CS EXECUTIVE EXAM QUESTIONS HELD ON 22 DEC,2015 1. If the minimum stock level and average stock level of raw material A are 4,000 and 9,000 units respectively,what is its reorder quantity -(A) 8,000 units (B) 11,000 units (C) 10,000 units (D) 9,000 units.Ans. (C)2. Which of the following is a method of indirect monetary incentive scheme -(A) Profit sharing (B) Halsey plan (C) Differential piece rate (D) Rowan plan.Ans. (A)3. Expenditure on labour and materials that cannot be economically identified with a specific saleable costunit is known as -(A) Prime cost (B) Overheads (C) Direct cost (D) Abnormal loss.Ans. (B)4. Which of the following is a method of segregating semi-variable costs into fixed and variable costs -(A) Step distribution method (B) Repeated distribution method(C) Least square method (D) Equal distribution method.Ans. (C)5. The costing method in which fixed factory overheads are added to inventory is `known as -(A) Direct costing (B) Marginal costing(C) Absorption costing (D) Activity based costing.Ans. (C)6. Rent, rates and taxes paid for the building are apportioned on the basis of -(A) Floor area (B) Capital value (C) No. of employees (D) Direct labour hours.Ans. (A)7. What is the machine hour rate on the basis of following information -Cost of machine : ` 18,000Cost of installation : ` 2,000Scrap value after 10 years : ` 2,000Insurance premium for the machine : ` 120 per annumEstimated repair : ` 200 per annumPower consumed : 2 units per hour @ ` 150 per 100 unitsEstimated work hours : 2,000 per annum(A) ` 4.06 (B) ` 10.46 (C) ` 13.26 (D) ` 14.56.Ans. (A)8. Which of the following formula is used to calculate the overheads to be absorbed -(A) Standard rate per our x Standard hours produced(B) Budgeted hours x Standard overheads rate per hour(C) Actual hours x Standard rate per hour(D) Actual output Actual overheads rate per unit.Ans. (C)9. If the actual expenses fall short of the amount absorbed, it is known as -(A) Under absorption (B) Over absorption (C) Allocation (D) Apportionment.Ans. (B)10. The following information is provided :Budget ActualFixed overheads 1,00,000 1,20,000cost (`)Hours 10,000 11,500The fixed overheads cost variance is -(A) ` 20,000 (F) (B) ` 20,000 (A) (C) ` 5,000 (A) (D) ` 5,000 (F)Ans. (C)11. Cost attribution to cost units on the basis of benefit received from indirect activities, such as ordering,setting-up, assuring quality is known as -(A) Allocation (B) Activity based costing (C) Always better control (D) Absorption.Ans. (B)12. Which of the following is not included in batch level activities -(A) Material ordering cost (B) Machine set-up cost(C) Inspection cost (D) Designing the product.Ans. (D)13. When is the following entry passed in non-integrated system -Store ledger A/c Dr.To General ledger adjustment A/c(A) Material purchased for a special job (B) Materials purchased(C) Materials returned from production department (D) Job completed.Ans. (B)14. The method of regular physical verification of material throughout the year is known as -(A) Periodic stock taking (B) Bin card system(C) Continuous stock taking (D) Stock ledger system.Ans. (C)15. Which of the following is not considered as financial income -(A) Interest received on bank deposits(B) Transfer fees received(C) Profit made on sale of investments, fixed assets, etc.(D Salary of the proprietor.Ans. (D)16. Which of the following is to be included while preparing a cost sheet -(A) Interest paid (B) Goodwill written-off (C) Income-tax paid (D) Salesman commission.Ans. (D)17. For a manufacturing company, which of the following is an example of period cost rather than a product cost -(A) Depreciation on factory equipment (B) Commission to salesman(C) Wages of machine operator (D) Insurance on factory equipmentAns. (D)18. If capacity variance is ` 48,000 (F) and calendar variance is ` 23,040 (A), the fixed overheads volumevariance is -(A) ` 24,960 (F) (B) ` 71, 040 (F) (C) ` 24,960 (A) (D) ` 71,040 (A).Ans. (A)19. In inflationary situation, which system of inventory valuation shows higher profits -(A) LIFO (B) FIFO (C) HIFO (D) Weighted average.Ans. (B)20. Batch