CS Executive Cost and Management Accounting PYQ June 2018: Question Paper and Available Answers
CS Executive
Cost and Management Accounting
PYQS Series
June 2018
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 2018). Open the source paper and available answers. Older sessions follow the syllabus and statutory provisions applicable to their examination year.
Indexed questions
- Which one of the following is false ?
- ............ is the cost of selecting one course of action and the losing of other opportunities to carry out that course of action.
- A flexible budget is:
- ............ is a method of recording details of time with reference to the jobs or work orders undertaken by the workers.
- If the overtime arises for completing a job within a specified time as requested by the customer, then the entire amount of overtime including overtime premium should be charged:
- Which of the following items can be classified as "C" as per ABC analysis of inventory control? Items Annual usage Unit Value per unit ₹ 1 5,000 60 2 2,000 100 3 32,000 17 4 28,000
- Stores ledger is maintained to record :
- Company X uses activity-based costing for its two products: Product A & B. One of the activity cost pools is parts administration. The total estimated overhead cost for that po
- X Limited provides you the following data for the month May, 2017: Closing stock as on 31st May, 2017: 80 units Production: 280 units Sales: 330 units Based on the above data, the
- In service costing, costs are classified as:
- A transport company is running five buses between two towns, which are 50 km apart. Seating capacity of each bus is 50 passengers. Actual passengers carried by each bus were 75% of
- The division of activities into unit level, batch level, product level, and facility level categories is commonly known as a:
- Service costing helps an organization in ascertaining:
- If the sales of a product is ₹94,080 and the profit margin on cost 12%, the amount of profit will be :
- Assertion (A): Management accounting can be defined as processing and presenting of accounting, cost accounting and other economic data. Reason (R): It is analysis of all the trans
- ............ is relevant for price fixation during recession or when make or buy decision is to be made.
- When analyzing material variances, which of the following variance would not be calculated:
- When calculating cost variance under standard costing system we must:
- ABC Ltd. has forecast its sales for the next three months as follows: May: 12,000 units June: 20,000 units July: 25,000 units As per the company policy, closing stock should be equ
- ABC Ltd. shows break even sales ₹40,500 and budgeted sales ₹50,000. Compute the margin of safety ratio ?
- If the P/V ratio of a product is 25% and selling price is ₹25 per unit, the marginal cost of the product would be :
- In case of large contracts the system of progress payment is adopted. The amount of such progress payment will be equal to :
- Contracts in which reimbursement is based on actual allowable cost plus a fixed fee is called:
- The total profit on a contract for ₹3,00,000 is ₹60,000 when the contract is 60% complete and has been duly certified. If the retention money is 20% of the certified value, the amo
- If material worth ₹500 is purchased for special job and directly received for job from the supplier, then which of the following entry will be passed if accounts are maintained und
- ............ is a system of accounting, whereby cost and financial accounts are kept in the same set of books.
- P Ltd. provides you the following information for the year 2017-18 : Balance as on 1st April, 2017: 1,240 Materials purchased: 4,801 Material issued to: Jobs: 4,774 Maintenance wor
- In which of the following method "Line of the best fix" is drawn to find out "variable overheads" and "fixed overheads" out of "semi-Variable" Overheads ?
- Under or over absorption of overheads due to abnormal factors is:
- Percentage of direct material cost method of overhead absorption is suitable :
- The total production cost to produce one unit of finished goods was ₹45. Direct materials were 1/3 of the total cost, and direct labour was 40% of the combined total of direct labo
- Compute the machine hour rate from the following information: Cost of a machine: ₹9,50,000 Cost of installation: ₹50,000 Scrap value of the machine after 10 years: ₹1,00,000 Estima
- 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. S
- Which of the following does not come under the scope of management accounting ?
- ............ is the method of assigning the organisation's resources through activities performed to produce the products.
- Which of the following is not a cost price method of pricing of material issues ?
- Contribution is the difference between :
- Which of the statement is not true in respect of cost-volume-profit analysis?
- Which of the following is not correct for calculation of re-ordering level of inventory?
- ............ is a value based system of inventory control, in which materials are analysed according to their value so that costly and more valuable materials are given greater att
- Which of the following is not a group bonus plan ?
- The cost accountant of Zed Ltd. has computed the following labour turnover rates for the quarter ended 31st March, 2017: Under Flux Method: 15% Under Replacement Method: 10% Under
- Which of the following statement is not true in respect of Activity based costing ?
- The ratio that explains how efficiently companies use their assets to generate sales is:
- Profit before interest and tax of AB Ltd. was ₹3,40,000. Their net fixed assets were ₹2,10,00,000 and working capital was ₹27,70,000. Return on investments $=?$
- Debtor velocity $=3$ months Sales ₹25,00,000 Bills receivable & bills payable were ₹60,000 and ₹36,667 respectively Sundry debtors $=?$
- Which of the following involves a movement of cash ?
