Download Costing A series full syllabus test paper

Chinmay Tutorials [9929277130]
Professional Factory..... Costing A series
Maximum Marks: 100
Total number of questions:100
Time Duration: 3 hours
Note: 0.25 negative marks will be allotted in case of each wrong answer
Q.1
Which of the following is not a category of financial statement ratios?
a)
Financial leverage
b)
Liquidity
c)
Profitability
d)
Reliability
Q.2
A Ltd. financial statement shows the following data: Equity Rs. 5,67,500, Reserve &
surplus Rs. 3,87, 850, total debt Rs. 5,88,778 out of which Rs. 2,88,778 are long term
debt, fixed assets are Rs 11,44,128.
Current Ratio = ?
a)
2.48
b)
1.92
c)
3.68
d)
1.33
Q.3
The quick ratio formula uses which of the following?
a)
Total assets
b)
Cash
c)
Total current assets
d)
Inventory
Q.4
Debt-equity Ratio help to study________
a)
Solvency
c)
Profitability
Q.5
Q.6
Q.7
Q.8
Q.9
Q.10
1
b)
d)
Liquidity
Turnover
Conversion cost includes cost of converting _______ into________
a)
Raw material, WIP
b)
Raw material, Finished goods
c)
WIP, Finished goods
d)
Finished goods, Saleable goods
Which of the following can be used for the treatment of under or over absorption of
overheads?
a)
Supplementary Rate
b)
Writing-off to Costing P&L A/c
c)
Carrying of overheads to next period
d)
Any of the above depending on the situation
Standard cost per unit was rs. 288.89 for 182 kg of standard output. A standard loss of
10% is expected in production. Total input during the period was 200 kg. Material Yield
Variance = ?
a)
578F
b)
758F
c)
857F
d)
758A
Sunk costs are_______
a)
Relevant for decision making
b)
Not relevant for decision making
c)
Cost to be incurred in future
d)
Future costs
A Blanket Rate is :_______
a)
A single rate which used throughout the organization departments
b)
A double rates which used throughout the organization departments
c)
A single rates which used in different departments of the organization
d)
None of the given options
Which of the following is not method of costing?
a)
Uniform costing
b)
c)
Operation costing
d)
Operating costing
Contract costing
Chinmay Tutorials [9929277130]
Professional Factory..... Costing A series
Q.11
To allocate joint cost using market-based data, the method that estimates the value of
the joint products using the selling price less costs to complete the main products is
called the _____
a)
Constant gross-margin method
b)
Sales value at split-off point method
c)
Net realizable value method
d)
Physical-measure method
Q.12
In process, 100 units of raw materials were introduced at a cost of Rs. 1,000. The other
expenditure incurred by the process was Rs. 600. Of the units introduced, 10% are
normally lost in the course of manufacturing and they possess a scrap value of Rs.3
each. The output of process was only 75 units. Value of abnormal loss =?
a)
Rs. 262
b)
Rs. 1,308
c)
Rs. 30
d)
Rs. 267
Q.13
Mr. Z runs a tempo service in the city. He furnishes you the following data:
Cost of vehicle
Rs. 2,75,000
Kilometer run during the year
15,000 km
Estimated life of vehicle
1,00,000 km
Scrap value
Rs. 25,000
Mr. Z prepares the operating cost sheet after every six months. Depreciation for the
given period to be shown in cost sheet=?
a)
37,500
b)
18750
c)
41,250
d)
20,625
Q.14
Total passenger km of KM Ltd. was 14,40,000 for the year between Town X and Town
Y. The bus made 3 round trips per day. Seating capacity of the bus is 50 passengers
and daily occupancy rate was 80%. The bus runs on an average 25 days in a month.
