Management Accounting - 1st Sem SCDL Assignments Management Accounting - 1st Sem SCDL Assignments SCDL 1st Semester

Assignments on Management Accounting Management Accounting Solved Papers LIST OF ATTEMPTED QUESTIONS AND ANSWERS Match The Following Question Correct Answer Your Answer Accounting Process of analyzing & interpretation Process of analyzing & interpre tation Profitability statement Indicates the amount of profit earned Indicates the amou nt of profit earned Balance-sheet Financial status Financial status Book-Keeping Books of Accounts Books of Accounts Financial statement Profitability statement & Balance-sheet Profitability statem ent & Balance-sheet Multiple Choice Single Answer Question Salary paid to employee amounted Rs. 10,000, transferred to Trading A/C is an example of_______ Correct Answer Error of Commission Your Answer Error of Commission 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 engag ed in the manufacturing process but only assist i Correct Answer Remuneration Your Answer Indirect True/False Question To take make or buy decision under the marginal costing , if purchase p rice of the product is less than its variable cost it is advisable to go for man ufacturing proposition. Correct Answer False Your Answer False Select The Blank Question Over absorption of overheads may take place due to the reasons like ___ _____ overheads being less than the ________ overheads Correct Answer actual Your Answer estimated Correct Answer estimated Your Answer actual True/False Question Income received in advance transfer to current liabilities Correct Answer True Your Answer True Select The Blank Question Bank reconciliation statement is the statement prepared to explain the ________ as to why the bank balance as per ________ and bank balance as per bank book does not match Correct Answer reasons Your Answer reasons

Correct Answer pass book Your Answer pass book 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 True/False Question A business is an activity carried out with the intention of earning the profit. Correct Answer True Your Answer True Multiple Choice Single Answer Question If wages for the month of January, February and March are Rs.4,000, Rs. 4,400 and Rs.4,600 respectively and if delay in payment of wages is month , paym ent of wages for the month of February is Correct Answer 4,200 Your Answer 4,000 Select The Blank Question Management Accounting has a very ________ scope and it requires _______ _ organizational structure Correct Answer wide Your Answer wide Correct Answer elaborate Your Answer elaborate True/False Question Accounting is an art of recording, classifying & summarizing in a signi ficant manner. Correct Answer True Your Answer True Multiple Choice Single Answer Question For a unit, if opening stock of raw material is 10,000 units, closing s tock of raw material is 5,000 units and consumption is 3,20,000 units, what will be the quantum of raw material to be purchased Correct Answer 3,15,000 Your Answer 3,15,000 Multiple Choice Multiple Answer Question Important advantages of Uniform Costing can be said to be Correct Answer It is a useful tool for management control , It avoids cut throat competition , Weaker units can take advantage of settled systems of better mana ged units Your Answer It is a useful tool for management control , It avoids cut throat co mpetition , Weaker units can take advantage of settled systems of better managed units Multiple Choice Multiple Answer Question P/L A/C debit side includes Correct Answer salary , discount allowed , postage & telegram Your Answer postage & telegram , salary , discount allowed Multiple Choice Multiple Answer

