CS Executive Cost and Management Accounting PYQ June 2021: Question Paper and Available Answers
CS Executive
Cost and Management Accounting
PYQS Series
June 2021
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 2021). Open the source paper and available answers. Older sessions follow the syllabus and statutory provisions applicable to their examination year.
Indexed questions
- 1. Classification of cost is useful ..........
- 2. Cost of abnormal wastage is :
- 3. Multiple costing is followed in ..........
- 4. The main purpose of cost accounting is to ..........
- 5. Stock control through stock levels and EOQ is called ..........
- 6. Material consumed is ₹5,00,000, Opening stock of raw material is ₹1,00,000 and Closing stock of raw material is ₹75,000. What is the cost of raw material purchased ?
- 7. .......... represents the unusable loss, which can be sold. It is a residue, which is measurable and has a minor value.
- 8. Which of the following items can be classified as 'C' category as per ABC analysis of inventory control? Items Unit usage Value per unit (₹) 1 19000 70.75 2 19000 85.95 3 35000
- 9. A company purchases 2000 units of a particular item per year at a unit cost of ₹20. The ordering cost is ₹50 per order and the inventory carrying cost is 25% on unit cost. What
- 10. In a company the weekly minimum and maximum consumption of Material-A are 25 units and 75 units respectively. The reorder level as fixed by the company is 300 units. Material-A
- 11. If the time saved by a worker is 40% of time fixed, then the premium bonus plan which is beneficial to the worker is :
- 12. Which of the following is not a method of cost absorption ?
- 13. Regular maintenance expenses of factory buildings are:
- 14. Time keeping refers to ..........
- 15. The abnormal idle time is due to :
- 16. Labour turnover rate for the first quarter ending was 25% under replacement method; number of workers replaced during first quarter was 250. Find out the average number of work
- 17. The following particulars have been taken from the books of Z Ltd. : 2019 (₹) 2020 (₹) Sales 20,00,000 25,00,000 Profit/Loss (1,00,000) 1,00,000 The Break-even sales shall be :
- 18. The following data were taken from the cost records for the week ended on 31st March, 2021: Budgeted fixed overhead ₹1400 Standard output for 40 hours per week 1400 units Actua
- 19. Which of the following is not a method of segregation of semi-variable overhead costs into fixed and variable costs:
- 20. One of company Z's cost pool is parts administration. The expected overhead cost for that cost pool was ₹4,00,000 and the expected activity was 5,000 part types. The actual ove
- 21. Which of the following activities is not a batch level activity?
- 22. The production cost incurred for 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
- 23. Items of accounts which are excluded in a non-integrated accounting system are represented by:
- 24. Assertion (A): In an integrated accounting system, there is no need of reconciliation of cost accounting profit and financial accounting profit. Reason (R): Only one set of boo
- 25. If loss as per cost books were to be ₹13,000 and closing stock was overvalued in cost books by ₹4,000 and opening stock was undervalued in cost books by ₹5,000, the loss as per
- 26. If the sales value of a product is ₹1,99,200 and the profit margin on cost 25%, the amount of profit will be :
- 27. Pre-determined factory overhead rate was ₹10 per labour hour. Actual labour hour worked 80,000. Actual factory overhead was ₹8,00,000 and pre-determined factory overhead was ₹7
- 28. XYZ contractor provides the following information: Contract price is ₹4,00,000. Cash received on account was ₹3,00,000. Work certified ₹3,50,000. Cost of work done up to date ₹
- 29. Process A/c is credited by ..........
- 30. The following data related to Process II a/c : ₹ Direct material 40,000 Direct labour 30,000 Production overhead 40,250 Normal loss 5% Output (Units) 17,400 Loss realization (₹
- 31. A process costing system for J Co. used an input of 3,500 kg of materials at ₹20 per kg and labour hours of 2,750 at ₹25 per hour. Normal loss is 20% and losses can be sold at
- 32. In a process 10000 units are introduced during a period. 10% of input is normal loss. Closing work in progress 80% completed is 1000 units. 8000 completed units are transferred
- 33. In transport service industry, costs are classified as ..........
