Cost and Managerial Accounting (ADL-56)

Assignment - A
Quest1.
Cost Accounting is an aid to management discuss the main points in
support of this statement. Also explain briefly the limitation of Cost Accounting.
Answer 1:
COST ACCOUNTING is an aid to management & its Limitations:
a) Cost Accounting This accounts for cost; begins with recording revenues and cost
and ends with preparation of periodical statements & reports for ascertaining &
controlling costs.
b) The Cost accounting helps the management in the following important areas : (i)
Ascertaining the cost of a product, job etc., (ii) determination of selling price (iii)
Ascertaining the profit of each activity (iv) scope for cost control & cost reduction
measures (v) decision making.
c) Limitation of Cost Accounting: 1) It ignores item of pure finance like dividends,
rental income, interest, cash discounts, bad debts, profits/loss on account of sale of
capital nature of items, Appropriation of profits, abnormal items etc.,
2) It is an internal accounting statement submitted to management (job wise,
department wise, product wise etc) for proper planning, controlling cost & decision
making process & cannot be used by outside parties like Government, customers,
vendors, employees etc. unlike financial statements.
Quest2.
Prepare the Stores Ledger Accounts and discuss the effects of
adopting LIFO and FIFO on profits, with the help of the following figures:
Date
Jan 1
Jan10
Jan 12
Jan 31
Feb 3
Feb 12
Feb 28

Details
Opening Balance -10 Units (December 28 th purchase ) @ Rs 30
Purchase 10 Units @ Rs 33
Issued 10 units
Closing Balance 10 units
Purchase 10 units @ Rs 36
Issued 10 units
Purchased 10 units @ Rs 40

Sales during these two months amounted to Rs 1,000.

Answer 2:
I) Stores Ledger Accounts:

A) adopting FIFO method (first in first out)

Receipts

Issues

Date

Descptn

Qty

price
(Rs.)

Jan 1
Jan 10

Opening
stock
Purchases

10
10

30
33

Value

Date

Descptn

price
(Rs.)

Value

300
330
Jan 12
Jan 31

Total for Jan

20

Feb 1
Feb 3

Opening
stock
Purchases

10
10

33
36

330
360

Feb 28

Purchases

10

40

400

Issues
Closing stock

630

30

10
10

30
33

20

300
330
630

Feb 12

Issues

10

33

330

Feb 28

Closing stock

10
10

36
40

360
400

Nett closing
stock
Total for Feb

Qty

1090

20
30

760
1090

B) adoting LIFO method (last in first out)

Receipts

Issues

Date

Descptn

Qty

price
(Rs.)

Jan 1
Jan 10

Opening
stock
Purchases

10
10

30
33

Value

Date

Descptn

Qty

price
(Rs.)

Value

300
330
Jan 12
Jan 31

Total for Jan

20

Feb 1
Feb 3

Opening
stock
Purchases

10
10

30
36

300
360

Feb 28

Purchases

10

40

400

Issues
Closing stock

630

10
10

33
30

20

330
300
630

Feb 12

Issues

10

36

360

Feb 28

Closing stock

10
10

30
40

300
400

3
Nett closing
stock
Total for Feb

30

1060

20
30

II) Impact of adopting FIFO & LIFO method on Profits: (Jan-Feb)

Profit & loss Statement: (gross profits)
Particulars
Adopting FIFO(rs)
Adopting LIFO(rs)
a) Sales
1000
1000
b) Closing stock
760
700
(refer A above)
(refer B above)
c) Total
1760
1700
d) cost of issues
630
690
e) Gross Profits (c-d)
1130
1010
Conclusion/inference
By adopting FIFO, margins can be
maximized by Rs.120/ LIFO method does not reflect undue high
margins because of valuing the issues at
current cost.
Quest3.
A company has three production departments and two service
departments, and for a period the department distribution summary has the
following details:
Production Departments
P1 Rs 800, P2 Rs 700, P3 Rs 500
Service Departmnets
S1 Rs 234 and S2 Rs 300

Rs
2000
534

The expenses of service departments are charged out on a percentage basis as follows:

Service Departments S1
Service Department S2

P1

P2

P3

S1

S2

20%
40%

40%
20%

30%
20%

-20%

10%
---

Prepare a statement showing the apportionment of two service departments expenses to

production department by simultaneous Equation Method and Repeated Distribution
Method.
Answer 3:
Overhead Distribution Statement :

