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Online Examination:
Section - I Instructions:
- While attempting subjective examination Text formatting facility will be disabled such as use of bullets,
making the text bold, underlining the text etc. Only normal character on the key board will be available.
- Special characters available on the keyboard will be allowed.
- Students can not attempt more than 2 questions out of given 3.
- A blank (space typed) or any entry in the space provided will be considered as question is answered.
- Hand written answers are not allowed. Subjective test can be answered by using key board.
- No brail support shall be provided, but writer assistance shall be allowed. The student has to intimate it to
SCDL well in advance by completing applicable formalities.
- Answers for both the questions should not exceed more than 110 words. The maximum word limit per
answer is 55 words (for Subjective part).
Page 1 of 7
SCDL
1) Explain with example the difference between Controllable Cost and Uncontrollable Cost.
(5)
A clear-cut distinction between controllable and uncontrollable costs may not be possible. Controllable
cost indicates that cost, which can be controlled by a specific number of person(s) in the organisation. For
example, a person in charge of a responsibility center may be in the position to control the costs in relation
to that responsibility center. Uncontrollable cost indicates that cost, which cannot be controlled by a
specific number of person(s) in the organisation. For example, the costs relating to one responsibility
center cannot be controlled by a person who is in-charge of another responsibility center.
2) What does the comparative study of Halsey and Rowan System of total wages reveals?
(5)
A comparative study of total wages under both these systems reveals that if time saved is less than 50% of
the standard time, Rowan system assures more wages than those under Halsey system. But if time saved
exceeds 50% of the standard time, Halsey system proves to be more beneficial. In Rowan System, a less
efficient worker gets the same bonus as a more efficient worker. As such, the Rowan System may be
implemented in case of loose fixation of standards. The fall in bonus, as time saved increases, offsets the
damage done by loose standards.
Following steps are involved in the process of establishing the standards: (a) Study of technical and
operational details of the organisation, such as the manufacturing process, levels of managements and
their responsibilities, units and nature of inputs and outputs, details regarding wastes and losses, expected
efficiency and capacity utilisation etc. (b) Study of existing cost accounting systems and formats in use. (c)
Decision about the types of standards to be used.
Section 1 is complete.
Section - II Instructions:
Page 2 of 7
SCDL
Total Questions : 27
Total Marks : 60
3) One of the objective of the cost accountancy is presentation of statistical data or available information,
which is most important part, in what way it helps to the business organization
(2)
1] It helps in manipulation of files.
2] It helps to understand day to day business
3] It helps to reduce the workload in the business organization
4] It helps in decision making at managerial level
4) Insurance' is example of 'Expenses', which is one of the Element of costs, if it true, which justification is
true regarding this
(2)
1] This is the cost of services provided to the organization
2] This is the cost of commodities used by the organization
3] This is the profit decreasing factor.
4] Insurance cannot be the example of 'Expenses' which is one of the element of costs
5) In which category will you classify the provision for income tax as it is not as a part of regular operations
of the organization?
(2)
1] Non operating/Financial Investment
2] Operating financial Investment
3] Non-operating/Financial Expenses
4] Operating financial Expenses
Page 3 of 7
SCDL
6) Employees who are actually get involved in manufacturing process, gets remuneration. That is known as
indirect labour cost in manufacturing process.
(1)
1] True
2] False
7) In a good wage payment system, :BLANK should be imposed on the wages which can be earned by an
efficient worker.
(1)
1] No lower Limit
2] No middle Limit
3] No upper Limit
4] No average Limit
8) In the functional area of management , budget to be prepared takes the form of personnel budget, in this
personnel budget consideration is also required to be made of the overtime working or shift working.
(1)
1] True
2] False
10) Ledger or general ledger maintains all types of accounts broadly named as
(2)
1] real,personal,nominal
2] actual ,nominal
3] recurring
4] saving account
11) What can be predicted regarding the degree of controllability over the cost in a very broad sense
(4)
1] The variable costs are controllable at the top level management.
2] The fixed costs are controllable at lower level management
3] The variable costs are controllable at lower level management
4] The fixed costs are controllable at top level management
12) In the process of ascertaining the material cost :BLANK are also involved, which affects the material
cost, either directly or indirectly.
(1)
1] All the documents of accounting
2] A whole lot of organizational procedures
3] Both opening & closing stocks
4] Consumer's all comments
13) Directly required or Indirectly required type of classification is not possible in case of the commodities
Page 4 of 7
SCDL
15) The success of procedures to control the overheads depend upon the classification of the overhead. From
which angles this classification can be done
(4)
1] Function- wise classification
2] Variability-wise classification
3] Normality-wise classification
4] Production process-wise classification
16) Which sentence does explain the nature of the Semi-variable Overheads
(2)
1] These overheads are uncontrollable in nature.
2] These overheads indicate the costs which vary directly in proportion to volume of output.
3] These overheads are Indirect in nature.
4] These overheads may remain fixed at certain level of activity while may vary proportionately at other
levels of activity
17) If the organization follows the policy of considering predetermined overhead absorption rates, the
situation of under absorption arises :BLANK
(1)
1] If the overheads absorbed are less than the actual overheads.
2] If the overheads absorbed are more than the actual overheads.
3] There is no situation like under absorption or over absorption as such.
4] When overheads absorbed and actual overheads match.
18) From the given options which is one of the basic assumption on which the entire technique of the
marginal costing is based
(2)
1] Whatever sold by the organization can not be sold off entirely.
2] Per Unit selling price remains constant at all the levels of activities.
3] Per Unit selling price frequently changes as the levels of activity changes.
4] There are so many variations due to stock.
Page 5 of 7
SCDL
19) In the process of Marginal costing, the closing stock of finished goods and semi-finished goods is valued
:BLANK
(1)
1] Without considering the variable cost
2] After considering variable costs only.
3] After considering variable costs as well as fixed costs also.
4] Starting at zero balance.
20) By preparing the cash budget, it is possible to predict excess or shortage of cash,. If the excess cash is
estimated, what can be happened in general
(2)
1] It may be distributed as a profit.
2] It may be possible to explore the investment opportunities.
3] It may be used to recover the fixed cost in short run.
4] It may be distributed as a fixed cost.
21) Adjusted Profit/Loss Methods of preparing the cash budget is useful for which type of estimates
(2)
1] This method is useful for long term estimates.
2] This method is useful for short term estimates.
3] This method means statement of expenses only
4] Nothing can be answered.
22) From the given options , which statements shows nature of 'Expected standards'
(4)
1] These standards are more realistic in nature.
2] These standards are more theoretical in nature.
3] They are not useful from cost control point of view.
4] They are more useful from the cost control point of view.
24) Budgets are the ceiling or limits on expenses above which actual expenditure should not normally exceed
and if it does:BLANK
(1)
1] The scope of budget will become more wider.
2] Actual performance will get affected
3] The planned profits will be reduced
4] Actual performance will not get affected
25) A more searching analysis is required to be made in case of standard costing variances than in case of
budgetary control variances.
(1)
Page 6 of 7
SCDL
1] True
2] False
26) Records of the past performance, is one of the factors, which should be taken in to consideration as a
basis, while deciding Labour Efficiency Standards.
(1)
1] True
2] False
Section 2 is complete.
Page 7 of 7