costing is generally not applied in -(A) Manufacturing readymade garments (B) Toys industry(C) Tyre and tube industry (D) Ship building.Ans. (D)21. Cost of production plus opening stock of finished goods minus closing stock of finished goods is equal to-(A) Cost of goods sold (B) Cost of sales (C) Sales (D) Prime costAns. (A)22. The terms of contract provide that whole of the amount shown by the architects certificate shall not bepaid immediately but a percentage thereof shall be paid. The amount not paid is termed as -(A) Lost money (B) Retention money (C) Advance money (D) Contract amount.Ans. (B)23. For a given product, selling price per unit is ` 15, variable cost per unit is ` 10, total fixed cost is` 1,50,000 and units sold during the period are 35,000. The margin of safety is -(A) ` 25,000 (B) ` 75,000 (C) ` 15,000 (D) ` 35,000.Ans. (B)24. A bus makes 3 round trips for carrying on an average 40 passengers in each trip of 20 kms. The busoperates on an average 25 days in a month. The number of 2 passenger - km. per annum is -(A) 1,20,000 (B) 36,000 (C) 14,40,000 (D) 7,20,000.Ans. (D)25. There are 100 rooms in a hotel of which 80% are normally occupied in summer and 30% inwinter.Assume that period of summer and winter is six months each and normal days in a month are 30. What isnumber of room - days occupied in a year -(A) 19,800 (B) 1,650 (C) 36,000 (D) 17,600.Ans. (A)26. Which of the following is not a type of job costing -(A) Terminal costing (B) Contract costing (C) Batch costing (D) Operation costing.Ans. (D)27. When the volume is 3,000 units, the average cost is ` 4 per unit. When the volume is 4,000 units, theaverage cost is 23.50 per unit. The break-even .pint is 5,000 units. What is the P/V ratio of the firm -(A) 35% (B) 37.5% (C) 40% (D) 32.5%Ans. (B)28. In contract costing, if the amount of work certified is 1/4th or more but less than 1/2 of the contract price,then in case of loss, the amount to be transferred to profit and loss account is -(A) 1/3rd of loss (B) 2/3rd of loss (C) 1/2 of loss (D) Total loss.Ans. (D)29. The following information is relating toProcess - I .Input of raw material : 1,000 units@ ` 20 per unit,Other material : ` 4,200Direct wages : ` 6,000Production overheads : ` 6,000Actual output transferred toProcess - II : 900 unitsNormal loss : 5%Scrap sold @ ` 8 per unit.The amount of abnormal loss to be C transferred to costing profit and loss account is -(A) ` 400 (B) ` 1,484 (C) ` 1,884 (D) ` 1,000Ans. (B)30. During a given period, 1,50,000 units were completed and transferred to next process :Opening stock : 50,000 unitsClosing stock : 1,00,000 unitsDegree of completion for both opening andclosing stock :Material 100%, labour 50% and overheads 40%Equivalent production units for labourusing FIFO method are -(A) 1,90,000 units (B) 2,00,000 units (C) 1,75,000 units (D) 1,50,000 units.Ans. (C)31. Two or more products emerged from a common process, each having a sufficiently highs saleable value,are known as -(A) Joint products (B) By products (C) Additional products (D) Scrap.Ans. (A)32. If material price variance is ` 400 (A), materials cost variance is ` 600 (F), then material usage variance is-(A) ` 1,000 (F) (B) ` 200 (A) (C) ` 200 (F) (D) ` 1,000 (A).Ans. (A)33. Which of the following methods is not used for apportioning total process costs upto the point of separationover the joint products -(A) Physical unit method (B) Average unit cost method(C) Survey method (D) Hit and trial method.Ans. (D)34. In case of goods transport, which of the following is suitable cost unit to be used for cost ascertainment -(A) Kilometer (B) Ton - kilometer (C) Per litre (D) Per day.Ans. (B)35. Which of the following is an example of standing charges in transport costing -(A) License fee and insurance (B) Petrol(C) Repairs and maintenance (D) Consumables.Ans. (A)36. Which of the following is known as full costing -(A) Variable costing (B) Differential costing (C) Marginal costing (D) Absorption costing.Ans. (D)37. Which of the following formula cannot b
Posted on: Fri, 02 Jan 2015 18:15:47 +0000
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