700
1060

(i) REPEATED DISTRIBUTION METHOD :

Particulars

Value

Cost
driver

Rs.
Overheads

2534

direct

Distribution of Service dept cost

- S1 cost apportionment ratios
- S1 Cost distribution
Total cost of Service Dept's - 1st stage
- S2 cost apportionment ratios
- S2 Cost distribution
Total cost of Service Dept's 2nd
stage
Repeating the Process of service cost
distribution :
- S1 Cost distribution
Total cost of Service Dept's 3rd stage
- S2 Cost distribution
Total cost of Service Dept's 4th stage
- S1 Cost distribution
Total cost of Service Dept's 5th stage
Total cost of Production departments
after apportionment of Service dept

Production
departments
P1
P2
P3

Service departments
S1

800

700

500

20%
47

40%
94

30%
70

40%
129

20%
65

20%
65

13

26

19

992

886

656

(ii) SIMULTANEOUS EQUATION METHOD:

Assumptions Total overhead of S1 after including cost of S2 = X
Total overhead of S2 after including cost of S1 = Y
Equation 1 : X = 234 (S1 cost) + 20% (Y) (i.e X = 234 + 0.2Y)
Equation 2: Y = 300 (S2 cost) + 10% (X) (i.e Y = 300 + 0.1X)
Soving the equation 1 : X = 234 + 0.2(300+0.1X) nothing but X = 300
Substituting X = 300 in equation 2 , we will get Y = 330

S2
234

300

10%
23
323

(234)
20%
65

(323)

65

(65)
0
1
1
(1)
0

6
6
(6)
0
0

(ii) SIMULTANEOUS EQUATION DISTRIBUTION :

Particulars

Value

Cost
driver

Rs.
Overheads

2534

Distribution of Service dept cost

- S1 cost apportionment ratios

- S1 Cost distribution
Total cost of Service Dept's - 1st stage
- S2 cost apportionment ratios
- S2 Cost distribution
Total cost of Service Dept's - 2 nd
stage
Total cost of Production departments
after apportionment of Service dept

direct

Production
departments
P1
P2
P3
800

700

500

20%

40%

30%

60

120

90

40%
132

20%
66

20%
66

Service departments
S1

S2
234

300

(300)
(arrived
above)
(66)

30
330

66

(330)
-

992

886

656

Quest4.
From the following particulars of Rosa Ram Ltd. For three months
ending 31 March , 2005 prepare:
(a)

Cost sheet for the period giving various costs, and (b) Profit and Loss
Account for the quarter showing profit per barrel.
Wages Rs 12,000, Coal and Oil 11,200, Cooperage , Corks and Shives Rs
4,000,Malts Rs 40,000,Hops 10,800, Beer Duty Rs 2,80,000 Water Rs
1,000, Rent and Taxes Rs.6,000, By product Rs 3,600, Sugar Rs 14,000 ,
Preservatives Rs 1,600, Other Materials Rs 1,200 , Repairs Rs 1,800,
Depreciation 1,200, Administration Expenses Rs 24,000 , Selling and
Distribution Expenses Rs. 30,000.
Opening stock for beer Rs 40,500 (300 barrels). Closing stock of beer Rs
67,500 (500 barrels). Beer sales Rs 4,98,000(2800 barrels) . Beer brewed
during the period 3,000 barrels.

Answer 4:
a) Cost sheet for the period:

Cost sheet of Rosa Ram Ltd - 31.03.2005 :

Direct Materials :
- Malt
- Hops
- By Product
- Sugar
- Presevatives
- Other materials

40000
10800
3600
14000
1600
1200

71200
12000

Direct Wages
Direct Expense
- Coal & Oil
- Cooperage,Corks & Shives

11200
4000

Prime Cost

15200
98400

Add : Works cost / Factory Overheads :

- Beer duty
- Water
- Rent & Taxes
- Repairs
- Depreciation

280000
1000
6000
1800
1200

Gross / Net works cost/Cost of Production

3000 barrels

Add : Opening stock of finished goods

300 barrels

40500

Less: Closing stock of finished goods

500 barrels

67500

290000
388400

(27,000)

Cost of Goods Sold

361,400

Add : Administrative overheads(treated as period cost)

