1. Managerial accounting information is generally prepared for …… ANS:C
a) Shareholders
b) Creditors
c) Managers
d) Regulatory agencies
2. Which of the following is an internal user of management information?
ANS:B
a) Creditor
b) Department manager
c) Controller
d) Treasurer
3. Management accounting is
applicable to- ANS:D
a) Service entities
b) Manufacturing entities
c) Non
profit entities
d) All
of these
4. The work of factory
employees that can be physically associated with converting raw material into
finished goods is classified as- ANS:D
a) Manufacturing overhead
b) Indirect materials
c) Indirect labour
d) Direct labour
5. Management accounting
concentrates on ANS:C
a) Opening
books of account b)Preparation of financial statements c)Control of business activities d)None
of these
6. Which type of asset class
includes those assets which have only definite use and become valueless when
the yield is over? ANS:D
a) Fixed asset
b) Current asset
c) Fictitious asset
d) Wasting
asset
7.
An accounting that deals with the accounting and reporting of
information to management regarding the detail information is ANS:B
a) Financial accounting
b) Management accounting
c) Cost accounting
d) Real Accounting
8. The primary objective of
management accounting is ANS:B
a) Prepare
final a/c
b) Provide
management complete and true information
c) Both
(a) & (b)
d) None
of these
9.
Cost of goods sold= opening stock+ net purchases+ expenses on Purchases
– sales Which part of formula is wrong? ANS:D
a) opening stock
b) net purchases
c)
expenses on Purchases
d)sales
10.
Opening stock + …………………+ Direct Expenses (Carriage on Raw
material)-Closing Stock = ………………… ANS:C
a) Sales, Purchases
b) Sales,
Sales return
c) Purchases,
Cost of goods produced
d) Purchases,
Cost of goods sold
11. The main object of cost
accounting is: ANS:C
a)
To record day to day transactions of the business
b)
To reveal managerial efficiency
c) To
ascertain true cost of products and services
d)
To determine tender price
12. Cost accounting emerged
mainly on account of: ANS:D
a)
Statutory requirements
b)
Competition in the market
c)
Labour unrest
d)
Limitations of financial accounting
13. Advantages of cost
accounting accrue : ANS:D
a)
Only to workers
b)
Only to government
c)
Only to consumers
d) To
management, workers, consumers and government
14. Cost accounting is applied to : ANS:D
a)
Public undertakings only
b)
Large business enterprise only
c)
Small business concerns only
d) Manufacturing
and service concern
15. Marginal costing is
concerned with: ANS:B
a)
Fixed cost
b) Variable cost
c)
Semi variable cost
d)
None of the above
16.----------------is a person
or item for which cost may be ascertained.
ANS:B
a)
Cost unit
b) Cost center
c)
Cost object
d)
Cost estimation
17. Salary paid to factory
manager is an item of: ANS:B
a)
Prime cost
b) Factory overhead
c)
Selling overhead
d)
Office overhead
18. ………………cost refers to those
cost which have already been incurred and cannot be altered by any decision in
the future. ANS:B
a)
Opportunity cost
b) Sunk Cost
c)
Incremental cost
d)
Decremental cost
19. Amortization of intangible
Asset Such as Goodwill which has indefinite life is an example of accounting concept ANS:A
a) Conservatism Concept
b)
Continuity Concept
c)
Realization Concept
d)
Measurement Concept
20. If loan have been guaranteed
by managers and directors is called as ANS:C
a)
Loan
b)
Unsecured Loan
c) Secured Loan
d)
Advance by Manager & director
21.cost will still be incurred
although a plant is shut down temporarily. ANS:C
a)
Cost of raw material
b)
Advertising
c)
Depreciation
d)
Carriage
22. Preliminary expenses are
recorded in……………….. ANS:D
a)
Equity and liabilities-Liability side of B/S
b)
Current liabilities- Liability side of
B/S
c)
Fixed assets- Asset side of B/S
d)
Asset side of
B/S
23. Variable cost per unit ANS:B
a)
Remains fixed
b)
Fluctuates with volume of production
c)
Varies in consideration with the volume of sales
d)
None of the above
24. Cash Purchases: ANS:C
a)
Increases assets
b)
Results in no change in the total assets
c) Decreases assets
d)
Increases liability
25. If closing stock appears in
the trial balance, it should be ANS:A
a) Credited
to the trading account
b)
Credited to the profit and loss account
c)
Deducted from the purchases in the trading account
d)
Shown on the liability side of the Balance sheet
26. Cost accounting aims at ascertain.......................... of product ANS:A
a) Cost
b)
Net profit
c)
Gross profit
d)
Selling price
27.The primary objective of
cost accounting is ANS:A
a) Ascertain
the cost of goods and services
b)
Ascertain the profit
c)
Presentation of all data
d)
None of these
28.Contingent liabilities
should be recorded in the accounts when: ANS:C
a)
It is probable that the future event will occur.
b) The amount of the liability can
be reasonably estimated.
c)
Both (a) and (b).
d) Either (a) or (b).
29.Which of the following
functions is managerial accounting intended to
facilitate? ANS:D
a)
Planning
b)
Decision making
c)
Control
d)
All of these
30.Which of the following
statements about differences between financial and managerial accounting is incorrect? ANS:A
a) Managerial
accounting information is prepared primarily for external parties such as
stockholders and creditors; financial accounting is directed at internal users.
b)
Financial accounting is aggregated; managerial accounting is focused on
products and departments.
c)
Managerial accounting pertains to both past and future items; financial
accounting focuses primarily on past transactions and events.
d)
Financial accounting is based on generally accepted accounting
practices; managerial accounting faces no similar constraining factors.
