10/3/21, 7:02 PM SCDL Solved Assignments and Sample Papers: Management Accounting - 1

SCDL Solved Assignments and Sample Papers

We d n e s d a y, M a r c h 1 2 , 2 0 0 8

Management Accounting - 1
Select The Blank

Question

Furniture account will always have a ________ balance.

Correct Answer

Debit

Your Answer

Nil

Multiple Choice Multiple Answer

Question

Accounting is the art where transactions are …

Correct Answer

Summarized , Classified , Recorded

Your Answer

Summarized , Classified , Recorded

True/False

Question

The phrase 'By Balance c/d.' written on the credit side of the rent account, indicates credit
balance for this account.

Correct Answer

False

Your Answer

False

Select The Blank

Question

The ________ variance is the difference between the actual variable overhead incurred and the
standard variable overhead charged to production.

Correct Answer

Total variable overhead

Your Answer

Total variable overhead

True/False

Question

Accounting refers to the process of analyzing & interpreting the information already recorded in

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10/3/21, 7:02 PM SCDL Solved Assignments and Sample Papers: Management Accounting - 1

the books of accounts.

Correct Answer

True

Your Answer

True

Select The Blank

Question

The selection of ________ may depend upon the various factors like characteristics of the
business organisation, tax considerations, statutory requirements etc.

Correct Answer

Accounting period

Your Answer

Accounting period

True/False

Question

Standard costs are used for external reporting.

Correct Answer

False

Your Answer

False

True/False

Question

It is said that the income statement represents wealth increase /decrease for the organisation.

Correct Answer

True

Your Answer

False

Multiple Choice Single Answer

Question

Mr. Oak, materials manager, spends 40% time in the factory and the remaining in office. If his
annual salary is Rs.500,000/-, what amount should be charged as office overheads ?

Correct Answer

Rs.300,000/-

Your Answer

Rs.200,000/-

Multiple Choice Multiple Answer

Question

The factors to be considered while preparing the direct materials budget are :

Correct Answer

Adequacy of material storing space , Availability of funds , Material in stores but reserved for
specific purposes

Your Answer

Adequacy of material storing space , Availability of funds , Material in stores but reserved for
specific purposes

Multiple Choice Multiple Answer

Question

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10/3/21, 7:02 PM SCDL Solved Assignments and Sample Papers: Management Accounting - 1

In which of the following situations, the flexible budget should be preferred?

Correct Answer

Sales are too difficult to predict , Supply level of input cannot be predicted , Varying levels of
production activity

Your Answer

Sales are too difficult to predict , Supply level of input cannot be predicted , Varying levels of
production activity

Multiple Choice Multiple Answer

Question

Techniques of management accounting include:

Correct Answer

Marginal costing , Budgetary control , Standard costing

Your Answer

Marginal costing , Cost control , Budgetary control , Standard costing

Match The Following

Question

Correct Answer

Your Answer

Profit and loss account

Commission received

Dividend paid

Manufacturing account

Work in Progress

Land & Building

Balance Sheet

Land & Building

Closing stock of finished goods

Trading account

Closing stock of finished goods

Work in Progress

True/False

Question

While preparing the labour cost budget, factors such as overtime working or night shift working
may be ignored.

Correct Answer

False

Your Answer

False

Multiple Choice Multiple Answer

Question

If the sales forecast is less than the past sales but the top management insists upon a certain
amount of additional profits, then following steps can be taken to achieve the target profit

Correct Answer

Increase the selling price , Reduce cost of sales , Increase the selling efforts

Your Answer

Increase the selling price , Increase the sales volume , Increase the selling efforts

Multiple Choice Multiple Answer

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10/3/21, 7:02 PM SCDL Solved Assignments and Sample Papers: Management Accounting - 1

Question

From the following, select intangible assets:

Correct Answer

Goodwill , Patents , Trade Marks

Your Answer

Patents , Trade Marks , Investments

True/False

Question

Bank reconciliation statement must be prepared before the preparation of profit and loss
account and balance sheet.

Correct Answer

True

Your Answer

False

Multiple Choice Single Answer

Question

Find the budget which is inadequate as a cost control technique :

Correct Answer

Fixed budget

Your Answer

Fixed budget

True/False

Question

Predetermined rate of absorption of overheads helps in quick preparation of cost estimates and
quoting prices.

Correct Answer

True

Your Answer

True

Multiple Choice Single Answer

Question

Net sales Rs,7,50,000/-, opening stock Rs.1,14,375/-, purchases Rs.483,375/- and closing stock
Rs.1,47,750/-. Calculate the Gross Profit.

Correct Answer

Rs.3,00,000/-

Your Answer

Rs.3,00,000/-

Select The Blank

Question

________ is an example of intangible asset.

Correct Answer

Goodwill

Your Answer

Land

True/False

Question

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10/3/21, 7:02 PM SCDL Solved Assignments and Sample Papers: Management Accounting - 1

Accounting is an art of recording, classifying & summarizing in a significant manner.

Correct Answer

True

Your Answer

True

True/False

Question

Goods sent to the customers on approval basis should be treated as sales.