Distance between Town X & Town Y=?
a)
20 km
b)
25km
c)
50 km
d)
40 km
Q.15
Which of the following accounts makes the cost ledger self balancing?
a)
Overhead adjustment account
b)
Costing P&L Account
c)
Cost ledger control account
d)
None of the above
Q.16
Standard production =80units per week. Actual production =100units, Piece rate is Rs.2
per unit. Earning under Merrick Differential piece Rate system=?
a)
Rs. 240
b)
Rs. 176
c)
RS. 204
d)
Rs. 192
________ is form of specific order costing which applies where work is undertaken as
per customer’s specific requirement
a)
Batch costing
b)
Operation costing
c)
Job costing
d)
Composite costing
All indirect costs are debited to ________
a)
Manufacturing overhead control A/c
b)
WIP Control A/c
c)
Finished goods Control A/c
d)
Costing Profit & Loss A/c
Q.17
Q.18
Q.19
2
______ is defined as, “the techniques and process of ascertaining costs”.
a)
Cost Accounting
b)
Management accounting
c)
Costing
d)
Cost Ascertainment
Chinmay Tutorials [9929277130]
Professional Factory..... Costing A series
Q.20
Finished stock balance on 1-04-2014 = Rs. 30,780
Finished goods transferred to warehouse during the year= Rs. 2,02,900
Sales = Rs. 2,56,000.
The company’s gross profit is 25% on cost.
Finished Stock balance on 31.3.2015=?
a)
Rs. 28,880
b)
Rs. 83,880
c)
Rs. 41,680
d)
Rs. 19,880
Q.21
In case of rising prices (inflation), FIFO method will:
a)
Provide lowest value of closing stock and profit
b)
Provide highest value of closing stock and profit
c)
provide highest value of closing stock but lowest value of profit
d)
Provide highest value of profit but lowest value of closing stock
Q.22-25
ABC Ltd. uses activity based costing to determine product costs for external financial
reports. ABC Ltd. has provided the following data:
Activity cost pools
overheads costs
Machine related (Machine hours)
Rs. 1,37,600
Batch set-up (set ups)
Rs. 5,32,800
General Factory
Rs. 1,05,300
Activity cost pool
Total
Expected Activity
Product X
Product Y
Machine related
8,000
1,000
7,000
Batch set-up
8,000
3,000
5,000
General factory
9,000
7,000
2,000
Q.22
The activity rate for the batch setup activity cost pool is closet to:______
a)
Rs. 66.60
b)
106.60
c)
Rs. 97.00
d)
Rs. 177.60
Q.23
The activity rate for the Machine related activity cost pool is closet to:_______
a)
Rs. 66.60
b)
106.60
c)
Rs. 97.00
d)
Rs. 17.20
The total amount of overhead cost allocated to product X would be______
a)
Rs. 4,76,800
b)
Rs. 2,98,900
c)
Rs. 2,91,000
d)
Rs. 3,87,850
The total amount of overhead cost allocated to Product Y would be_______
a)
Rs. 2,98,800
b)
Rs. 5,33,000
c)
Rs. 4,76,800
d)
Rs. 2,91,000
A Ltd. paid income tax on capital gains Rs. 2,16,300 resulting from disposal of fixed
assets. It should Be shown in ______.
a)
Operating activities
b)
Investing activities
c)
Financing activities
d)
by way of adjustment in cash & cash
Danger level = ?
a)
(Maximum consumption * Lead time for emergency purchase)
b)
(Average consumption * Lead time for emergency purchase)
c)
(Minimum * Lead time for emergency purchase)
d)
Ordering level – (Average usage * Re-order period)
Q.24
Q.25
Q.26
Q.27
3
Chinmay Tutorials [9929277130]
Professional Factory..... Costing A series
Q.28
Capital gearing ratio = 0.625
Long term debts = Rs. 5,00,000
Reserve to capital = 0.6
Reserve = ?
a)
8,00,000
c)
3,00,000
b)
d)
5,00,000
4,00,000
Q.29
While calculating dividend cover for preference shares numerator should be taken as
_______.
a)
EBIT
b)
Profit available for equity shareholder
c)
PAT
d)
PAT + Depreciation
Q.30
A company with a contribution/sale ratio of 33-1/3% and fixed cost of Rs. 3 lakhs per
month should have a monthly sales of Rs. ______ lakhs to maintain a margin of safety
of 10%
a)
8
b)
10
c)
12
d)
9
Q.31
Mr. X owns a bus, which runs according to the following schedule:
Delhi to Chandigarh and back, the same day.
