CS Executive Cost and Management Accounting PYQ June 2019: Question Paper and Available Answers
CS Executive
Cost and Management Accounting
PYQS Series
June 2019
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 2019). Open the source paper and available answers. Older sessions follow the syllabus and statutory provisions applicable to their examination year.
Indexed questions
- Which of the following is included in both the prime cost and conversion cost ?
- The cost which has already been incurred and cannot be avoided by decisions taken in the future is :
- Which of the following institute defined cost as "the amount of expenditure (actual or notional) incurred on, or attributable to a specified thing or activity"?
- This method of costing is useful for the assembly department in a factory producing a mechanical article :
- Which one of the following is not a practical difficulty in the installation of a cost accounting system?
- Principles to determine production overheads relates to:
- Based on cost accounting information, which is the tool of Management Accounting for decision-making?
- ________ is concerned with historical records, while ________ is concerned with historical cost with pre-determined cost.
- A centre where raw materials are handled and converted into saleable product is known as:
- If costs are classified 'by changes in activity or volume' then which of the following is the correct classification?
- The following informations are given : 10,000 units of material are consumed per year; per unit cost is ₹20; cost of processing an order is ₹50; Annual interest rate is 5%; Annual
- Which of the following is the objective of inventory management?
- V Ltd. is the manufacturer of picture tubes for TV. The following are details of their operation. Minimum usages 50 tubes per week, Maximum usages 200 tubes per week; Normal usages
- Smoke, dust, gases and loss of weight due to seasoning are examples of ________.
- Statement I: Losses or gains arising out of atmospheric conditions are the losses or gains due to unavoidable causes. Statement II: Differences due to unavoidable causes should be
- Which one is not a correct accounting treatment of normal defectives?
- The following information is given for receipts and issues of a material in the month of March, 2019. Date Description Quantity (kg) Rate (₹) 1 March Receipt 400 5.00 5 March Recei
- Weekly time sheets are used as a method for:
- Idle time arises due to administrative causes are charged to ________ and over time arises due to the negligence of workers of a particular department is charged to ________.
- Under inflated price method of pricing of material issues, ________ are included with actual price of materials.
- Cost of labour welfare activities is an example of:
- Labour turnover rate for the quarter ended 31st Dec. 2018 as 16%, 8% and 6% under flux, replacement and separation methods respectively. If the number of workers replaced during th
- Which one is not a merit of piece rate system?
- X executes a piece of work in 128 hours as against 160 hours allowed to him. Hourly rate is ₹40 and gets dearness allowance of ₹100 per day of 8 hours, in addition to his wages. Bo
- The meaning of apportionment of overheads is:
- Legal charges is an example of:
- Pay roll or time department cost will be apportioned on the basis of :
- The following data has been extracted from the records of a manufacturing company : Machine Hours Manufacturing Overhead ₹ Level 1 9,00,000 57,00,000 Level 2 4,00,000 42,00,000 Tot
- Work out machine hour rate from the following: Cost of machine: ₹90,00,000 Scrap value: NIL Freight & Installation charges : ₹10,00,000 Working Life: 10 years Working hours: 2,
- Which method of re-distribution of service department costs to production departments is not a part of reciprocal service method?
- The following data are related to overheads of a particular period : Budgeted Actual Fixed overheads (₹) 30,000 28,000 Direct labour hours 40,000 39,000 Overheads are absorbed on t
- Which of the following methods is not applied for segregation of semi-variable expenses into fixed and variable?
- In ABC system, the allocation basis that are used for applying costs to services or procedures are called:
- A company is switching from traditional overhead allocation system based on machine hours to activity based costing system using machine hours and production setups as measure of a
- Statement I: Cost ledger control account is opened in non-integrated system to record all transactions of income and expenditure which originate in the financial accounts. Statemen
- When indirect material is issued from store to production department then ________ account is debited and ________ account is credited in non-integrated system.
- Under integrated system of accounting, purchase of raw materials is debited to which account?
