CS Executive Cost and Management Accounting PYQ December 2017: Question Paper and Available Answers

CS Executive Cost and Management Accounting PYQS Series December 2017 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 2017). 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 cost accounting interest on internally generated funds is classified as .......... (A) Committed Cost (B) Imputed Cost (C) Policy and Managed Cost (D) Discretionary Cost
Match the following Cost Accounting Standards with the titles: CAS Title (a) CAS 2 (1) Material Cost (b) CAS 6 (2) Direct Expenses (c) CAS 10 (3) Pollution Control Cost (d) CAS 14
Practical difficulty in the installation of a costing system is : (A) Lack of support from top management (B) Shortage of trained staff (C) Resistance from existing staff (D) All o
Where the nature of the product is complex and the costs cannot be charged directly, the most suitable method of costing to compute cost is: (A) Output costing (B) Multiple costing
Management Accounting and Cost Accounting are .... to each other. (A) Completementary (B) Supplementary (C) Opposite (D) Independent
Management Accounting works on the output of: (A) Financial Accounting (B) Cost Accounting (C) Statistics (D) All of the above
In Management Accounting, Analysis of accounting data are carried out with the help of: (A) Tools and Techniques (B) Statutory Forms (C) Auditors (D) Legal provisions
In most of the organizations material control is generally made as the specific responsibility of: (A) Production Manager (B) Purchase Manager (C) Financial Manager (D) Sales Manag
Which of the following differences in material stock adjusted by considering as part of material cost? (A) Apparent differences (B) Differences due to abnormal causes (C) Differenc
This type of loss is connected with both inputs and output: (A) Waste (B) Scrap (C) Defectives (D) All of the above
Decision regarding centralized purchase of materials has to be taken on the basis of: (A) Geographical Separation of plants (B) Homogeneity of products (C) Type of materials to pur
The rate per kg. of materials P, Q, R and S are respectively ₹12, ₹15, ₹18 and ₹21. The input-Output Ratio of the materials are respectively 140%, 130%, 120% and 110%. If so, the m
During the time of inflation, the method of pricing material issues which leads to a lower material costs for a job is: (A) FIFO (B) LIFO (C) HIFO (D) Standard Pricing Method
ABC Ltd. manufactures a product and the following particulars are collected as below: Normal Usage (unit per week) 50 Minimum Usage (unit per week) 25 Maximum Usage (unit per week)
If the annual carrying cost of material Z is ₹4 per unit and its total carrying cost is ₹12,000 p.a., the economic order quantity of the material is: (A) 3,000 units (B) 4,000 unit
The most suitable inventory control technique for spare parts is: (A) ABC analysis (B) VED analysis (C) JIT analysis (D) Control ratios
Under LIFO method, the purchases and issues are as follows: March 1 Purchased 300 units @ ₹3 each March 5 Purchased 600 units @ ₹4 each March 6 Issued 500 units March 12 Purchased
Wages and salaries paid to .......... are indirect labour costs. (A) Foremen (B) Clerks (C) Supervisors (D) All of the above
Match the following: List I (a) Time-booking (b) Overtime (c) Idle time (d) Labour turnover List II (1) Power cut (2) Lack of training (3) Working due to seasonal rush (4) Apportio
............ should be a principle for an ideal wage payment system. (A) Fair and equitable remuneration (B) Effective control on labour cost (C) Equal pay for equal work (D) Attra
Which of the following incentive methods of wage payment shall be used for indirect workers ? (A) Gantt's Task and Bonus Plan (B) Rowan Plan (C) Bedaux Plan (D) None of the above
Piece rate system of wage payment is more suitable in which of the following circumstances ? (A) There is an uninterrupted flow of work (B) Where the work can be closely supervised
When the time saved by a worker while doing a work is less than 50% of the standard time fixed for the work then from worker's earnings point of view: (A) Rowan Plan is better (B)
In .......... group bonus plan, in addition to eligible wages, half of the savings in labour cost is paid to workers and supervisors as bonus. (A) Priestman (B) Rucker (C) Scanion
