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

MANAGEMENT ACCOUNTING ASSIGNMENT ques.
1. select the accurate ans.
Benefits available from revenue expenditure are received in the :-
a) identical year
b) Next year
c) Future year
d) Previous year
Ans. A
2. Bank reconciliation statement must be prepared before the preparation of profit and
loss account and balance sheet.
a) actual
b) false
Ans. A
3. select the accurate ans.
Uniform costing system is useful in the subsequent areas :-
a) Classification of cost accounts
b) Preparing financial statements
c) Completing statutory audit
d) Getting loans
Ans. A
4. Re-order level for materials is determined considering maximum consumption and
maximum delivery period.
a) actual
b) false
Ans. A
5. Profit quantity ratio is also known as ______________________________.
Contribution to cost ratio; Cost to contribution ratio;
Sales to contribution ratio; Contribution to sales ratio
Ans. Contribution to sales ratio
6. select all that apply
Management Accounting is :-
a)____ Designed particularly for internal use
b)____ Helpful in estimating the future along with past period
c)____ Useful in furnishing the necessary info to the management
d)____ A legal requirement.
Ans. A,b,c
7. select the accurate ans.
A textile mill has 2 production departments, spinning and weaving and 2 service
departments, S and R. Variable cots of operating the 2 service departments, their
output and quantum of service rendered to other department is as follows : Department
S : Service rendered to spinning department - 30%, weaving department - 20% and
department R - 50%; variable cost Rs.120,000/- and output -1,000 tons. Department R
: Service rendered to spinning department - 25%, weaving department - 35% and
department S - 40%; variable cost Rs.260,000/- and output - 2,000 tons. compute the
total cost of service received by spinning and weaving departments.
a) Spinning department -Rs.196,000/-; Weaving department -Rs.184,000/-
b) Spinning department -Rs.148,000/-; Weaving department -Rs.169,000/-
c) Spinning department -Rs.169,000/-; Weaving department -Rs.148,000/-
d) Spinning department -Rs.184,000/-; Weaving department -Rs.196,000/-
Ans. D
8. select the accurate ans.
From the provided info calculate the total cost variance. Material cost variance –
Rs.4,400/- (Favourable); labour cost variance -Rs.450/- (Adverse); fixed overhead cost
variance -Rs.22,000/- (Adverse); variable overhead cost variance -Rs.6,000/-(adverse).
a) Rs.32,850/- (Adverse)
b) Rs.32,850/- (Favourable)
c) Rs.24,050/- (Adverse)
d) Rs.24,050/- (Favourable)
Ans. C
9. The final outcome disclosed by trading account is the ___________ profit earned by the

Earning:   Approval pending.