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Cost and Management Accounting Test

1. This document contains a test on cost and management accounting with 5 multiple choice questions and 5 true/false questions. It tests concepts like responsibility centers, budgeting approaches, budgetary control, and key limiting factors. 2. The multiple choice questions test calculations related to raw material budgets, master budgets, production budgets, and variances. 3. The true/false questions cover topics such as the purpose of budgetary control, characteristics of different budget types, and whether a key limiting factor can change over time.

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Amit Dalal
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56 views2 pages

Cost and Management Accounting Test

1. This document contains a test on cost and management accounting with 5 multiple choice questions and 5 true/false questions. It tests concepts like responsibility centers, budgeting approaches, budgetary control, and key limiting factors. 2. The multiple choice questions test calculations related to raw material budgets, master budgets, production budgets, and variances. 3. The true/false questions cover topics such as the purpose of budgetary control, characteristics of different budget types, and whether a key limiting factor can change over time.

Uploaded by

Amit Dalal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Roll No_P40167

INSTITUTE OF RURAL MANAGEMENT, ANAND


COURSE: COST AND MANAGEMENT ACCOUNTING
TEST-3/ ET40-3/TERM-III
Time: 15 Minutes Weightage: 7.50% Full Marks: 15
1. Attempt all questions. 2. Marks will not be awarded in the absence of working, to be shown clearly
by indicating respective question number with its part 3. Late submission attracts a penalty @10% of
full marks.
Q.1 Fill in the blanks: [5]
1. A unit/function which is answerable for cost and revenue is known as a ___ __________ centre.
2. A function/unit which has to achieve committed sales with targeted revenue and is not answerable
for anything else in the organisation is known as ______centre.
3. Budgeting can be done in a conventional way or by adhering to zero base; these are known as
____________________of budgeting.
4. When a process implemented in an organisation ensures that budgeted results are most likely to
be
achieved due to day-to-day monitoring, it is known as ______________________________.
5. When a limiting factor compels an organisation to base its budget on it, such a factor is known as
_______________Key factor__________________________.
Q.2 Mark True / False (T / F) in the following statements. [5]

[Link]. Particulars T/F


1. Budgetary control is implemented to work out flexible budget and find T
out variances from actual performance.
2. A fixed budget is concerned with acquisition of fixed assets. F

3. A static budget provides flexibility in a budget to compare with actual F


performance for a given period.
4. A key limiting factor may not remain same every year in an organisation. T

5. A budget which is prepared to provide for capital expenditure in a F


budget period is known as CAPEX budget.

Q.3 Select correct answer in each of the following: [5]

1. Opening stock of a raw material is 32,000 kg; budgeted purchases during the year were 2,00,000 kg
and consumption for the year is 2,16,000 kg. remaining quantity of materials will be –
(a) 10,000 (b) 2,16,000 (c) 16,000

2. A master budget is a projected plan of action in – (a) physical units (b) monetary terms (c)
physical units and monetary terms.

3. Budgeted production of an item is 3,00,000 units, closing stock and sales are 50,000 and 3,20,000
units respectively. Op. stock units will be – (a) 74,000 (b) 5,000 (c) 50,000 (d) None.

4. Opening and closing stock of a raw material in an industrial organisation is 20,000 and 40,000 kg
respectively. If consumption is 1,30,000 kg, purchases will be _110000_.

5. A budget states Rs. 50,000 as variable cost and Rs. 20,000 as fixed cost for a month for 5,000 kg of
production of an item. What will be a total variance if actual production remains at 4,000 kg with
variable cost @ Rs. 11/kg with no change in fixed cost?
In case of static budget Rs.______________ In case of flexible budget Rs.______________.
Q1
1) Investment
2) Revenue
3) Zero based budgeting
4) Budgeting control
5) Principal limiting factor
Q2
1) T
2) F
3) F
4) T
5) T
Q3
1) C
2) C
3) D
4) 110000
5)

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