Distance covered – 150 km one way
No of day run each month – 8
Seating capacity of bus- 50 persons
Total passenger km.- 1,08,000
What is the occupancy rate = ?
a)
80%
b)
70%
c)
90%
d)
100%
Q.32
If opening balance of accounts receivable is Rs 2,68,800: closing balance is Rs
2,97,600 and total credit sales during the year was Rs 40,32,000. What is the cash
received from debtors under the direct method of cash flow statement?
a) Rs 40,60,800
b) Rs 45,98,400
c) Rs 40,03,200
d) Rs 43,00,800
Q.33-37
The capital structure of JCPL Ltd. is as follows:
Rs
Equity share of Rs 10 each
8,00,000
8% Preference share of Rs 10 each
6,25,000
10% Debenture of Rs 100 each
4,00,000
Income Statement
4
Chinmay Tutorials [9929277130]
Professional Factory..... Costing A series
Q.33
Sales
(-) Variable cost
Rs
7,50,000
(3,60,000)
Contribution
(-) Fixed cost (Depreciation)
3,90,000
(90,000)
EBIT
3,00,000
Additional Information:
Tax rate 30%
Equity share dividend paid 15%
Market price per equity share Rs 20.
Dividend cover for preference shares = ?
a) 1.1
b) 1.65
c) 3.46
d) 3.64
Q.34
Dividend cover for equity shares = ?
a) 1.1
b) 1.65
c) 3.46
d) 3.64
Q.35
Earning Yield = ?
a) 8.25%
c) 7.25%
Q.36
b) 8.52%
d) 7.52%
Price Earning Ratio =
a) 12.12
b) 11.11
c) 12.11
d) 11.12
Q.37 Net fund flow= ?
a) 12,000
b) 1,02,000
c) 2,22,000
d) 1,52,000
Q.38 A company makes one product, which has variable manufacturing costs of Rs 3.25 per
unit and variable selling and administrative costs of Rs 1.17 per unit. Fixed
manufacturing costs are Rs 42,300 per month and fixed selling and administrative costs
are Rs 29,900 per month. The company wants to earn an average monthly profit of Rs
15,000 and they expect to produce and sell an average of Rs 40,000 units of the product
per month. What is the minimum selling price management can be expected to set to
meet their profitability goals?
a) Rs 4.69
b) Rs 4.42
c) Rs 6.60
d) Rs 6.23
Q.39-40
A company has two plants at Locations I & II, operating at 100% and 75% of their
capacities respectively. The following details are available:
Location I
Location II
Sales
200
75
Variable cost
140
54
Fixed cost
30
14
5
Chinmay Tutorials [9929277130]
Professional Factory..... Costing A series
Q.39
What is the P/v ratio of merged plant?
a) 33.33%
b) 66.67%
C ) 14.77%
d) 29.33%
Q.40
Break even sales of merged plant ?
a)154.67 lakhs
b) 100 lakhs
C) 150 lakhs
d) 133.33 lakhs
Q.41
For contracts which are very near to completion, the profit is ascertained by the formula
_________.
a)
Estimated profit * (Work certified /contract price)
b)
Estimated profit * (Work certified /contract price) * (Cash received /Work certified)
c)
Estimated profit * (Cash received /Work certified) * (Cost of work / Total cost to
date)
d)
Any of the above in the absence of specific instruction
Q.42
Contract in which reimbursement is based on actual allowable cost plus a fixed fee is
called _______
a)
Special contract
b)
Cost plus contract
c)
Regular contract
d)
Cost contract
Q.43
Which of the following formula s correct under “Barth Variable Bonus Plan” of wage
payment ?
