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

XYZ Ltd. has sufficient idle capacity. It has received an enquiry for the supply of 300
units (packed in better box at an additional cost of Rs.20/- per box). The variable cost
of manufacturing the product is Rs.150/-. The company expects a profit of Rs.6,000/-
from this wholesale offer. What minimum price should it quote for this deal?
a) Rs.150/-
b) Rs.170/-
c) Rs.190/-
d) Rs.200/-
Ans. C
10. select all that apply.
The main advantages of profit sharing are :-
a)____ Employees try to increase productivity
b)____ Incentives are shared by all the employees
c)____ Augments employees' efficiency
d)____ Incentives are shared by the management
Ans. A,b,c
11. select the accurate ans.
SRR Ltd. producing a single product, sells it at Rs.50/- per unit. Unit variable cost is
Rs.35/- and fixed costs amounts to Rs.12,00,000/- per annum. compute the increase
in sales needed if profits are to be increased by Rs.2.4 lakhs
a) Rs.880,000/-
b) Rs.800,000/-
c) Rs.600,000/-
d) Rs.660,000/-
Ans.
12. select the accurate ans.
If the raw material prices are suffering from inflation, which of the subsequent methods
of valuing stocks will provide the least gross profit?
a) First-in-first-out
b) Last-in-first-out
c) Simple avg.
d) Standard cost
Ans.
13. select the accurate ans.
Double entry system of accounting follows the principle of :-
a) Every debit has corresponding credit
b) Every asset has corresponding liability
c) Every expenditure has corresponding income
d) Every profit has corresponding loss
Ans. A
14. An fault of partial omission can be rectified by either debiting or crediting the
________________ account, as the case maybe.
Adjusted profit and loss;Credit;Suspense;Profit and loss
Ans. Suspense
15. select the accurate ans.
Which system involves adoption of identical costing principles, practices and procedures
by the individual firms of an industry?
a) Uniform costing
b) Standard costing
c) Absorption costing
d) Multiple costing
Ans. A
16. Piece rate system is suitable when quality of goods produced is of extreme
importance.
a) actual
b) false
Ans b
17. Match the following:
1. Spirit of mutual trust (2) 1. Scope of uniform costing

Earning:   Approval pending.