- When actual expenses are more than recovered in cost accounts, it is known as:
- In non-integrated system unproductive wages will be debited to:
- The following details are given to you: Raw materials consumed ₹1,60,000 Direct wages ? Factory overheads 60% of direct wages Office overheads 10% of factory cost Cost of productio
- ABC Ltd. calculates the price of product by adding overheads to the prime cost as 20% of total cost and adding 25% to total costs as a profit margin. The product was sold for ₹2,45
- Which of the following is not a characteristic of the Production Account?
- Q company manufactures ring binders which are embossed with the customer's own logo. A customer has ordered a batch of 700 binders. The following illustrates the cost of a typical
- The following information relates to manufacturing of a component "ZIP" in a cost centre. Cost of material ₹6 per component, Operator's wages ₹7.20 per hour, Machine hour rate ₹1.5
- Contract price ₹18,00,000, 70% of the contract was completed. Architect gave certificate for 60% of the contract price on which 80% was paid. Cost incurred till date ₹10,50,000. Co
- Assertion (A) : When work certified is less than 1/4 of the contract price, a zero value of attributable profit taken into account. Reason (R): The profit outcome of the contract c
- When value of contract is ascertained by adding a certain percentage of profit over the total cost of work. It is known as:
- When an abnormal gain in a process occurs, the accounting entry is to be made :
- In process A, 20,000 units are introduced during a particular month. The normal loss is estimated to be 4% of the input. At the end of the month 2,400 units were lying as incomplet
- P Ltd. operates a process costing system. The process is expected to lose 20% of input and this can be sold for ₹10 per kg. Inputs for the month of April, 2019 are: Direct material
- Cars, jeeps, buses etc. produced by an automobile industry are classified as:
- In a manufacturing concern, the joint expenses of products X, Y and Z are ₹25,000. Subsequent expenses of products X, Y and Z are ₹5,900, ₹4,000 and ₹4,450 respectively. Sales valu
- The following information is given : Input of raw material @ ₹50 per unit: 1,000 units Direct Material ₹15,000 Direct Wages ₹9,000 Production overheads ₹12,000 Actual output transf
- In service costing, costs are classified as:
- Which of the following 'Cost Unit' is not used by the organisation engaged in providing services?
- A hotel has a capacity of 100 single bed-rooms and 40 double bed-rooms. The average occupancy for single bed-room is 80% and for double bed-rooms is 60% throughout the year of 365
- The effect of sale price reduction is always reduce the P/V ratio to raise ________ and to shorten the ________.
- ABC Ltd. had a marginal costing profit of ₹1,25,500 in April, 2018. Opening stock were 1,800 units and closing stock were 1,260 units. The company is considering changing to absorp
- The following information is given : Sales (₹) Profit (₹) Period 1 20,000 4,000 Period 2 30,000 8,000 Sales to earn a profit of ₹16,000 will be :
- P/V Ratio is 25% and margin of safety is ₹6,00,000, the amount of profit is :
- The following information is given : Selling price ₹20 per unit, Variable cost ₹15 per unit and Fixed cost ₹48,000. What will be BEP sales (in ₹) and Profit if actual sales is 40%
- Statement I: When a factory operates at full capacity, Fixed cost also becomes relevant for make or buy decision. Statement II: Margin of safety is the difference of actual sales a
- The total cost and profit during two periods are as follows: Period I Period II Total cost (₹) 4,50,000 6,50,000 Profit (₹) 50,000 1,00,000 Profit volume ratio will be:
- If profit, fixed cost and margin of safety are ₹19,20,000; ₹25,60,000 and ₹64,00,000 respectively, then break-even point will be:
- Selling price per unit ₹20, Trade discount 5% of selling price, cash discount 2% on sales, Material cost ₹3, Labour cost ₹4, Fixed overheads ₹22,000 and variable overheads 80% of l
- The following information is given : Standard: 196 kg material for 140 units of finished output @ ₹2 per kg. Actual: Output 4,200 units, material used 5600 kg., cost of material ₹1
- Records of Zed Ltd. reveal the following data: Fixed overhead capacity variance = ₹3,000 (F) Fixed overhead efficiency variance = ₹3,000 (F) Fixed overhead expenditure variance = ₹
- Which one is not a method of disposing cost variances?
