CS Executive Cost and Management Accounting PYQ December 2015: Question Paper and Available Answers

CS Executive Cost and Management Accounting PYQS Series December 2015 100 Questions Indexed

ICSI Examination Archive & Suggested Answers: This directory contains indexed questions from the paper for CS Executive Cost and Management Accounting PYQS (December 2015). Open the source paper and available answers. Older sessions follow the syllabus and statutory provisions applicable to their examination year.

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Indexed questions

In a company, weekly minimum and maximum consumption of Material-A is 25 and 75 units respectively. The re-order quantity as fixed by the company is 300 units. The material is rece
Following data is given for Gopal Ltd. which produces and sells three products X, Y and Z: Product Units sold Selling price per unit (₹) Marginal cost per unit (₹) X 1,000 100 60 Y
Item(s) excluded from cost sheet are —
Job card is a method of recording details of time with reference to —
The financial records of a company showed a net profit of ₹6,70,000 for the period ended 31st March, 2015. On further examination of cost and financial records, the following facts
Wage rate : ₹1.50 per hour Time allowed for job : 20 hours Time taken : 15 hours The total earnings of the worker under Halsey plan is —
The basis of apportionment of overheads which takes into account the profitability of various departments is called —
The functions of a cost auditor involve —
_______ are necessary for the study of trends and direction of movements in the financial position and operating results of a concern.
When stores are issued for maintenance, the accounting entry is to _______ production overheads and _______ stores ledger control account.
_______ account does not record the balance of stores ledger control account.
Under-valuation of closing stock in cost accounts is _______ and under-valuation of opening stock in cost accounts is _______ while reconciling costing profits with financial profi
If a contract is almost complete, the amount of profit generally transferred to profit and loss account is equal to —
The following information is extracted from the job ledger in respect of Job No. 404: Material : ₹3,400 Wages : 80 hours @ ₹2.50 per hour Variable overheads incurred for all jobs:
Current ratio is 2.5 and liquid ratio is 1.5. Working capital is ₹75,000. Value of the stock held will be —
The most important criterion for distinguishing between scrap, by-product and joint product is _______ of the products.
The two main methods of calculating equivalent production are —
Management accounting is basically concerned with —
Cost accounting is —
Z Ltd. recorded sales of ₹60 lakh in 2014 as compared to ₹45 lakh in 2013. Profit for 2014 was ₹5 lakh higher than that in 2013. If the annual fixed costs amount to ₹12 lakh, the p
Conversion cost is the summation of —
A cost centre which is engaged in production activity by conversion of raw material into finished product is called —
The following particulars relate to production department of a factory : Material used : ₹20,000 Direct labour : ₹10,000 Overheads : ₹7,500 On an order carried out in the departmen
You are given the following information: (i) Total number of workers working in a department: 500 (ii) Working days in a year: 300 (iii) Number of hours worked in a day: 8 (iv) Tot
Determine a firm's total assets turnover, if its net profits margin is 8%, total assets are ₹8,00,000 and the return on investment is 14% -
Which method of absorption of factory overheads would you suggest in a concern which produces only one uniform item of product —
Statement-I : Departmentalisation of items of costs is known as primary distribution. Statement-II : Redistribution of service department's costs is known as secondary distribution
Shine Furniture House uses sunmica tops for table making, the following information is available: Standard quantity of sunmica per table : 4 sq. ft. Standard price per sq. ft. of s
Statement-I : The contribution concept is based on the theory that the fixed expenses of a business is not a joint cost. Statement-II : Fixed expenses can be equitably apportioned
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 ₹1. The worker earns a bonus of ₹2 at 50% rat
The following information is given about Zac Ltd. dealing in musical instruments: P/V ratio 50% Margin of safety 40% If the sales volume is ₹50,00,000 the net profit will be —
Assertion (A): In management accounting, firm decisions on pricing policy can be taken. Reason (R): As marginal cost per unit is constant from period to period within a short span
FIFO method of valuing material issues is suitable in times of —
About 50 units are required every day for a machine. Fixed cost of ₹50 is incurred for placing an order. The inventory carrying cost per unit amounts to ₹0.02 per day. The lead per
Which one of the following industry adopts batch costing in determining the total cost —
The basic difference between a static budget and a flexible budget is —
