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

CS Executive Cost and Management Accounting PYQS Series June 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 (June 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 of the following statements are true — (i) Conversion costs and overheads are interchangeable terms (ii) Notional cost and imputed cost means the same thing (iii) Cost accoun
XYZ Ltd. had 4,000 units of inventory in hand on 1 st March, 2016, costing ₹4 per unit. Purchases and issues of material during the month were as follows: Date Purchase Issue March
What journal entry is to be passed in non-integrated accounting system when finished goods are sold at cost —
Match the following industry/product with appropriate cost unit: Industry/Product Cost unit (i) Toy Industry (a) Per batch (ii) Steel Industry (b) Tonne-kilometre (iii) Chemical (c
Which one of the following statements is false —
4,000 Kgs. of material is purchased @₹2 per Kg. Normal wastage is estimated at the rate of 10%. The wastage has recovery value of ₹1.10 per Kg. Calculate cost of material of work o
What is the treatment of unrealised profit in process costing —
Cost-Volume-Profit analysis is based on several assumptions. Which one of the following is not one of these assumptions —
Which of the following is/are not a purpose of time keeping — (i) Ascertaining labour cost of a job/product/activity (ii) Evaluating labour performance by comparing actual and budg
Pride Ltd. has profit after tax ₹90,000, depreciation ₹17,000, and decrease of debtors ₹20,000. The cash generated from operating activities will be —
Classify the following expenses as direct (D) and indirect (I) — (i) Royalties charged as a rate per unit (ii) Cost of making a design, pattern for a specific job (iii) Salesman's
Under Merrick's multiple piece rate system, 110% of the ordinary piece rate is given to workers whose level of performance lies between ________ of the standard output.
Current liabilities of a firm are ₹1,50,000. Its current ratio is 3:1 and liquid ratio is 1:1. The value of stock will be —
The state of production at which separate products are identified is known as—
Under marginal costing, unit product cost would most likely be increased by —
A company reported current year profit as ₹70,000 after the following adjustments: Loss on sale of equipment: ₹9,000 Premium on debenture redemption: ₹1,500 Tax provision: ₹22,000
In process costing, abnormal effectives would arise if —
A company producing three products, viz., X,Y and Z has sales mix in the ratio of 2:1:3. The profit volume ratio of the products X, Y and Z are 15%, 30% and 20% respectively. The t
Which one of the following is a non-current item —
Match the following: Overheads Basis of apportionment (i) Insurance of stock (a) Floor area (ii) Rent and other building expenses (b) Number of workers (iii) Fringe benefits (c) Di
Match the following statements with prescribed forms: Statements (i) Cost Audit Report to Central Government by the company (ii) Cost Auditor to submit report to the Board of Direc
Identify the cost which is not relevant or useful for decision making —
EOQ is 200 units, ordering cost ₹20 per order and total purchases 4,000 units. The carrying cost per unit will be —
From the following particulars, calculate the selling price per unit, if the break-even point is brought down to 10,000 units : Selling price per unit: ₹20 Variable cost per unit:
Standard time allowed for a job is 20 hours @ ₹2 per hour. Actual time taken by a worker is 15 hours. The earning and effective wage rate under Halsey Plan (50% sharing) will be —
Operating and accounting figures for the month of January, 2015 with respect to overheads were as under : Actual overheads: ₹8,600 Actual direct labour hours: ₹6,000 Standard labou
Assertion (A): A current ratio of 2:1 is considered satisfactory as a rule of thumb but it should not be followed blindly. Reason (R): The greatest weakness of current ratio is the
What is the proper sequence of events in an 'activity based costing' system — (i) Calculation of overheads application rates. (ii) Identification of cost drivers (iii) Identificati
Calculate machine hour rate from the following: Cost of machine: ₹19,200 Estimated scrap value: ₹1,200 Average repair and maintenance charges per month: ₹150 Standing charges alloc
During the year ended 31 st March, 2015, the profit of the company is ₹63,450 as per financial records. The following details are given : Opening stock overstated in cost accounts:
Cost Accounting Standard ________ is related to bringing uniformity and consistency in the principles and methods of determining the selling and distribution overheads with reasona
Which of the following statements is wrong with reference to contract costing —
Which one of the following statements is true in ABC classification of materials —
Aman Ltd. sells its products at ₹16 per unit. In a period, if it produces and sells 20,000 units, it incurs a loss of ₹2 per unit. If the volume is doubled, it earns a profit of ₹2
In a situation of rising prices, profit and tax liability would be lower under ________ method than under ________ method of material issue pricing.
