CS Executive Cost and Management Accounting PYQ December 2016: Question Paper and Available Answers

CS Executive Cost and Management Accounting PYQS Series December 2016 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 2016). 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

Which one is not the objective of Cost Accounting Standards —
Which of the following is/are tool(s) and technique(s) of management accounting —
Match the following : Statements Objects (P) Collection of cost information and recording them under suitable heads 1. Budgeting (Q) Monitoring idle time, worker's efficiency and l
Statement - I Sunk cost is one that has already been incurred and cannot be avoided by decisions in the future. Statement-II For decision making, it is required that such cost shou
The prime function of management accounting is to —
Multiple costing is followed in —
Following information relates to the production department of a factory : Materials used : ₹80,000 Direct labour : ₹60,000 Overheads : ₹40,000 On an order carried out in the depart
When the amount of overheads absorbed is less than the amount of overheads incurred, it is called —
A common absorption rate used throughout a factory for all jobs and units of output irrespective of the department in which they were produced is called —
Raj Ltd. furnishes the following information: Production : 10,000 units Sales : 5,000 units Selling price : ₹12 per unit Variable cost : ₹6 per unit Fixed costs : ₹40,000 per annum
Following information is available : Input of raw material : 1,000 units @ ₹25 per unit Direct material : ₹7,500 Direct wages : ₹4,500 Production overheads : ₹6,000 Actual output t
A company reported current year profit of ₹12,00,000 which includes the following: Profit on sale of equipment : ₹2,00,000 Share issue expenses : ₹1,50,000 Dividend income : ₹80,00
A radio manufacturer finds that while it costs ₹6.25 per unit to make a component, the same is available in the market at ₹5.75 each. Continuous supply is also fully assured. The b
Following data is obtained from the cost records of Moon Ltd. : Year Sales (₹) Total Cost (₹) 2015 1,00,000 80,000 2016 1,20,000 90,000 P/V ratio will be —
Following information is obtained from a standard cost card : Labour rate : 90 paise per hour Standard hours : 3 hours per unit Actual production data: Units produced : 250 Labour
Standard set for material consumption was 100 kgs. @ ₹2.25 per kg. In a cost period, opening stock was 100 kgs. @ ₹2.25 per kg.; purchases made 500 kgs. @ ₹2.15 per kg; and actual
Material quantity variance arises due to —
Cost of abnormal wastage is charged to —
Following information is given : Direct material purchased : ₹6,00,000 Direct material consumed : ₹7,00,000 Direct labour : ₹3,00,000 Direct expenses : ₹2,50,000 Manufacturing over
Which of the following is the main cost driver of customer order processing activity —
Income from investments is a cash flow from —
Return on investment (ROI) is calculated to measure —
The ascertainment of costs after they have been incurred is called —
Which of the following is considered as normal loss of material —
The maximum and minimum lead time is 4 weeks and 3 weeks respectively. If the maximum and minimum weekly consumption is 25 units and 20 units respectively, the re-ordering level wi
The budget which usually takes the form of budgeted profit and loss account and balance sheet is known as —
While preparing cash budget, which of the following items would not be included —
Interest coverage ratio is obtained by dividing EBIT by —
If price-earnings ratio is 0.05 and earnings per share is ₹8, the market price of share will be —
In a purely competitive market, 10,000 pocket transistors can be manufactured and sold and certain profit is generated. It is estimated that 2,000 pocket transistors need to be man
A technique where standardised principles and methods of cost accounting are employed by a number of different companies is termed as —
A cost centre is —
As on 31 st March, 2016, the profit of a company was ₹36,450 as per financial records. The following summary of transactions is given for the same period : ₹ Obsolescence loss in r
Sun Ltd. has furnished the following relevant data of financial statements as on 31 st March, 2016: Equity share capital (1,00,000 equity shares of ₹10 each) ₹10,00,000 General res
A firm requires 12,800 units of a certain component which it buys @ ₹60 each. The cost of placing an order and following it up is ₹150 and annual storage charges work out to 10% of
Which of the following are advantages of perpetual inventory system : (i) No interruption of production process (ii) More wastage of material (iii) Detect loss of stock due to thef
Following statements are either true (T) or false (F) : (P) FIFO method of valuing material issues is suitable in time of rising prices (Q) Valuation of closing stock is same under
Match the following : (P) Visible or invisible loss that cannot be collected and in certain cases it involves further costs of disposing 1. Defectives (Q) Residue which is measurab