a)
Hourly rate * √𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑡𝑖𝑚𝑒 ∗ 𝐴𝑐𝑡𝑢𝑎𝑙 𝑡𝑖𝑚𝑒
b)
Standard time * √𝐻𝑜𝑢𝑟𝑙𝑦 𝑟𝑎𝑡𝑒 ∗ 𝐴𝑐𝑡𝑢𝑎𝑙 𝑡𝑖𝑚𝑒
c)
Actual time * √𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑡𝑖𝑚𝑒 ∗ 𝐻𝑜𝑢𝑟𝑙𝑦 𝑡𝑖𝑚𝑒
d)
Actual time * √𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑜𝑢𝑡𝑝𝑢𝑡 ∗ 𝐴𝑐𝑡𝑢𝑎𝑙 𝑡𝑖𝑚𝑒
Q.44
______ refers to contract recording of the employees’ attendance time.
a)
Time booking
b)
Time keeping
c)
Time spending
d)
Time pass
Which of the following details are recorded in bin card?
a)
Date of order and suppliers name along with address
b)
Record of quantities only
c)
Record of both quantities & values
d)
All of the above
Q.45
Q.46
_______ represents the unusable loss, which can be sold. It is a residue, which is
measurable and has a minor value.
a)
Waste
b)
Scrap
c)
Spoilage
d)
Defective
Q.47
Which of the following “Cost unit” is not used by the organization engaged in providing
services?
a)
Tonne km
b)
Passenger km
c)
Kilowatt hour
d)
Per meter
6
Chinmay Tutorials [9929277130]
Professional Factory..... Costing A series
Q.48
The cost audit order can be given by the Central Government only in respect of Class of
Companies which is required to maintain books of account under the provisions of
______ of the Companies Act, 2013.
a)
Section 148
b)
Section 138
c)
Section 209(1)(d)
d)
Section 128
Q.49
In case of normal loss of material due to wastage, effect on Total Cost will:
a)
Increased
b)
Decreased
c)
Same
d)
None
Q.50
These costs are note not related to the operations and can be controlled by
management by eliminating or reducing to a desirable level.
a)
Discretionary costs
b)
Committed cost
c)
Step costs
d)
Policy costs
Q.51
_______ is an item for which cost measurement is required eg. Product, Job:
a)
Cost driver
b)
Cost object
c)
Cost pool
d)
NOTA
Q.52
When the under or over absorbed overheads amount is significant, it should be disposed
off by:
a)
Carrying forward to next year
b)
Writing off to costing P&L A/c
c)
Using a supplementary rate
d)
All of the above
Q.53
CAS-9 is related with
a)
Direct material cost
c)
Packing material cost
b)
d)
Indirect material cost
Transportation material cost
Q.54
The Annexures to the Cost Auditor Report and Performa should be signed by
a)
The Chief Finance officer and the Managing Director
b)
One director and Secretary
c)
The Secretary and the Chief finance officer
d)
The officer in charge of cost accounts and the Secretary.
Q.55
The actual output of 162,500 units and actual fixed costs of Rs. 87000 were exactly as
budgeted. However, the actual expenditure of rs. 300,000 was Rs. 18,000 over budget.
What budget variable cost per unit?
a)
Rs. 1.20
b)
Rs. 1.31
c)
Rs. 1.42
d)
Rs. 1.50
Q.56
Normally delivery takes place in 6 days. 3 days stock will be safety stock. Average
consumption per day 150 units. Minimum consumption per day is 75 units. Re-order
point=?
a)
1,125 units
b)
675 units
c)
900 units
d)
1,350 units
Q.57
EOQ = 100 units, Annual consumption = 2,000 units, Carrying cost per unit per annum=
Rs. 480, Ordering Cost= ?
