CS Executive Cost and Management Accounting PYQ June 2015: Question Paper and Available Answers
CS Executive
Cost and Management Accounting
PYQS Series
June 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 (June 2015). Open the source paper and available answers. Older sessions follow the syllabus and statutory provisions applicable to their examination year.
Indexed questions
- The establishment of budgets, standard costs and actual costs of operations, processes, activities or products and the analysis of variances, profitability or the social use of fun
- Under which of the following inventory control techniques, two piles or bundles are maintained for each item of stock —
- Costs which are constant for a given level of output and then increase by a fixed amount at a higher level of output are called —
- A store ledger is a record of receipts, issues and closing balances of material by entering —
- Interest on internally generated funds is an example of —
- 'Contract costing' is used in which of the following —
- Amaze Ltd. manufactures ring binders which are embossed with customer's own logo. A customer has ordered a batch of 500 binders. The following information gives the cost for a typi
- Which of the following formula is used to calculate wage payment under Barth's scheme —
- When the sales increase from ₹45,000 to ₹60,000, the profit increases by ₹5,000. P/V Ratio would be —
- The following data relates to two activity levels of production: Level I Level II No. of units 4,000 5,500 Overheads (₹) 2,80,000 3,50,000 Variable cost per unit would be —
- A product whose direct material costs and direct labour costs are ₹200 and ₹100 would consume 3 hours, 4 hours and 5 hours in department A, B and C respectively. Overheads absorpti
- Given below are the costing records of a factory: Cost of machine: ₹1,00,000 Scrap value: ₹5,000 Freight and installation charges: ₹5,000 Repairs and maintenance cost: ₹1,000 per m
- Cost unit applicable to bicycle industry is —
- In contract costing, if the amount of work certified is 1/2 or more but not near to completion, profit to be transferred to the statement of profit and loss can be calculated using
- Which of the following is not an objective of time-booking —
- A worker is allowed 2 hours to produce 5 units of a product. Wages are paid to the worker @ ₹20 per hour. In a 48 hours week, the worker produced 150 units. The earnings of the wor
- Sunk costs are —
- Bill of material acts as an authorisation to the stores department in procuring the material and all the materials listed on the bill are sent to the —
- Which of the following method is based on the assumption that costliest materials are issued first and inventory is valued at the lowest possible price —
- The rate of change of labour force in an organisation during a specified period is called —
- Margin of safety can be calculated using the formula —
- Fixed cost is a cost —
- For a product-X, following information is available: Maximum consumption per week: 300 units Normal consumption per week: 200 units Re-order period: 2 to 4 weeks The re-order level
- A company requires 1,500 units of an item per month. The cost of each unit is ₹30. The cost of placing an order is ₹200 and the material carrying charges work out to be 20% of the
- A company manufactures several components in batches. The following data relates to one component: Annual demand: 32,000 units Set-up cost per batch: ₹120 Annual rate of interest:
- A product is sold at ₹150 per unit and its variable cost is ₹70 per unit. The fixed expenses of the business are ₹8,000 per year. Break-even point (in units) is —
- Following information is available regarding a product-X: 1 st January, 2015: Opening balance: 50 units @ ₹4 Receipts: 5 th January, 2015: 100 units @ ₹5 12 th January, 2015: 200 u
