Cost and Managerial Accounting

211. ______________ budget is designed to remain unchanged irrespective of the volume of output or turnover attained.

  1. Master
  2. Fixed
  3. Flexible
  4. all of these
Correct answer: (B)
Fixed

212. Efficiency Ratio=

  1. Number of actual working days in a period x 100
    Number of working days in the budget period
  2. Actual hours worked x 100
    Budgeted hours
  3. Standard hours for actual production x 100
    Actual hours worked
  4. Standard hours for actual production x 100
    Budgeted standard hours
Correct answer: (C)

Standard hours for actual production x 100
Actual hours worked

213. Standard cost is a ______________ cost

  1. Predetermined
  2. historical
  3. actual
  4. final
Correct answer: (A)
Predetermined

214. Volume variance is divided into ______________

  1. Capacity variance, calendar variance andExpenditure variance
  2. Capacity variance, calendar variance and efficiency variance
  3. Capacity variance, expenditure variance and efficiency variance
  4. Calendar variance, expenditure variance and efficiency variance
Correct answer: (B)
Capacity variance, calendar variance and efficiency variance

215. Material Price Variance = Actual Usage ( ______________ )

  1. Standard price
  2. Standard unit price-actual unit price
  3. Actual price
  4. Standard usage
Correct answer: (B)
Standard unit price-actual unit price

216. An unfavourable material price variance occurs because of:

  1. Price increase in raw materials
  2. Price decrease in raw materials
  3. Less than anticipated normal wastage in the manufacturing process
  4. More than anticipated normal wastage in the manufacturing process
Correct answer: (A)
Price increase in raw materials

217. ______________ is an example of short-term budget

  1. Cash budget
  2. Capital expenditure budget
  3. Material budget
  4. Both a & c
Correct answer: (D)
Both a & c

218. The control ratios used by the management to know whether the deviations of the actual performance from the budgeted performance are favourable or unfavourable are ______________

  1. Capacity ratio, activity ratio
  2. Efficiency ratio, calendar ratio
  3. Both a & b
  4. None of the above
Correct answer: (C)
Both a & b

219. The scope of cost accounting include ______________, and ______________

  1. Cost ascertainment, cost presentation, cost control
  2. tax planning, tax accounting, financial accounting
  3. presentation of accounting information, creation of policy, day-to day operation
  4. none of the above
Correct answer: (A)
Cost ascertainment, cost presentation, cost control

220. Service costing is used in industries producing ______________

  1. Products
  2. service
  3. both a & b
  4. none of these
Correct answer: (B)
service
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