a)
Rs. 1,400
b)
Rs. 1,200
c)
Rs. 1,600
d)
Rs. 2,000
7
Chinmay Tutorials [9929277130]
Professional Factory..... Costing A series
Q.58
If overtime is resorted to at the desire of the customer, then the overtime premium:_____
a)
Should be charged to costing profit and loss account
b)
Should not be charged at all
c)
Should be charged to the job directly
d)
Should be charged to the highest profit making department
Q.59
Which of the following formula is correct for calculating earning of the worker as per
“Piece Rate System” of wage payment ?
a)
Standard output * Rate per Unit
b)
Actual output * Rate per hour
c)
No. of units produced * Rate per unit
d)
No. of units produced * Rate per hour
Q.60
Which of the following is a combination of both time and piece wage systems?
a)
Bedaux Points Plan
b)
Gantt’s Task bonus system
c)
Barth System
d)
Emersion’s Plan
Q.61
If overheads are classified by “element wise” then which of the following classification is
correct?
a)
Production overhead, Administrative overheads, Selling overhead, Distribution
overhead, Research & development overhead
b)
Variable overhead, fixed overhead, Semi variable overhead
c)
Indirect materials, Indirect labour, Indirect expenses
d)
None of the above
Q.62
A management consultancy recovers overheads on chargeable consulting hours.
Budgeted overheads were Rs. 6,15,000 and actual consulting hours were 32,150.
Overheads, were under-recovered by Rs. 35,000. If actual overheads, were Rs.
6,94,075, what was the budgeted overhead absorption rate per hour?
a)
Rs. 19.13
b)
Rs. 20.50
c)
Rs. 21.59
d)
Rs. 22.68
Q.63
On 31st March, 2015 profit as per financial accounts is Rs. 60,412. A comparison cost
and financial accounts revealed the following:
The annual rental value of premises owned by the company, amounting to Rs. 10,800
was charged in cost accounts but not in financial accounts.
Selling & distribution expenses amounting to Rs. 16,490 were excluded from costing
records.
Profit as per cost accounts = ?
a)
Rs. 66,102
b)
Rs. 54,722
c)
Rs. 33,122
d)
Rs. 87,702
Q.64
On 31st March, 2015 loss as per financial accounts is Rs. 1,25,000. A comparison cost
and financial accounts revealed the following:
works overheads over absorbed Rs. 7,060
office overhead under absorbed Rs. 5,350
Loss as per cost accounts=?
a)
Rs. 1,26,710
b)
Rs. 1,37,590
c)
Rs. 1,51,710
d)
Rs. 1,48,290
8
Chinmay Tutorials [9929277130]
Professional Factory..... Costing A series
Q.65
Balance in Work-in- progress Control Account is transferred to______.
a)
Cost of sale account
b)
Factory overhead control account
c)
Finished goods Control Account
d)
Any of the above
Q.66
Total cost
Rs. 10,41,050
Work certified
Rs. 10,70,000
Work uncertified
Rs. 31,000
Cash received
Rs. 9,90,000
Contract price
Rs. 13,00,000
Work-in progress that will appear in balance sheet?
a)
Rs. 59,950
b)
Rs. 22,971
c)
Rs. 88,029
d)
Rs. 36,979
Q.67
Selling price of a product - X is Rs. 50 per unit, variable cost Rs. 20 per unit and 2 kgs.
of raw material is needed to produce a unit of product –X. the contribution per Kg. of raw
material will be-:
a)
Rs. 30
b)
Rs. 15
c)
Rs. 60
d)
Rs. 50.
Q.68
A company manufactures a single product which is sold for Rs. 70 per unit. Unit cost
are:
Variable production
29.50
Fixed production
21.00
Variable selling
4.80
Fixed selling
9.00
20,000 units of the product were manufactured in a period during which 19,700 units
were sold. Using marginal costing, what was the total contribution made in the period?
a)
Rs. 7,03,290
b)
Rs. 7,14,000
c)
Rs. 3,84,150
d)
Rs.3,90,000
Q.69
The following data are made available by the company for the year ended 31.3.2015:
Manufacturing overheads
Manufacturing overheads applied
Works-in-progress
Finished goods
Cost of goods sold
Supplementary Rate =?