Assertion (A): Excessive labour turnover is not advantageous to organizations. Reason (R): Labour turnover allows injection of fresh blood into the organizations. Codes: (A) (A) is
Under Hasley-Wier plan, the time allowed for a job is 49 hours and time taken by a workers is 40 hours. The rate of wages per hour is ₹30. The earnings of the worker is: (A) ₹1,200
For a period of 10 hours, standard output fixed as 260 units and actual output achieved by a worker is 299 units. If so, the rate of bonus under Emerson Efficiency plan is: (A) 15%
During the third week of March, Mr. R. produced 420 units. The standard time allowed to produce one unit is 10 minutes. If he received wages for a guaranteed 48 hours per week at t
To produce 1,000 units of a product JK Ltd., spend ₹50,000 on direct material and ₹40,000 on direct labour. Factory overhead was charged at the rate of 10% on prime cost amounted t
The criteria used for secondary distribution of overheads which is considered as inequitable is: (A) Use method (B) Incentive method (C) Ability to pay method (D) Survey method
Overhead expenses of stores keeping department often apportioned on the basis of: (A) Number of material requisitions (B) Quantity of materials supplied (C) Value of materials supp
The amount of under/over absorbed overhead at the end of the year is carried forward to next year for adjustment when : (A) The normal business cycle is more than one year (B) The
In a manufacturing concern there are three production departments namely A, B and C. Their direct wages for a period are respectively ₹75,000, ₹20,000 and ₹30,000. During the same
The most logical basis for absorption of selling and distribution overheads is : (A) Sales value (B) Cost of goods sold (C) Number of orders (D) Gross profit on sales
In traditional absorption costing, costs are first traced to: (A) Activities (B) Organizational Unit (C) Products (D) Cost Centres
The main reason for the usage of Activity Based Costing, by replacing the traditional costing system is that: (A) The overhead recovery rates used in traditional costing system are
In Activity Based Costing, inspection of products is a .......... level activity. (A) Unit (B) Batch (C) Product (D) Facility
Assertion (A): Implementing an ABC system requires subtantial resources which are costly to maintain. Reason (R): Activity Based Costing is a two-stage product costing. Select the
Match the following: List I (a) Unit level activity (b) Batch level activity (c) Product level activity (d) Facility level activity List II (1) Material ordering (2) Plant security
Fast Ltd., manufactures three types of products A, B and C following ABC system. During a period the company incurred ₹73,000 as inspection cost and its was worked for 10, 20 and 9
.......... Accounts have direct relevance in ascertaining the cost of products. (A) Real (B) Nominal (C) Personal (D) Real and Nominal
The items of accounts excluded from non-integrated accounting system and represented by cost ledger control account are: (A) Purchases (B) Expenses (C) Balance-sheet items (D) All
Non-Integrated Account System followed in an organization enables it to achieve : (A) High level of efficiency (B) Greater control over the organization (C) No delay in getting dat
When finished goods are sold at total sales value, the account to be debited is: (A) General Ledger Adjustment Account (B) Cost of Sales Account (C) Stores Ledger Control Account (
If the loss as per cost books are to be ₹16,000 and closing stock is overvalued in cost books by ₹4,000 and opening stock is undervalued in cost books by ₹7,000, the loss as per fi
Which of the following items is added to profit as per cost accounts to arrive at financial profit ? (A) Under absorbed overheads (B) Over absorbed overhead (C) Over valuation of c
In a firm the cost and financial transactions are integrated. Under this situation the firm paid wages amounted to ₹1,20,000 in which 25% is indirect in nature. Then the journal to
The work-in-progress Control Account of JK Ltd., shows a total of ₹9,30,000. The Stores Ledger Control Account ₹1,44,000 and the closing balance of ₹72,000 are in the credit side.
