Symbiosis International Education Centre 2006 Post Graduate Diploma Business Administration Management Accounting - Question Paper

a) Rs.20,000/- (Adverse)
b) Rs.20,000/- (Favourable)
c) Rs.60,000/- (Adverse)
d) Rs.60,000/- (Favourable)
Ans.
MANAGEMENT ACCOUNTING ASSIGNMENT ques.
1. select all that apply
S Ltd. operates a system of standard costing in respect of 1 of its products which is
manufactured within a single cost centre. For 1 unit of product the standard material
input is 20 litres at a standard price of Rs.2/- per litre. The standard wage rate is Rs.6/-
per hour and five hours are allowed to produce 1 unit. Fixed production overhead is
absorbed at the rate of 100% of direct wages cost. During the month just ended the
subsequent occurred : acutal price paid for materials purchased Rs.1.95 per litre; total
direct wages cost was Rs.156,000/- and fixed production overheads was Rs.158,000/-.
Direct material price variance-Rs.8,000/- (Fabourable); direct material usage variance –
Rs.5,000/- (Adverse); direct labour rate variance -Rs.5,760/-(Adverse); direct labour
efficiency variance -Rs.2,760/- (Favourable) and fixed produciton overheads
expenditure variance -Rs.8,000/-(Adverse). compute budgeted output in units for the
month, true hours worked and number of litres purchased during the month.
a)____ Budgeted output - 5,000 units
b)____ true hours worked - 24,040 hours
c)____ Litres purchased - 160,000 litres
d)____ Litres purchased - 157,500 litres
Ans.
2. 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.
a) actual
b) false
Ans. A
3. Purchase of national saving certificates by the company from its profits, should be
debited to _____________ account.
Capital;Savings;Investments;Borrowings
Ans. Investments
4. Variable cost + Profit = Sales.
a) actual
b) false
Ans. B
5. A business is an activity carried out with the intention of earning the profit.
a) actual
b) false
Ans. A
6. select all that apply
Features of material usage variance are :-
a)____ Measures the difference ranging from the volume of materials truly used
and that should have been used.
b)____ Measures the difference ranging from the volume of materials truly
purchased and that should have been purchased.
c)____ Considers standard price X true volume
d)____ Considers standard price X standard volume
Ans. A,c,d

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