a)
0.03
b)
c)
0.33
d)
Q.70
9
32,72,000
32,00,000
5,00,000
15,00,000
2,20,00,000
0.003
0.033
NSZ Ltd. paid an interim dividend of Rs. 1,00,000 along with Rs. 10,200 as corporate
dividend tax. How will you classify this in the cash flow statement of the NSZ Ltd.?
a)
Rs. 1,00,000 as outflow in financing activities and Rs. 10,200 as outflow in
operating activities.
b)
Rs. 1,10,200 as outflow in investing activities
c)
Rs. 1,00,000 as outflow in investing activities and Rs. 10,200 as outflow in
operating activities.
d)
Rs. 1,10,200 as outflow in financing activities
Chinmay Tutorials [9929277130]
Professional Factory..... Costing A series
Q.71
Q.72
Q.73
Q.74
Q.75
Q.76
Q.77
10
The books of Zee Ld. Revealed the following information:
Particular
Rs.
Opening inventory
6,00,000
Purchases during the year 2012-2013
34,00,000
Sales during the year 2012-2013
48,00,000
On March 31, 2013, the value of inventory as per physical stock-taking was Rs.
3,25,000. The company’s gross profit on sales has remained constant at 25%. What is
the estimated cost of missing inventory?
a)
Rs. 75,000
b)
Rs. 1,00,000
c)
Rs. 50,000
d)
Rs. 1,25,000
A business has bought and sold identical items of stock during 2012 as follows:
1/6/ 12 bought
1000 units
@
Rs. 10 each
1/9/12 bought
1000 units
@
Rs. 16 each
5/9/12 sold
1200 units
@
Rs. 20 each
Using the first-in, first-our (FIFO) method what is the value of the 800 units of stock left
unsold at 31/12/12 ?
a)
Rs. 16,000
b)
Rs. 10,400
c)
Rs. 12,800
d)
Rs. 8,000
XYZ Ltd. employs is workers for a single shift of 8 hours for 25 days in a month. Basic
wages/piece work wages @ 2 per unit subject o a guaranteed minimum wages of Rs. 60
per day. Dearness allowance at Rs. 40 per day.
Standard output per day =40 units
Actual output = 910 units
Incentive bonus:
Incentive bonus up to 80% efficiency
Nil
Incentive bonus for efficiency above 80% Rs. 50 for every 1%
above 80%
a)
Rs. 3,370
b)
Rs. 2,740
c)
Rs. 2,583
d)
Rs. 1,800
Actual production on particular day = 120 units, time allowed for 10 units is 1 hour and
hourly rate is Rs. 4. Earning under Rowan Plan =?
a)
Rs. 32.00
b)
Rs. 38.40
c)
Rs. 40.00
d)
Rs. 42.67
Activity ratios are measured with the help of _______
a)
Fixed assets
b)
Sales
c)
Profit
d)
Expenses
The model and formula of EOQ was developed by ________ in 1913.
a)
F.W. Taylor
b)
F. Wilson Harris
c)
F. Walter Harris
d)
F.W. Marshall
Which of the following formula is used to calculate efficiency ratioa)
Actual hours * 100
Budgeted hours
b)
Standard hours for actual production *100
Actual hours
c)
Standard hours for actual production *100
Budgeted hours
d)
______Actual hours_______________ * 100
Standard hours for actual production
Chinmay Tutorials [9929277130]
Professional Factory..... Costing A series
Q.78
The standard material required to manufacture one unit of Product-A is 5 Kgs. and the
standard price per Kg. of material is Rs.3. The cost accountant's records, however,
reveal that 16,000 Kgs. of material costing Rs.52,000 were used for producing 3,000
units of Product-A. Material price variance will be —
(A)
Rs.4,000 (A)
(B)
Rs.4,000 (F)
(C)
Rs.4,300 (A)
(D)
Rs. 4,300 (F)
Q.79
Following data are given :
Product–A
Product–B
Contribution per
Unit (Rs.)