24,000

Add : Selling & Distribution exps

30,000

Cost of sales

415,400

Profits (sales - cost of sales)

Sales

29.50
(per barrel)

82,600

2800 barrels

498,000

b) Profit & Loss A/c for the quarter:

Particulars

Opening stock
Cost of Production

units

300
3000

Amount

Particulars

40500
388400

Sales
Closing stock

Gross Profit

136600

Total

565500

Administrative expenses

24,000

Selling & Distribution expenses

30,000

Nett Profit

82,600

Total

136,600

Profit ber barrel (Rs.82600/- / 2800

barrels)

Units

2800
500

Amount

498,000
67500

565500

Gross Profit b/f

136600

136,600

29.50

Question 5: What is Machine Hour Rate? What is the use of MHR? Explain the
calculation procedure of it with imaginary figures.
Answer 5:
Machine hour rate & its uses:
a) Machine hour rate can be defined as an operating cost of the machine per hour worked.
b) It is the ideal method for capital intensive departments, where labour hours spent is not
much. It helps in identifying the idle capacity of the machine (extent of under absorption
indicates idle capacity)
Calculation: Machine hour rate = Running cost (depreciation, power, repairs etc.) +
Standard cost (wages, supervision, insurance etc.) /
Effective working hours (Total hours Normal hrs lost)

8
Let us see example ; XYZ company operates its production with a machinery/plant which
runs for 2000 hrs capacity per month & normal lost hrs due to maintenance etc is 10%
It incurs the following cost per month in respect of the machine:
a) wages 800 b) depreciation 600 c) maintenance 300 d) power charges - 300
Computation of machine hour rate = Overheads (2000/-) / effective machine hrs (1800 hrs
(2000-10%)
Machine hour rate of XYZ company = Rs.1.11

Assignment - B
Quest 1:
What is Marginal Costing? How variable cost and fixed cost are are
treated in marginal costing vis--vis with Absorption Costing?
Answer 1:
Marginal Costing: a) It is defined as the ascertainment of marginal cost and of the effect
on profit of changes in volume or type of output by differentiating between fixed and
variable costs.
b) it is relevant for decision making & it is also known as variable costing or out of
packet costing.
Treatment of Variable & Fixed cost (Marginal vs. Absorption costing):
Marginal costing
Absorption costing
i) Only Variable costs are included for i) both fixed and variable costs are
product costing & inventory valuation
considered for product costing & inventory
valuation
ii) Fixed costs are regarded as a period ii) Fixed costs are charged to production.
cost. The profitability of different Each product bears a reasonable share of
products is judged by their PV ratio.
fixed cost and thus the profitability of a
product is influenced by the apportionment
of fixed costs.

Quest 2: S Ltd. furnishes you the following information relating to the half year
ending 30th June, 2007.
Fixed Expenses
Sales Value
Profit

50,000.
2, 00,000.
50,000.

During the period half of the same year the company has projected the loss of Rs 10,000.
Calculate(a) P/V Ratio, break even point and margin of safety for the half year ending 30 th
June.
(b) Expected sales volume for second half of the year assuming that selling price and
fixed expenses remain unchanged in the second half.
(c) The break even point and margin of safety for the whole year 2007.
Answer 2:

10

The details of S ltd for the half year ended 30th June 2007 has been tabulated as below:

Ist half details

Particulars
Value (Rs.)
Sales
Variable cost
Contribution
Fixed expenses
Profit

200,000
100,000
100,000
50,000
50,000

(a) PV ratio: (contribution / sales * 100) = (100000/200000)*100 = 50%

Break even point (rs.) : (fixed cost / PV ratio) = (50000/50%) = 100,000/Margin of safety (rs): (profit / PV ratio) = (50000/50%) = 100,000/Or (total sales BEP sales) = (200,000 100,000) = 100,000/(b)
2nd half computed
Particulars
Value (Rs.)
Sales
Variable cost
Contribution
Fixed expenses
Loss

80,000
40,000
40,000
50,000
(10,000)

Details for whole year 2007 is as below :

Full year 2007
Particulars
Value (Rs.)
Sales
Variable cost
Contribution
Fixed expenses
Profit

280,000
140,000
140,000
100,000
40,000

( c) Break even point for 2007 (rs.) : (fixed cost / PV ratio) = (100000/50%) = 200,000/Margin of safety (rs): (profit / PV ratio) = (40000/50%) = 80,000/Or (total sales BEP sales) = (280,000 200,000) = 80,000/Ques 3:
The standard material cost for 100 kgs of chemical D is made up ofChemical A- 30 Kgs @ Rs 4.00 per kg.
Chemical B- 40 Kgs @ Rs 5.00 per kg.
Chemical C-80 Kgs @ Rs 6.00 per kg.

