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

4. Non-Operating income (4) 4. Cash Budget
5. problem of shares
6. Cash Sales
?4. select all that apply.
You have received tenders from 2 suppliers - X & Co. and Y & Co. The details regarding price and other terms and conditions are as follows : X & Co. : Price Rs.5/- per unit; trade discount 15% and cash discount 4% if bills are paid within a fortnight; freight Rs.2/- per 100 units. Y & Co. : Price Rs.4/- per unit upto 2,000 units; no cash discount but 15% per annum interest is charged if bills are paid within a fortnight from receipt of materials; freight Rs.3/- per 100 units. 10,000 units are needed every month. The organization pays 50% of total monthly bills every fortnight. Compare the total cost for the organization for transacting with X & Co. and Y & Co. and advise the supplier with whom the order should be placed.
a)___ Cost to the organization :Y & Co. -Rs.40,425.94
b)___ Cost to the organization : Y & Co.-Rs.41,850/-
c)___ Order should be placed with Y & Co.
d)___ Total cost is lower with Y & Co.
Ans.
5. A forecast is mere estimate of what is likely to happen, but ____________is the action plan to be followed.
Budget;Estimate;Performance report;Cost report
Ans.
6. select all that apply.
choose the different methods adopted for treatment of under or over absorbed overheads :- a)____ Use of supplementary rates
b)____ Carrying over the amount to remaining period
c)____ Writing off to the Costing Profit and Loss Account
d)____ Writing off to the Financial Profit and Loss Account
Ans.
7. select the accurate ans.
A firm employs ten workers at an hourly rate of Rs.20/-. They worked for 40 hours every and completed the job for which standard time was 48 hours for every worker. compute labour cost for the job under the Rowan Plan.
a) Rs.8,000/-
b) Rs.8,800/-
c) Rs.9,666.67
d) Rs.9,333.33
Ans.d
8. Uniform costing may lead to monopolistic conditions within the industry, prices may be raised and customers may suffer.
a) actual
b) false
Ans.
9. select the accurate ans.
In a certain factory kind A and kind B machines have been designed to produce the identical product but kind A is less automatic than kind B and requires somewhat more labour to operate. Pertinent costs are as follows : kind A : set up cost Rs.400/-; variable cost per unit Rs.4.90. kind B : set up cost Rs.600/-; variable cost per unit Rs.4.40. obtain the level of activity at which the total cost of both these machines will be same?

Earning:   Approval pending.