Materials consumed ₹6,000 Wages paid ₹9,000 Works on cost 50% on wages Office on cost 20% on works cost Selling on cost 10% on works cost Profit 20% on cost If so, the selling pric
Which of the following is not a features of job costing? (i) Outputs are identical. (ii) Production is undertaken against customer's order. (iii) Each job is a cost unit. (iv) Prod
The following are the data relating to Job No. 767: Raw materials ₹3,400 Direct wages for 80 hours @ ₹3 Variable overhead incurred for all jobs ₹6,000 for 4,000 hours. If 20% profi
In batch costing, at the level of production of economical lot size : (A) Carrying cost is minimum (B) Setup cost is minimum (C) Total cost of product is minimum (D) Computation of
In Batch Costing, with increase in batch size: (A) There is an increase in carrying cost and set-up cost per unit (B) There is a decrease in carrying cost and set-up cost per unit
The annual demand for a component is 2,000 units. The set-up cost per batch and the carrying cost per unit per annum are respectively ₹100 and ₹10. The Economic Batch Quantity is :
A contract is completed to the extent of two-thirds. The contract account shows a loss of ₹15,000 at the end of the accounting period. If so, the amount to be transferred to profit
In contract agreements, escalation clause is incorporate to safeguard the contractor against any: (A) Increase in material price (B) Increase in labour rate (C) Increase in quantit
The following details are relating to a contract: Contract Price ₹15,00,000 Notional Profit ₹1,98,000 Cash received ₹6,00,000 Work certified ₹7,50,000 Work uncertified ₹1,50,000 Am
The following are the information taken from the cost records of a contract which was 90% completed : ₹ Total expenditure to date 20,50,000 Contract Price 32,00,000 Work certified
When the total cost of a process is ₹1,61,000, sales value of scrap is ₹8,000, normal loss is 150 units, actual input is 1,000 units and actual output is 830 units, the value of ab
In a company adopting process costing the output of a process is transferred to next process by adding 25% profit on transfer price. In a particular period the total cost and profi
The output quantities of .......... remain in liner relationship among them. (A) By-products (B) Joint products (C) Co-products (D) All of the above
A manufacturing concern produced two joint products A and B whose sales values were ₹1,52,000 and ₹1,68,000 respectively and selling expenses were ₹20,000 and ₹80,000 respectively.
In the reverse cost method, manufacturing cost applicable to the by-product ending inventories should be reported in the .......... (A) Income statement (B) Balance sheet (C) Both
Match the following: List I (a) Retention Money (b) Process Costing (c) Service Costing (d) Joint Products List II (1) Standing Charges (2) Cotnract Costing (3) Survey Method (4) A
Marginal Costing in America is called as: (A) Differential costing (B) Out-of-pocket costing (C) Direct costing (D) Variable costing
Statement-I: Break-even analysis has gradually become a popular service tool for modern financial management. Statement-II: No concrete limitations have been raised any where again
When fixed costs are ₹90,000, ratio of variable cost to sales is 75% and the break-even point occurs at 60% of the capacity sales, the capacity sales is: (A) ₹4,50,000 (B) ₹5,60,00
The P/V ratio of a company is 40%. If the company reduces its selling price by 20%, the required percentage of increase in sales value to maintain the same profit is: (A) 20% (B) 4
Mr. R's sales and profit in 2015 were respectively ₹1,20,000 and ₹8,000. His sales and profit in 2016 were ₹1,40,000 and ₹13,000 respectively. In this case his margin of safety in
Z Ltd., has a margin of safety of 4,000 units and break-even sales at 1,000 units. If its margin of safety sales is ₹2,00,000, total sales shall be: (A) ₹8,00,000 (B) ₹6,00,000 (C)
R.V. Ltd., made a sale for ₹4,50,000 in the first half and for ₹5,00,000 in the second half of 2016. In this year the total cost for the first and the second half of the year were
The following are the particulars relating to products P and Q: P Q Selling Price p.u. (₹) 100 120 Marginal cost p.u. (₹) 60 60 Material required p.u. (Kgs.) 5 5 Labour hours p.u.