- The budgeted fixed overheads for a budgeted production of 10,000 units is ₹20,000. For a certain period the actual production was 11,000 units and actual expenditure ₹24,000. The v
- A document which sets out the responsibility of the persons engaged in the routine of and the procedures, forms and records required for budgetary control is called —
- A budget that gives a summary of all the functional budgets and budgeted statement of profit and loss is called —
- A company estimates its quarter wise sales (in units) for the next year as under: Quarter I II III IV Sales (units) 30,000 37,500 41,250 45,000 The opening stock of finished goods
- Two workmen 'X' and 'Y' produce the same product using the same material. 'X' is paid bonus according to Halsey plan, while 'Y' is paid bonus according to Rowan plan. The time allo
- Budget which remains unchanged regardless of the actual level of activity is known as —
- Estimated wages for January is ₹4,000 and for February ₹4,400. If the delay in payment of wages is 1/2 month, the amount of wages to be considered in cash budget for the month of F
- Which of the following formula is used to calculate efficiency ratio —
- Crown Ltd. has forecast its sales for the next three months as follows: April: 12,000 units May: 15,000 units June: 17,000 units Opening stock as on 1 st April is expected to be 3,
- Profit-Volume ratio can be improved by —
- Which of the following is the social purpose of cost audit —
- The net profit of a company is ₹2,00,000, preference dividend ₹25,000 and taxes paid ₹15,000. Number of equity shares is 1,00,000. The earnings per share (EPS) is —
- The current ratio of Brave Ltd. is 2:1, while quick ratio is 1.8:1. If the current liabilities are ₹40,000, the value of stock will be —
- In an organisation, working capital is ₹1,00,000 and current ratio 3:1. The value of current assets is —
- In contract costing, which of the following provides safeguard against any fluctuation in the prices of material, labour, etc. —
- Following information is available for ABC Constructions Ltd.: Material issued to contract ₹11,800 Wages ₹23,200 Plant installed ₹4,600 Plant at site at the end ₹3,800 Work un-cert
- An outcome of a production process considered as relatively less important as compared to the main product is called —
- A transport company is running 4 buses between two cities, which are 60 Kms. apart. Seating capacity of each bus is 45 passengers. Actual passengers carried by each bus is 80% of s
- Working capital ratio is also known as —
- Credit sales of Jump Ltd. for the year is ₹12,00,000 and debtors at the end of year ₹2,40,000. Assuming 360 days in a year, average collection period will be —
- For the financial year ended 31 st March 2015, the figures extracted from the balance sheet of Excel Ltd. are as under: Opening stock: ₹29,000 Closing stock: ₹31,000 Purchases: ₹2,
- Which of the following is a method used in analysing financial statements —
- In case of a financial enterprise, interest received on debentures held as investment is —
- Which of the following is not a method of segregating semi-variable costs into fixed and variable costs —
- As per Accounting Standard-3, cash equivalents include —
- Cash payments to and on behalf of employees is an example of cash flow from —
- The capacity variance is ₹52,000 (F), calendar variance is ₹24,064 (A). The volume variance will be —
- Net profit before working capital changes of Super Ltd. is ₹4,35,000. Changes in working capital during the year are as follows: Particulars ₹ Decrease in stock 2,58,000 Decrease i
- Which section of the Companies Act, 2013 deals with audit of cost accounting records —
- Selling price of a product is ₹550 per unit, variable cost ₹50 per unit and fixed cost ₹10,000. The number of units required to be sold to earn a profit of ₹10,000 will be —
- Make or buy decisions are made by comparing __________ cost with outside purchasing price.