Question Actual costs may be affected due to inefficient functioning such as Correct Answer Abnormal expenses , In efficient use of labour , In efficient use of material Your Answer Abnormal expenses , In efficient use of labour , In efficient use of material Multiple Choice Single Answer Question Calculate Labour Efficiency Variance, If actual rate per hour is Rs.3.5 0/- , Standard rate is Rs.3/- per unit and standard hours are 15,000 and Actual hours are 13, 500. Correct Answer Rs.4500/- ( Favorable ) Your Answer Rs.4500/- ( Favorable ) Multiple Choice Multiple Answer Question Sales quantity may be forecasted after taking into consideration variou s factors such as Correct Answer Analysis of past trends , Market research , Reports by salesmen Your Answer Analysis of past trends , Market research , Reports by salesmen True/False Question For taking make or buy decision marginal costing technique provide usef ul assistance. Correct Answer True Your Answer True True/False Question Profitability statement indicates the amount of assets & liabilities. Correct Answer False Your Answer False Multiple Choice Single Answer Question It is an appropriate basis of apportionment of depreciation expenditure Correct Answer value of assets Your Answer value of assets True/False Question The variable costs are controllable at the lower level. Correct Answer True Your Answer True True/False Question Balance sheet indicates the expenditure & income from the business. Correct Answer False Your Answer False Match The Following Question Correct Answer Your Answer Journal Book of original entry Book of original entry Ledger Maintain all types of Accounts Maintain all types of Accounts Assets All the properties owned by the business All the properties owned by the business Liabilities All the amount owed by the business All the amount owed by the busin ess Drawing Withdrawn for personal use Withdrawn for personal use Select The Blank Question A budget manual is a document setting out the ________ of the persons a nd ________ required for the budget control. Correct Answer Responsibilities Your Answer Responsibilities

Correct Answer Forms and procedures Your Answer Forms and procedures True/False Question Credit balances in all the Personal & Real accounts appear on asset sid e. Correct Answer False Your Answer True True/False Question The process of accounting split into three steams i.e. financial, cost, management accounting. Correct Answer True Your Answer True Multiple Choice Single Answer Question Omission of posting an amount in the ledger Correct Answer Error of Omission Your Answer Error of Omission True/False Question Non-operating / financial expenses are added while calculating net prof it. Correct Answer False Your Answer True True/False Question Balance sheet indicates the financial status of the business at given p eriod. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question A Budget Manual may contain the following particulars Correct Answer Duties and responsibilities of various executives , Functions and duties of Budget Officer , Scope of the Budget and area to be covered Your Answer Duties and responsibilities of various executives , Functions and du ties of Budget Officer , Scope of the Budget and area to be covered Select The Blank Question Semi ________ overheads are neither ________ nor variable in nature. Correct Answer fixed Your Answer variable Correct Answer variable Your Answer fixed True/False Question Due to errors of principle the arithmetical accuracy of the trial balan ce does not get affected. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question Direct Cost includes Correct Answer Direct material , Direct labour , Direct expenses Your Answer Direct material , Direct labour , Direct expenses Select The Blank Question Financial Accounting protects the interest of outsiders . it considers ________ transaction and it is a ________ requirement

Correct Answer historical Your Answer historical Correct Answer legal Your Answer legal True/False Question Bin Card is having all the information of item received and issued. Correct Answer False Your Answer True Select The Blank Question Budgetary Control is useful for ________-and ________-as a powerful too l in the hands of management Correct Answer Cost control Your Answer Cost control Correct Answer Maximization of profits Your Answer Maximization of profits True/False Question Accounting refers to the process of analyzing & interpreting the inform ation already recorded in the books of accounts. Correct Answer True Your Answer True

Management Accounting Paper No2 of 1st Sem SCDL: True/False Question Credit balances in all the Personal & Real accounts appear on asset side. Correct Answer False Your Answer False Multiple Choice Multiple Answer Question Contents of Uniform Cost Manual are Correct Answer Organization , Cost Accounting system , Presentation of information Your Answer Organization , Cost Accounting system , Presentation of information Multiple Choice Multiple Answer Question Uniform Costing Methods may be advantageously applied to . . . Correct Answer Single organization having number of branches. , Number of companies in same ind ustry , Similar Industries such as cotton, jute etc. Your Answer Single organization having number of branches. , Number of companies in same ind ustry , Similar Industries such as cotton, jute etc. True/False Question 1) Financial statements are basically in two forms i.e. profitability statement and balance sheet. Correct Answer True