Standard Costing is basically a .......... technique. (A) Cost computation (B) Cost control (C) Cost reduction (D) Performance evaluation
Material Yield Variance is a sub-variance of: (A) Material Cost Variance (B) Material Usage Variance (C) Material Price Variance (D) Material Volume Variance
In a manufacturing firm normal capacity is 5,000 hours. Its budgeted fixed overhead rate is ₹10 per standard hour. The actual level of activity is 4,400 standard hours and the actu
In an analysis of labour cost variance it was ascertained that the labour rate variance was ₹750 A, actual time was 1,500 hours and standard rate per hour is ₹1.50. The actual rate
The selection of a method for disposition of variances depends on : (A) Type of variances (B) Size of variances (C) Causes for variances (D) All of the above
A short-term budget, broken down into a quarterly or monthly period and reviewed and modified in the light of changing conditions is: (A) Current Budget (B) Flexible Budget (C) Rol
While preparing a flexible budget indirect wages was considered as a semi-variable expense. At 50% level of production it was estimated as ₹1,50,000. If it has a tendency to increa
At 60% level of production the amount of factory overhead is ₹40,000 (40% fixed). At 100% level of production it amounts to: (A) ₹16,000 (B) ₹24,000 (C) ₹40,000 (D) ₹56,000
The units to be sold for diffeent months are as follows: Jan. Feb. Mar. Apr. May Jun. 1,200 1,300 1,600 2,000 2,400 3,000 There will be no work-in-progress at the end of any month.
In .......... budgeting there was a shift from financial classification to objective classification in respect of functions, activities etc. (A) Programme (B) Performance (C) Zero
The Central Government by an order can direct a company to include in its books of accounts, particulars relating to utilization of : (A) Materials (B) Labour (C) Other items used
The audit of cost accounting records, according to section 148 (2) of the Companies Act, 2013, shall be condcuted by a practicing: (A) Chartered Accountant (B) Cost Accountant (C)
A PSU company shall within 30 days from the date of receipt of the report of the cost auditor furnish explanation on every reservation or qualification contained therein to: (A) Th
The social purpose of cost audit is: (A) Detection of errors and frauds (B) Facilitating the fixation of prices of goods and services (C) Promoting corporate governance (D) Inculca
Every PSU company, within a period of 30 days from the date of receipt of cost audit report, furnish to the central government with such reprot full explanation on every res-ervati
Section 148 of the Companies Act, 2013 gives: (A) No powers to the cost auditor as the financial auditor has U/S 143 of Companies Act, 2013 (B) Same powers to the cost auditor as t
Profitability and productivity measurement technique used by cost auditor while doing cost audit is categorized under: (A) Economic Techniques (B) Statsitical Techniques (C) Person
Non-compliance of which attribute of financial statements makes a company, besides invoking penalties, impairs the confidence of the public investors: (A) Authenticity (B) Complian
.......... is a primary ratio. (A) Current Ratio (B) Gross Profit Ratio (C) Return on Investment Ratio (D) Debt-Equity Ratio
If Current Ratio is 2.5, Acid Test Ratio is 1.5 and Current Liabilities are ₹50,000, the value of inventory is: (A) ₹50,000 (B) ₹75,000 (C) ₹1,25,000 (D) ₹1,50,000
RK Ltd., supplies the following information for the year ended on 31st March, 2017. Credit sales ₹1,50,000; Cash sales ₹2,50,000; Return inward ₹25,000; Opening Stock ₹20,000; Clos
The balances of some of the assets and liabilities as on 31-3-2017 are: Cash ₹10,000; plant ₹2,00,000; Bills Receivable ₹5,000; Goodwill ₹90,000; Debtors ₹25,000; Stock ₹20,000; Cr
If the number of equity shares 3,000; Net profit ₹22,000; Dividend per equity share Re. 0.30; Provision for taxation ₹12,000 and preference dividend paid ₹4,000, the Pay-out ratio
In case of financial enterprises, cash flows arising from .......... are classified as cash flows from operating activities. (A) Interest Paid (B) Interest Received (C) Dividend Re
Some of the account balances of KK Ltd. are as follows in its balance sheet: 2016 2017 (₹) (₹) Share Capital 2,50,000 4,50,000 10% Debenture 2,00,000 1,50,000 Share Premium 25,000
Both cash flow statement and fund flow statement are: (A) Prepared on cash basis (B) Prepared on the basis of working capital (C) Useful for long-term analysis (D) None of the abov
In fund flow statement, flow of fund will occur when a transaction is happened between: (A) Current Assets and Current Liabilities (B) Non-current Assets and Non-current Liabilitie
While analyzing the opening and closing balance sheet of a company the following are observed : Total increase in current assets ₹20,000 Total increase in current liabilities ₹80,0

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