- Selling price of a product-X is ₹50 per unit, variable cost ₹20 per unit and 2 Kgs. of raw material is needed to produce a unit of product-X. The contribution per Kg. of raw materi
- Material usage variance can be calculated using the formula —
- Which of the following does not result into inflow of funds in case of fund flow statement —
- When is the following entry passed in non-integrated system — Costing Profit and Loss A/c..........Dr. To Overheads Suspense A/c
- In an organisation, provision for taxation as on 31st December, 2013 was ₹16,000 and on 31st December, 2014 ₹18,000. Provision for taxation of ₹19,000 was made during the year 2014
- Which of the following statement is not true —
- In a break-even chart, which of the following pair of lines make the angle of incidence —
- In an organisation, current ratio is 2.5, liquid ratio 1.5, prepaid expenses nil and stock ₹4,000. The amount of current liabilities is —
- A chemical is manufactured by combining two standard items Input-X (Standard price ₹60/kg) and Input-Y (₹45/kg) in the ratio 60%:40%. Ten percent of input is lost during processing
- Which of the following is an objective to be achieved through Cost Accounting Standards —
- Following information is available regarding an organisation: Direct material purchased : ₹1,50,000 Direct material consumed : ₹80,000 Direct labour : ₹50,000 Direct expenses : ₹30
- No. of workers on the payroll: At the beginning of the month: 600 At the end of the month : 700 During the month, 5 workers left, 20 workers were discharged and 75 workers were rec
- In case of rising prices, FIFO method will provide —
- Standard hourly rate is ₹5 per hour and actual rate ₹4.50 per hour. The labour rate variance is ₹1,500(F). The actual labour hours worked is —
- If the sales of a product is ₹94,080 and the profit margin on cost 12%, the amount of profit will be —
- If efficiency of a worker is above 100% then as per Merrick's differential piece rate system the worker will get —
- Normal idle time is —
- Actual production during a month by worker-'X' is 1,000 units. If standard production per month per worker is 1,000 units and piece work rate is ₹5 per unit, the total monthly remu
- Rent, rates and insurance of factory and office are examples of —
- The following information pertains to Expert Ltd. : Particulars 31.12.2013 (₹) 31.12.2014 (₹) Creditors 86,600 98,400 Outstanding expenses 85,000 1,15,000 Provision for tax 1,50,00
- The following data is available for Akhil Ltd. for the year ended 31st March 2015: Administrative overheads : ₹2,50,000 Production overheads : ₹2,74,200 Factory cost : ₹3,42,800 Wo
- In activity based costing, an item for which cost measurement is required is called —
- Under activity based costing, 'material ordering' is considered as —
- Which of the following items are purely financial incomes —
- The budgeted fixed overheads amounted to ₹75,000. The budgeted and actual production amounted to 15,000 units and 20,000 units respectively. This means that there will be an —
- In Process-A, 100 units of raw material were introduced at a cost of ₹1,000. Manufacturing wages were ₹500 and general expenses ₹102. Out of the units introduced, 10% are normally
- Which of the following is generally used as cost unit in cement industry —
- What will be the treatment of overtime premium in cost accounting, if it is due to circumstances beyond control —
- The objective of CAS-1 is —
- The costing method in which fixed factory overheads are added to inventory is —
- Which of the following is not an objective of management accounting —
- An input of 6,000 Kgs. of material is introduced into the process and the expected loss is 5%. If the actual output from the process is 4,500 Kgs., the abnormal loss is —
- A company has annual fixed cost of ₹1,68,000. In the year 2013-14, sales amounted to ₹6,00,000 as compared to ₹4,50,000 in the preceding year 2012-13. The profit in the year 2013-1
- In Rise Ltd., cash sales is 25% and credit sales 75%. Sales for November, 2014 is ₹15,00,000, December, 2014 ₹14,00,000, January, 2015 ₹16,00,000, February, 2015 ₹10,00,000 and Mar
- Volume variance is sub-divided into —
- A factor which limits the activities of an undertaking and which is taken into account while preparing budget is known as —
- Which of the following methods is used to account for the under-absorption and over- absorption of overheads —
- According to Chartered Institute of Management Accountants (CIMA), cost attribution to cost units on the basis of benefits received from indirect activities e.g. ordering, setting-
- On 31st March, 2015, profit as per financial accounts was ₹50,000. A comparison of cost and financial accounts revealed the following: Works overheads over-absorbed : ₹8,500 Excess
- The standard hourly rate is ₹5 per hour and actual rate ₹4.50 per hour. If the labour rate variance is ₹1,500(F), the actual labour hours worked is —
- Net works cost : ₹3,00,000 Administrative overheads : ₹1,00,000 Opening stock of finished goods : nil Closing stock of finished goods : ₹20,000 Selling overheads : ₹10,000 From the
- Sunny Ltd. makes product-A which sells at ₹80 per unit. Total fixed costs are ₹28,000 and marginal cost ₹42 per unit. The sales level (in units) that will provide a profit of ₹10,0
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