- 34. Calculate the cost to be charged per day per room for a multinational hotel company using the following information : Total Rooms in hotel 100 Occupied in summer 80% Occupied i
- 35. Sales ₹1,00,000; variable cost ₹50,000; fixed cost ₹44,000; P/V ratio is ..........
- 36. If profit is ₹50,000, after adjusting expenses resulting to an application of funds ₹10,000 and expenses not resulting to any application of funds ₹10,000, then the funds from
- 37. A product's P/V ratio is 20% and its selling price is ₹325 per unit, the marginal cost of the product would be ..........
- 38. An increase in variable cost will lead to:
- 39. Company XYZ is using activity-based costing for its two products: Products B & D. One of the activity cost pools is parts administration. The total estimated overhead cost
- 40. .......... variance is divided into capacity variance, calendar variance and efficiency variance.
- 41. J Ltd., sells a product for ₹6.25 p.u.; the variable costs p.u. are ₹3.75. J Ltd's break-even units are 35,000 p.a. What are the company's annual amounts of fixed costs ?
- 42. 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 in Rupees will be ..........
- 43. From the following information find out the value of opening stock: Stock turnover ratio 6 times Gross profit ratio 20% on sales Annual sales ₹3,00,000 Closing stock is ₹10,000
- 44. When the sales increased from ₹40,000 to ₹60,000, profit increased by ₹5,000. Calculate P/V ratio.
- 45. In 'make or buy' decision, it is profitable to buy from outside only when the suppliers price is below the firm's own ..........
- 46. P/V Ratio of a company is 17% and its Margin of Safety is ₹4,08,000, calculate the amount of profit to the company.
- 47. The standard cost of a product is ..........
- 48. Material yield variance = ..........
- 49. In a manufacturing firm, the standard quantity of material was set at 10 kg and standard price was fixed at ₹2 per kg. The actual quantity consumed was 12 kg and the actual pri
- 50. J.K. Ltd. which is maintaining Integrated System of accounting paid wages of ₹1,20,000 in an accounting period (30% indirect). If wages charged to production is ₹95,000, then t
- 51. Examine the following relating to Job No. 100: Standard hours planned 104.50 Actual hours worked 101.25 Standard wage rate ₹5.15 Actual wage rate ₹5.25 The total labour cost va
- 52. Which of the following is not a reason for an idle time variance ?
- 53. Which of the following items appears in a cash budget ?
- 54. A budget which is prepared in a manner so as to give the budgeted cost for any level of activity is known as:
- 55. The cost per unit of a product manufactured in a factory amounts to ₹160 (75% variable) when the production is 10,000 units. When production increases by 25%, the cost of produ
- 56. Given estimated sales in February, March, April, May and June are ₹90,000, ₹96,000, ₹54,000, ₹87,000 and ₹63,000 respectively. In case 50% of sales are realized in the next mon
- 57. Consider the following data for the month of May: Closing stock 80 units Sales 210 units Opening stock 60 units Based on the data, the production for May month will have to be
- 58. Which one of the following accounting standards deals with determination of averaged/equalised transportation cost ?
- 59. Current assets are ₹6,00,000 and current liabilities are ₹3,00,000. The debtors realized ₹40,000. Its impact on working capital would be :
- 60. Which of the following statements is most correct?
- 61. Which of the following involves a movement of cash in a cash flow statement?
- 62. Which one of the following is false ?
- 63. Assertion (A): The approach of cost accounting is much narrower than that of management accounting. Reason (R): Cost accounting is mostly historical in nature and management ac
- 64. Quick ratio is 1.8: 1, current ratio is 2.7: 1 and current liabilities are ₹60,000. Determine the value of stock.
- 65. During the year, a business was bought by issue of ₹25,000 debentures and ₹25,000 shares. The business bought had machine worth ₹20,000, Debtors ₹15,000, Stock ₹5,000 and Credi
- 66. .......... of financial statement analysis is also known as Dynamic Analysis.
- 67. Which of the following can be shown on the 'application side' of fund flow statement ?
- 68. Net profit for the year ₹2,50,000; Transferred to general reserve ₹40,000; Old machinery bought for ₹50,000 was sold for ₹20,000. Calculate funds from operations.