Correct Answer

False

Your Answer

False

Multiple Choice Multiple Answer

Question

Features of Sunk cost are . . .

Correct Answer

Indicates historical cost , Not relevant in decision making process , Incurred in past

Your Answer

Indicates historical cost , Incurred in past , Relevant in decision making process

True/False

Question

Profitability statement indicates the amount of assets & liabilities.

Correct Answer

False

Your Answer

True

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 Multiple Answer

Question

Identify the steps involved in selecting the optimum product mix, when the limiting factor is
number of labour hours and sales demand.

Correct Answer

For each product find the contribution per unit and per labour hour , Award ranks to each of the
products based on contribution per limiting factor , Priority is given to fulfill the market demand
of the product which gives maximum contribution per labour hour.

Your Answer

For each product find the contribution per unit and per labour hour , Award ranks to each of the
products based on contribution per limiting factor , Priority is given to fulfill the market demand
of the product which gives maximum contribution per labour hour.

Multiple Choice Multiple Answer

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10/3/21, 7:02 PM SCDL Solved Assignments and Sample Papers: Management Accounting - 1

Question

Techniques of management accounting include:

Correct Answer

Marginal costing , Budgetary control , Standard costing

Your Answer

Marginal costing , Cost control , Budgetary control

True/False

Question

The ideal budget period for a company engaged in generation and distribution of electricity is
one year.

Correct Answer

False

Your Answer

False

Select The Blank

Question

The ________ adjustment is necessary to relfect the cost for the use of fixed asset during the
year.

Correct Answer

Depreciation

Your Answer

Depreciation

True/False

Question

According to Reducing Balance Method, the depreciation is provided at a predetermined

Correct Answer

True

Your Answer

True

Select The Blank

Question

Crane expenses should be apportioned on the basis of ________.

Correct Answer

Number of hours crane worked in the department

Your Answer

Number of hours crane worked in the department

Multiple Choice Multiple Answer

Question

Essentials for effective implementation of budgetary control system are

Correct Answer

Commitment of top management , Clearly defined objectives , Continous budget education

Your Answer

Commitment of top management , Clearly defined objectives , Continous budget education

Multiple Choice Single Answer

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10/3/21, 7:02 PM SCDL Solved Assignments and Sample Papers: Management Accounting - 1

Question

Commission payable to General Manager is 10 % of the net profits. If the net profit before
charging commission is Rs.29,200/-, then what will be the amount of his net profit after
commission?

Correct Answer

Rs.26,545.45

Your Answer

Rs.29,200/-

Select The Blank

Question

A forecast is mere estimate of what is likely to happen, but ________ is the action plan to be
followed.

Correct Answer

Budget

Your Answer

Budget

True/False

Question

A very wide scope of Management Accounting is the limitation by itself.

Correct Answer

True

Your Answer

True

Select The Blank

Question

The combination in which different products are sold by a company is known as ________.

Correct Answer

Sales mix

Your Answer

Sales mix

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 objectives

True/False

Question

Balance sheet indicates the financial status of the business at given period.

Correct Answer

True

Your Answer

True

Multiple Choice Single Answer

Question

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10/3/21, 7:02 PM SCDL Solved Assignments and Sample Papers: Management Accounting - 1

The wages paid to maintenance department workers who do repair work principally for
production departments but also on the vehicles in the distribuiton department shoud be charged
as:

Correct Answer

Service costs

Your Answer

Service costs

Multiple Choice Single Answer

Question

M/s Vivek Enterprises has paid rent relating to the residence of Mr. Vivek, proprietor of Vivek
Enterprises. This payment should be treated as

Correct Answer

Drawings

Your Answer

Capital

Select The Blank

Question

Measurement of ________ gives an idea of the degree of mobility of labour.

Labour turnover

Your Answer

Labour turnover

Multiple Choice Single Answer

Question

Net profit for the year before charging commission to the manager, is Rs.111,775/-. The manager
of the company is entitled to commission @ 8% on net profits after charging commission. Find the
amount of commission due to the manager.

Correct Answer

Rs.8,279.63

Your Answer

Rs.8,942/-

Match The Following

Question

Correct Answer

Your Answer

Total cost

Cost of finished goods

Cost of finished goods

Non operating income

Profit on sale of investment

Profit on sale of investment

Selling and distribution overheads

Advertisement expenses

Advertisement expenses

Factory overheads

Repair for factory building

Repair for factory building

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10/3/21, 7:02 PM SCDL Solved Assignments and Sample Papers: Management Accounting - 1

True/False

Question

Control on purchase of material is exercised by the storekeeper.

Correct Answer

False

Your Answer

True

Multiple Choice Single Answer

Question

A company wishes to earn a 15% profit margin on selling price when quoting for a job. Which of
the following is the profit margin of cost which will achieve the required profit margin ?

Correct Answer

0.1765

Your Answer

0.15

Select The Blank

Question

Economical use of labour, materials and facilities can achieved with the help of ________.

Correct Answer

Budgetary control

Your Answer

Cost control

at
6:32 AM

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