- Standard which is established for use, unaltered over a long period of time is known as:
- For producing one unit of product X, standard labour hours are 20. Wages rate is ₹2 per hour. In June, 2018, output was 2,000 units. 38,000 labour hours actually paid, costing ₹79,
- PQR Ltd. has normal monthly machine hour capacity of 120 machines working 8 hours per day for 25 working days in a month. The budgeted fixed overhead is ₹3,00,000. The actual produ
- Direct labour cost data are as follows: Actual hours worked 25,000, Total direct labour cost ₹1,25,400, Direct labour rate variance ₹2,900 (A), Direct labour efficiency variance ₹3
- A firm manufactures 15,000 units per annum, each taking 1.5 direct labour hours. The direct labour rate is ₹8 per hour and pay rise of 15% is awarded half way through the year. Wha
- The following information extracted from the records of P Ltd. Sales for October, November and December, 2018 are ₹90,000, ₹1,10,000 and ₹80,000 respectively. 40% of its sales are
- Which of the following is not a step for successful implementation of the budgetary control system?
- Assertion (A): The purpose of performance budgeting is to focus on work to be done and services to be rendered. Reason (R): The main purpose of performance budgeting is not to inte
- A budget designed for a specific planned output level and is not adjusted to the level of activity attained is known as:
- The following information are given : Normal loss in production is 2.50% of input; Sales target is 9,600 units; Closing stock is 1,650 units which has been estimated 10% more than
- A factory is presently working at 50% capacity and producing 4,000 units. The cost data are as follows: Material and labour cost per unit ₹15, Factory overheads (40% variable) ₹30,
- Maintenance of cost records relating to the utilisation of materials, labour and other items of cost, in the manner as prescribed by specified class of companies engaged in the ___
- Every cost auditor, who conducts an audit of the cost records of a company, shall submit report in:
- 'Cost benefit analysis' falls under:
- Which is not a social purpose of cost audit?
- Dividing net credit sales by average debtors would yield ________.
- ABC Ltd. has earned 12% returns on total assets of ₹8,00,000 and has a net profit ratio of 8%. Sales of the firm shall be:
- The following information is given : 9% preference shares of ₹10 each ₹4,00,000, Equity shares of ₹10 each ₹12,00,000, Profit after tax ₹4,20,000, Equity dividend paid 20%, Market
- The average creditors are ₹74,000, creditors turnover ratio is 4.80. Amount of credit purchases will be :
- What will be the amount of stock if the current ratio is 2:1 and quick ratio is 1.5:1 and current liabilities are ₹90,000?
- Conducted to ensure borrowing capacity of a concern to meet contingencies in the near future is :
- A company has an inventory of ₹58,400, Debtors of ₹48,000 and inventory turnover of 6 times. The gross profit margin is 20% on sales and its credit sales are 40% of the total sales
- The following information is given for X Ltd. Stock velocity 3.75 months, Gross profit ₹80,000 being 20% of sales. The closing stock of the year is ₹25,000 more than the opening st
- Which of the following statements is false?
- A company has the following Current Assets: Cash ₹40,000, Marketable securities ₹25,000, Debtors ₹20,000 and Inventory ₹18,000. The total current liabilities were ₹65,400 (includin
- The following information of a non-financial enterprise is given : Purchase of fixed assets ₹40,000; Proceeds from sale of equipments ₹35,000; Interest received ₹3,000; Interest pa
- Which of the following statement is correct?
- Assertion (A): MIS is a necessity of all the organisations. Reason (R): MIS helps in strategic planning, management control, operational control, transaction processing and decisio
- The following information is given : Depreciation provided during the year: Furniture ₹15,000, Building ₹14,000. The statement of P&L for the year: Opening balance ₹38,500 Add:
- Closing debtors are ₹8,00,000 which are 125 percent of opening debtors. Cash sales is 25 percent of total sales. If the debtors turnover ratio is 4 times then the amount of total s
- PQR Ltd. have the following balances : Investment at the end of the year 2017-18 ₹85,000, Investment at the end of the year 2018-19 ₹70,000. During the year the company had sold 40
- According to Activity Based Costing System, use of consumables is :
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