Manoj Ltd. manufactures three products P, Q and R. The unit selling price of these products are ₹100, ₹160 and ₹75 respectively. The corresponding unit variable costs are ₹50, ₹80
Net income of a company after payment of preference dividend was ₹63 lakh. The number of equity shares was 1,40,000. The P/E ratio of the company was 8.50 times. Earnings per share
The original standard rate of pay in a factory was ₹5 per hour. Due to settlement with trade unions, this rate of pay per hour was increased by 20%. During a particular period, 5,0
When allocating service department costs to production departments, which one of the following is not a method of re-distribution —
Assertion (A): Overheads are recovered in costing based on predetermined rates. Reason (R): This solves the problem of treatment of under recovery or over recovery of overheads. Se
Profits in a company can be increased by: (1) Decreasing the selling price per unit (2) Increasing the selling price per unit (3) Decreasing the volume of sales (4) Increasing the
A business unit is known to be a profit centre —
Assertion (A): The business earns a surplus of sale revenue over variable costs, which is called contribution. Reason (R): Once fixed costs are fully recovered such excess contribu
Which of the following are the possible causes of material price variance : (1) Change in market price (2) Use of poor quality material (3) Inefficient buying (4) Untimely buying (
If the closing stock figures are more in cost books as compared to those in financial books for reconciliation, the difference due to stock valuation is —
A manufacturer produces 2,00,000 units of a product at a cost of ₹3.25 per unit. Later on, he produces 2,75,000 units at a cost of ₹3.20 per unit, when its fixed overheads have inc
The following data is obtained from the records of Mayur Ltd. : First Year (₹) Second Year (₹) Sales 80,000 90,000 Profit 10,000 14,000 Break-even-point in rupees is —
Match the following: List-I List-II P. Material cost variance 1. SP (RSQ-AQ) Q. Material price variance 2. SP (SQ-AQ) R. Material usage variance 3. AQ (SP-AP) S. Material mix varia
Calculate fixed overheads volume variance from the following data: Standard Actual Output (in units) 8,000 10,000 Working hours 5,000 4,800 Fixed overheads ₹40,000 ₹60,000 Correct
In ratio analysis, 'proforma analysis' implies —
Assertion (A): Profit volume ratio is considered to be the best indicator of the profitability of the business. Reason (R): If profit volume ratio is improved, it will result in be
Match the following: List-I (Variances) List-II (Causes) P. Overheads efficiency variance 1. Power failure Q. Overheads volume variance 2. Appointing low grade employees R. Labour
Match the following: List-I List-II P. Cash flow statements 1. Inflow of funds Q. Inflow of cash 2. Short-term financial planning R. Investment (maturity period 3 months) 3. Financ
Match the following: List-I List-II P. Labour cost variance 1. Actual hours paid × (Standard rate - Actual rate) Q. Labour rate variance 2. Standard cost - Actual cost R. Efficienc
Which of the following are advantages of marginal costing : (1) Pricing decision (2) True profit (3) Difficulty to classify (4) Ignores time value (5) Break-even analysis (6) Contr
If sales revenue at 60% capacity is ₹4,50,000, sales revenue at 70% capacity on a fall in selling price by 5% would be —
Match the following: List-I List-II P. Prepaid expenses 1. Solvency ratio Q. Sales ratio 2. Net profit margin × Investment ratio R. Return on investment 3. Turnover ratio S. 100 mi
Assertion (A): Material cost variance is the difference between the standard cost of material allowed for actual output and actual cost of material used. Reason (R): A favourable v
In Saphire Ltd. 1,000 units of raw material were introduced in Process-A. The actual output and normal loss of respective processes are as follows: Process Output (units) Normal lo
Match the following: List-I List-II P. Classification of costs into fixed and variable costs 1. Contribution Q. Difference between sales and variable costs 2. P/V ratio R. Both fix
Statement-I : Segregation of expenses as fixed and variable helps the management to exercise control over expenditure. Statement-II : The management can compare the actual variable
Statement-I : In funds flow analysis, current assets and current liabilities are shown separately in a statement of changes in working capital. Statement-II : In cash flow analysis
Statement-I : Margin of safety represents the difference between sales at break-even point and total sales. Statement-II : Margin of safety can be expressed as a percentage of tota
Match the following: List-I List-II P. Increase in funds 1. Application of funds Q. Goods purchased on credit 2. Drain in working capital R. Commission outstanding 3. Source of fun
Match the following: List-I List-II P. Excess of actual sales over break-even sale volume 1. Contribution Q. Sum of fixed cost and profit 2. Cost-volume profit analysis R. Break-ev