The relevant data from financial statements of Ross Ltd. as on 31 st March, 2016 is given below : Cash ₹1,50,000 Trade receivables ₹4,00,000 Investment (short-term) ₹3,30,000 Stock
A written comprehensive order, with specification, material code and quantity sent to inform the purchase department, of a need for material is called —
Choose the correct statements from the following: (1) All the indirect taxes are added to the purchase price of material (2) Trade and cash discounts are deducted from the cost of
In a factory, the standard output in 8 hours is 220 units. A worker actually produces 242 units in the standard time. Wage rate is ₹8 per hour. The total wages paid to the worker u
Amaze Ltd. had an opening inventory of 5,000 units costing ₹5 per unit on 1 st April, 2016. Following receipts and issues took place in April, 2016: 5 th April, 2016 : Purchased 80
Which of the following is not replacement cost of labour turnover : (1) Cost of recruitment/selection (2) Cost of providing medical services (3) Cost of training (4) Retirement ben
Statement - I Low time wages do not necessarily mean low cost of production and high wages mean high cost of product. Statement-II Time and motion study, which is a function of eng
Standard output per day per worker is 40 units. Incentive bonus for efficiency above 80% is ₹50 for every 1% increase up to 90% and above this ₹80 for every 1% increase. Kapil work
From the books of Raja & Co., following details as on 31 st March, 2016 are collected: Equity share capital : ₹20,00,000 Retained earnings : ₹10,00,000 10% Debentures : ₹20,00,
Assertion (A) Activity based costing is not normally used for external reporting purpose. Reason (R) Activity based costing does not conform to generally accepted principles. Selec
The net profit margin of Rose Ltd. is 8%, its total assets are ₹6,00,000 and the return on investment is 18%. Total assets turnover will be —
A homogeneous cost pool is one that —
Statement - I Production departments and service departments are equally important for manufacturing industry. Statement-II To calculate cost of a product, service department cost
Match the following service department cost with basis of apportionment: (P) Employment/personnel department 1. Floor area (Q) Store keeping department 2. No. of requisitions (R) P
Relevant data regarding number of workers on roll is given below for June, 2016: At the beginning of the month 750 At the end of the month 850 During June, 2016, 10 workers left, 3
Which of the following is not a method of overheads absorption —
A company produces three joint products A, B and C. The company has chosen 'physical quantity method'. Up to the point of split off, the total production of A, B and C is 80,000 kg
Following information has been collected from cost records of Bright Ltd. : Direct material : ₹5,00,000 Direct labour : ₹3,00,000 Factory overheads : 20% of factory cost The amount
In a factory, research and development expenditure is budgeted to ₹9,00,000. This is the normal expenditure on research activities. Due to some reasons, research is unsuccessful. T
A company produces a single product for which following data is available : Average production per week : 200 units Usage per unit : 10 Kgs. Re-order level : 8,000 Kgs. Delivery ti
Following information is related to Product-A: In 2015, variable cost was ₹200 per unit and fixed cost ₹40 per unit. Production was 1,20,000 units. It is expected that production i
Match the following: (P) Certain percentage of profit over total cost of work 1. Escalation clause (Q) Safeguard against any likely changes in the price of material and labour 2. C
Assertion (A) Cash is withheld by the contractee under the terms of the contract when payment of the value of work certified is being made. Reason (R) Retention money is treated as
Following information is given for a contract: Estimated profit on completion of contract ₹2,20,000 Contract price ₹10,00,000 Cash received being 80% of work certified ₹6,40,000 Th
Choose the correct statements from the following: (1) Most of the items of costs are direct in contract costing than in job costing (2) Foreseeable losses estimated for a contract
Which of the following is not a part of job order cost sheet —
A hotel has 200 rooms accommodation. The normal occupancy in summer is 90% and winter 40%. The period of summer and winter is taken 8 months and 4 months respectively. Assume 30 da
For a factory, following information is given : 8,400 kgs. material @ ₹12.50 per kg. were actually consumed resulting in a price variance of ₹4,800 (A) and usage variance of ₹3,600
Budgeted standard hours of a factory are 15,000. The capacity utilisation ratio for May, 2016 is 85% and efficiency ratio for the month is 120%. The standard hours for actual produ
Which of the following statement(s) is/are not correct with reference to labour idle time variance: (1) Idle time variance is the portion of labour cost variance which arises due t
The standard rate of payment is ₹10 per direct labour hour. The actual direct labour cost is ₹39,200 for 4,000 direct labour hours worked. The direct labour price (rate) variance w