31.Cost accounting
information can be used for: ANS:D
a.
Budget control and evaluation.
b.
Determining standard costs and variances.
c.
Pricing and inventory valuation decisions.
d. All
of these
32.Manufacturing
costs are also known as product costs. Which of the following best describes
those costs which are considered to be manufacturing costs? ANS:C
a)
Direct materials, direct labor, and factory overhead.
b) Direct
materials and direct labor only.
c)
Direct materials, direct labor, factory
overhead, and administrative overhead.
d) Direct
labor and factory overhead.
33.A company's telephone
bill consisting of a Rs.200 monthly base amount, plus long distance charges,
would be classified as a: ANS:D
a. Variable cost
b. Committed fixed cost
c. Direct cost
d.
Semi variable cost
34.The cost concept records
the figures at ANS:B
a)
Market values
b) Actual
amount paid
c)
Actual amount or market values whichever is less.
d)
MRP maximum retail price
35.Retained earnings
statement depicts: ANS:A
a) Appropriation
of profits
b) Estimates of profits
c) Estimates of costs
36.The term Management Accounting was first used in ANS:C
a) 1910
b) 1939
c) 1950
d) 1960
37. Management Accounting
relates to ANS:C
a) Recording
of accounting data
b) Recording
of cost data
c) Presentation
of account data
d) None
of the above
38. The use of
management accounting is ANS:B
a)
Compulsory
b) Optional
c)
Obligation
d)
Statutory requirement
39.Content of income statement ANS:D
a)
Trading account
b)
Profit and loss account
c)
Balance sheet
d)
All of the above
40.The word accounting can
be classified in to: ANS:C
a) Financial
accounting and management accounting
b) Financial
accounting and cost accounting
c) Financial
accounting, management accounting and cost accounting
d) Cannot
be classified
41.If a company has
contingent liabilities, they appear in the …………..
ANS:A
.
a) Balance Sheet
b) Director’s Report
c) Foot note down the balance sheet
d) Chairman’s report
42.Depreciation is a
. ANS:B
a) Cash operating expenditure
b) Non
cash operating expenditure
c)
Cash non-operating expenditure
d) Non cash non-operating expenditure
43. system
records only actual cash receipts and payments ANS:A
a) Cash
basis
b) Accrual basis
c) Mercantile basis
d) Single entry basis
44.All costs
other than direct materials cost, direct labour cost and direct expenses are
known as:
a) Indirect
material cost ANS:B
b) Overhead
c) Indirect
labour cost
d) Indirect expenses
45.A
company's telephone bill consisting of a Rs.200 monthly base amount, plus long
distance charges, would be classified as a: ANS:D
a.
Variable cost
b.
Committed fixed cost
c.
Direct cost
d.
Semi variable
cost
46.Cost accounting
information can be used for: ANS:D
a. Budget control and
evaluation.
b. Determining standard costs
and variances.
c. Pricing and inventory
valuation decisions.
d. All
of these
47.The work of factory
employees that can be physically associated with converting raw
material into finished goods is classified as- ANS:D
a)
Manufacturing overhead
b)
Indirect materials
c)
Indirect labour
d) Direct labour
48.Which one of the
following would not be classified as manufacturing overhead? ANS:B
a. Indirect labour
b. Direct
materials
c. Insurance on factory building
d. Indirect materials
49.In manufacturing a product,
prime costs are: ANS:D
a. Raw materials and
manufacturing overhead
b. Indirect materials and
manufacturing overhead
c. Indirect labour and
manufacturing overhead
d.
Direct materials and direct labour
50.A manufacturing process
requires small amounts of glue. The glue used in the process is classified as ANS:B
a. A prime cost
b. An
indirect material
c. A direct material
d. Miscellaneous expense
51.Lubricants, used
regularly in a production process, are classified as ANS:C
a)
Miscellaneous expense
b)
Direct materials
c)
Indirect materials
d) Immaterial items
52.Because of automation,
which component of product cost is declining? ANS:A
a) Direct
labour
b) Direct materials
c) Manufacturing overhead
d) Advertising
53.Aggregate of direct costs
is known as: ANS:D
a. Direct material costs
b. Direct Wages
c. Direct Expenses
d.
Prime Cost
54.Aggregate of prime cost
and Factory overhead is known as: ANS:B
a. Work on cost
b. Work
Cost
c. Cost of Production
d. Direct Cost
55.Salary paid to factory
manager is an item of : ANS:B
a. Prime Cost
b. Factory Overhead
c. Selling overhead
d. Office overhead
56.Aggregate of cost of
goods sold and selling and distribution overheads is known as : ANS:A
a. Total Cost
b. Office Cost
c. Cost of sales
d. Selling overhead
57.Conversion cost includes
cost of converting……….into…….. ANS:B
(a) Raw material, WIP
(b)
Raw material, Finished goods
(c)
WIP, Finished goods
(d)
Finished goods, Saleable goods
58.Sunk costs are: ANS:B
(a)
relevant for decision making
(b)
Not relevant for decision making
(c)
cost to be incurred in future
(d)
future costs
59.Calculate the prime cost
from the following information: ANS:C
Direct material purchased: Rs. 1,00,000
Direct material
consumed: Rs. 90,000 Direct labour: Rs. 60,000
Direct expenses:
Rs. 20,000 Manufacturing overheads: Rs. 30,000
(a) Rs. 1,80,000
(b) Rs. 2,00,000
(c) Rs. 1,70,000
(d) Rs. 2,10,000
No comments:
Post a Comment