30
28
Direct labour(hours per unit) 5
4
Maximum possible
Production (units)
10,000
10,000
Direct labour hours available 72,000 hours.What should be the number of units of A and
B to be produced to maximise profit of the company —
(A)
A-10,000 units, B-5,500 units
(B)
B-10,000 units, A-5,500 units
(C)
B-10,000 units, A-6,400 units
(D)
10,000 units of each A and B.
Q.80
A process in which management is looking outward to examine how others achieve
their performance levels and to understand the process they use, is called —
(A)
Balanced score card
(B)
Target costing
(C)
Bench marking process
(D)
Performance analysis.
Q.81
What is the treatment of unrealised profit in process costing —
(A)
Transferred to profit and loss account
(B)
Closing stock valued at transfer price
(C)
Eliminated by creating stock reserve
(D)
Treated as abnormal gain.
Q.82
A company producing three products, viz., X,Y and Z has sales mix in the ratio of 2:1:3.
The profit volume ratio of the products X, Y and Z are 15%, 30% and 20% respectively.
The total fixed cost of the company is Rs.3,50,000.The break-even point of the company
will be —
(A)
Rs.16,15,390
(B)
Rs17,50,000
(C)
Rs.23,33,333
(D)
Rs.11,66,667
Q.83
The purchase of machinery by issuing long-term notes payable should be reported
as a —
(A)
Non-cash investing and financing activity
(B)
Cash outflow in the operating activity
(C)
Cash outflow in the investing activity
(D)
Cash outflow in the financing activity.
Q.84
Section ___________ of the Companies Act, 2013 gives the cost auditor same power
as the financial auditor has under section __________ of the Companies Act, 2013.
(A)
148, 143
(B)
143, 148
(C)
147, 148
(D)
143, 144
11
Chinmay Tutorials [9929277130]
Professional Factory..... Costing A series
Q.85
Balance of investment account is Rs,20,000 on 31st March, 2014 and Rs.30,000 on
31st March, 2015. As per additional information, dividend received Rs.3,000 includes
Rs.1,000 from pre-acquisition profit which is credited to investment account. The amount
of investment purchased/ sold during the year 2014-15 is —
(A)
Rs.13,000 purchased
(B)
Rs.11,000 purchased
(C)
Rs.9,000 purchased
(D)
Rs.9,000 sold.
Q.86
The technique of economic order quantity is losing significance since the development
of —
(A)
Perpetual inventory
(B)
Just-in-time
(C)
First-in-first-out
(D)
ABC analysis.
Q.87
Two articles A and B are produced in a factory. Their specifications show that 4 units of
A or 2 units of B can be produced in one hour. The budgeted production for January,
2015 is 800 units of A and 200 units of B. The actual production for the month was 900
units of A and 180 units of B. Actual labour hours spent were 350. The efficiency ratio for
January, 2015 is —
(A)
80%
B)
85%
(C)
90%
(D)
95%.
Q.88
Kriti Ltd. has provided following information for the quarter January to March :
January
February
March
Sales @
Rs.20
per unit (units)
1,000
2,000
3,000
Closing debtors (Rs.)
16,000
40,000
64,000
20% of the sales are on cash basis and balance on credit basis. The amount to be
collected from debtors in the month of February and March will be —
(A)
Zero and Rs.8,000 respectively
(B)
Rs.8,000 and Rs.16,000 respectively
(C)
Rs.8,000 and Rs.24,000 respectively
(D)
Rs.16,000 and Rs.36,000 respectively.
Q.89
Quarterly consumptionof materials : 2,000 Kgs.