11

In a batch of 500 kgs of chemical D was produced from a mix of

Chemical A - 140 Kgs at a cost of Rs . 588.
Chemical B - 220 kgs at a cost of Rs 1,056.
Chemical C- 440 kgs at a cost of Rs 2,860.
How do the yield, mix and price factors contribute to the variance in the actual cost per
100 kgs. of chemical D over the standard cost?
Answer 3:
i) Material price Variance (MPV) = AQ * SP - AQ * SP (wkg note 3-2)
4300
- 4504 = Rs. - 204 (variance)
ii) Material Mix Variance (MMV) = RAQ * SP - AQ * SP (wkg note 4-3)
4000
- 4300 = Rs. - 300 (variance)
iii) Material Yield Variance (MYV) = SQ * SP - RAQ * SP (wkg note 1-4)
4000
- 4000 = Rs. 0 (variance)
Workings:
Wor.Note ref
1

SQ * SP
chemical A
chemical B
chemical C
Total

Wor.Note ref
2
kgs
150
200
400

price
4
5
6

750

value
600
1000
2400

kgs
140
220
440

price
4
5
6

value
560
1100
2640
4300

kgs
140
220
440

price
4.2
4.8
6.5

800
4

800

NOTES :

chemical A
chemical B
chemical C

4000

AQ * SP

chemical A
chemical B
chemical C

AQ * AP
value
588
1056
2860
4504

RAQ * SP

chemical A
chemical B
chemical C

kgs
150
200
400

price
4
5
6

750

RAQ - Revised acutal quantity (acutal quantity re-written in standard

proportion
SQ - Standard quantity
AQ - Actual quantity
SP - Standard price
AP - Actual price

value
600
1000
2400
4000

12
Standard quantity for actual output is converted & considered

13
Assignment - B

Case Study
East and West Enterprises is currently working at 50% capacity and produces 10,000
units..
At 60% capacity the raw material cost increases by 2% and the selling price falls by 3%.
At 70% capacity the raw material cost increases by 4% and the selling price falls by 5%.
At 50% capacity working the product costs Rs 180 per unit and is sold at Rs 200 per unit.
The unit cost of Rs 180 is made up as follows:
Material
Wages
Factory overhead
Administrative overhead

Rs 100
Rs 30
Rs 20(40% fixed)
Rs 30(50% fixed).

You are required to do the following

(a)
(b)
(c)

Divide the cost at 50 % level into fixed, variable and semi-variable.

Prepare the cost sheet at 50% level and find out the profit.
Estimate the profits of the company when it works at 60% and 70% capacity.

Answer to case study :

14

Statement showing the costs & Profits @ different capacity levels :

Particualrs
Units - (a)
Selling price per unit - (b)

50% capacity

60% capacity

70% capacity

10000

12000

14000

200

194

190

(falls by 3%)

(falls by 5%)

30
12
15
157

102
(increases by
2%)
30
12
15
159

104
(increases by
4%)
30
12
15
161

43

35

29

Sale Value (a * b)

2,000,000

2,328,000

2,660,000

Variable Cost (a * c)

1,570,000

1,908,000

2,254,000

Contribution (d * a)

430,000

420,000

406,000

Fixed cost :
- Factory O/H's (8 per unit)
- Administrative O/H's (15 per unit)

80000
150000

80000
150000

80000
150000

Profits (contribution-fixed cost)

200,000

190,000

176,000

Cost of production per unit

- Material

100

- Wages
- Factory O/H's - Variable
- Administrative O/H's-Variable
Total Variable cost / unit - ( c)
Contribution per unit - (d) - (b-c)

15
Part - C
Objective Types Question
1.

Costing is a technique of---------------(a)

Ascertainment of cost.
(b)
Ascertainment of expenditure.
(c)
Ascertainment of revenue.
(d)
Control of cost.
(e)
Both (a) and (d).

Answer : (a)
2.