Statement-I : The activities or operations of every cost centre should be homogeneous so as to ensure uniform basis of charging expenses within the centre. Statement-II : The activ
Match the following: List-I List-II P. Performance budgeting 1. Fixed budget Q. Zero base budgeting oriented 2. Production R. Summary of all functional budgets 3. Jimmy Carter S. R
Which of the following pairs is correctly matched —
Statement-I : If any fixed asset remains idle due to abnormal or unusual events, it should be included in capital employed. Statement-II : Idle machines and tools required for norm
Match the following: List-I List-II P. Cost accounting 1. Change in working capital Q. Funds flow statement 2. Deals with the cost of production, selling and distribution R. Cash f
Allotment of the entire costs to a cost centre or unit is known as —
Assertion (A): Cash flow statement enhances the comparability of report. Reason (R): Cash flow statement eliminates the effect of using different treatments for same transactions.
Match the following: List-I List-II P. Absorption costing 1. Is a logical extension of marginal costing Q. Fixed expenses 2. Relationship of change in cost and change in profit R.
Assertion (A): Accounting ratios reveal the financial position of a concern. Reason (R): Accounting ratios are not useful in assessing the operational efficiency. Select the correc
Return on investment depends on two ratios —
Assertion (A): Funds are not related to working capital. Reason (R): Flow of funds takes place whenever there is change in the funds. Select the correct answer from the options giv
Arrange the following categories of cash inflows and cash outflows in the correct order of cash flow statements : (1) Cash flows from investing activities (2) Cash flows from finan
Which of the following pairs is not correctly matched —
Match the following: List-I List-II P. Cost control purposes 1. is a predetermined cost Q. Standard cost 2. Responsibility accounting fixes responsibility for R. Integrates 3. Cost
Statement-I : According to AS-3, provision for taxation should always be treated as a non-operating charge on profits. Statement-II : Dividend on shares is an appropriation of prof
Match the following: List-I List-II P. Operating profit 1. Capital employed = _______ + preference share capital Q. Liquid liabilities 2. = Gross profit - Operating expenses R. Cap
Assertion (A): Cost accounting hides the relative efficiencies of different workers. Reason (R): Cost accounting does not disclose profitable and non-profitable activities. Select
A company sells its product at ₹15 per unit. In a period, it produces and sells 8,000 units and incurs a loss of ₹5 per unit. If the sales volume were to be raised to 20,000 units,
Which of the following pairs is correctly matched —
Statement-I : At the time of replacement of plant, according to marginal cost technique, the proposal which yields lowest contribution is to be selected. Statement-II : According t
Choose the correct statements from the following: (1) Marginal costing and absorption costing are the same (2) For decision making, absorption costing is more suitable than margina
Return on investment is also known as —
Assertion (A): Higher the gross profit ratio, the better it is. Reason (R): A low gross profit ratio indicates unfavourable trend in the form of reduction in selling prices. Select
Equity share capital: ₹30 lakh (30,000 shares of ₹100 each); 9% preference shares: ₹10 lakh; profit before tax: ₹24.46 lakh and tax rate 30%. Earnings per share will be —
Financial statement of X Ltd. shows the following data — ₹ Opening stock 1,50,000 Total purchases (including cash purchases of ₹1,75,000) 10,50,000 Closing stock 1,20,000 Stock tur
The sales and profit during the two periods were as follows: Sales (₹) Profit (₹) Period-I 20,00,000 2,00,000 Period-II 30,00,000 4,00,000 Sales required to earn a profit of ₹5,00,
The key area(s) of activity based costing is/are —
Match the following: List-I List-II P. Marginal cost 1. = Contribution ÷ Sales Q. P/V ratio 2. Contribution = Selling price - _______ R. Profit 3. = Sales × (1 - P/V ratio) S. Vari
In contract costing, the whole of the amount shown under architect's certificate is not paid immediately, but a part thereof is paid after the contract is completed. Such amount is
Actual fixed overhead : ₹22,400 Budgeted fixed overheads : ₹20,000 Actual hours worked : 28,000 Budgeted hours : 40,000 Fixed overhead expenditure variance is —
X Ltd. has forecast its sales for the next three months as follows: May : 12,000 units June : 20,000 units July : 25,000 units Opening stock as on 1st April is expected to be 5,000
Standard rate of wages ₹0.90 per hour; standard output 20 units per hour; actual wages paid ₹76 for 80 hours (idle time 10 hours). Output produced 1,640 units. Direct labour rate v
Cost-volume-profit (CVP) analysis is based on several assumptions. Which one of the following is not relevant for such an analysis —
The fixed expenses are ₹4,000 and break-even point is ₹10,000. New break-even point, if selling price is reduced by 20% is —

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