- The following items would be classified as operating activities in the statement of cash flows:
- When the installment paid in respect of a fixed asset acquire on deferred payment basis includes both interest and loan, the interest element is classified under ............ activ
- Calculate the prime cost from the following information: Direct material purchased: ₹1,00,000 Direct material consumed for production: ₹90,000 Direct labour: ₹60,000 Direct expense
- Total cost of a product: ₹10,000 Profit: 25% on Selling Price Profit is:
- Which of the following is not the work of purchase department:
- Calculate Re-order level from the following: Consumption per week: 100-200 units Delivery period: 14-28 days
- Which of the following is not a method of cost absorption ?
- Most suitable basis for apportioning insurance charges of machines would be :
- During the year ended 31st March, 2017 the profits of A Ltd. stood at ₹36,450 as per financial records. The company provides you the following information : Factory overheads under
- During the month July, 2017, 15,000 units were completed in process I and transferred to the process II. Opening Stock as on 1st July, 2017 was 5,000 units and closing stock as on
- Following information is available in relation to Process Q: Input of raw material @ ₹50 per unit: 1,000 units Other materials: ₹8,500 Direct wages: ₹10,000 Production overheads: ₹
- Which of the following is not used in analyzing Financial statements?
- Working capital ratio is also known as:
- For the financial year ended 31st March, 2017, the figures extracted from the balance sheet of EXE Ltd. are as follow: Opening stock: ₹29,000 Closing stock: ₹31,000 Cost of goods s
- Debt service coverage ratio is obtained by dividing net profit before interest and taxes by:
- If Capacity variance is ₹3,520 (F) and Efficiency variance is ₹480 (F), then the Fixed overhead volume variance would be:
- Wage rate variance occurs due to :
- Budget which remain unchanged regardless of the actual level of the activity is known as:
- An input of 10,000 Kg of material is introduced into the process K. The expected normal loss in that process is 5%. If the actual output from the process is 9,800 Kg, the abnormal
- ............ is prepared for the estimation of plant capacity to meet the budgeted production during the budgeted period.
- Every cost auditor, shall submit the cost audit report along with his or its reservation or qualification or suggestions, if any, in form:
- Which of the following statement is not correct?
- ............ Department prepares plans and specifications of each job, supervise production activities, undertake time and motion studies, perform job analysis etc.
- Performing periodic maintenance on buildings and general use equipments is an example of:
- Which of the following is not indirect costs ?
- Which of the following statement is not true ?
- Every cost auditor shall forward his duly signed report to the board of directors of the company within a period of ............ from the closure of the financial year to which the
- A manufacturing company provides you the following information for the coming month : Budgeted sales revenue: ₹7,50,000 Budgeted contribution: ₹3,00,000 Budgeted profit: ₹75,000 Wh
- Which of the following is not a Statistical technique of Cost Audit ?
- A company, which has a margin of safety of ₹2,00,000 makes profit of ₹40,000. If the fixed cost is ₹2,50,000, break-even sales of the company would be :
- In cash flow statement, proceeds from sales of an asset will be considered as:
- The net income of a company after deducting preference dividend is ₹4,00,000 and the number of the equity shares is 50,000. Find out price earning ratio if market price of the shar
- Which of the following is to be included while preparing a cost sheet ?
- Cost of production plus opening stock of finished goods minus closing stock of finished goods equals to:
- If material mix variance is ₹500 (F) and material yield variance is ₹800 (A), then the material usages variance will be :
- Working capital will not change if there is :
- Long term solvency is indicated by:
- Welfare expenses like canteen, medical, recreation services provided to the employees are examples of:
- A Construction company received a contract of ₹540 lakh to build an over bridge which will take two years to complete. Which method of costing should be used by the company?
- Which of the following is not an objectives of the Cost Accounting Standards, which has been issued by the Institute of Cost and Works Accountants of India ?
- In 'make or buy' decision, it is profitable to buy from outside only when the supplier's price is below the firm's own ............
- The P/V ratio of a company is 50% and margin of safety is 40%. If present sales is ₹30,00,000 then Break Even Point will be :
- When the sales increase from ₹40,000 to ₹60,000 and profit increases by ₹5,000, the P/V ratio is :
- Which of the following is not a reason for an idle time variance ?
- A manufacturing unit provides you the following information : Total input of material: 10,000 units Normal spoilage of the material: 4% of the input Total spoiled units: 550 units
- Bee Ltd. follows Halsey plan for remuneration to workers. A worker Ram, has a rate of wages of ₹3,000 per week for 48 hours, plus a cost of living bonus of ₹25 per hour worked. He
- If EOQ is 200 units, ordering cost is ₹20 per order and total purchases is 4,000 units. The carrying cost per unit will be :
- A job requires 2,400 actual labour hours for completion and it is anticipated that there will be 20% idle time. If the wage rate is ₹10 per hour, what is the budgeted labour cost f
- Assertion (A): Marginal costing furnishes a better and more logical basis for fixation of sales prices as well as tendering for contracts. Reason (R): Marginal cost provides manage
- Which of the following is false in respect of Bills of materials ?
- Actual overheads for the year ending 31st March, 2017 were ₹21,000, whereas the overhead absorbed shows an over absorption of ₹1,000 for the same period. If the direct labour cost
- Which of the following is generally used as cost unit in cement industry?
- Which of the following method is not used for segregating semi-variable costs into fixed and variable costs ?
How to Prepare for CS Executive Cost and Management Accounting
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