The method of costing used in refinery is

(a)
Job.
(b)
Process.
(c)
Standard.
(d)
Contract.

Answer : (b)
3. In automobile industry , cost unit is ---------(a)
Quality.
(b)
Number.
(c)
Weight.
(d)
(a) and (b).
Answer : (c)
4.

Ordering cost and carrying cost are equal at -----------level.

(a)
(b)
(c)
(d)

Reorder.
Average.
EOQ.
Danger.

Answer : (c)
5.
Broadly speaking any expenditure over and above ----------------------is known
as overheads.
(a)
(b)
(c)
(d)

Answer : (a)

Indirect costs.
Fixed cost.
Prime cost.
Factory cost.

16

6.

Which of the following is not a technique of costing?

(a)
(b)
(c)
(d)

Marginal Costing.
Standard Costing.
Activity Based Costing.
Incremental Costing.

Answer : (d)
7.

Which of the following statements are not correct?

(a)
(b)
(c)
(d)

Variable overhead cost is a direct cost.

Fixed overhead is a committed cost.
Overhead cost is the aggregate of indirect material, indirect labour and
other indirect expenses.
Variable overhead is a discretionary cost.

Answer : (d)
8.

Office telephone expense is an example of .

(a)
(b)
(c)
(d)

Variable cost.
Semi-variable cost.
Fixed cost.
Sunk cost.

Answer : (b)
9.

-------------------------------is a contract, provides that the contract price would

be suitably enhanced on the happening of a specified contingency.
(a)
(b)
(c)
(d)

Answer : (d)

Change to term.
Repetitive.
Arbitrage.
Escalation.

17
10.

Specific order costing includes.

(a)
(b)
(c)
(d)
(e)

Job.
Contract.
Batch
(a) and (b) of above.
All of the above.

Answer : (e)
11.

When the completion of the contract is less then , the total expenditure on
the contract is transferred to -------------------------Account.
(a)
(b)
(c)
(d)

Profit & Loss.

Contra tees.
Work-in-progress.
None of the above.

Answer : (c)
12.

-------------------------------------- is the most important point to be determined

in industries where batch costing is employed.
(a)
(b)
(c)
(d)

Economic Order Quantity.

Batch number.
Economic Batch Quantity.
Expiry date.

Answer : (c)
13.

The method of costing applied in furniture industry is ---------------costing.

(a)
Process.
(b)
Job.
(c)
Operation.
(d)
Batch.

Answer : (b)
14.

The method of costing applied in steel industry is ---------------(a) Process.

(b) Job.
(c) Operation.
(d) Batch.

Answer : (a)

costing.

18

15.

When actual loss is more than estimated loss, the difference between the two
is considered to be --------------------------.
(a)
(b)
(c)
(d)

Normal loss.
Estimated loss.
Abnormal loss.
Provisional loss.

Answer: (c)
16.
--------------------------------is spread on good items of production.
(a)
(b)
(c)
(d)
(e)
Answer: (b)

17.

Which of the following is an example of abnormal cost?

(a)
(b)
(c)
(d)
(e)
Answer: (e)
18.

Abnormal loss.
Normal loss.
Abnormal gain.
Both (a) and (c).
None of the above.

Loss due to handling.

Loss due to shrinkage.
Loss due to leakage.
Loss due to evaporation.
Loss due to lock out.

The costs incurred up-to the point of separation is called--------------------costs.

(a)
(b)
(c)
(d)
(e)

Common.
Normal.
Abnormal.
Relevant.
None of the above.

19
Answer: (a)
19.

The stage of production at which separate products are identified is known as

-------------------------- stage.
(a)
(b)
(c)
(d)

Milestone.
Identification.
Split off.
Common.

Answer: (c)
20.

The most important criterion for distinguishing between scrap, by-product and
joint product is ---------------------------------------of the products.

(a)
(b)
(c)
(d)
Answer: (c)
21.

--------------------------------is an example of variable cost.

(a)
(b)
(c)
(d)
Answer: (b)
22.

Rent of factory building.

Direct material.
Telephone charges.
Depreciation.

------------------------------is an example of fixed cost.

(a)
(b)
(c)
(d)
Answer: (a)
23.

Weight.
Importance.
Order of finality.
Relative sales value.

Rent of factory building.

Direct material.
Telephone charges.
Supervisors salary.

------------------------------is an example of semi-variable cost.

