Answer Question An employee working under a bonus scheme saves 10 hours in a job for which the standard time is 60 hours. Calculate the wages payable to him, if incentive bonus of 10% on the hourly rate is payable when standard time (namely 100% efficiency) is achieved, and a further incentive bonus of 1% on hourly rate for each 1% in excess of that 100% efficiency is payable. Assume that the normal rate of payment is Rs.50/- per hour. Correct Answer Rs.3,250/Multiple Choice Single Answer Question At 60% capacity utilisation the overhead recovery rate is Rs.35/- per unit. At 70% capacity the rate gets reduced to Rs.32/- per unit. What should be the recovery rate if the production attains 90% capacity utilisation? Correct Answer Rs.28/- per unit Multiple Choice Multiple Answer Question The production budget may be prepared in terms of : Correct Answer Units produced , Production cost , Material cost, labour cost and overheads Multiple Choice Single Answer Question Tom company has sales of Rs.200,000/- with variable expenses of Rs.150,000/-, fixed expenses of Rs.60,000/-, and an operating loss of Rs.10,000/-. By how much would Tom have to increase its sales in order to achieve an operating income of 10% of sales? Correct Answer Rs.200,000/Select The Blank Question Angle formed by the intersection of total cost line and sales line is called angle of ________. Correct Answer Incidence True/False Question All costs are controllable. Correct Answer False Select The Blank Question In the adjustment entry passed for closing stock, the ________ account should be credited. Correct Answer Trading Multiple Choice Multiple Answer Question Select the items which may be classified as selling and distribution overheads. Correct Answer Delivery van expenses , Rent of finished goods warehouse , Sales research expenses Select The Blank Question Warehousing cost is an item of ________ Correct Answer Distribution overheads Multiple Choice Multiple Answer Question From the following, select current assets: Correct Answer Sundry debtors , Stock , Pre paid expenses Multiple Choice Multiple Answer Question These are the replacement costs of labour turnover. Correct Answer Inefficiency of new workers , Cost of selection and placement , Increased spoilage and defectives Multiple Choice Multiple Answer Question The objectives of cost accounting are : Correct Answer Cost control , Ascertain ment of cost of each product , Assist in managerial decisionmaking - 1 – accts assgn :13:

Match The Following Question=Correct Answer Book-Keeping=Books of Accounts Financial statement=Profitability statement & Balance-sheet Accounting=Process of analyzing & interpretation Profitability statement=Indicates the amount of profit earned Balance-sheet=Financial status Multiple Choice Multiple Answer Question Features of purchase requisition slip are : Correct Answer Raised when the stock of a raw material has fallen to the re-order level. , Indicates the type, quantity and quality of material required , The information about the price of material is excluded Multiple Choice Single Answer Question Which cost is defined as an estimated cost, prepared in advance of production or supply, estimated within a prescribed set of working conditions? Correct Answer Standard cost Select The Blank Question Carriage charges paid for a new machine purchased if debited to carriage account would affect the ________ Correct Answer Machinery A/c and carriage A/c True/False Question The variable costs are controllable at the lower lever. Correct Answer True Multiple Choice Multiple Answer Question Purchased goods worth Rs.6,450/- on 10th March, 2004. However the goods were delivered directly to the plant situated at Nagar and hence this transaction was not recorded in the purchase book, which is maintained at the corporate office. Analyse the impact of this transaction. Correct Answer The gross profit will increase by Rs.6,450/True/False Question Fundamentally, changes in price and changes in sales volume give rise to sales variances. Correct Answer True Select The Blank Question The ________ is responsible for material losses while in storage. Correct Answer Store-keeper True/False Question A cash payment of Rs.1,000/- for traveling expenses has been entered in the books but not debited to traveling A/c. The trial balance will NOT agree. Correct Answer True Select The Blank Question Accounts representing expenses will have ________balance. Correct Answer Debit Multiple Choice Single Answer Question It is discovered that sales effected on 31st March, 2004 worth Rs.42,000/- has not been recorded in the books of accounts. Analyse the impact on the final statement of accounts. Correct Answer The sundry debtors will increase by Rs.42,000/Multiple Choice Single Answer Question The cost that indicates historical cost, which is incurred in past, is known as - 2 – accts assgn :13:

Correct Answer

Sunk cost

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 True/False Question New companies can adopt Uniform costing system as a ready-made system. Correct Answer True True/False Question A journal entry is passed for trade discount, but no entry is passed for cash discount. Correct Answer False Select The Blank Question The assets which are suppoed to be used by the organisation to do business, are known as ________assets. Correct Answer Fixed Multiple Choice Multiple Answer Question The objectives of Uniform costing system are as follows : Correct Answer To fix a common selling price for the industry as a whole , To compare efficiency of each unit against industry's overall performance , To compile reliable cost data for inter-firm comparison of costs 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 Multiple Choice Multiple Answer Question Management accounting is concerned with the following activities : Correct Answer Decision making , Safeguarding assets , Planning and controlling activities Multiple Choice Single Answer Question The total production cost for making 20,000 units was Rs.21,000/- and the total production cost for making 50,000 units was Rs.34,000/-. Once production exceeds 25,000 units, additional fixed costs of Rs.4,000/- are incurred. The full production cost per unit of making 30,000 units is: Correct Answer Re.0.98 Multiple Choice Multiple Answer Question The disadvantages of time rate system are : Correct Answer Ignores the efficiency of workers , Higher labour cost , Lack of motivation to increase productivity Multiple Choice Single Answer Question Which of the following is the most efficient use of the clock card? Correct Answer To facilitate payment for time spend on the work premises True/False Question One of the main objection to the contribution approach of costing is that it ignores fixed cost. Correct Answer True Select The Blank Question If the bank pays off the credit card bill, as per the standing instructions, the overdraft as per bank book will be ________ the overdraft as per pass book. Correct Answer Lesser than - 3 – accts assgn :13:

Select The Blank Question The cash flow format is used for preparing the cash budget by the ________ method. Correct Answer Adjusted Profits/Losses True/False Question The ideal budget period for a company engaged in generation and distribution of electricity is one year. Correct Answer False Select The Blank Question In India, where public undertakings operate along with the private sector undertakings, ________ enables a comparative assessment to be made of the two sectors. Correct Answer uniform costing Multiple Choice Single Answer Question Unearned commission of Rs.5,000/- needs to be recorded in the books of accounts. Find its correct impact. Correct Answer The asset side of the balance sheet will increase by Rs.5,000/Multiple Choice Multiple Answer Question Examples of indirect material are Correct Answer Consumable stores , Glue used in book binding , Nails used in packing boxes True/False Question It is very easy to measure the portion of increased sales which is due to expenditure incurred for advertisement of the product Correct Answer False Multiple Choice Single Answer Question A cheque of Rs.400/- received and deposited into bank on 26th September, was credited in the pass book but was omitted to be entered in the bank book: this error will result in : Correct Answer Difference in the balance as per bank book and as per pass book True/False Question Direct labour hour rate method of absorption of overheads is suitable where most of the production is done by using machines. Correct Answer False Match The Following Question=Correct Answer Drawings=Proprietor's account Deferred revenue expenditure=Real account Deferred revenue=expenditure written off Nominal account Loan=Personal account Multiple Choice Single Answer Question A business's telephone bill should nromally be classified into which one of the following categories? Correct Answer Semi-variable cost Multiple Choice Multiple Answer Question The objects of cost accountancy are . . Correct Answer To ascertain cost and profitability , Cost Control , Presentation of Information

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