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Sample Questions:
Section I: Subjective Questions
1. How does Subsidiary Book help in accounting process? Which subsidiary books are used
very frequently?
3. Explain with example the difference between Controllable Cost and Uncontrollable Cost.
7. Explain Absorption. Which factors have to be considered for selecting method for
absorbing the overheads?
1] zero
2] more
3] immaterial
4] precious
SYMBIOSIS CENTRE FOR DISTANCE LEARNING (SCDL)
Subject: Management Accounting
2. What is the nature of the labour cost attached with the manufacturing process
3. Deferred revenue expenditure affects the profitability only when they are
5. While installing the costing system in the organization, if the product is material
intensive, on which factor more stress should be necessarily given
1] Control procedures
3] Installation procedures
2] This is the process of recording the time which requires for book keeping
3] This is the process of counting the time which supplier take to supply the
material after purchase order is given.
SYMBIOSIS CENTRE FOR DISTANCE LEARNING (SCDL)
Subject: Management Accounting
7. If the time booked as per Job Cards, is less than the attendance time, what does it
indicate
1] This indicates the idle time during which the worker has not done any work,
though he was present in the factory.
10. Overheads are classified according to the functions they perform, what does the
classification call as
11. If goods sent to the customer on approval basis, is treated as sales, what steps
should be taken
SYMBIOSIS CENTRE FOR DISTANCE LEARNING (SCDL)
Subject: Management Accounting
1] Works overheads
2] Office overheads
3] Manufacturing overheads
4] Distribution overheads
13. How should be the work of good wage payment system in the organization
1] Workers should be punished in terms of reduced wages for the mistakes which
creates hold on the situations.
2] Wage payment should not depend upon the quality of the product, it should
depend upon working capacity of the worker
3] The wage payment system should be properly tied up with quality control
procedures.
4] It should ensure that the workers are paid only for good quality production.
1] It indicates the estimated quantities of various materials required for carrying out
production as per production budget.
2] It indicates the estimated costs of various materials required for carrying out
production as per production budget.
3] It indicates the labour required for carrying out the production as per the
production budget.
4] It indicates the time required for carrying out the production as per the
production budget.
2] In taking decisions
SYMBIOSIS CENTRE FOR DISTANCE LEARNING (SCDL)
Subject: Management Accounting
3] employee welfare
16. The success of procedures to control the overheads depend upon the classification
of the overhead. From which angles this classification can be done
2] Variability-wise classification
3] Normality-wise classification
17. From the given options, which comments indicate the nature of Ideal Standards
18. For the preparation of sales budget, sales quantity should be forecasted, It may be
forecasted after taking
into consideration various factors, from the given options which are they
3] Analysis of long term trends, seasonal trends & the cyclical trends.
4] Assessment of the potential which means, which of the company's products can
be sold, in which market, in what quantity & at what selling price.
19. Folio refers to the _____ of the books of original entry or the ledger.
1] file
2] books
3] transactions
4] page number
SYMBIOSIS CENTRE FOR DISTANCE LEARNING (SCDL)
Subject: Management Accounting
20. Even________ within the organization can be classified as a service cost centre for
an undertaking as it assists the production activity.
1] Store department
2] Sales manager
3] works manager
4] Assembly shop
1] Market availability
2] The cost
3] The quantity
22. In many cases cost centres are termed as _________ because they facilitate the
control function.
1] Control centres
2] Stable centres
3] Liability centres
4] Responsibility centres
23. When material once issued to the production department is returned back to the
stores__________ is prepared.
1] Material Requisition.
2] Cost statement
3] replaced the
SYMBIOSIS CENTRE FOR DISTANCE LEARNING (SCDL)
Subject: Management Accounting
1] final
2] periodical
3] limited
4] forecast
26. In cost accounting process cost are ascertained and controlled with respect to the
___________and hence it isa pre-requisite
1] Transactions
2] Cost centres
3] Cost accountants
27. Variable cost indicates that portion of the total cost _______ with the level of
production.
4] Which is controllable
28. Marginal costing does not take in to consideration the fixed overheads, as such the
problem of under or over absorption of fixed overheads can be avoided,
but___________
29. The quantity to be produced , after giving due consideration to the sales forecast , it
is not at all depend upon the opening stock or closing stock of finished goods.
30. The Weekly time sheets Method of time booking involves less paper work in
comparison to Daily time sheets method
31. When it is decided that worker will be paid on time rate if his piece rate earnings
fall below time rate earnings, so that he is assured minimum earnings on time basis.
If this guaranteed time rate payment is too high, the incentive to increase output to
get piece rate payment is high.
32. Differential Piece Rate system of remuneration means different workers take part in
different type of production under one roof, and they get paid different rate.
33. While deciding the Price Standards, along with the basic prices, it may involve the
consideration of the factors like discount, sales tax, insurance and octroi.
35. Planning lays down the course of action to be taken in future, in case of standard
costing it is in the form of the budgets.
36. The standard cost is the normal cost under ideal circumstances.
38. Budget manual may be in bound book form or a loose leaf form.
39. 1] Credit note 1] An intimation sent for account is being credited for the
purpose there in.
2] Debit side 2] Left hand side of account
3] Debit note 3] An intimation sent for account is being debited for the
purpose there in.
4] Credit side 4] Right hand side of account
5] An intimation sent by the customer.
6] Note showing the cash flow of the business.
40. 1] Fixed Overheads 1] Per unit cost of overheads may reduce as the volume
of output increases but the total overheads remain
constant.
SYMBIOSIS CENTRE FOR DISTANCE LEARNING (SCDL)
Subject: Management Accounting
2] Variable 2] Per unit cost of overheads remains the same but the
total overheads may increase or decrease as per volume
of output.