Your Answer True Multiple Choice Multiple Answer Question The process of accounting has three streams of accounting ---------------,-------and ----------------------. Correct Answer Financial Accounting , Cost Accounting , Management Accounting Your Answer Financial Accounting , Cost Accounting , Management Accounting True/False Question Long term loan borrowed from financial institution comes under the heading of lo ng term liabilities. Correct Answer True Your Answer True Match The Following Question Correct Answer Your Answer 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 profit earned Indicates the amount of profit earned Balance-sheet Financial status Financial status Multiple Choice Single Answer Question Judge the statement according to the criteria given : ' The accounting period fo r XYZ Ltd. ends on 31st December, 2003. It is noted that office rent for the mon th of December, 2003 is paid on 15th January, 2004. "According to concept of mat ching expenses with the revenues, this expenditure should be recorded in the boo ks of accounts in January, Correct Answer The statement and its reason are both incorrect Your Answer The statement is correct but its reason is incorrect Multiple Choice Multiple Answer Question Features of money measurement concept are . . . Correct Answer Only those transactions and facts are included expressed in terms of money are c onsidered , Imposes severe restrictions on the kind of information available fro m financial statements , Works as a major drawback of financial accounting

Your Answer Only those transactions and facts are included expressed in terms of money are c onsidered , Imposes severe restrictions on the kind of information available fro m financial statements , Works as a major drawback of financial accounting Multiple Choice Single Answer Question The installation and operation of ___________ accounting requires a very elabora te organizational structure and large number of rules & regulations Correct Answer Management Your Answer Management Select The Blank Question ________account can be defined as the record of all the transactions pertaining to a person, asset, liability income or expenditure which have taken place in a specified period. Correct Answer Ledger Your Answer Trading Match The Following Question Correct Answer Your Answer Sunk Cost Historical Cost Historical Cost Cost Centre Facilitate the fixation of responsibility Facilitate the fixation of responsibility Cost Control Process of controlling costs of operations Process of controlling costs of operations Differential Cost Increase or Decrease in cost Increase or Decrease in cost Multiple Choice Multiple Answer Question Which of the following transactions should be excluded while preparing a cost sh eet ? Correct Answer Interest on loan , Bad debts , Expenses on criminal law suit Your Answer Sale of scrap material , Interest on loan , Bad debts True/False Question In a Balance-Sheet right hand side is referred as assets side and left hand side is referred as liabilities. Correct Answer True Your Answer True True/False

Question Credit note is an intimation send to person dealing with the business that his a ccount being debited for the purpose indicated therein. Correct Answer False Your Answer False True/False Question Primary distribution is effected on the basis of service rendered to the service departments by the production departments. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question Marginal costing is found to be unsuccessful in the following situations :Correct Answer Impossible to distinguish costs into fixed and variable component. , With respec t to capital intensive industries where fixed costs are very large and hence can not be ignored , With respect to service industries where employee costs are ver y large and almost fixed in nature Your Answer Impossible to distinguish costs into fixed and variable component. , With respec t to capital intensive industries where fixed costs are very large and hence can not be ignored , With respect to service industries where employee costs are ver y large and almost fixed in nature True/False Question Debit Note is an intimation sent to person dealing with the business that his ac count is being credited for the purpose indicated therein. Correct Answer False Your Answer True Multiple Choice Multiple Answer Question Labour efficiency variance arises due to: Correct Answer Inefficient supervisor , Poor working conditions , Use of sub-standard quality o f material Your Answer Inefficient supervisor , Poor working conditions , Use of sub-standard quality o f material True/False Question Financial Accounting discloses the financial performance & financial statements of the business as a whole. Correct Answer True Your Answer True True/False

Question Balance sheet indicates the expenditure & income from the business. Correct Answer False Your Answer True Select The Blank Question The indirect material cost, indirect labour cost and indirect expenses cost, col lectively are termed as ________. Correct Answer Overhead Your Answer Overhead Select The Blank Question A person in charge of a ________ may be held responsible for its proper function ing and cost control. Correct Answer Cost centre Your Answer Cost centre Multiple Choice Multiple Answer Question The organization chart shows the following aspects : Correct Answer Functional responsibility of different functional managers , rity to various managers , Inter-functional relationships of Your Answer Functional responsibility of different functional managers , rity to various managers , Inter-functional relationships of