- 69. In the books of ZY Ltd. the balance of 10% debenture of the face value of ₹100 each at the beginning of the year was ₹1,00,000 and at the end was ₹80,000. During the year ₹20,0
- 70. The balance of property account at cost has been ₹20,000 and ₹17,000 in the year 2019 and 2020 respectively. The profit on sale of property ₹2000 is credited to Capital Reserve
- 71. Assertion (A): Cash flow statement is based on a narrow concept than fund flow statement. Reason (R): Fund flow statement contains, as a part of it, schedule of changes in work
- 72. Which of the following items would be classified as operating activities while preparing statement of cash flows ?
- 73. For year 2018 Equity Share Capital is ₹3,00,000; Preference Share Capital is ₹1,00,000; 10% debentures is ₹2,00,000, and Share premium is ₹30,000. For year 2019 Equity Share Ca
- 74. Opening balance of provision for taxation is ₹20,000 and its closing balance is ₹30,000. If tax paid during the year is ₹24,000, provision for taxation made in this year is :
- 75. .......... is a cost when costs are classified from analytical and decision making point of view.
- 76. In contract costing, which of the following clauses provides safeguard against any fluctuation in the prices of material, labour and other expenses ?
- 77. Calculate cost of sales from the following information: Net Works cost : ₹3,00,000 Office & Administration Overheads : ₹1,30,000 Closing stock of WIP : ₹21,000 Opening stoc
- 78. Maximum quantity of production and minimum quantity of production is 10,000 and 5,000 units respectively. Maximum total cost is ₹25,000 and minimum total cost is ₹15,000. Calcu
- 79. In a machine process, the normal spoilage rate to be 2% of input. Spoiled units are sold for 50 paise each. In a period, 5200 units were introduced at a cost of ₹2 each. If the
- 80. The cost auditor shall submit the cost audit report along with his reservations or qualifications or observations or suggestions in :
- 81. The following are relating to Job No. 102: Standard hours planned 40.0 Actual hours worked 36.5 Standard wage rate ₹2.60 Actual wage rate ₹2.95 Assume that there is no idle tim
- 82. .......... costs change in the same direction as that of the output but not in the same proportion.
- 83. According to Belkaoni .......... is a fallacy about controllable costs.
- 84. Production Account is prepared by using :
- 85. A company wishes to earn a 15% profit margin on selling price when quoting for a job. Which of the following is the profit mark-up on cost to achieve the required profit margin
- 86. X Ltd. has forecasted its sales for the next four months as follows: May : 20,000 units June : 30,000 units July : 40,000 units August : 50,000 units Opening stock as on 1st Ap
- 87. The net profit (after tax) of a company is ₹2,10,000 and its fixed interest charges on long-term borrowings are ₹50,000. If the rate of income-tax is 30%, the interest coverage
- 88. Explanatory Ratios are:
- 89. Overhead cost variance is ₹9,000 (A), overhead expenditure variance is ₹2,000 (A) and overhead efficiency variance is ₹3,000 (F). In this case, overhead capacity variance is:
- 90. Statement I : Standard cost is a pre-determined cost. Statement II : All pre-determined costs are standard in nature.
- 91. When fixed cost is ₹8,000 and break-even point is ₹20,000, find the profit when sales is ₹30,000 :
- 92. A contract is completed to the extent of two-third. It shows a loss of ₹1,20,000 at the end of the accounting period and cash received being 80% of work certified. Then, the am
- 93. In a factory to complete 40 units, 8 hours of standard time is allowed. Guaranteed time wage given in the factory is ₹50 per hour and the high piece rate followed is ₹14 per un
- 94. Installation of a good costing system is beneficial to:
- 95. In the organisational set-up, management accountant is generally placed :
- 96. Differences in stock of material due to .......... are written off to Profit and Loss Account and do not form part of manufacturing cost.
- 97. The most suitable method for calculating the issue price of slow-moving material is:
- 98. To which of the following companies, the requirement of Cost Audit is not applicable even if they are covered under applicable class of companies :
- 99. A factory is currently working at 50% of its capacity. At this level the variable, semi-variable and fixed expenses are respectively ₹60,000, ₹20,000 and ₹10,000. If, its semi-
- 100. .......... method of cost is adopted when by-products are utilised by the factory itself as input for some other process.
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