The Institute of Chartered Financial Analysts of India University 2011 C.A Chartered Accountant Chartered Accountancy -Pcc - Mock Test Series 1 - Question Paper

(b) The integrated system of accounting
(c) Both a and b
(d) None of the above.
(vii) What would be the most improper basis for apportioning machinery
insurance costs to cost centres within a factory?
(a) The number of machines in every cost centre
(b) The floor area occupied by the machinery in every cost centre
(c) The value of the machinery in every cost centre
(d) The operating hours of the machinery in every cost centre.
(viii) Under integrated system of accounting, purchase of raw material is
debited to which account,
(a) Purchase Account
(b) Work in progress control account
(c) Raw material control account.
(ix) Labour turnover is measured by
(a) Replacement method
(b) Separation method
(c) Flux method
(d) All of the above.
(x) What do you understand by over absorbed overheads?
(a) When overheads absorbed are more than overheads incurred
(b) When overheads absorbed are less than overheads incurred
(c) When overheads absorbed are equal to overheads incurred
(d) None of the above.
2. (a) Cost Accounting has become an essential tool of Management of a business
concern. discuss the statement.
(b) explain the factors which should be considered before installing a Costing
system in a manufacturing firm.
(c) elaborate the characteristics of a good Costing System.
3. The subsequent info is given by ATLANTA Industries with regard to
the operations of raw material stores for the fortnight of April, 2007:
Material ASH:
Stock on 1-4-2007 100 units at Rs. five per unit.
Purchases
5-4-07 300 units at Rs. 6
8-4-07 500 units at Rs. 7
12-4-07 600 units at Rs. 8
Issues
6-4-07 250 units
10-4-07 400 units
14-4-07 500 units
needed :
(a) compute using FIFO and LIFO methods of pricing problems (you may presume a
nil opening and closing balance of stock on the production floor):
(i) the value of raw materials consumed during the period
(ii) the value of stock of raw materials on 15-4-07.
(b) discuss why the figures in (a) and (b) in part A of this ques. are various

Earning:   Approval pending.