Delegation of autho these managers Delegation of autho these managers

True/False Question Uniform costing system is a pre-requisite to an inter-firm comparison of firms b elonging to the different industries. Correct Answer False Your Answer False True/False Question P&L statement which is a period statement & relates to a certain period tells ab out results of operations. Correct Answer True Your Answer False Select The Blank Question Depreciation charged on office furniture on straight line basis is an example of ________. Correct Answer Administration overheads Your Answer

Administration overheads True/False Question Under time rate system a worker is paid on the basis of production achieved by h im in a given time. Correct Answer False Your Answer False Select The Blank Question Information as to the cost and profit / loss associated with the firm's operatio ns is provided to the ________ by Management accounting. Correct Answer Management Your Answer Management True/False Question Danger level for inventory of materials means the safety stock of inventory. Correct Answer False Your Answer True True/False Question The role of the budget committee may be taken as an advisory role to the Chief E xecutive. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question The main advantages of profit sharing are : Correct Answer Employees try to increase productivity , Incentives are shared by all the employ ees , Augments emplyees' efficiency Your Answer Employees try to increase productivity , Incentives are shared by all the employ ees , Augments emplyees' efficiency Select The Blank Question ________ Accounting assists the management in establishing the plans to attain t he economic objectives and take proper decisions for the attainment of its objec tives. Correct Answer Management Your Answer Management Multiple Choice Multiple Answer Question Which of the following is likely to be a contributory factor to the incidence of

excess expenditure on material cost? Correct Answer The level of control of the used of material in the production cycle , The incor rect choice of purchase order quantity , Failure to control the issue of materia ls from stores Your Answer An increase in the maximum material inventory level , The incorrect choice of pu rchase order quantity , Failure to control the issue of materials from stores Multiple Choice Multiple Answer Question Management accounting is concerned with the following activities : Correct Answer Decision making , Safeguarding assets , Planning and controlling activities Your Answer Decision making , Safeguarding assets , Planning and controlling activities Multiple Choice Multiple Answer Question Features of double entry accounting system are . . . Correct Answer Every business transaction has two elements , When business receives something, it has to pay something , Every debit has a corresponding credit Your Answer Every business transaction has two elements , When business receives something, it has to pay something , Every debit has a corresponding credit Select The Blank Question Under Differential Time Rate method payment is made at Rs. 1.40 per hour when th e level of efficiency is between________. Correct Answer 90% to 100% Your Answer 90% to 100% True/False Question Maintenance Department is a service cost centre. Correct Answer True Your Answer True True/False Question The process of accounting split into three steams i.e. financial, cost, manageme nt accounting. Correct Answer True Your Answer True Select The Blank Question The difference between sales and cost of sales is termed as ________. Correct Answer Net Profit Your Answer Net Profit

Select The Blank Question The final result disclosed by trading account is the ________profit earned by th e organization. Correct Answer Gross Your Answer Gross Multiple Choice Multiple Answer Question Select the accounts to be disclosed on the liability side of the Balance sheet. Correct Answer Loan , Outstanding expenses , Creditors Your Answer Loan , Outstanding expenses , Creditors True/False Question Penalty paid for delay in payment to creditors represents uncontrollable cost. Correct Answer False Your Answer False Multiple Choice Single Answer Question Which document facilitates estimating material cost of a particular job, before completion of that job? Correct Answer Bill of material Your Answer Material requisition note Multiple Choice Single Answer Question Purchases returns of Rs.18,000/- were wrongly transferred to the sales returns a ccount. Calculate its impact on net profit. Correct Answer The net profit will not be affected Your Answer The net profit will not be affected