Advance Cost Accounting M.Com Part 1

1. Which of the following is not a feature of
process costing

A equivalent production

B classification of costs into fixed and variable

C duration of work in long

D emergence of more than product

ANS: 2

 

2. PV ratio = _ / sales

A fixed cost

B variable cost

C total cost d

D contribution

ANS: 4

 

3. from the following informal calculated
total km

No of buses 6

Days operated in the month 25

Trips made by each bus 4 distance of route 20 km one way

A 24000km

B 26000km

C 28000km

D 32000km

ANS: 1

 

4. cost audit is an audit of

A expenditures

B profit and loss

C performance

D efficiency

ANS: 4

 

5. process method is suitable for

A continuous or mass production industries

B organizations rendering services alone

C where the job is of long duration

D production is as per customers specific requirements

ANS: 4

 

6. the main purpose of _ is to predict the
receipts and payments

A cash budgets

B zero based budget

C functional budget

D master budget

ANS: 1

 

7. _ account is debited with the cost of
finished goods transferred from finished goods control account and credited as
well as with the amount of selling and distribution overhead recovered and
credited to sale or costing profit and loss account

A cost of sales

B finished goods/stock ledger

C general ledger adjustment account

D factory overhead account

ANS: 1

 

8. which from the options below is for a step
from budgetary control

A supervision

B corrective actions

C developing budgets

D recoding actual performance

ANS: 4

 

9 fixed overhead expenditure arises due to
difference between actual fixed overhead incurred and _ fixed overhead

A budgeted

B standard

C revised

D future

ANS: 1

 

10. period cost is

A fixed cost

B variable cost

C factory cat

D prime cost

ANS: 1

 

11. standard hours X standard rate – actual
hours x actual rate is the formula to calculate

A labour rate variance

B labour efficiency variance

C labour cost variance

D labour mix variance

AS: 3

 

12. Standard cost is _ which is arrived at
assuming a particular level of efficiency in utilisation of labour material and
indirect service

A very stormy technique do valuation

B scientifically predetermined cost

C general costing method

D budgetary control

ANS: 2

 

 13. _ is also known as limiting factor

A profit factors

B revenue factor

C investment factor

D key factor

ANS: 3

 

14. operating costing is ascertained by
preparing

A statement or cost sheet

B profit and loss account

C trial balance

D balance sheet

ANS: 2

 

15. it is necessary to first assess the
influence of _ in order to prepare functional budget

A accounting codes

B internal line of authorities

C follow up procedures

D principal budget factors

ANS: 2

 

16. the person coming audit is known as the

A accountant

B cost account

C auditor

D cost audit officer

ANS: 3

 

17. _ ledger records the details of each job
undertaken and cost incurred therein

A work in progress

B stores ledger

C cost ledger

D finished goods/stock ledger

ANS: 1

 

18. cost auditor of the company is to be
appointed by

A boards of directors

B shareholders

C government

D icma

ANS: 1

 

19. the cost audit report must be submitted to

A shareholders

B board of directors

C central government

D state government

ANS: 3

 

20. _ defines as a systematic and independent
examination of date statements records operations and performance

A accounting

B bookkeeping

C auditing

D assessment

ANS: 3

21. _ are drawn up to measure the success or
failure of the activities in achieving the objectives of the organisation

A cash budget

B periodical statement of accounts

C ledgers

D balance sheet

ANS: 2

 

22. cost control is

A prevention of waste

B control of waste

C reduction of quality

D improvement of quality

ANS: 3

 

23. Purchases for social jobs is debited under
none integrated system to

A work in progress ledger control account

B cost ledger control account

C stores ledger control account

D purchases account

ANS: 1

 

24. PV ratio will increase if there is

A increase in fixed cost

B a decrease in variable cost per unit

C decrease in fixed cost

D increase in sales volume

ANS: 2

 

25. composite unit is distinctive feature of

A job costing

B operations costing

C batch costing

D contract costing

ANS: 2