Quiznetik

Cost and Management Accounting | Set 2

1. One of the most important tools of cost planning is .

Correct : A. budget.

2. Sales budget is a .

Correct : A. Functional budget.

3. The budget which usually takes the form of budgeted profit and loss account and balance sheet is known as

Correct : B. Master budget.

4. Which of the following is usually a long-term budget?.

Correct : D. Capital expenditure budget.

5. The fixed-variable cost classification has `a special significance in the preparation of .

Correct : D. Flexible budget .

6. Preparing budget figures for different levels of activity within a range under flexible budgeting is .

Correct : B. Multi-activity method.

7. What type of budget is designed to take into account forecast change in costs, prices, etc?

Correct : B. Rolling budget.

8. Operation budgets normally cover a period of .

Correct : D. one year or less.

9. The entire process of preparing the budgets is known as .

Correct : C. Budgeting.

10. Budgetary control starts with .

Correct : C. Budgeting.

11. Budget designed to remain constant irrespective of the level of activity attained is called .

Correct : A. Fixed budget.

12. Long-term budgets are prepared for .

Correct : D. 5-10 years.

13. The budget which shows the budgeted quantity of output to be produced during a specific period is.

Correct : D. Production budget

14. Material consumption budget is prepared on the basis of .

Correct : A. Production budget.

15. Material budget consists of two parts, one is the consumption budget and another Is .

Correct : A. Material purchase budget.

16. Materials purchase budget is prepared on the basis of .

Correct : B. Material consumption budget.

17. Labour budget is a part of .

Correct : C. Production budget.

18. Labour budget is prepared by .

Correct : A. Personnel department.

19. Budget of indirect costs in the form of indirect wages, indirect material and indirect expenses in the factory is .

Correct : A. Production overhead budget.

20. The budget prepared to estimate the expenditure to be incurred for planning, organizing, direction and control function of the management is .

Correct : B. Administration overhead budget.

21. The budget prepared to estimate expenditure to be incurred to sell the product and its distribution is .

Correct : C. Selling and distribution overhead budget.

22. The budget prepared to estimate the research and development expenditure to be incurred during a specific period is .

Correct : D. Research and development budget.

23. The budget prepared to estimate the expenditure on fixed assets is known as.

Correct : A. Capital expenditure budget

24. The budget prepared for replacement of assets, expansion of production facilities, adoption of new technologies etc. is .

Correct : A. Capital expenditure budget.

25. A fixed budget is prepared for only .

Correct : A. One level of activity.

26. A flexible budget is prepared for a _.

Correct : B. Range of activity.

27. The budget starts without any base is .

Correct : C. Zero base budgeting.

28. ABC analysis is .

Correct : B. Always Better Control.

29. JIT inventory system is .

Correct : A. . Just In Time.

30. Perpetual inventory system involves .

Correct : A. bincard and stores ledger.

31. FIFO is .

Correct : B. First In First Out.

32. LIFO method of pricing of materials is more suitable when.

Correct : A. material prices are rising.

33. Average method of pricing the material issues is useful when .

Correct : D. material prices are fluctuating.

34. Scrap is .

Correct : A. residue of material.

35. Material is issued by store keeper against.

Correct : A. material requisition.

36. EOQ stands for .

Correct : A. Economic Order Quantity.

37. The document which is prepared after receiving and inspecting material .

Correct : B. goods received note.

38. The budget which reviews a programme or project from ‘scratch’ is

Correct : C. Zero base budgeting.

39. The budget said as ‘resource planning’ and ‘redeployment process’ is .

Correct : A. Zero base budgeting.

40. Expected sales + desired closing stock – estimated opening stock = .

Correct : A. Expected production.

41. In production budget closing stock is added with .

Correct : B. sales.

42. In production budget opening stock is deducted with .

Correct : B. sales.

43. Material consumed is Rs. 5,00,000 Opening stock of raw material is Rs. 50,000 and Closing stock of raw material is Rs. 25,000. What is the cost of raw material purchased?

Correct : B. Rs. 4,75,000.

44. If selling price is Rs. 25,000 and profit is Rs. 5,000 then what is the percentage of profit on cast?

Correct : B. 25%.

45. Material control involves .

Correct : C. purchase of material.

46. Material requisition is meant for .

Correct : B. supply of material from stores.

47. Stock control through stock levels and EOQ is called .

Correct : B. perpetual inventory system.