Assertion (A) Material yield variance is that portion of direct material usage variance which is due to the difference between standard yield and actual yield obtained. Reason (R)
The total cost variance is ₹5,000 (F). The material variance is ₹2,000 (F). The total labour variance is twice the total overheads variance. The total overheads variance is —
Following information is given for a product of a manufacturing company : Material ₹18 per unit; other variable cost ₹22 per unit; and fixed expenses ₹18 per unit. Selling price is
Satluj Transport Co. is running six buses between two towns which are 60 Kms. apart. Seating capacity of each bus is 50 passengers. Actual passengers carried by each bus were 80% o
Margin of safety in a company can be improved by: (1) Reducing the fixed cost and variable cost (2) Increasing sales volume and price of sales (3) Increasing stock of material in t
Ram Casting furnished following information for production of 4,800 units: Standard materials : 10 Kgs. per unit @ ₹10 per Kg. Actual material used : 50,000 Kgs. costing ₹5,25,000
Statement - I When there are no inventories, profit figure under marginal costing and absorption costing is identical. Statement-II Inventories are valued at cost of production in
Assertion (A) The whole budget involving all functions such as sales budget, material budget and production budget will have to be built after assessing the key factor. Reason (R)
A company has annual sales of ₹150 lakh entirely on credit. It keeps an average inventory sufficient to meet sales demand for half a month and gives its customers one month credit.
Budgeted sales of Product-X for March, 2016 are 25,500 units. At the end of production process, 10% of net production units are scrapped as defective. Opening stock of Product-X fo
Which of the following is not a limitation of financial statements —
Assertion (A) Accountants do not take into consideration the price level changes while valuing various assets in different period. Reason (R) It is difficult to determine the value
In the management information system (MIS), top level management uses —
A cash flow statement is based upon ______ while fund flow statement recognises ______
Gross profit ratio for a firm was 20% in the year 2015 and 2016 but the net profit ratio was 15% in the year 2015 and 12% in the year 2016. The reason for such behaviour could be —
The capital of Juhi Ltd. is as follows: 10% Preference shares of ₹10 each : ₹5,00,000 Equity shares of ₹100 each : ₹7,00,000 Other information : Profit (after tax @ 50%) : ₹1,55,00
Match the following: List-I List - II (P) The standard ratio 2:1 is considered satisfactory (1) Return on assets (Q) It measures profitability of the firm in terms of assets employ
Following information is given : Total sales : ₹24,00,000 Inventory turnover ratio : 4.80 times on basis of cost of goods sold Gross profit ratio : 25% on cost of goods sold Closin
Statement - I Working capital is a short-term capital which is financed from long-term sources. Statement-II Working capital turnover measures the relationship of working capital w
Consider the following statements: (1) Depreciation reduces tax liability, hence it is a source of funds. (2) Decrease in current liabilities during the year results in an increase
Preference share capital of ₹5,00,000 was redeemed at a premium of 10%, partly out of proceeds of issue of 20,000 equity shares of ₹10 each issued at 10% premium and partly out of
Assertion (A) In integrated accounting system, there is no need of reconciliation of cost accounting profit and financial accounting profit. Reason (R) Only one set of books provid
Following data are given for the month of June, 2016: Budgeted Actual Variable overheads for the month (₹) 10,000 9,000 Output for the month (units) 5,000 4,000 Hours for the month
A company has a normal capacity of 120 machines, working 8 hours per day for 25 days in a month. The fixed overheads are budgeted at ₹1,44,000 per month. The standard time required
Following information is given : Materials purchased : 3,000 kgs. Value of materials purchased : ₹9,000 Standard quantity : 25 Kgs. for one finished unit Standard price : ₹2 per kg
The P/V ratio of Akhil & Co. is 50% and margin of safety is 40%. The company sold 500 units for ₹5,00,000. The break-even point sales will be —
The price of material actually used rose by 5%. It was, however, anticipated and was included in setting the standard material cost. This price rise would result in —
Which of the following is an irrelevant cost —
Administrative overheads are absorbed on the basis of —
Match the following: List-I List - II (P) Advertising (1) Operating costing (Q) Sugar company (2) Job costing (R) Readymade garments (3) Process costing (S) Transport (4) Batch cos
Following information is available: Owners' equity : ₹1,00,000 Current debt to total debt : 0.40 Total debt to owners' equity : 0.60 Fixed assets to owners' equity : 0.60 Total ass

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