The purchase of machinery by issuing long-term notes payable should be reported as a —
A standard that represents the most likely scenario can be referred to as —
Stock turnover: 6 times Total sales: ₹3,00,000 Gross profit ratio: 20% Closing stock: ₹4,000 more than opening stock The opening stock is —
To produce one unit of 'A', two ingredients, i.e., 2 Kgs. of X and 3 Kgs. of Y are required: Stock levels Opening Closing A (Units) 5,000 8,000 X (Kgs.) 11,000 14,000 Y (Kgs.) 18,0
Which one of the following would not form part of master budget —
Standard time for a job is 40 hours @ ₹2 per hour. Actual time taken by a worker is 30 hours. His total earnings under Rowan plan and Halsey plan will be —
Section ________ of the Companies Act, 2013 gives the cost auditor same power as the financial auditor has under section ________ of the Companies Act, 2013.
Balance of investment account is ₹20,000 on 31 st March, 2014 and ₹30,000 on 31 st March, 2015. As per additional information, dividend received ₹3,000 includes ₹1,000 from pre-acq
Which one of the following statements is correct —
Direct labour cost will include —
Following information is provided in respect of a contract : Contract price: ₹10,00,000 Cost incurred: ₹5,60,000 Cash received: ₹5,40,000 Work not certified: ₹60,000 Deduction by w
Those fixed costs which continue to be incurred even when there is no production are called —
Which one of the following is not a part of reciprocal method for re-distribution of service departments' overheads to production departments —
Profit: ₹50,000 Contribution: ₹70,000 Sales: ₹7,00,000 The amount of margin of safety will be —
Which one of the following is not an advantage of budgetary control —
Job analysis is the analysis of each job to determine a list of ________ needed by workers to perform the work satisfactorily.
The technique of economic order quantity is losing significance since the development of —
A firm plans to produce 1,980 units of a product per 8 hour shift. The standard productivity is 2 units per man hour. Average labour efficiency is 91%, idle time is 15% of attendan
Two articles A and B are produced in a factory. Their specifications show that 4 units of A or 2 units of B can be produced in one hour. The budgeted production for January, 2015 i
A direct cost is a cost which can be classified on the basis of —
Following information is given : Input raw material 2,000 units @₹20 per unit Direct material: ₹8,400 Direct wages: ₹13,000 Production overheads: ₹12,350 Output transferred to Proc
The original standard rate of pay in a factory was ₹4 per hour. Due to settlement with Trade Unions, this rate of pay per hour was increased by 15%. During a particular period, 5,0
Following information relates to a travel agency: Distance of one way route: 40 Kms. Round trips per day: 3 Days operated in a month: 25 Seating capacity (80% occupied): 50 passeng
Which method of joint cost apportionment is suitable where further processing costs after separation point are not incurred proportionately or all the joint products are not subjec
The ratio of variable cost to sales is 75%. The break-even point occurs at 64% of the capacity sales when fixed cost is ₹1,20,000. The 100% capacity sales will be —
Which of the following statement(s) is/are true : (i) Common size balance sheet is vertical financial analysis (ii) Financial analysis performed on behalf of shareholders is called
Following information is given : Standard fixed overheads rate per hour: ₹5 Budgeted hours: 12,500 Standard number of working days: 25 Actual hours: 11,500 Actual number of working
Management accounting does not include the function of —
Kriti Ltd. has provided following information for the quarter January to March: January February March Sales @ ₹20 per unit (units) 1,000 2,000 3,000 Closing debtors (₹) 16,000 40,
Following information is given for Component 'A': Normal usage 50 units per week, maximum usage 75 units per week, reorder period 4 to 6 weeks. The minimum level of stock will be —
From the following financial data, compute stock turnover ratio and stock velocity (assume 360 days in a year) — Opening stock: ₹58,000 Purchases: ₹5,02,000 Return outwards: ₹18,00
Which statement contains opening as well as closing balances of cash and cash equivalents and prepared on accrual basis —
Quarterly consumption of materials: 2,000 Kgs. Cost of placing an order: ₹50 Cost per unit: ₹40 Storage and other carrying costs: 8% of average inventory The economic order quantit
Which of the following account will be debited under the integrated accounting system when materials are purchased on credit —
