Management Accoutning

Question Paper – 1
LIST OF ATTEMPTED QUESTIONS AND ANSWERS

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 Management Accoutning

Question ________ system of wage payment is a combination of Halsey

system and Gantt system.
Correct Answer Diemer

Your Answer Diemer

Multiple Choice Single Answer

Question A cheque of Rs.400/- received and deposited into bank on 26th
September, was credited in the pass book but was omitted to be
entered in the bank book: this error will result in :
Correct Answer Difference in the balance as per bank book and as per pass
book
Your Answer Difference in the trial balance

Multiple Choice Single Answer

Question Presentation of information to enable managerial decision
making' is one of the objects of which of the following
Correct Answer Cost Accounting

Your Answer Management Accounting

Multiple Choice Single Answer

Question A good purchase system, for materials, prevents production
hold-ups due to:
Correct Answer Lack of material

Your Answer Excess receipt of material

True/False
Question A cash payment of Rs.1,000/- for traveling expenses has been
entered in the books but not debited to traveling A/c. The trial
balance will NOT agree.
Correct Answer True

Your Answer True

Select The Blank

Question Education facility to workers and their children, pension,
superannuation fund are examples of ________ incentives.
Correct Answer Non-monetary

Your Answer Non-monetary

Multiple Choice Single Answer

Question The reporting method used in the costing system should be
based on the principle of
Correct Answer Management by exception

Your Answer Management by exception

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 Management Accoutning

Question Paper – 2
LIST OF ATTEMPTED QUESTIONS AND ANSWERS

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 Management Accoutning

variance must be further investigated.

Correct Answer False
Your Answer True

True/False
Question An item of cost that is direct for one business organisation
may be indirect for another business organisation.
Correct Answer True
Your Answer True

Multiple Choice Single Answer

Question The cost of idle time incurred by employees that is
considered normal for the production process should be
charged to :
Correct Answer Factory overheads
Your Answer Direct labour

Select The Blank

Question Since the pass book and the bank book record the ________
transactions, the bank balance as per these books should be
equal.
Correct Answer Same
Your Answer Same

Multiple Choice Multiple Answer

Question The various areas in which uniform costing can be adopted
are . .
Correct Answer Valuation of inventories , Charging of depreciation ,
Apportionment of overheads
Your Answer Valuation of inventories , Charging of depreciation

True/False
Question A business is an activity carried out with the intention of
earning the profit.
Correct Answer True
Your Answer True

Multiple Choice Single Answer

Question With a 10% increase in the selling price and 10% decrease in
the physical sales volume, the profit volume ratio will:

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 Management Accoutning

Question Paper – 3
LIST OF ATTEMPTED QUESTIONS AND ANSWERS

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Select The Blank

Question If the firm is operating with zero margin of safety, decline of
even a single unit in sales will result in ________.
Correct Answer Loss
Your Answer Loss

Select The Blank

Question Dividend received on amount invested in shares is an
example of ________.
Correct Answer non-operating income
Your Answer non-operating income

True/False
Question If the storage cost of inventory increases, then the economic
order quantity also increases.
Correct Answer False
Your Answer False

True/False
Question Routing the purchase requisition through the purchase
department entails unnecessary delay in receiving the
required materials.
Correct Answer False
Your Answer True

Select The Blank

Question The process of recording the business transactions in a
defined set of records is referred to as ________.
Correct Answer Balance sheet
Your Answer Trading account

True/False
Question The rates at which the depreciation is to be calculated are
specified in the Income Tax Act 1961 and The Companies
Act, 1956.
Correct Answer True
Your Answer True

True/False
Question The effect of price reduction is always reduction in the
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