(a)
(b)
(c)
(d)
(e)

Answer: (e)

Rent of factory building.

Direct material.
Telephone charges.
Supervisors salary.
Both (c) and (d).

20

24.

------------------------- and variable costs are same.

(a)
(b)
(c)
(d)
(e)

Marginal cost.
Average cost.
Budgeted cost.
Standard cost.
Differential cost.

Answer: (a)
25.

Conversion cost doesnt include---------------.

(a)
(b)
(c)
(d)

Direct Material.
Direct labour.
Factory overhead.
Both (a) and (b).

Answer: (a)
26.

Fixed costs are also called ..

(a)
(b)
(c)
(d)

Standard costs.
Imputed costs.
Capacity costs.
Sunk costs.

Answer: (c)
27.

-----------------------------are relevant costs for decision making.

(a)
(b)
(c)
(d)
(e)
(f)

Differential Costs.
Incremental Fixed costs.
Variable costs.
Imputed costs.
None of the above
All of the above.

Answer: (f)
28.
-----------------------------are irrelevant costs for decision making.
(a)
(b)
(c)
(d)

Differential Costs.
Incremental Fixed costs.
Variable costs.
Imputed costs.

21
(e)
(f)

Sunk costs.
All of the above.

Answer: (e)
29.

The profit in marginal costing differs from absorption costing method mainly
because of:
(a)
(b)
(c)
(d)
(e)

Fixed Cost treatment.

Variable cost treatment.
Difference in stock valuation.
Over or under absorption of overheads.
Both (c) and (d).

Answer: (d)
30.
Muskan Ltd which makes only one product sells 10,000 units of its product
making a loss of Rs 10,000. The variable cost per unit of the product is Re 8 and the fixed
cost is Rs 30,000. What is the Contribution per unit?
(a)
(b)
(c)
(d)

Rs 8.
Rs 2.
Rs 3.
None of the above.

Answer: (b)
31.
What is the Break even point in the above case(Q30) , if the sales price, variable
cost and fixed cost remain the same.
(a)
(b)
(c)
(d)

15000 units.
12000 units.
20000 units.
None of the above.

Answer: (a)
32.
Standard costing is more widely used method in-------------------------------industry.
(a)
(b)
(c)
(d)
Answer: (d)

Contract.
Transport.
Process.
None of the above.

22

33.

Which of the below is not one type of standard?.

(a)
(b)
(c)
(d)

Current.
Basic.
Normal.
Ideal.

Answer: (a)

34.

Variance is comparison of --------------------- with standards.

(a)
(b)
(c)
(d)

Estimated.
Calculated.
Actual.
Ideals.

Answer: (c)

35.
The process of comparing profits reflected by cost accounting records and
financial accounting records and to know the reason of difference is known as:
(a)
(b)
(c)
(d)
(e)

Audit.
Verification.
Examination.
Reconciliation.
Investigation.

Answer: (d)
36.
Which of the following items could be reason/reasons of the difference between
two sets of books of accounts (Financial/Cost).
(a)
(b)
(c)
(d)
(e)
Answer: (e)

Stock valuation method.

Absorption of overheads.
Interest on debentures.
Goodwill written off.
All of the above.

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37.
If the opening stock was valued at Rs 4000 in financial accounts and Rs 5000 in
cost accounts, what will the impact of the transaction?
(a)
(b)
(c)
(d)

Cost account profit is more by Rs 1000.

It gets off-set during the year, hence no impact.
Financial accounts profit is more by Rs 1000.
None of the above.

Answer: (c)
38.
The technique which does not take into account the past trends in preparing the
budgets is -------------------------.
(a)
(b)
(c)
(d)
(e)

Incremental Budgeting.
Performance Budgeting.
Zero Based Budgeting.
Target Budgeting.
None of the above.

Answer: (c)
39.

Which is the following statement is not true about budgeting?

(a)
Budgeting is a forecasting technique.
(b)
Budgeting is different from standard costing.
(c)
It is done prior to defined period of time.
(d)
Budgeting is only financial statement.
(e)
It is financial / and or quantitative statement.

Answer: (d)
40.

A budget prepared for the entire firm/company is called----------------budget.

(a)
(b)
(c)
(d)
(e)

Answer: (b)

Functional.
Master.
Flexible.
Fixed.
None of the above.