Cost of placing an order : Rs.50
Cost per unit : Rs.40
Storage and other carrying costs : 8% of average inventory
The economic order quantity and numberof orders to be placed per quarter of the
year will be —
(A)
400 Kgs. and 5 orders
(B)
500 Kgs. and 4 orders
(C)
500 Kgs. and 12 orders
(D)
400 Kgs. and 6 orders.
Q.90
Cost of production for 10,000 units : Rs.1,60,000
Opening stock of finished goods (1,000 units) : Rs.18,000
Closing stock of finished goods (FIFO) : 2,000 units
Selling and distribution overheads : Rs.2 per unit sold
Profit mark-up on selling price : 20%
The amount of profit will be —
(A)
Rs. 39,800
(B)
Rs.40,500
(C)
Rs.41,000
(D)
Rs.40,800
12
Chinmay Tutorials [9929277130]
Professional Factory..... Costing A series
Q.91
For a department, the standard overheads rate is Rs.2.50 per hour and the overheads
allowances are as follows :
Activity level
Budget overheads
(hours)
allowance (Rs.)
3,000
10,000
7,000
18,000
11,000
26,000
Calculate the normal capacity level on the basis of which the standard overheads rate
has been worked out —
(A)
8,000 Hours
(B)
7,000 Hours
(C)
6,000 Hours
(D)
9,000 Hours.
Q.92
Following information is supplied regarding a contract in progress :
Details
Amount(Rs.)
Stage of completion (%)
Erection cost to date
7,500
25%
Fabrication cost to date :
Material
60,000
60%
Wages and other expenses
47,500
50%
Contract value
2,00,000
The estimated profit or loss at the completion of the contract will be —
(A)
Rs.25,000 (Profit)
(B)
Rs.25,000 (Loss)
(C)
Rs.26,000 (Profit)
(D)
Rs.26,000 (Loss).
Q.93
Match the following :
List-I
List-II
Classification of costs into
1.
Contribution
fixed and variable costs
Difference between sales
2.
P/V ratio
and variable costs
Both fixed and variable
3.
Marginal
costs are charged to
product costing
Relative profitability
4.
Absorption
Select the correct answer from the following options —
P
Q
R
S
(A)
4
3
1
2
(B)
3
4
1
2
(C)
3
1
4
2
(D)
4
3
2
1
P.
Q.
R.
S.
Q.94
If at EOQ, associated cost is 5,000, EOQ = 5,000, calculate carrying cost/unit?
a)
1
b)
2
c)
5
d)
Can’t say
Q.95
Balance sheet
Current Year
Previous Year
10% debentures
5 lac
8Lac
Transaction in debenture takes place on 1st day of F.Y., calculate interest on debentures.
a)
80,000
b)
50,000
c)
30,000
d)
10,000
13
Chinmay Tutorials [9929277130]
Professional Factory..... Costing A series
Q.96
Cost of equipment sold is 10 lakhs.
Depreciation provided till date is 6 lakh, loss on sale of asset is 1 lakhs. Calculate
purchase of equipment =?
If opening balance is 7,00,000.& closing balance is 15,00,000.
a)
25,00,000
b)
18,00,000
c)
9,00,000
d)
5,00,000.
Q.97
PBT is 10,000 Tax paid 4,000, Depreciation 8,000 increase in Current Assets 3,000
goodwill written off 7,000 calculate profit before working capital changes ?
a)
25,000
b)
29,000
c)
24,000
d)
22,000
Q.98
A worker completes a job in certain number of hours. The standard time allowed for the
job is 10 hours and the hourly rate of wages is Rs. 1. The worker earns a bonus of rs. 2
at 50% rate under Halsey plan. His total wages under the Rowan premium plan isa)
Rs. 8.30
b)
Rs. 8.20
c)
Rs. 8.50
d)
Rs. 8.40
Calculate cost of sales:
Works cost= 2,00,000, Office OH= 1,00,000, opening WIP = 10,000
Closing WIP=20,000
Closing finished goods = 30,000
S&D OH = 10,000
a)
2,70,000
b)
2,80,000
c)
3,00,000
d)
3,20,000
Q.99
Q.100 If provision for taxation is treated as a current liability, then payment of tax is
a)
An application of funds
b)
A source of funds
c)
No flow of funds
d)
None of the above
14