Cost of production for 10,000 units: ₹1,60,000 Opening stock of finished goods (1,000 units): ₹18,000 Closing stock of finished goods (FIFO): ₹2,000 units Selling and distribution
8% Preference share capital: ₹3,00,000 Equity share capital (₹10 per share): ₹8,00,000 Profit after 30% tax: ₹2,80,000 Market price of equity share: ₹40 The earnings per share and
Re-order quantity: 300 Kgs. Minimum usage: 20 Kgs. per day Minimum lead time: 5 days Maximum stock level: 400 Kgs. Re-order level will be —
Cost of maintenance of an equipment for 12,000 hours of running is ₹1,70,000 and for 18,500 hours of running, it is ₹2,09,000. The cost of maintenance for 14,000 hours will be —
For a department, the standard overheads rate is ₹2.50 per hour and the overheads allowances are as follows: Activity level (hours) Budget overheads allowance (₹) 3,000 10,000 7,00
Acute Ltd. is committed to supply 24,000 bearings per annum to Mighty Ltd. on a steady basis. It is estimated that it costs 10 paise as inventory holding cost per bearing per month
Following information is supplied regarding a contract in progress : Details Amount (₹) Stage of completion (%) Erection cost to date 7,500 25 Fabrication cost to date: Material 60
Which one of the following is the correct sequence of the purchase procedure of inventory —
PQR Ltd. has prepared the budget for the production of one lakh units of the only commodity manufactured by them for a costing period as follows: Cost elements (in lakh) Raw materi
Match the following overtime reasons to charge in cost accounting : Reason Charged to (i) Overtime due to circumstances beyond control (a) Job directly (ii) Overtime due to neglige
There are two similar plants under the same management. The management desires to merge these two plants. The following particulars are available: Details Plant-I Plant-II Capacity
Following information is given for an order : Materials (direct): ₹25,000 Wages (direct): ₹20,000 Factory overheads: 75% of wages (direct) Sales: ₹85,800 Profit: 10% on cost of pro
Total number of workers: 100 Idle time: 5% Working days per year: 300 Factory overheads: ₹11,400 No. of hours worked per day: 8 Direct labour hour rate will be —
Match the following events with type of activity : Event Type of activity (i) Material ordering (a) Product level activity (ii) Designing the product (b) Facility level activity (i
From the following particulars relating to Job No. 555, ascertain the total cost: Direct materials: ₹16,000 Direct labour: ₹8,000 Direct expenses: ₹1,600 Works overheads are recove
In financial analysis, 'time series analysis' refers to —
Input material: 10,000 units Normal loss of total input: 8% Closing work-in-progress: 900 units Degree of completion for closing stock of work-in-progress and abnormal loss: Materi
The standard material required to manufacture one unit of Product-A is 5 Kgs. and the standard price per Kg. of material is ₹3. The cost accountant's records, however, reveal that
Which of the following statements is/are false : (i) Product can be sold below marginal cost in certain special circumstances (ii) Cost per unit of key factor is the basis of ranki
Which of the following is/are the characteristics of service costing : (i) Use of composite cost units (ii) Documents like daily log sheet, cost sheet, etc. are used for collection
Following data are given : Product-A Product-B Contribution per unit (₹) 30 28 Direct labour (hours per unit) 5 4 Maximum possible production (units) 10,000 10,000 Direct labour ho
The formula for computing overheads efficiency variance is —
If average collection period is 15 days and average account receivables is ₹45,000, the total amount of credit sales will be (assume 360 days in a year) —
A process in which management is looking outward to examine how others achieve their performance levels and to understand the process they use, is called —
Cost of goods sold: ₹4,00,000 Administration and office expenses: ₹35,000 Selling and distribution expenses: ₹45,000 Net credit sales: ₹4,75,000 Cash sales: ₹1,25,000 Operating pro
Which one of the following is not a statistical technique of cost audit —
If provision for taxation is treated as a current liability, then payment of tax is —
Margin of safety is ₹8,000 which represents 40% of sales. P/V ratio is 50%. Fixed cost will be —
What is the proper sequence in standard costing to control cost and measure efficiency —
Direct material cost ₹45,000 Direct labour cost is 40% of direct material cost Royalties on production ₹4,000 Other direct expenses are 20% of prime cost. Prime cost will be —
A budget in which a responsibility centre manager must justify each planned activity and its budgeted total cost is called —

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